Daisyo Corporation (9979) AI Stock Analysis

• Market Cap: ¥24.93B
• Dividend Yield: 1.2%
• Average Volume (3M): 31.61K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.44
• Revenue Growth: 3.89%
• EPS Growth: -12.08%
• Country: JP
• Employees: 1,594
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.95
• Shares Outstanding: 21,198,961
• 10 Day Avg. Volume: 36,040
• 30 Day Avg. Volume: 31,613
• PEG Ratio: -1.77
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 19.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,231.00 ▲(6.49% Upside)

The score is driven primarily by improving fundamentals (revenue acceleration, restored profitability, and reduced leverage), tempered by still-thin margins and uneven cash-flow quality. Technical indicators are broadly neutral, and valuation is only moderately supportive given the ~20.7 P/E and low dividend yield.

Positive Factors

Revenue Growth

Daisyo Corporation's strong revenue growth indicates an expanding market presence and successful brand strategies, enhancing its competitive position.

Cash Flow Improvement

The shift to positive free cash flow reflects improved financial health, providing more resources for reinvestment and debt reduction.

Profitability Recovery

Improved profitability margins suggest effective cost management and pricing strategies, supporting long-term financial stability.

Negative Factors

Inconsistent Historical Performance

Inconsistent past performance raises concerns about the company's ability to sustain current growth and profitability trends over the long term.

Equity Ratio Decline

A declining equity ratio may indicate increasing reliance on debt, which could limit financial flexibility and increase risk.

Profitability Challenges

Past difficulties in sustaining profitability suggest potential vulnerability to market fluctuations and operational inefficiencies.

Daisyo Corporation Business Overview & Revenue Model

Company Description

Daisyo Corporation operates a chain of restaurants in Japan. It also operates a bar, a café, and a bakery; engages in sushi and meat businesses; and distributes food ingredients to restaurants. Daisyo Corporation was founded in 1968 and is based in Tokyo, Japan.

How the Company Makes Money

Daisyo Corporation generates revenue primarily through its restaurant operations. The company operates numerous dining establishments under different brand names, each targeting specific customer segments and culinary preferences. Revenue streams include direct sales from food and beverages consumed at their restaurants, as well as takeaway and delivery services offered through certain outlets. The company may also derive income from franchise operations, where it licenses its brand and business model to franchisees. Additionally, Daisyo Corporation benefits from strategic partnerships with suppliers and other stakeholders in the food and beverage industry, which can contribute to cost efficiencies and enhance profitability.

Daisyo Corporation Financial Statement Overview

Summary

Strong revenue growth and a clear return to profitability in 2024–2025, alongside improved leverage (debt-to-equity down to ~0.78x) and positive ROE (~10.4%). Offsetting this, net margins remain thin (~2.2%), net income fell in 2025 despite higher sales, and cash-flow quality is still somewhat volatile with modest cash conversion.

Income Statement

Revenue growth has been strong in the last two annual periods (2024: +11.2%, 2025: +52.4%), and profitability has clearly rebounded from losses in 2021–2023 to positive earnings in 2024–2025. Gross margin has been fairly stable in the high-30% range recently, supporting the turnaround. The key weakness is that bottom-line profitability remains thin (2025 net margin ~2.2%) and net income declined in 2025 versus 2024 despite higher sales, suggesting cost pressure and/or heavier operating expenses.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity falling from elevated levels in 2022–2024 (roughly 1.3–1.6x) to ~0.78x in 2025, and equity has grown alongside the recovery. Returns on equity are now positive (2025 ~10.4%), after being negative in 2021–2023, indicating a repaired earnings base. The main risk is that the business is coming off a period of weak profitability and higher leverage, so the balance sheet is better but not yet “bulletproof” if margins compress again.

Cash Flow

Cash generation has improved with the turnaround: operating cash flow increased in 2025 and free cash flow was positive in 2024–2025. However, cash conversion is still not consistently strong—free cash flow is only about ~59% of net income in 2025, and operating cash flow relative to sales remains modest. The history also shows volatility (negative free cash flow in 2021 and 2023), which keeps the cash-flow quality score below the income statement recovery.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	52.28B	52.56B	50.59B	45.49B	35.80B	35.43B
Gross Profit	20.21B	20.34B	19.65B	18.44B	15.71B	12.78B
EBITDA	2.21B	2.50B	2.41B	104.00M	622.00M	-3.71B
Net Income	1.30B	1.17B	1.33B	-769.00M	-769.00M	-4.87B
Balance Sheet
Total Assets	28.95B	29.52B	33.52B	33.19B	33.74B	35.13B
Cash, Cash Equivalents and Short-Term Investments	4.83B	5.39B	9.01B	8.16B	8.28B	6.87B
Total Debt	8.83B	8.81B	13.98B	14.75B	15.30B	16.39B
Total Liabilities	17.73B	18.24B	23.12B	23.70B	23.67B	23.99B
Stockholders Equity	11.22B	11.29B	10.40B	9.48B	10.06B	11.14B
Cash Flow
Free Cash Flow	0.00	1.28B	714.00M	-462.00M	2.61B	-7.69B
Operating Cash Flow	0.00	2.15B	1.54B	784.00M	3.40B	-6.47B
Investing Cash Flow	0.00	295.00M	370.00M	-372.00M	-665.00M	1.84B
Financing Cash Flow	0.00	-5.47B	-1.04B	-544.00M	-1.38B	331.00M

Daisyo Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1156.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9979, the sentiment is Positive. The current price of 1156 is below the 20-day moving average (MA) of 1171.10, above the 50-day MA of 1154.44, and above the 200-day MA of 1151.41, indicating a bullish trend. The MACD of 11.45 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 75.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9979.

Daisyo Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7678	65 Neutral	¥25.95B	60.86	―	―	―	―
9979	63 Neutral	¥24.93B	23.00	―	1.20%	3.89%	-12.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3178	60 Neutral	¥24.91B	24.88	―	0.81%	0.32%	10.22%
2882	57 Neutral	¥23.57B	152.15	―	0.78%	8.86%	-17.71%
9850	52 Neutral	¥23.17B	67.59	―	0.62%	7.64%	-65.84%

Daisyo Corporation Corporate Events

Daisyo Posts Higher Sales but Sharp Profit Decline in First Quarter

Daisyo Corporation reported a modest 1.8% year-on-year increase in consolidated net sales to ¥12,791 million for the first quarter of the fiscal year ending August 2026, but profitability weakened, with operating profit down 22.9% to ¥76 million, ordinary profit down 12.6% to ¥86 million, and profit attributable to owners of parent dropping 68.1% to ¥41 million. Despite the earnings slump and a slight reduction in total assets to ¥28,352 million, the company’s financial position remained relatively stable, with net assets of ¥11,182 million and an improved capital adequacy ratio of 39.4%, suggesting a solid equity base even as earnings pressure may weigh on near-term returns and shareholder payouts; no first-quarter dividend was declared.

The most recent analyst rating on (JP:9979) stock is a Hold with a Yen1185.00 price target. To see the full list of analyst forecasts on Daisyo Corporation stock, see the JP:9979 Stock Forecast page.