Danto Holdings Corporation (5337) AI Stock Analysis

• Market Cap: ¥20.54B
• Dividend Yield: N/A
• Average Volume (3M): 11.69K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.68
• 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: ¥634.00 ▲(7.09% 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

Very low leverage and a large equity base provide durable financial flexibility for a cyclical construction firm. This reduces refinancing and solvency risk, supports counter-cyclical spending or M&A, and makes the company more resilient to demand shocks over the medium term.

Meaningful deleveraging since 2020

A demonstrable track record of deleveraging signals disciplined capital management and improved balance sheet quality. Sustained reduction in leverage enhances credit optionality and lowers interest sensitivity, supporting long-term stability and capacity to invest when opportunities arise.

Stable gross margins

Consistent mid-to-high 20% gross margins indicate structural pricing power or stable project-level economics. Even with volatile top-line, steady gross margins support gross-profit durability and provide a platform to restore operating profitability if fixed-cost absorption improves.

Negative Factors

Weak cash generation

Sustained negative operating and free cash flow undermines self-funding capacity and raises reliance on external financing. Over months to years this constrains capital expenditure, dividend capacity and working-capital buffers, and increases vulnerability to credit market stress or project overruns.

Negative operating profit

Persistent negative operating profit implies core operations are not producing recurring operating earnings, with net income aided by non-operating items. This structural weakness threatens sustainable profitability and return metrics unless operational efficiency or scale is restored.

Revenue volatility and recent declines

Pattern of rebound then decline signals uneven demand and project flow, reducing predictability of backlog and margins. For a construction operator, revenue volatility hinders long-term planning, pricing consistency and fixed-cost absorption, limiting durable growth prospects.

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

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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	285.00M	13.00M	264.00M	314.00M	281.00M	285.00M
Total Liabilities	2.35B	2.22B	2.31B	2.67B	2.72B	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: Negative
• Last Price: 592.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5337, the sentiment is Negative. The current price of 592 is below the 20-day moving average (MA) of 635.20, below the 50-day MA of 604.52, and below the 200-day MA of 660.97, indicating a neutral trend. The MACD of 2.59 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5337.

Danto Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7971	79 Outperform	¥37.65B	7.75	―	3.59%	6.91%	13.17%
7949	77 Outperform	¥48.00B	14.35	―	3.74%	3.70%	12.26%
7943	66 Neutral	¥108.93B	13.03	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥129.11B	10.42	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.13B	4.98	―	4.13%	2.76%	-10.23%
5337	54 Neutral	¥20.54B	21.92	―	―	-5.45%	―