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 increase (5.48% in the latest period) indicates durable demand and market traction in its medical care facilities segment. Over 2-6 months this supports predictable top-line expansion, underpins capacity planning, and provides a platform for reinvestment and scale benefits.

Strong gross and net margins

Persistently strong gross and healthy net margins point to structural cost control and pricing power in operations. This margin resilience enhances long-term cash generation potential, cushions earnings through cycles, and supports the firm's ability to fund capital needs or strategic initiatives.

Stable return on equity

A stable ROE signals consistent ability to convert shareholder capital into returns, reflecting operational efficiency and sound capital allocation. Over multiple quarters this supports investor confidence, helps sustain dividend or reinvestment policies, and indicates competent management execution.

Negative Factors

High leverage

Elevated debt-to-equity increases refinancing, interest, and solvency risk over the medium term. In a capital-intensive healthcare environment, high leverage can constrain strategic flexibility, raise funding costs, and magnify downside in slower revenue periods, pressuring long-term stability.

Negative operating and free cash flow

Negative operating and free cash flows indicate earnings are not translating into cash, limiting the firm's ability to service debt, invest, or return capital without external funding. Persisting cash deficits impair financial resilience and raise reliance on credit or equity issuance.

Operating margin volatility

Fluctuating EBIT/EBITDA margins suggest variable operating efficiency or cost structure sensitivity. Over time this can make earnings less predictable, complicate forecasting and capital allocation, and increase the risk that temporary cost pressures erode profitability if not actively managed.

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
7811	83 Outperform	¥16.41B	6.60	―	3.62%	7.07%	79.18%
7987	69 Neutral	¥15.53B	6.15	―	3.79%	-0.03%	84.08%
7914	68 Neutral	¥41.21B	7.42	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.61B	6.84	―	3.69%	0.62%	-24.08%
189A	64 Neutral	¥2.15B	12.29	―	2.08%	―	―
7916	61 Neutral	¥5.60B	-22.35	―	2.72%	-1.30%	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%