Daido Metal (TSE:7245) - Share price, News & Analysis

7245 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	5/6

7245 Stock Overview

Daido Metal Co., Ltd. ,together with its subsidiaries, manufactures and sells bearings in Japan, North America, Europe, Asia, China, and internationally.

Rewards

Trading at 37.1% below our estimate of its fair value

Earnings grew by 1724% over the past year

Risk Analysis

Earnings have declined by 7.6% per year over past 5 years

Has a high level of debt

Unstable dividend track record

Daido Metal Competitors

Aisin

TSE:7259

JP¥1.1t

Stanley Electric

TSE:6923

JP¥362.0b

Riken

TSE:6462

JP¥23.0b

Honeywell International

NasdaqGS:HON

US$129.2b

Price History & Performance

Summary of all time highs, changes and price drops for Daido Metal
Historical stock prices
Current Share Price	JP¥511.00
52 Week High	JP¥671.00
52 Week Low	JP¥499.00
Beta	0.55
1 Month Change	-7.93%
3 Month Change	-17.71%
1 Year Change	-12.20%
3 Year Change	-25.62%
5 Year Change	-46.99%
Change since IPO	-25.62%

Shareholder Returns

	7245	JP Auto Components	JP Market
7D	1.2%	0.7%	0.7%
1Y	-12.2%	-7.7%	-2.9%

Return vs Industry: 7245 underperformed the JP Auto Components industry which returned -7.7% over the past year.

Return vs Market: 7245 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7245's price volatile compared to industry and market?
7245 volatility
7245 Average Weekly Movement	4.0%
Auto Components Industry Average Movement	5.0%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.1%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 7245 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7245's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1939	6,795	Seigo Hanji	https://www.daidometal.com

Daido Metal Co., Ltd. ,together with its subsidiaries, manufactures and sells bearings in Japan, North America, Europe, Asia, China, and internationally. It offers metal-polymer plain bearings used in various applications, including office equipment, construction equipment, high-speed vehicles, trains, domed stadiums, and others, as well as hydro, thermal, and nuclear power plants. The company also provides metallic bearings; engine bearings, such as half shell bearings, bushings, thrust washers, and turbocharger bearings for use in passenger cars, buses, construction machinery, and race cars; and turbomachinery bearing systems comprising turbine and supercharger bearings for marine engines, power-generating turbine bearings, waterwheels for generator and water treatment pump bearings, and compressor and pump bearings.

Daido Metal Fundamentals Summary

How do Daido Metal's earnings and revenue compare to its market cap?
7245 fundamental statistics
Market Cap	JP¥23.90b
Earnings (TTM)	JP¥1.90b
Revenue (TTM)	JP¥104.02b

12.6x

P/E Ratio

0.2x

P/S Ratio

Is 7245 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7245 income statement (TTM)
Revenue	JP¥104.02b
Cost of Revenue	JP¥77.27b
Gross Profit	JP¥26.76b
Other Expenses	JP¥24.86b
Earnings	JP¥1.90b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	40.55
Gross Margin	25.72%
Net Profit Margin	1.82%
Debt/Equity Ratio	79.3%

How did 7245 perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

61%

Payout Ratio

Valuation

Is Daido Metal undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

37.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 7245 (¥511) is trading below our estimate of fair value (¥812.69)

Significantly Below Fair Value: 7245 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 7245 is poor value based on its PE Ratio (12.6x) compared to the JP Auto Components industry average (9x).

PE vs Market: 7245 is poor value based on its PE Ratio (12.6x) compared to the JP market (12.2x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7245's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7245's PB Ratio (0.4x) is in line with the JP Auto Components industry average.

Future Growth

How is Daido Metal forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.4%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Daido Metal has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Daido Metal performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-7.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7245 has high quality earnings.

Growing Profit Margin: 7245's current net profit margins (1.8%) are higher than last year (0.1%).

Past Earnings Growth Analysis

Earnings Trend: 7245's earnings have declined by 7.6% per year over the past 5 years.

Accelerating Growth: 7245's earnings growth over the past year (1724%) exceeds its 5-year average (-7.6% per year).

Earnings vs Industry: 7245 earnings growth over the past year (1724%) exceeded the Auto Components industry 35.9%.

Return on Equity

High ROE: 7245's Return on Equity (3.6%) is considered low.

Financial Health

How is Daido Metal's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7245's short term assets (¥85.9B) exceed its short term liabilities (¥65.4B).

Long Term Liabilities: 7245's short term assets (¥85.9B) exceed its long term liabilities (¥32.0B).

Debt to Equity History and Analysis

Debt Level: 7245's net debt to equity ratio (45.8%) is considered high.

Reducing Debt: 7245's debt to equity ratio has reduced from 117.7% to 79.3% over the past 5 years.

Debt Coverage: 7245's debt is well covered by operating cash flow (24.2%).

Interest Coverage: 7245's interest payments on its debt are well covered by EBIT (10.8x coverage).

Balance Sheet

Dividend

What is Daido Metal current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7245's dividend (4.89%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 7245's dividend (4.89%) is in the top 25% of dividend payers in the JP market (3.7%)

Stability and Growth of Payments

Stable Dividend: 7245's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7245's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61.4%), 7245's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.7%), 7245's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Seigo Hanji (79 yo)

no data

Tenure

JP¥101,000,000

Compensation

Mr. Seigo Hanji serves as the Chief Executive Officer of Daido Metal Co. Ltd. Mr. Hanji served as the President of Daido Metal Co., Ltd. since June 1995 and Daido Metal America CORP.since December 1996. I...

CEO Compensation Analysis

Compensation vs Market: Seigo's total compensation ($USD789.92K) is below average for companies of similar size in the JP market ($USD1.16M).

Compensation vs Earnings: Seigo's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 7245's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: 7245's board of directors are seasoned and experienced ( 10.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31