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D&M Co., Ltd. (JP:189A)
:189A
Japanese Market

D&M Co., Ltd. (189A) AI Stock Analysis

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JP:189A

D&M Co., Ltd.

(189A)

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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
,
Neutral 64 (OpenAI - 5.2)
,
Neutral 64 (OpenAI - 5.2)
,
Neutral 64 (OpenAI - 5.2)
,
Neutral 64 (OpenAI - 5.2)
,
Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
¥1,008.00
▼(-21.92% Downside)
Action:ReiteratedDate:10/28/25
D&M Co., Ltd. demonstrates strong revenue growth and reasonable valuation, but faces significant challenges with cash flow and leverage. The technical indicators are moderately positive, supporting a stable outlook. Addressing cash flow issues and managing debt levels are crucial for improving the stock's long-term prospects.
Positive Factors
Consistent Revenue Growth
Sustained revenue growth (5.48% in the latest period) indicates ongoing demand for core services and a growing customer base. Over a 2–6 month horizon this traction supports reinvestment capacity, preserves operating leverage, and underpins medium-term cash generation potential if margins hold.
Strong Profitability and Margins
Healthy gross and net margins signal durable operational efficiencies and pricing power in the business model. Strong margins provide a buffer against cost shocks, support internal funding of working capital and targeted investments, and improve the company’s ability to maintain profitability through industry cycles.
Balanced Financing (Moderate Equity Ratio)
A moderate equity ratio suggests the company combines debt and equity financing in a measured way, giving flexibility to fund growth without fully diluting shareholders. Over months this balance can enable opportunistic investments while preserving capital structure options, provided leverage remains managed.
Negative Factors
High Leverage
Material leverage increases financial risk: higher interest expense and refinancing needs can constrain strategic choices. Over a multi-month horizon, elevated debt amplifies sensitivity to cash flow shortfalls, limits flexibility for capex or acquisitions, and raises default risk if conditions worsen.
Negative Operating and Free Cash Flow
Negative operating and free cash flows undermine the company’s ability to service debt, fund growth, or return capital. Persisting cash deficits force reliance on external financing, increasing cost of capital and potentially restricting investments or margin-preserving initiatives over the medium term.
Volatile Operating Margins
Fluctuating EBIT/EBITDA margins point to variability in operating efficiency or cost structure. This volatility reduces predictability of earnings and cash flows, complicating planning for debt repayments and capital allocation and increasing execution risk for sustaining profitability.

D&M Co., Ltd. (189A) vs. iShares MSCI Japan ETF (EWJ)

D&M Co., Ltd. Business Overview & Revenue Model

Company DescriptionD&M Co., Ltd. (189A) is a diversified company engaged in multiple sectors, including manufacturing, technology, and consumer goods. The company specializes in producing high-quality electronics and appliances, as well as providing innovative solutions for various industries. D&M Co., Ltd. focuses on sustainability and technological advancement, offering products that cater to both consumer and business needs, while maintaining a commitment to environmental responsibility.

D&M Co., Ltd. Financial Statement Overview

Summary
D&M Co., Ltd. shows strong revenue growth and profitability, but faces challenges with high leverage and negative cash flows. The company needs to address its cash flow issues and manage its debt levels to ensure long-term financial stability.
Income Statement
75
Positive
D&M Co., Ltd. has demonstrated consistent revenue growth over the past years, with a 5.48% increase in the latest period. The gross profit margin has remained strong, although slightly lower than previous years. Net profit margin is healthy, reflecting efficient cost management. However, the EBIT and EBITDA margins have shown slight fluctuations, indicating potential volatility in operating efficiency.
Balance Sheet
60
Neutral
The company has a high debt-to-equity ratio, indicating significant leverage, which poses a risk if not managed properly. Return on equity is stable, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced approach to financing through debt and equity.
Cash Flow
40
Negative
D&M Co., Ltd. faces challenges in cash flow management, with negative operating and free cash flows in the latest period. The free cash flow growth rate is concerning, as it shows a negative trajectory. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings.
BreakdownMay 2025May 2024May 2023May 2022
Income Statement
Total Revenue1.50B1.19B1.11B930.45M
Gross Profit845.89M754.83M655.71M640.68M
EBITDA310.20M288.27M242.34M238.65M
Net Income220.74M177.37M171.67M145.69M
Balance Sheet
Total Assets9.29B8.79B8.10B5.64B
Cash, Cash Equivalents and Short-Term Investments583.36M480.38M756.09M693.30M
Total Debt6.92B7.29B6.77B4.56B
Total Liabilities7.17B7.52B7.00B4.70B
Stockholders Equity2.12B1.27B1.10B937.89M
Cash Flow
Free Cash Flow-102.30M-784.82M-2.21B906.72M
Operating Cash Flow-69.76M-782.74M-2.19B911.23M
Investing Cash Flow-73.69M-20.59M45.95M32.38M
Financing Cash Flow250.22M509.20M2.17B-1.17B

D&M Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1291.00
Price Trends
50DMA
948.98
Negative
100DMA
979.96
Negative
200DMA
996.87
Negative
Market Momentum
MACD
-3.34
Positive
RSI
48.29
Neutral
STOCH
55.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:189A, the sentiment is Negative. The current price of 1291 is above the 20-day moving average (MA) of 945.95, above the 50-day MA of 948.98, and above the 200-day MA of 996.87, indicating a bearish trend. The MACD of -3.34 indicates Positive momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:189A.

D&M Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥2.91B4.692.82%4.82%9.78%
75
Outperform
¥2.98B27.022.56%-3.06%-38.56%
72
Outperform
¥42.91B11.612.63%0.30%-31.28%
64
Neutral
¥2.15B12.292.08%
60
Neutral
¥5.75B23.204.07%6.08%38.00%
57
Neutral
$3.13B9.23-34.32%3.14%-25.56%-353.61%
49
Neutral
¥1.26B14.802.81%-42.50%
* Consumer Goods Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:189A
D&M Co., Ltd.
942.00
91.36
10.74%
JP:2373
Care Twentyone Corporation
427.00
29.02
7.29%
JP:2425
Care Service Co., Ltd.
785.00
-69.14
-8.09%
JP:6062
Charm Care Corporation
1,316.00
59.20
4.71%
JP:7362
Terminalcare Support Institute, Inc.
821.00
-20.00
-2.38%
JP:9220
FB CARE SERVICE CO.,LTD.
1,196.00
259.40
27.70%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025