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Fundamental analysis 6430.T (Daikoku Denki Co., Ltd.)

Updated on 10/02/2026

Method and analysis by Lubin Danilo, founder of Lubin Investment. Score computed automatically, with no human opinion.

We analyzed Daikoku Denki stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 6/10, meaning medium quality, and a P/FCF valuation multiple of 9.6×.

Daikoku Denki trades at a low free cash flow multiple but fails part of our quality criteria. Mind the trap: a low price is not a discount if the business is deteriorating. The low multiple may simply reflect a real problem.

Sector: Computer Hardware. Listing: T. Current price: 2334.00 JPY.

Lubin scoring methodology

Daikoku Denki Co., Ltd. (6430.T)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The thresholds come from the financial literature, not from our preferences: see the valuation work of Aswath Damodaran (NYU Stern) and the SEC investor education resources (investor.gov).

The 10 quantitative criteria analyzed

  1. Profitable: net margin > 5%
  2. Growing revenue: revenue growing > 10%/year over 5 years
  3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
  4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
  5. Growing revenue per employee: revenue and revenue per employee both grow ≥ 10%/year over 5 years; partial when only one growth driver reaches its tier (fallback: free cash flow margin > 10% when employee history is unavailable)
  6. Expanding margins: operating margin widens over 5 years (operating leverage)
  7. Return on invested capital: Cash ROCE > 15% per year
  8. Debt under control: net debt repayable in less than 3 years of free cash flow
  9. Earnings converted to cash: free cash flow exceeds accounting net income
  10. Net collection period: short or negative cash conversion cycle

Its price against peers

Against the 5 other Computer Hardware stocks we have scored, Daikoku Denki trades at 9.6× its free cash flow, versus a median of 13.8× for that basket. On price alone, Daikoku Denki is therefore cheaper than its peers. That says nothing about its quality: at Lubin Investment, quality and price are judged separately, and a low multiple is only a bargain if the quality holds up.

Frequently asked questions

Is Daikoku Denki a quality stock?

Daikoku Denki gets a quality score of 6/10 (medium quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Daikoku Denki's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Daikoku Denki's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Daikoku Denki stock is 9.6×. At Lubin Investment, valuation is judged separately from quality.

Where to see Daikoku Denki's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/6430.T?lng=en.

Other stocks in the Computer Hardware sector

Go further

👉 See the full interactive analysis of 6430.T

Other resources : All stocks in the Computer Hardware sector.