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

• Market Cap: ¥2.19B
• Dividend Yield: 2.08%
• Average Volume (3M): 5.32K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 66
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Medical - Care Facilities
• EPS (TTM): N/A
• Shares Outstanding: 2,286,000
• 10 Day Avg. Volume: 7,070
• 30 Day Avg. Volume: 5,323
• PEG Ratio: -0.57
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -20.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥1,027.00 ▼(-20.45% Downside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 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 and healthy margins

Revenue has grown consistently (5.48% in the latest period) while gross and net profit margins remain strong. This pattern indicates sustainable demand and effective cost management, supporting durable earnings generation and operational resilience over the next several months.

Diversified revenue streams and R&D

A multi-channel revenue model—consumer electronics, appliances, B2B solutions, plus retail/distributor partnerships—reduces single-market concentration. Ongoing R&D supports product refreshes and competitiveness, sustaining market relevance and repeatable revenue over the medium term.

Stable ROE and balanced equity ratio

Stable ROE indicates management is effectively converting equity into profit, while a moderate equity ratio suggests a balanced mix of debt and equity financing. This combination preserves shareholder returns and provides capital structure flexibility for strategic investments.

Negative Factors

High leverage

Significant leverage raises refinancing and interest-rate exposure, reducing financial flexibility. In adverse conditions or if cash conversion weakens, high debt amplifies risk to operations and capital allocation, constraining long-term investment and raising default risk if unchecked.

Negative operating and free cash flow

Operating and free cash flows are negative and trending worse, meaning reported profits are not converting into cash. This undermines the company’s ability to service debt, fund R&D or capex from internal sources, increasing reliance on external financing and raising sustainability concerns.

Volatile operating margins

Fluctuating EBIT/EBITDA margins point to variable operating efficiency or cost pressures. With elevated leverage and weak cash conversion, margin volatility can materially affect free cash flow and debt coverage, increasing downside risk during demand slowdowns or input-cost spikes.

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

Company Description

D&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.

How the Company Makes Money

D&M Co., Ltd. generates revenue through several key streams, including the sale of its electronic products and appliances, which are distributed through both direct sales and partnerships with retail chains. The company also engages in B2B transactions, providing customized solutions for businesses in various sectors. Additionally, D&M Co., Ltd. has established significant partnerships with suppliers and distributors that enhance its market reach and operational efficiency. Their revenue model is further supported by ongoing research and development investments that enable the introduction of innovative products, thus attracting a wider customer base and generating repeat sales.

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

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

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

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.

Breakdown	May 2025	May 2024	May 2023	May 2022
Income Statement
Total Revenue	1.50B	1.19B	1.11B	930.45M
Gross Profit	845.89M	754.83M	655.71M	640.68M
EBITDA	310.87M	281.80M	256.39M	238.65M
Net Income	220.74M	177.37M	171.67M	145.69M
Balance Sheet
Total Assets	9.28B	8.79B	8.10B	5.64B
Cash, Cash Equivalents and Short-Term Investments	583.36M	480.38M	756.09M	693.30M
Total Debt	6.92B	7.29B	6.77B	4.56B
Total Liabilities	7.16B	7.52B	6.99B	4.70B
Stockholders Equity	2.12B	1.27B	1.10B	937.89M
Cash Flow
Free Cash Flow	-102.30M	-785.02M	-2.21B	906.72M
Operating Cash Flow	-69.76M	-782.74M	-2.19B	911.23M
Investing Cash Flow	-73.69M	-20.59M	45.95M	32.38M
Financing Cash Flow	250.22M	509.20M	2.17B	-1.17B

D&M Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1291.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:189A, the sentiment is Positive. The current price of 1291 is above the 20-day moving average (MA) of 952.60, above the 50-day MA of 950.54, and above the 200-day MA of 990.65, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 50.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:189A.

D&M Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7811	83 Outperform	¥17.84B	8.66	―	3.62%	7.07%	79.18%
7987	69 Neutral	¥16.61B	8.50	―	3.79%	-0.03%	84.08%
7914	68 Neutral	¥45.17B	13.14	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.64B	10.58	―	3.69%	0.62%	-24.08%
189A	64 Neutral	¥2.19B	10.08	―	2.08%	―	―
7916	61 Neutral	¥5.77B	19.83	―	2.72%	-1.30%	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%