Dowa Holdings Co (5714) AI Stock Analysis

• Market Cap: ¥299.95B
• Dividend Yield: 2.98%
• Average Volume (3M): 202.78K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.91
• Revenue Growth: -5.37%
• EPS Growth: -2.62%
• Country: JP
• Employees: 7,801
• Sector: Basic Materials
• Sector Strength: 54
• Industry: Industrial Materials
• EPS (TTM): 56.02
• Shares Outstanding: 61,989,210
• 10 Day Avg. Volume: 172,870
• 30 Day Avg. Volume: 202,780
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥4,221.21
• Price Target Upside: -16.26% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ¥5,127.00 ▲(1.71%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. is a Japanese company that operates in several sectors, including non-ferrous metals, environmental management and recycling, electronic materials, metal processing, and automotive products. Founded in 1884, the company has a long history in mining and smelting operations, and it has evolved to include a wide range of services and products that support various industries. Dowa Holdings is headquartered in Tokyo, Japan, and is listed on the Tokyo Stock Exchange under the ticker symbol 5714.

How the Company Makes Money

Dowa 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	678.67B	717.19B	780.06B	831.79B	588.00B
Gross Profit	86.12B	81.45B	90.82B	106.43B	75.85B
EBITDA	68.72B	70.05B	69.06B	86.91B	57.98B
Net Income	27.13B	27.85B	25.04B	51.01B	21.82B
Balance Sheet
Total Assets	673.54B	632.77B	655.28B	657.28B	598.47B
Cash, Cash Equivalents and Short-Term Investments	43.58B	75.07B	38.82B	36.85B	18.28B
Total Debt	132.86B	112.84B	156.32B	171.50B	192.13B
Total Liabilities	257.50B	243.98B	294.68B	328.71B	321.76B
Stockholders Equity	398.40B	372.99B	344.89B	313.45B	265.70B
Cash Flow
Free Cash Flow	-33.03B	80.27B	17.65B	28.13B	-38.11B
Operating Cash Flow	12.83B	118.63B	50.73B	59.91B	-3.09B
Investing Cash Flow	-41.32B	-26.26B	-30.34B	-11.34B	-22.94B
Financing Cash Flow	-4.22B	-59.20B	-19.76B	-31.19B	11.59B

Dowa Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5041.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 5041 is above the 20-day moving average (MA) of 4896.75, above the 50-day MA of 4719.08, and above the 200-day MA of 4596.90, indicating a bullish trend. The MACD of 91.78 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 76.11 is Neutral, 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
5715	82 Outperform	€88.46B	4.78	14.23%	1.64%	6.88%	19.15%
1515	80 Outperform	¥124.70B	13.68	6.29%	2.89%	17.91%	37.76%
5727	77 Outperform	¥98.57B	35.48	4.87%	1.30%	7.37%	-47.09%
5711	71 Outperform	¥306.69B	9.00	5.00%	4.26%	27.35%	14.36%
5714	68 Neutral	¥299.95B	11.06	6.92%	2.98%	-5.37%	-2.62%
Sector *	59 Neutral	HK$16.65B	4.27	-5.31%	4.61%	-3.83%	-62.19%
5713	54 Neutral	¥930.10B	56.43	0.90%	3.07%	10.24%	-71.82%

Dowa Holdings Co Corporate Events

Dowa Holdings Completes Treasury Stock Disposal for Compensation

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

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

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.