Daiwa Motor Transportation Hits Day Low at JPY 1,430 Amid Price Pressure

Daiwa Motor Transportation Co., Ltd. experienced significant volatility on October 8, 2025, with the stock declining by 17.61% and reaching an intraday low of JPY 1,430.00. This sharp drop comes amid a challenging performance landscape, as the company has struggled with low management efficiency, reflected in a Return on Capital Employed (ROCE) of just 0.11%.
Over the past year, Daiwa has shown a remarkable return of 102.21%, significantly outperforming the Japan Nikkei 225, which recorded a 21.91% increase. However, the company's long-term growth prospects appear limited, with net sales growing at an annual rate of only 3.51% and operating profit declining by 189.62% over the last five years.

Daiwa's financial metrics indicate a high debt burden, with a debt-to-equity ratio of 0.86, raising concerns about its financial stability. Despite a high dividend yield of 0.05%, the stock is trading at a premium compared to its peers, with a price-to-earnings ratio of 67.00. As the market continues to react to these developments, Daiwa Motor Transportation's performance remains under scrutiny.