Danto Holdings Corporation (5337) AI Stock Analysis

• Market Cap: ¥20.94B
• Dividend Yield: N/A
• Average Volume (3M): 11.69K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 0.65
• Revenue Growth: -5.45%
• EPS Growth: N/A
• Country: JP
• Employees: 189
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -6.18
• Shares Outstanding: 33,360,600
• 10 Day Avg. Volume: 7,080
• 30 Day Avg. Volume: 11,690
• PEG Ratio: 0.01
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 3.30
• P/FCF Ratio: -51.17
• 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): 38.46
• Revenue Forecast (FY): ¥9.79B

• Rating: 54 Neutral
• Price Target: ¥647.00 ▲(9.29% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weak cash flow and inconsistent core operating profitability, partly offset by a notably strong, low-leverage balance sheet. Technical indicators are moderately positive in the near term, but valuation (P/E ~27) looks demanding relative to the underlying earnings quality.

Positive Factors

Low leverage / strong balance sheet

Sustained low leverage and a large equity base give the company durable financial flexibility. Deleveraging since 2020 reduces refinancing and solvency risk, enabling funding for capex, acquisitions or cyclical downturns without pressuring operations, supporting multi‑quarter stability.

Diversified multi‑sector business model

A portfolio spanning manufacturing, technology services and real estate creates multiple, complementary income streams. Structural diversification lowers single‑market exposure, supports cash flow smoothing across cycles, and enables cross‑business synergies that can sustain revenue resilience over months.

Stable gross margins; improved net margin in 2025

Steady gross margins indicate underlying product/service pricing and cost stability. The improvement to an approximate 15% net margin in 2025 shows ability to translate some cost and non‑operating gains into bottom‑line results, offering a foundation for sustained profitability if operating issues are addressed.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow means the business is not self‑funding its operations or investments. Over several quarters this forces reliance on external financing or asset sales, constrains reinvestment, and elevates execution risk for strategic initiatives over the medium term.

Core operating profitability inconsistent

Negative operating margins show core operations are not reliably profitable and reported net gains are partly from non‑operating items. This structural disconnect threatens earnings durability: if non‑recurring items fade, reported profits could reverse, undermining sustained cash generation.

Revenue volatility and recent declines

Negative revenue growth and historical volatility point to uneven demand across businesses. Unpredictable top‑line trends complicate capacity planning, margin recovery and cash forecasting, raising the likelihood that shortfalls persist over multiple quarters absent clearer demand stabilization or structural sales fixes.

Danto Holdings Corporation Business Overview & Revenue Model

Company Description

Danto Holdings Corporation (5337) is a diversified investment holding company based in [Location], primarily engaged in various sectors including real estate, technology, and manufacturing. The company focuses on acquiring and managing a portfolio of businesses that offer innovative solutions and services. Its core products and services range from industrial machinery to digital platforms, catering to both consumer and business markets.

How the Company Makes Money

Danto Holdings Corporation generates revenue through multiple streams, primarily by investing in and managing its subsidiaries across various sectors. The company earns income from the sale of manufactured goods, service contracts, and licensing agreements related to its technology solutions. Additionally, real estate investments contribute to its earnings through rental income and property appreciation. Key revenue streams include sales from its manufacturing division, recurring revenue from technology services, and returns from real estate holdings. Partnerships with other firms in complementary industries also enhance its revenue potential by enabling collaborative projects and expanding market reach.

Danto Holdings Corporation Financial Statement Overview

Summary

Mixed fundamentals: a strong, low-leverage balance sheet (Score 83) supports stability, but operating performance is weak (negative operating profit despite improved net margin) and cash generation is a major concern with recent negative operating and free cash flow (Cash Flow Score 28). Revenue volatility and recent declines add uncertainty.

Income Statement

Revenue has been volatile, with a strong rebound in 2023 followed by declines in 2024 and 2025, pointing to an uneven demand backdrop. Profitability improved meaningfully in 2025 with a healthy net margin (~15%), but operating performance remains weak as operating profit stayed negative (negative operating margin), suggesting earnings were helped by items outside core operations. Gross margin has been fairly steady in the mid-to-high 20%s, but the lack of consistent operating profitability is the key overhang.

Balance Sheet

The balance sheet is a clear strength: leverage is very low in 2025 (debt is minimal relative to equity), and equity represents a large portion of the capital base. This is a major improvement versus 2020 when leverage was high, indicating meaningful deleveraging over time. The main weakness is that returns on equity have been volatile (negative in several years), reflecting inconsistent profitability despite the strong capital position.

Cash Flow

Cash generation is the weakest area. Operating cash flow has been negative in most recent years (including 2024 and 2025), and free cash flow has also been negative, implying the business has not been self-funding through operations. While 2021 showed unusually strong positive cash flow, the subsequent reversion to sustained outflows raises concerns about durability and working-capital/cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.06B	4.92B	5.32B	5.55B	4.64B	5.02B
Gross Profit	1.45B	1.45B	1.36B	1.55B	1.14B	1.51B
EBITDA	1.56B	-462.00M	220.00M	-724.00M	-91.00M	-764.00M
Net Income	1.11B	740.00M	33.00M	-955.00M	-370.00M	-967.00M
Balance Sheet
Total Assets	11.37B	10.86B	10.70B	11.96B	11.11B	11.12B
Cash, Cash Equivalents and Short-Term Investments	2.10B	1.72B	360.00M	494.00M	982.00M	2.15B
Total Debt	289.00M	13.00M	264.00M	314.00M	281.00M	285.00M
Total Liabilities	2.35B	2.22B	2.31B	2.67B	2.73B	2.96B
Stockholders Equity	8.45B	8.37B	7.47B	8.27B	8.02B	7.80B
Cash Flow
Free Cash Flow	0.00	-317.00M	-995.00M	-2.11B	-1.99B	3.65B
Operating Cash Flow	0.00	-288.00M	-809.00M	-1.29B	-1.45B	3.95B
Investing Cash Flow	0.00	2.11B	567.00M	-846.00M	8.00M	-412.00M
Financing Cash Flow	0.00	-459.00M	112.00M	1.63B	-13.00M	-4.76B

Danto Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 592.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5337, the sentiment is Positive. The current price of 592 is below the 20-day moving average (MA) of 636.15, above the 50-day MA of 568.08, and below the 200-day MA of 667.35, indicating a neutral trend. The MACD of 25.95 indicates Positive momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 27.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5337.

Danto Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6485	79 Outperform	¥35.36B	12.21	―	4.23%	-0.34%	50.73%
7971	79 Outperform	¥41.95B	10.35	―	3.59%	6.91%	13.17%
1972	74 Outperform	¥29.25B	10.63	―	7.56%	8.01%	13.19%
7570	66 Neutral	¥29.17B	8.90	―	3.90%	4.79%	13.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥21.60B	-8.36	―	4.35%	-4.00%	-386.52%
5337	54 Neutral	¥20.94B	28.11	―	―	-5.45%	―