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

• Market Cap: ¥2.15B
• Dividend Yield: 2.08%
• Average Volume (3M): 5.32K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.87
• 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: 0.59
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.39
• P/FCF Ratio: -20.35
• 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: ¥1,008.00 ▼(-21.92% 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 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. 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.

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	310.20M	288.27M	242.34M	238.65M
Net Income	220.74M	177.37M	171.67M	145.69M
Balance Sheet
Total Assets	9.29B	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	7.17B	7.52B	7.00B	4.70B
Stockholders Equity	2.12B	1.27B	1.10B	937.89M
Cash Flow
Free Cash Flow	-102.30M	-784.82M	-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: Negative
• Last Price: 1291.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9220	81 Outperform	¥2.91B	4.69	―	2.82%	4.82%	9.78%
2425	75 Outperform	¥2.98B	27.02	―	2.56%	-3.06%	-38.56%
6062	72 Outperform	¥42.91B	11.61	―	2.63%	0.30%	-31.28%
189A	64 Neutral	¥2.15B	12.29	―	2.08%	―	―
2373	60 Neutral	¥5.75B	23.20	―	4.07%	6.08%	38.00%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
7362	49 Neutral	¥1.26B	14.80	―	―	2.81%	-42.50%