DCM Holdings Co., Ltd. (3050) AI Stock Analysis

• Market Cap: ¥208.82B
• Dividend Yield: 2.93%
• Average Volume (3M): 266.91K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.33
• Revenue Growth: 1.49%
• EPS Growth: -21.76%
• Country: JP
• Employees: 4,955
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 46.68
• Shares Outstanding: 152,312,150
• 10 Day Avg. Volume: 225,110
• 30 Day Avg. Volume: 266,906
• PEG Ratio: -0.54
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 8.10
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,652.00 ▲(4.29% Upside)

DCM Holdings Co., Ltd. presents a strong financial performance with robust revenue growth and efficient cash flow management, which are the most significant factors in its overall score. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest caution due to potential bearish momentum and overbought conditions.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility and supports reinvestment and shareholder returns.

Operational Efficiency

Stable margins reflect effective cost management and operational efficiency, crucial for sustaining profitability.

Negative Factors

Profit Margin Pressure

Declining profit margins can impact net earnings and indicate rising costs or pricing pressures, affecting profitability.

Earnings Decline

A significant decline in EPS growth suggests challenges in maintaining profitability, potentially impacting investor confidence.

Profitability Concerns

Decreasing ROE may indicate less efficient use of equity capital, potentially affecting long-term shareholder value.

DCM Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

DCM Holdings Co., Ltd. (3050) is a prominent company based in Japan that operates primarily in the manufacturing and distribution of various consumer and industrial products. The company is involved in several sectors, including electronics, automotive components, and household goods, providing innovative solutions that cater to a diverse range of markets. DCM Holdings is known for its commitment to quality and sustainability, developing products that meet the evolving needs of consumers and businesses alike.

How the Company Makes Money

DCM Holdings generates revenue through multiple streams, primarily by selling its manufactured products across different sectors. The company earns money by distributing consumer goods, including home improvement products, hardware, and electrical appliances, through its extensive retail network. Additionally, DCM Holdings partners with various suppliers and manufacturers, allowing it to benefit from economies of scale and cost efficiencies. The company also engages in business-to-business transactions, supplying industrial components to other manufacturers. Strategic partnerships with key players in the supply chain enhance its market presence and contribute significantly to its earnings, enabling DCM Holdings to capitalize on emerging market trends and consumer demands.

DCM Holdings Co., Ltd. Financial Statement Overview

Summary

DCM Holdings Co., Ltd. demonstrates a strong financial position with robust revenue growth and efficient operational management. While profitability margins have faced some pressure, the company's cash flow generation remains strong, and its capital structure is stable with moderate leverage. This positions the company well for sustained growth, although attention to profitability improvement is warranted.

Income Statement

The company shows a solid revenue growth trajectory with a 11.46% increase from 2024 to 2025. Gross Profit Margin remains robust at 33.0%, reflecting effective cost management. However, there is a decline in Net Profit Margin from 4.39% in 2024 to 3.15% in 2025, indicating some pressure on bottom-line profitability. EBIT and EBITDA margins are stable, showing operational efficiency.

Balance Sheet

The company maintains a healthy Debt-to-Equity Ratio of 1.11, which suggests moderate leverage. The Equity Ratio is stable at 40.8%, indicating a solid capital structure. Return on Equity stands at 6.49%, showing reasonable profitability relative to equity, though it has slightly decreased from previous years.

Cash Flow

The Free Cash Flow has grown by 12.69% from 2024 to 2025, highlighting improved cash generation. The Operating Cash Flow to Net Income ratio is favorable at 2.13, pointing to strong cash conversion efficiency. However, the Free Cash Flow to Net Income ratio is lower at 1.32, indicating some reinvestment into the business.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	541.44B	544.60B	488.61B	476.82B	444.75B	471.19B
Gross Profit	190.54B	179.62B	167.57B	163.32B	154.41B	161.68B
EBITDA	47.66B	48.14B	47.44B	44.33B	42.38B	41.20B
Net Income	17.33B	17.14B	21.45B	18.14B	18.81B	18.59B
Balance Sheet
Total Assets	632.90B	647.94B	622.73B	515.96B	449.15B	490.85B
Cash, Cash Equivalents and Short-Term Investments	84.84B	119.43B	93.75B	55.66B	44.13B	79.96B
Total Debt	253.36B	293.59B	280.90B	188.37B	129.54B	142.74B
Total Liabilities	362.24B	383.63B	371.46B	272.60B	208.42B	256.64B
Stockholders Equity	270.65B	264.30B	251.27B	243.35B	240.73B	234.21B
Cash Flow
Free Cash Flow	0.00	22.61B	20.07B	1.96B	-12.87B	27.61B
Operating Cash Flow	0.00	36.53B	32.10B	15.61B	-3.72B	45.24B
Investing Cash Flow	0.00	-14.93B	-57.98B	-38.46B	-7.49B	-16.00B
Financing Cash Flow	0.00	4.07B	63.97B	34.38B	-24.62B	12.42B

DCM Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1584.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3050, the sentiment is Positive. The current price of 1584 is above the 20-day moving average (MA) of 1540.40, above the 50-day MA of 1496.08, and above the 200-day MA of 1407.31, indicating a bullish trend. The MACD of 24.35 indicates Negative momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 69.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3050.

DCM Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	73 Outperform	¥208.82B	11.60	―	2.93%	1.49%	-21.76%
3191	68 Neutral	¥122.10B	15.28	―	3.02%	0.73%	-9.78%
8218	67 Neutral	¥167.56B	11.14	―	1.61%	1.69%	3.90%
7516	67 Neutral	¥123.80B	8.22	―	2.92%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3199	58 Neutral	¥29.82B	14.88	―	1.68%	1.84%	-14.00%
2790	55 Neutral	€55.41B	81.39	0.41%	2.89%	-6.21%	-29.75%

DCM Holdings Co., Ltd. Corporate Events

DCM Holdings Acquires HOME TECH to Boost Renovation Business

DCM Holdings Co., Ltd. has announced the acquisition of HOME TECH Inc., a company specializing in renovation services in the Tokyo metropolitan area. This strategic move is expected to enhance DCM’s presence in the renovation sector, aligning with their goal to become a comprehensive company for comfortable living. By integrating HOME TECH, DCM aims to strengthen its market position and increase corporate value over the medium to long term.

DCM Holdings Reports Stable Profits Amid Revenue Decline

DCM Holdings Co., Ltd. reported its consolidated financial results for the six months ending August 31, 2025, showing a slight decline in operating revenues by 2.6% compared to the previous year. Despite this, the company experienced a growth in profit attributable to owners of the parent by 3.6%, indicating improved profitability. The company maintained a stable financial position with a slight increase in equity-to-asset ratio, reflecting its resilience in the market. The forecast for the fiscal year ending February 28, 2026, anticipates a modest growth in operating revenues and a significant increase in profit, suggesting a positive outlook for stakeholders.

DCM Holdings Streamlines Share Structure Post-Encho Acquisition

DCM Holdings Co., Ltd. announced the purchase of treasury shares to manage fractional shares resulting from a recent share exchange with Encho Co., Ltd. This move is part of the company’s strategy to streamline its shareholding structure following the acquisition, potentially impacting its market operations and shareholder value.