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Dowa Holdings Co Ltd (JP:5714)
:5714

Dowa Holdings Co (5714) AI Stock Analysis

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JP

Dowa Holdings Co

(OTC:5714)

Rating:68Neutral
Price Target:
¥5,127.00
▲(8.07%Upside)
The stock demonstrates stable financial health, with a robust balance sheet compensating for revenue and cash flow concerns. Positive technical indicators enhance the outlook, and a fair valuation with a solid dividend yield adds to its attractiveness.

Dowa Holdings Co (5714) vs. iShares MSCI Japan ETF (EWJ)

Dowa Holdings Co Business Overview & Revenue Model

Company DescriptionDowa Holdings Co., Ltd. engages in the environmental management and recycling, nonferrous metals, electronic materials, metal processing, and heat treatment businesses worldwide. The company's Environmental Management & Recycling segment offers intermediate waste treatment, controlled landfilling, and soil remediation services; metal, household appliance, and automobile recycling services; consulting on environmental matters; and environmental logistics services. Its Nonferrous Metals segment produces and sells gold, silver, copper, lead, zinc, zinc alloys, palladium, rhodium, tin, antimony, nickel sulfate, bismuth, indium, platinum, tellurium, and sulfuric acid. The company's Electronic Materials segment offers high-purity materials, GaAs substrate wafers, and light-emitting diodes, as well as silver, copper, metal, carrier, and ferrite powders. Its Metal Processing segment provides copper, brass, copper and nickel alloy strips, reflow tin plated strips, brass rods, forged brass products, precious metal plating products, and metal-ceramics substrates. The company's Heat Treatment segment is involved in the design, manufacture, and maintenance of various types of industrial furnaces and ancillary equipment, as well as heat and surface treatment. It also constructs and maintains plants and machinery, as well as heavy weight concrete work; manages golf courses and real estate; and provides general business, technological development support, analysis and evaluation, and environmental measurement services. The company was formerly known as Dowa Mining Co., Ltd. and changed its name to Dowa Holdings Co., Ltd. in October 2006. Dowa Holdings Co., Ltd. was founded in 1884 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyDowa 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
70
Positive
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
75
Positive
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
60
Neutral
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue682.77B717.19B780.06B831.79B588.00B485.13B
Gross Profit84.35B81.45B90.82B106.43B75.85B63.50B
EBITDA51.56B70.05B69.06B86.91B57.98B45.73B
Net Income27.63B27.85B25.04B51.01B21.82B17.39B
Balance Sheet
Total Assets676.87B632.77B655.28B657.28B598.47B512.50B
Cash, Cash Equivalents and Short-Term Investments42.10B75.07B38.82B36.85B18.28B31.73B
Total Debt80.77B112.84B156.32B171.50B192.13B134.09B
Total Liabilities269.57B243.98B294.68B328.71B321.76B254.26B
Stockholders Equity389.83B372.99B344.89B313.45B265.70B248.04B
Cash Flow
Free Cash Flow0.0080.27B17.65B28.13B-38.11B18.99B
Operating Cash Flow0.00118.63B50.73B59.91B-3.09B55.11B
Investing Cash Flow0.00-26.26B-30.34B-11.34B-22.94B-37.81B
Financing Cash Flow0.00-59.20B-19.76B-31.19B11.59B-6.57B

Dowa Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4744.00
Price Trends
50DMA
4585.46
Positive
100DMA
4548.49
Positive
200DMA
4602.84
Positive
Market Momentum
MACD
51.92
Negative
RSI
61.17
Neutral
STOCH
82.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5714, the sentiment is Positive. The current price of 4744 is above the 20-day moving average (MA) of 4611.05, above the 50-day MA of 4585.46, and above the 200-day MA of 4602.84, indicating a bullish trend. The MACD of 51.92 indicates Negative momentum. The RSI at 61.17 is Neutral, neither overbought nor oversold. The STOCH value of 82.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5714.

Dowa Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$282.28B10.416.92%3.14%-5.37%-2.62%
43
Neutral
AU$1.41B-6.02-40.74%3.99%-3.45%-41.76%
$2.01B9.065.00%4.12%
$6.65B60.990.90%3.12%
$640.18M22.676.35%1.73%
DE7GI
€720.79M12.816.29%3.41%
DEFUR
€511.05M4.4914.23%0.82%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5714
Dowa Holdings Co
4,744.00
-791.76
-14.30%
MIMTF
Mitsubishi Materials
15.50
-2.69
-14.79%
STMNF
Sumitomo Metal Mining Co
24.00
-7.83
-24.60%
TTNNF
Toho Titanium Company
7.72
-1.25
-13.94%
DE:7GI
Nittetsu Mining Co., Ltd.
43.00
15.51
56.42%
DE:FUR
Furukawa Co., Ltd.
14.20
4.18
41.72%

Dowa Holdings Co Corporate Events

Dowa Holdings Unveils Medium-term Plan 2027 Focused on Circular Economy
May 23, 2025

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
May 20, 2025

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
May 20, 2025

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
May 20, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025