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

• Market Cap: ¥177.63B
• Dividend Yield: 3.26%
• Average Volume (3M): 272.23K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.37
• Revenue Growth: 6.96%
• EPS Growth: -19.43%
• Country: JP
• Employees: 4,955
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Home Improvement
• EPS (TTM): 43.90
• Shares Outstanding: 146,500,000
• 10 Day Avg. Volume: 274,680
• 30 Day Avg. Volume: 272,226
• PEG Ratio: -9.90
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 84.89
• 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: ¥1,529.00
• Price Target Upside: 13.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,530.00 ▲(14.01%Upside)

The strong financial performance, characterized by robust revenue growth and stable capital structure, is the main driver of the score. The valuation also contributes positively, with the stock appearing undervalued and offering a solid dividend yield. Technical analysis indicates a neutral to slightly positive market sentiment, adding moderate support to the overall score.

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

Company Description

DCM Holdings Co., Ltd. operates home center stores in Japan. It provides DIY, leisure, and pet food products; gardening products, including items and materials for gardening, balconies, and interior greens; household products, such as cleaning and convenient goods; interior products comprising storage furniture, bedding, and towels; and electrical appliances, which include home lighting fixtures, air conditioning items, watches, vacuum cleaner replacement packs, etc., as well as daily necessities, such as detergents, toothbrushes, and toilet goods. The company offers its products under the DCM brand. It also sells its products online. As of February 29, 2020, the company operated 673 stores in 37 prefectures. DCM Holdings Co., Ltd. was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DCM Holdings Co., Ltd. generates revenue primarily through the sale of products in its home improvement centers. The company earns money by retailing a diverse range of products including tools, gardening supplies, home decor, and other household items. These products are sold through its network of physical retail stores located across Japan. Additional revenue is derived from its online sales platform, catering to customers who prefer shopping from home. Strategic partnerships with various suppliers enable DCM Holdings to offer a wide range of products, often at competitive prices, which attracts a broad customer base. The company's earnings are further supported by its focus on cost management and operational efficiencies across its retail operations.

DCM Holdings Co., Ltd. Financial Statement Overview

Summary

DCM Holdings Co., Ltd. demonstrates solid financial performance with strong revenue growth and efficient operational management. Despite some pressure on profitability margins, the company maintains a stable capital structure and robust cash flow generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	544.72B	544.60B	488.61B	476.82B	444.75B	471.19B
Gross Profit	191.05B	179.62B	167.57B	163.32B	154.41B	161.68B
EBITDA	44.31B	48.14B	43.57B	43.70B	43.42B	42.26B
Net Income	15.24B	17.14B	21.45B	18.14B	18.81B	18.59B
Balance Sheet
Total Assets	693.19B	647.94B	622.73B	515.96B	449.15B	490.85B
Cash, Cash Equivalents and Short-Term Investments	155.21B	119.43B	93.75B	56.84B	45.36B	81.24B
Total Debt	317.13B	293.59B	280.90B	188.37B	129.54B	142.74B
Total Liabilities	431.26B	383.63B	371.46B	272.60B	208.42B	256.64B
Stockholders Equity	261.93B	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: 1342.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3050, the sentiment is Positive. The current price of 1342 is above the 20-day moving average (MA) of 1340.70, above the 50-day MA of 1332.22, and below the 200-day MA of 1382.81, indicating a neutral trend. The MACD of 5.43 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 43.96 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	79 Outperform	¥177.63B	10.44		3.26%	6.96%	-19.43%
3191	78 Outperform	¥123.35B	13.83		0.48%	2.78%	15.97%
8218	71 Outperform	¥146.58B	10.19		1.83%	2.28%	1.10%
7516	67 Neutral	¥123.65B	7.99		2.54%	6.08%	5.16%
Sector *	67 Neutral	¥252.05B	13.25	6.48%	2.75%	5.05%	-11.93%
3199	64 Neutral	¥32.23B	15.44		1.49%	4.31%	11.77%
2790	57 Neutral	¥51.24B	259.18	0.09%	3.23%	-5.51%	-96.59%

DCM Holdings Co., Ltd. Corporate Events

DCM Holdings Reports Mixed Financial Results for Q1 2025

DCM Holdings Co., Ltd. reported a slight decline in operating revenues and profits for the three months ended May 31, 2025, compared to the previous year. Despite this, the company showed an increase in comprehensive income and profit attributable to owners, indicating a positive outlook for the fiscal year ending February 28, 2026, with expected growth in operating revenues and profits.

DCM Holdings to Acquire Encho in Strategic Share Exchange

DCM Holdings Co., Ltd. has announced a share exchange agreement with Encho Co., Ltd., making Encho a wholly-owned subsidiary. This strategic move, set to take effect on September 1, 2025, aims to enhance competitiveness in the challenging retail and home center market by leveraging combined resources and expertise.

DCM Holdings Announces Leadership Restructuring

DCM Holdings Co., Ltd. announced significant changes in its leadership structure, including the appointment of Yasunori Ishiguro as the new Representative Director and President, CEO, and Toshihiro Hisada as Chairman. These changes, effective after the 19th Ordinary General Meeting of Shareholders on May 29, 2025, aim to strengthen the company’s strategic direction and operational efficiency. The announcement reflects DCM Holdings’ commitment to adapting its leadership to better align with its business objectives and market demands, potentially impacting its industry positioning and stakeholder relations.

DCM Holdings Revises Medium-Term Management Plan Amid Economic Shifts

DCM Holdings Co., Ltd. has revised its Medium-Term Management Plan for FY2023 to FY2025 due to significant changes in the external economic environment, including inflation and currency depreciation. The company has adjusted its performance targets for FY2025, reducing expected net sales and profits, while maintaining its strategic focus on cost-effective operations and employee compensation adjustments.

DCM Holdings Proposes Dividend Increase to Enhance Shareholder Returns

DCM Holdings Co., Ltd. announced a proposed increase in its year-end dividend per share from 22 yen to 23 yen, reflecting its commitment to shareholder returns and profit growth. This decision aligns with the company’s medium-term management plan and its philosophy of providing stable dividends, highlighting its strategic focus on enhancing business performance and shareholder value.

DCM Holdings Reports Revenue Growth Amid Profit Challenges

DCM Holdings Co., Ltd. reported a significant increase in operating revenues and profits for the fiscal year ended February 28, 2025, with operating revenues rising by 11.5% and operating profit by 15.8%. Despite the growth in revenues and profits, the profit attributable to owners of the parent decreased by 20.1%, indicating challenges in maintaining net profitability. The company also announced an increase in annual dividends per share, reflecting a commitment to returning value to shareholders. The forecast for the next fiscal year shows a modest growth expectation, with anticipated increases in operating revenues and profits, suggesting a cautiously optimistic outlook for the company’s financial performance.