| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3091.67 | -11 |
| Intrinsic value (DCF) | 1858.82 | -46 |
| Graham-Dodd Method | 1662.28 | -52 |
| Graham Formula | 1054.32 | -70 |
Daiseki Co., Ltd. is a leading Japanese industrial waste management and resource recycling company headquartered in Nagoya. Founded in 1945, Daiseki specializes in the treatment and recycling of industrial waste, including waste oil, sludge, and other hazardous materials. The company also develops and sells concrete and plastic release agents, rustproofing agents, and industrial lubricants. Additionally, Daiseki provides environmental research and analysis services, soil restoration, and recycling solutions for waste plasterboard and used batteries. Operating in Japan's highly regulated waste management sector, Daiseki plays a critical role in sustainable industrial practices, aligning with global environmental standards. With a strong focus on circular economy principles, the company ensures efficient resource utilization while minimizing environmental impact. Its diversified service portfolio and long-standing expertise position it as a key player in Japan's industrial waste treatment industry.
Daiseki Co., Ltd. presents a stable investment opportunity with its strong market position in Japan's industrial waste management sector. The company benefits from consistent revenue streams due to regulatory-driven demand for waste treatment and recycling services. With a market capitalization of ¥171.4 billion, Daiseki demonstrates financial stability, supported by a net income of ¥9.3 billion and robust operating cash flow of ¥13.8 billion. Its low beta (0.327) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, reliance on the domestic market and exposure to Japan's industrial activity fluctuations pose risks. The company's dividend yield, supported by a ¥72 per share payout, adds income appeal. Investors should monitor regulatory changes and industrial waste volume trends, which directly impact Daiseki's performance.
Daiseki Co., Ltd. holds a competitive advantage in Japan's industrial waste management sector through its integrated service offerings and long-standing expertise. The company's vertical integration—from waste collection to recycling and product development—enhances efficiency and cost control. Its specialization in hazardous waste treatment, including oil and sludge, provides a technical edge over general waste handlers. Daiseki's development of proprietary products like release agents and rustproofing solutions diversifies revenue and reduces reliance on waste treatment alone. However, the company faces competition from larger waste management firms with broader geographic reach and greater financial resources. Daiseki's domestic focus limits exposure to international growth but insulates it from foreign regulatory complexities. The company's strong cash position (¥30.4 billion) and manageable debt (¥6.0 billion) provide flexibility for strategic investments or acquisitions. Its commitment to R&D in recycling technologies further strengthens its market positioning, though scalability outside Japan remains a challenge.