TSE:6622

Stock Analysis Report

Executive Summary

DAIHEN Corporation, together with its subsidiaries, manufactures and sells power products, welding machines, industrial robots, and wireless power transfer systems in Japan.


Snowflake Analysis

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has DAIHEN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6622's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.9%

6622

3.9%

JP Electrical

5.1%

JP Market


1 Year Return

-5.9%

6622

-21.5%

JP Electrical

-10.9%

JP Market

Return vs Industry: 6622 exceeded the JP Electrical industry which returned -25.7% over the past year.

Return vs Market: 6622 exceeded the JP Market which returned -14.8% over the past year.


Shareholder returns

6622IndustryMarket
7 Day5.9%3.9%5.1%
30 Day12.4%-3.0%1.7%
90 Day-19.5%-22.5%-17.6%
1 Year-3.4%-5.9%-19.8%-21.5%-8.6%-10.9%
3 Year-8.1%-14.4%-3.7%-9.3%4.3%-3.0%
5 Year7.5%-4.0%6.5%-3.2%3.7%-7.5%

Price Volatility Vs. Market

How volatile is DAIHEN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

22.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6622 (¥2757) is trading below our estimate of fair value (¥3703.81)

Significantly Below Fair Value: 6622 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6622 is poor value based on its PE Ratio (11.1x) compared to the Electrical industry average (9.7x).

PE vs Market: 6622 is good value based on its PE Ratio (11.1x) compared to the JP market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 6622 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 6622 is overvalued based on its PB Ratio (0.9x) compared to the JP Electrical industry average (0.6x).


Next Steps

Future Growth

How is DAIHEN forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6622's forecast earnings growth (12.6% per year) is above the savings rate (-0.09%).

Earnings vs Market: 6622's earnings (12.6% per year) are forecast to grow faster than the JP market (9.1% per year).

High Growth Earnings: 6622's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6622's revenue (3.4% per year) is forecast to grow faster than the JP market (3.3% per year).

High Growth Revenue: 6622's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6622's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has DAIHEN performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6622 has high quality earnings.

Growing Profit Margin: 6622's current net profit margins (4.4%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 6622's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: 6622's earnings growth over the past year (12.8%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: 6622 earnings growth over the past year (12.8%) exceeded the Electrical industry -4.5%.


Return on Equity

High ROE: 6622's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is DAIHEN's financial position?


Financial Position Analysis

Short Term Liabilities: 6622's short term assets (¥92.4B) exceed its short term liabilities (¥47.5B).

Long Term Liabilities: 6622's short term assets (¥92.4B) exceed its long term liabilities (¥28.2B).


Debt to Equity History and Analysis

Debt Level: 6622's debt to equity ratio (42%) is considered high.

Reducing Debt: 6622's debt to equity ratio has reduced from 44.1% to 42% over the past 5 years.

Debt Coverage: 6622's debt is not well covered by operating cash flow (15.5%).

Interest Coverage: 6622 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is DAIHEN's current dividend yield, its reliability and sustainability?

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6622's dividend (2.9%) is higher than the bottom 25% of dividend payers in the JP market (1.76%).

High Dividend: 6622's dividend (2.9%) is low compared to the top 25% of dividend payers in the JP market (4.09%).


Stability and Growth of Payments

Stable Dividend: 6622's dividends per share have been stable in the past 10 years.

Growing Dividend: 6622's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.3%), 6622's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Tetsuya Tajiri (64yo)

no data

Tenure

Mr. Tetsuya Tajiri has been the President of DAIHEN Corporation since June 2009 and serves as its Chief Executive Officer. Mr. Tajiri served as Managing Executive Officer, Director of Business Planning and ...


Leadership Team

NamePositionTenureCompensationOwnership
Tetsuya Tajiri
CEO, President & Representative Directorno datano data0.057% ¥40.1m
Kazuo Kamo
Executive VP & Director10.83yrsno data0.032% ¥22.9m
Koichi Igarashi
Senior Vice Presidentno datano datano data
Shigekazu Koshino
Senior EVP & Representative Director10.83yrsno data0.012% ¥8.6m
Yoshio Kondo
Executive Vice Presidentno datano datano data
Keiki Morimoto
Senior VP & Director4.83yrsno data0.0040% ¥2.9m
Shoichiro Minomo
Senior VP & Director6.83yrsno data0.0040% ¥2.9m
Shingo Wada
Senior Vice President3yrsno datano data
Ichiro Yamano
Senior Vice President1.25yrsno datano data
Kentaro Kaneko
Senior Vice President3yrsno datano data

3.0yrs

Average Tenure

61yo

Average Age

Experienced Management: 6622's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tetsuya Tajiri
CEO, President & Representative Directorno datano data0.057% ¥40.1m
Kazuo Kamo
Executive VP & Director10.83yrsno data0.032% ¥22.9m
Shigekazu Koshino
Senior EVP & Representative Director10.83yrsno data0.012% ¥8.6m
Keiki Morimoto
Senior VP & Director4.83yrsno data0.0040% ¥2.9m
Shoichiro Minomo
Senior VP & Director6.83yrsno data0.0040% ¥2.9m
Haruhisa Kimura
Senior VP & Director1.25yrsno datano data
Haruo Urata
12.83yrsno datano data
Naoki Urai
Standing Auditor1.25yrsno data0.012% ¥8.6m
Kusuo Sanjo
External Director8.83yrsno datano data
Keiichi Ando
Director1.25yrsno datano data

7.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 6622's board of directors are considered experienced (7.8 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.


Top Shareholders

Company Information

DAIHEN Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DAIHEN Corporation
  • Ticker: 6622
  • Exchange: TSE
  • Founded: 1919
  • Industry: Heavy Electrical Equipment
  • Sector: Capital Goods
  • Market Cap: JP¥70.786b
  • Shares outstanding: 24.71m
  • Website: https://www.daihen.co.jp

Number of Employees


Location

  • DAIHEN Corporation
  • 2-1-11 Tagawa
  • Yodogawa-ku
  • Osaka
  • 532-8512
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6622TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992

Biography

DAIHEN Corporation, together with its subsidiaries, manufactures and sells power products, welding machines, industrial robots, and wireless power transfer systems in Japan. It offers transformers, power distribution equipment, distribution equipment for electric power companies, and solar inverters; and welding/cutting machines comprising CO2/MAG, TIG, MIG, DC/AC, plasma welding and cutting, submerged arc, and resistance welding machines, as well as welding and cutting torches, peripheral devices for welding, thermal spray machines, and welding accessories. The company also provides robots, teach pendants, sensors for robot welding, positioners and sliders, PC software, and welding power sources and welding peripherals for robots. In addition, it offers RF/MW generators and automatic matching units for plasma applications; clean transfer robots; and wireless power transfer systems for power. Further, the company manufactures electronic devices, luminaire stabilizers, calorifiers, switches, housing equipment, distribution and control panels, monitoring and control systems, etc.; control and telecommunications equipment, and RF generators; hot charge; ballasts for discharge lamps; and material handling equipment for semiconductor and flat panel manufacturing systems, as well as software. Additionally, it is involved in the installation, repair, inspection, maintenance, and remodeling of welding machines, cutting machines, and industrial robots, as well as transformers and switchgear systems; manufacture, processing, and coating of transformer parts; dispatch of personnel; welding works; provision of freight transportation, warehousing, and cargo handling contract services, as well as health, welfare, and pension work for employees; and management of sports facilities. The company was formerly known as Osaka Transformer Co., Ltd. and changed its name to DAIHEN Corporation in December 1985. DAIHEN Corporation was founded in 1919 and is headquartered in Osaka, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 16:30
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.