Dowa Holdings Co (5714) AI Stock Analysis

• Market Cap: ¥270.68B
• Dividend Yield: 3.3%
• Average Volume (3M): 185.61K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.91
• Revenue Growth: -5.37%
• EPS Growth: -2.62%
• Country: JP
• Employees: 7,801
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): 56.02
• Shares Outstanding: 61,989,210
• 10 Day Avg. Volume: 209,380
• 30 Day Avg. Volume: 185,613
• PEG Ratio: -0.46
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,099.42
• Price Target Upside: -9.88% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥4,958.00 ▲(8.99%Upside)

Dowa Holdings Co's overall stock score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, providing an attractive investment opportunity. However, financial performance concerns, such as revenue declines and liquidity issues, weigh on the score. The technical analysis shows a neutral position with no significant trend direction.

Dowa Holdings Co Business Overview & Revenue Model

Company Description

Dowa Holdings Co., Ltd. is a Japanese company engaged in various sectors, primarily focusing on non-ferrous metals, environmental management and recycling, electronic materials, metal processing, and heat treatment. The company operates globally, with a strong presence in the mining and smelting of precious and base metals, as well as in the development and production of electronic materials and components. Dowa Holdings is known for its commitment to sustainability and innovation, leveraging its expertise in recycling and environmental management to offer solutions across its diverse business segments.

How the Company Makes Money

Dowa Holdings Co., Ltd. generates revenue through multiple streams across its five main business segments. In the non-ferrous metals segment, the company earns money by mining, refining, and selling metals such as copper, zinc, and gold. The environmental management and recycling segment contributes to earnings by providing industrial waste treatment and recycling services, capitalizing on the growing demand for sustainable waste management solutions. Dowa's electronic materials segment produces and sells high-performance materials used in semiconductors and other electronic components, while the metal processing segment involves the manufacture of precision-rolled products and other metal components. Lastly, the heat treatment segment offers specialized heat treatment services and equipment. The company's earnings are bolstered by strategic partnerships and investments in advanced technology to enhance operational efficiency and sustainability across its operations.

Dowa Holdings Co Financial Statement Overview

Summary

Dowa Holdings Co demonstrates strong profitability and efficient operations, as seen in its income statement metrics. The balance sheet is robust, with low leverage and high equity. However, cash flow inconsistencies present potential liquidity risks. Maintaining revenue growth and improving cash flow stability will be crucial for future performance.

Income Statement

Dowa Holdings Co shows a recent decline in revenue with a negative growth rate from the previous annual report. However, the company maintains a solid gross profit margin and net profit margin. EBIT and EBITDA margins are healthy, indicating good operational efficiency. Despite a drop in revenue, profitability remains strong.

Balance Sheet

The balance sheet reflects a strong equity position with a favorable equity ratio. The debt-to-equity ratio has improved, suggesting effective debt management. Return on Equity (ROE) remains strong, indicating good profitability for shareholders. The company's stable financial position and low leverage reduce financial risk.

Cash Flow

Cash flow analysis shows inconsistencies, with operating cash flow and free cash flow not available in the latest TTM period. Historical data reveals volatility in cash flows, particularly evident in the negative free cash flow in 2021. Overall, cash flow management needs improvement to ensure sustainable liquidity.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
682.77B	717.19B	780.06B	831.79B	588.00B	485.13B
	Gross Profit
84.35B	81.45B	90.82B	106.43B	75.85B	63.50B
	EBIT
32.98B	30.00B	44.61B	63.82B	37.45B	25.95B
	EBITDA
51.56B	70.05B	69.06B	86.91B	57.98B	45.73B
	Net Income Common Stockholders
27.63B	27.85B	25.04B	51.01B	21.82B	17.39B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.10B	75.07B	38.82B	36.85B	18.28B	31.73B
	Total Assets
676.87B	632.77B	655.28B	657.28B	598.47B	512.50B
	Total Debt
80.77B	112.84B	156.32B	171.50B	192.13B	134.09B
	Net Debt
38.67B	37.77B	117.50B	134.65B	173.85B	102.36B
	Total Liabilities
269.57B	243.98B	294.68B	328.71B	321.76B	254.26B
	Stockholders Equity
389.83B	372.99B	344.89B	313.45B	265.70B	248.04B
Cash Flow		Free Cash Flow
0.00	80.27B	17.65B	28.13B	-38.11B	18.99B
	Operating Cash Flow
0.00	118.63B	50.73B	59.91B	-3.09B	55.11B
	Investing Cash Flow
0.00	-26.26B	-30.34B	-11.34B	-22.94B	-37.81B
	Financing Cash Flow
0.00	-59.20B	-19.76B	-31.19B	11.59B	-6.57B

Dowa Holdings Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4549.00
• 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:5714, the sentiment is Neutral. The current price of 4549 is below the 20-day moving average (MA) of 4564.90, above the 50-day MA of 4500.44, and below the 200-day MA of 4616.98, indicating a neutral trend. The MACD of 13.48 indicates Positive momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 46.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5714.

Dowa Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	81 Outperform	¥80.05B	4.32	14.23%	3.30%	6.88%	19.10%
1515	80 Outperform	¥124.03B	13.61	6.29%	3.39%	17.91%	37.76%
5714	68 Neutral	¥270.68B	9.98	6.92%	3.30%	-5.37%	-2.62%
5711	68 Neutral	¥290.23B	8.52	5.00%	4.33%	27.35%	14.36%
5727	65 Neutral	$92.38B	23.48	6.35%	1.73%	13.48%	-24.74%
5713	56 Neutral	$919.11B	55.75	0.90%	3.29%	10.24%	-71.84%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

Dowa Holdings Co Corporate Events

Dowa Holdings Unveils Medium-term Plan 2027 Focused on Circular Economy

Dowa Holdings Co., Ltd. has announced its ‘Medium-term Plan 2027,’ which outlines the company’s strategic focus for the next three years. The plan emphasizes ‘Pursue quality in circularity’ as its main theme, reflecting the company’s commitment to adapting to societal changes and contributing to a sustainable world. This initiative is expected to enhance Dowa’s corporate value and strengthen its position in the industry by aligning with global sustainability trends.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen5500.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.

Dowa Holdings Unveils Midterm Plan 2027

Dowa Holdings Co., Ltd. has announced the formulation of its ‘Midterm Plan 2027’, which outlines the company’s strategic goals and initiatives for the coming years. This plan is expected to impact the company’s operations and industry positioning by potentially enhancing its market competitiveness and stakeholder value.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen5100.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.

Dowa Holdings Announces Executive Restructuring for Enhanced Efficiency

Dowa Holdings Co., Ltd. announced a significant restructuring of its executive management, including the transfer of its representative director and other key personnel changes. These changes aim to enhance decision-making efficiency and adaptability in a rapidly changing market environment, positioning the company for more flexible and timely business execution.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen5100.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.

Dowa Holdings Announces Dividend and Shareholder Policy Changes

Dowa Holdings Co., Ltd. announced a resolution to provide dividends for fiscal 2024 and introduced changes to its shareholder return policy starting fiscal 2026. The company aims to enhance shareholder returns by increasing dividends and potentially acquiring treasury stocks, aligning with its Midterm Plan 2027 to improve corporate value and capital efficiency.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen5100.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.