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: ¥1,006.00 ▼(-22.08% 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 & healthy margins

Sustained revenue growth (5.48%) combined with strong gross and net margins indicates durable underlying demand and effective cost control. Over months, this supports reinvestment capacity, margin resilience through cycles, and a structural base for improving cash generation if converted.

Stable return on equity

A stable ROE reflects consistent ability to convert shareholder capital into profits, implying disciplined capital allocation and operational efficiency. Over 2–6 months this can sustain investor confidence and enable targeted reinvestment without eroding shareholder value.

Moderate equity ratio (balanced financing)

A moderate equity ratio denotes a blended financing structure that can provide flexibility for investment and working capital needs. Structurally, balanced financing reduces reliance on either extreme debt or equity issuance, preserving optionality for near-term strategic moves.

Negative Factors

High leverage

Significant leverage raises interest and refinancing risk and constrains strategic flexibility. Over the coming months, high debt levels increase vulnerability to cash-flow disruptions, making capital allocation and growth initiatives more dependent on improving liquidity or debt management actions.

Weak cash generation

Negative operating and free cash flows mean reported profits are not translating into available cash. This structural cash shortfall limits the company’s ability to service debt, fund capex, or return capital, forcing reliance on external financing until cash generation improves.

Earnings-to-cash conversion issues

A negative operating cash flow to net income ratio signals that accounting earnings are not producing cash. Over months this undermines the sustainability of margins and ROE, increases working capital pressure, and elevates execution risk unless operational cash conversion is restored.

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 943.25, above the 50-day MA of 948.26, and above the 200-day MA of 996.35, indicating a bearish trend. The MACD of -3.08 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 61.47 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	¥2.88B	4.69	―	2.82%	4.82%	9.78%
2425	74 Outperform	¥2.98B	27.02	―	2.56%	-3.06%	-38.56%
6062	72 Outperform	¥40.76B	11.61	―	2.63%	0.30%	-31.28%
189A	64 Neutral	¥2.15B	12.29	―	2.08%	―	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
7362	49 Neutral	¥1.24B	14.80	―	―	2.81%	-42.50%
2373	48 Neutral	¥5.72B	23.20	―	4.07%	6.08%	38.00%