Dainichi Co., Ltd. (5951) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nippon Dry-Chemical Co., Ltd.

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Freund Corp.

Seiko Electric Co., Ltd.

Kimura Kohki Co., Ltd.

Dainichi Co., Ltd.

Kitagawa Corp.

Kimura Chemical Plants Co., Ltd.

PEGASUS Co., Ltd.

Toyo Machinery & Metal Co., Ltd.

NPC, Inc. (Japan)

Why is Dainichi Co., Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Operating profit has grown by an annual rate 45.49%

With a growth in Operating Profit of 25.09%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 5.72%
RAW MATERIAL COST(Y) Fallen by -11.9% (YoY)
CASH AND EQV(HY) Highest at JPY 17,576.35 MM

With ROE of 4.16%, it has a very attractive valuation with a 0.45 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 59.73%, its profits have risen by 30.7% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 59.73% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dainichi Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Dainichi Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Dainichi Co., Ltd.

-100.0%

2.30

24.48%

Japan Nikkei 225

38.94%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.12%

EBIT Growth (5y)

45.49%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.74

Tax Ratio

26.03%

Dividend Payout Ratio

30.67%

Pledged Shares

Institutional Holding

ROCE (avg)

11.15%

ROE (avg)

4.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.45

EV to EBIT

-1.38

EV to EBITDA

-0.89

EV to Capital Employed

-0.12

EV to Sales

-0.08

PEG Ratio

0.35

Dividend Yield

0.08%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

4.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

ROCE(HY)

Highest at 5.72%

RAW MATERIAL COST(Y)

Fallen by -11.9% (YoY

CASH AND EQV(HY)

Highest at JPY 17,576.35 MM

NET SALES(Q)

Highest at JPY 11,312.33 MM

OPERATING PROFIT(Q)

Highest at JPY 2,422.66 MM

OPERATING PROFIT MARGIN(Q)

Highest at 21.42 %

PRE-TAX PROFIT(Q)

Highest at JPY 2,329.49 MM

NET PROFIT(Q)

Highest at JPY 1,674.27 MM

EPS(Q)

Highest at JPY 103.45

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Dainichi Co., Ltd.

Net Sales

Highest at JPY 11,312.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 2,422.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 21.42 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 2,329.49 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,674.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 103.45

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 17,576.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 173.63 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Dainichi Co., Ltd.

Non Operating Income

Highest at JPY 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income