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Dowa Holdings Co Ltd (JP:5714)
:5714
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Dowa Holdings Co (5714) AI Stock Analysis

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JP:5714

Dowa Holdings Co

(OTC:5714)

Rating:68Neutral
Price Target:
¥5,127.00
▼(-1.76% Downside)
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. makes money through multiple business segments that contribute to its diversified revenue streams. The core revenue-generating segment is non-ferrous metals, where the company engages in the mining, smelting, and sale of metals such as zinc, copper, and precious metals. The environmental management and recycling segment generates income by providing waste treatment, soil remediation, and recycling services, which are increasingly important in sustainable business practices. In the electronic materials sector, Dowa produces and sells materials used in semiconductors and electronics, capitalizing on the growing demand for advanced technology components. The metal processing segment adds value through the manufacturing of specialty steel products and metal plating services. Additionally, the automotive products division contributes to the company's earnings by supplying heat treatment and surface treatment technologies for automotive parts. Dowa's revenue is further supported by strategic partnerships and investments in innovation to enhance its technological capabilities and expand its market reach.

Dowa Holdings Co Financial Statement Overview

Summary
Dowa Holdings Co shows a stable financial position with a robust balance sheet. However, the income statement reveals revenue and profitability concerns, and cash flow fluctuations indicate potential liquidity issues.
Income Statement
65
Positive
Dowa Holdings Co's income statement reveals a mixed financial performance. The gross profit margin is fairly stable, reflecting consistent cost management. However, the net profit margin has been under pressure, partly due to declining revenues and operational challenges. Revenue growth has been negative in recent years, indicating potential market or sector challenges. EBIT and EBITDA margins remain reasonable, suggesting operational efficiency, but the declining trend in revenue is a concern.
Balance Sheet
70
Positive
The balance sheet of Dowa Holdings Co shows a solid equity position with an improving equity ratio. The debt-to-equity ratio is manageable, indicating a balanced approach to leveraging. Return on Equity (ROE) is moderate but stable, reflecting consistent shareholder returns. The company's financial structure appears stable, with a strong asset base and reasonable liabilities.
Cash Flow
50
Neutral
Cash flow analysis indicates fluctuating free cash flow, with recent negative free cash flow positions posing concerns. The operating cash flow to net income ratio is positive, suggesting adequate cash generation relative to earnings. However, the decline in free cash flow growth rate highlights potential liquidity issues and capital expenditure challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue678.67B678.67B717.19B780.06B831.79B588.00B
Gross Profit86.63B86.63B81.45B88.82B104.59B74.11B
EBITDA59.01B68.71B70.05B70.91B100.84B60.30B
Net Income27.13B27.13B27.85B25.04B51.01B21.82B
Balance Sheet
Total Assets673.54B673.54B632.77B655.28B657.28B598.47B
Cash, Cash Equivalents and Short-Term Investments43.58B43.58B75.07B38.82B36.85B18.28B
Total Debt132.86B132.86B112.84B159.43B173.15B192.13B
Total Liabilities257.50B257.50B243.98B294.68B328.70B321.75B
Stockholders Equity398.40B398.40B372.99B344.89B313.45B265.70B
Cash Flow
Free Cash Flow0.00-34.35B80.27B17.65B28.13B-38.11B
Operating Cash Flow0.0012.83B118.63B50.73B59.91B-3.09B
Investing Cash Flow0.00-41.42B-26.26B-30.14B-11.34B-22.94B
Financing Cash Flow0.00-4.12B-59.20B-19.96B-31.19B11.59B

Dowa Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5219.00
Price Trends
50DMA
4900.82
Positive
100DMA
4700.60
Positive
200DMA
4599.31
Positive
Market Momentum
MACD
85.12
Negative
RSI
62.22
Neutral
STOCH
80.81
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 5219 is above the 20-day moving average (MA) of 5101.10, above the 50-day MA of 4900.82, and above the 200-day MA of 4599.31, indicating a bullish trend. The MACD of 85.12 indicates Negative momentum. The RSI at 62.22 is Neutral, neither overbought nor oversold. The STOCH value of 80.81 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$307.99B14.175.76%2.87%-9.15%-31.58%
61
Neutral
$10.31B6.290.71%2.95%3.36%-36.41%
$2.25B37.851.33%4.03%
$7.38B46.971.31%2.57%
$764.41M30.024.87%1.74%
€817.24M15.445.92%
€569.13M4.8115.20%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5714
Dowa Holdings Co
5,219.00
322.47
6.59%
MIMTF
Mitsubishi Materials
16.34
-0.80
-4.67%
STMNF
Sumitomo Metal Mining Co
27.57
0.13
0.47%
TTNNF
Toho Titanium Company
7.72
-0.51
-6.20%
DE:7GI
Nittetsu Mining Co., Ltd.
48.60
22.45
85.85%
DE:FUR
Furukawa Co., Ltd.
15.70
6.21
65.44%

Dowa Holdings Co Corporate Events

Dowa Holdings Completes Treasury Stock Disposal for Compensation
Aug 4, 2025

Dowa Holdings Co., Ltd. has completed the payment procedures for the disposal of its treasury stock as part of a restricted stock compensation plan. This move involves the allocation of 13,442 shares to specific directors and executive officers, enhancing the company’s compensation strategy and potentially aligning management interests with shareholder 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 Treasury Stock Disposal for Executive Incentives
Jul 9, 2025

Dowa Holdings Co., Ltd. has announced a resolution to dispose of its treasury stock as part of a restricted stock compensation plan aimed at incentivizing its directors and executive officers. This strategic move is designed to enhance the company’s corporate value sustainably and align the interests of its leadership with those of its shareholders. The plan involves issuing 13,442 shares of common stock at a disposal price of 4,835 yen per share, with a total value of 64,992,070 yen. The initiative reflects Dowa Holdings’ commitment to fostering long-term growth and value sharing among its stakeholders.

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 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