Dowa Holdings Co (5714) AI Stock Analysis

• Market Cap: $282.28B
• Dividend Yield: 3.14%
• Average Volume (3M): 221.10K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.90
• Revenue Growth: -5.37%
• EPS Growth: -2.62%
• Country: JP
• Employees: 7,801
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Industrial Materials
• EPS (TTM): 56.02
• Shares Outstanding: 61,989,210
• 10 Day Avg. Volume: 252,570
• 30 Day Avg. Volume: 221,103
• 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: $4,145.11
• Price Target Upside: -12.62% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• 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 Business Overview & Revenue Model

Company Description

Dowa 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 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
EBITDA	51.56B	70.05B	69.06B	86.91B	57.98B	45.73B
Net Income	27.63B	27.85B	25.04B	51.01B	21.82B	17.39B
Balance Sheet
Total Assets	676.87B	632.77B	655.28B	657.28B	598.47B	512.50B
Cash, Cash Equivalents and Short-Term Investments	42.10B	75.07B	38.82B	36.85B	18.28B	31.73B
Total Debt	80.77B	112.84B	156.32B	171.50B	192.13B	134.09B
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: Positive
• Last Price: 4744.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5714	68 Neutral	$282.28B	10.41	6.92%	3.14%	-5.37%	-2.62%
Sector *	43 Neutral	AU$1.41B	-6.02	-40.74%	3.99%	-3.45%	-41.76%
MIMTF		$2.01B	9.06	5.00%	4.12%	―	―
STMNF		$6.65B	60.99	0.90%	3.12%	―	―
TTNNF		$640.18M	22.67	6.35%	1.73%	―	―
7GI		€720.79M	12.81	6.29%	3.41%	―	―
FUR		€511.05M	4.49	14.23%	0.82%	―	―

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.