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

• Market Cap: ¥206.76B
• Dividend Yield: 3.08%
• Average Volume (3M): 305.54K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.37
• 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: 366,390
• 30 Day Avg. Volume: 305,536
• 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: ¥1,530.00
• Price Target Upside: 1.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,530.00 ▲(1.80% 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. is a prominent Japanese company that operates in the retail sector, specializing in home improvement and lifestyle products. It manages an extensive network of home centers across Japan, offering a wide range of products including hardware, gardening supplies, household goods, and home renovation materials. The company serves both individual consumers and professional contractors, providing quality products that cater to DIY enthusiasts and industry professionals alike.

How the Company Makes Money

DCM Holdings Co., Ltd. generates revenue primarily through the sale of home improvement and lifestyle products at its retail outlets. The company's key revenue streams include direct sales to consumers and contractors, leveraging its extensive store network to reach a broad customer base. Additionally, DCM Holdings may engage in strategic partnerships with suppliers and manufacturers to ensure a diverse and competitive product offering. The company's earnings are influenced by factors such as consumer spending trends, product pricing strategies, and its ability to efficiently manage inventory and supply chain operations.

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	251.95B	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: Neutral
• Last Price: 1503.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3050, the sentiment is Neutral. The current price of 1503 is below the 20-day moving average (MA) of 1534.25, above the 50-day MA of 1486.03, and above the 200-day MA of 1378.39, indicating a neutral trend. The MACD of 10.07 indicates Positive momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 8.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥206.76B	11.39	―	3.08%	1.49%	-21.76%
8218	68 Neutral	¥154.94B	10.52	―	1.73%	1.84%	-3.32%
7516	67 Neutral	¥127.26B	8.41	―	2.47%	4.89%	7.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3191	61 Neutral	¥126.64B	15.69	―	2.79%	1.81%	-7.32%
3199	60 Neutral	¥30.34B	14.28	―	1.61%	3.11%	-5.40%
2790	57 Neutral	€58.04B	274.50	-0.02%	2.85%	-4.81%	-101.28%

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.