Dowa Holdings Co (5714) AI Stock Analysis

• Market Cap: ¥570.39B
• Dividend Yield: 2.12%
• Average Volume (3M): 210.27K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.87
• Revenue Growth: -7.98%
• EPS Growth: -42.51%
• Country: JP
• Employees: 7,801
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 121.29
• Shares Outstanding: 61,989,210
• 10 Day Avg. Volume: 278,480
• 30 Day Avg. Volume: 210,270
• PEG Ratio: -3.86
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -8.02
• 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: ¥7,000.00
• Price Target Upside: -5.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥9,829.00 ▲(32.25% Upside)

The score is driven mainly by moderate financial performance (revenue/margin pressure and weak free cash flow despite a solid balance sheet). Technicals are a positive contributor due to a strong uptrend, though overbought signals temper the upside. Valuation is neutral-to-slightly negative with a mid-range P/E and modest dividend yield.

Positive Factors

Diversified business model

Dowa's vertical and horizontal exposure — smelting/refining, materials processing and industrial recycling/waste services — creates multiple durable revenue streams. This reduces reliance on any single end market, lets the firm capture value across the chain, and benefits from structural recycling demand and regulation.

Solid balance sheet

An improving equity ratio and manageable leverage give Dowa financial flexibility to withstand metals-cycle volatility, fund necessary capex in smelting and environmental assets, and pursue strategic recycling investments without excessive refinancing risk, supporting long-term stability.

Operational margin resilience

Stable gross margins and reasonable EBIT/EBITDA imply effective cost management and operational efficiency across processing and recycling plants. This durability helps preserve cash generation when volumes fall, sustaining competitiveness and supporting reinvestment when market conditions improve.

Negative Factors

Declining revenue

Near‑term and recent multi‑period revenue decline signals structural demand weakness or market share pressure in core metal and materials businesses. A shrinking top line erodes operating leverage, constrains margin recovery, and limits resources for strategic capex and recycling expansion over the coming months.

Weak free cash flow

Recent negative and volatile free cash flow raises concerns about the firm's ability to self‑fund capital expenditures and environmental investments. Persistent weak FCF can force external financing, constrain dividends or buybacks, and reduce optionality for long‑term strategic projects.

Net margin pressure

Despite gross margin stability, falling revenues have compressed net profit margins. Sustained margin pressure diminishes return on invested capital, limits ability to invest in higher‑margin processing or recycling capabilities, and increases sensitivity to metal price swings and cost inflation.

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 generates revenue through multiple key streams. The primary source of income comes from the manufacturing and sale of non-ferrous metals, which includes a range of products like copper and zinc alloys. Additionally, the company earns revenue from its electronic materials division, supplying advanced materials that cater to the semiconductor and electronics industries. Dowa also has a significant revenue stream from its environmental solutions business, which includes waste treatment and recycling services. Strategic partnerships with industries in need of sustainable resource management and technological advancements in material production further bolster its earnings. The company's focus on innovation and sustainability, along with its ability to adapt to changing market demands, plays a crucial role in enhancing its profitability.

Dowa Holdings Co Financial Statement Overview

Summary

Moderate fundamentals: a solid, improving balance sheet (manageable leverage, stable ROE) is offset by income statement pressure (declining revenue and weaker net margins) and weaker cash flow quality (fluctuating and recently negative free cash flow).

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	649.81B	678.67B	717.19B	780.06B	831.79B	588.00B
Gross Profit	81.13B	86.63B	81.45B	88.82B	106.42B	75.85B
EBITDA	57.03B	68.71B	70.05B	70.91B	100.84B	60.30B
Net Income	21.75B	27.13B	27.85B	25.04B	51.01B	21.82B
Balance Sheet
Total Assets	649.53B	673.54B	632.77B	655.28B	657.28B	598.47B
Cash, Cash Equivalents and Short-Term Investments	41.02B	43.58B	75.07B	38.82B	36.85B	18.28B
Total Debt	126.21B	132.86B	116.24B	156.32B	171.50B	192.13B
Total Liabilities	239.55B	257.50B	243.98B	294.68B	328.70B	321.75B
Stockholders Equity	391.80B	398.40B	372.99B	344.89B	313.45B	265.70B
Cash Flow
Free Cash Flow	0.00	-34.35B	80.27B	17.65B	28.13B	-38.11B
Operating Cash Flow	0.00	12.83B	118.63B	50.73B	59.91B	-3.09B
Investing Cash Flow	0.00	-41.42B	-26.26B	-30.14B	-11.34B	-22.94B
Financing Cash Flow	0.00	-4.12B	-59.20B	-19.96B	-31.19B	11.59B

Dowa Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7432.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 7432 is below the 20-day moving average (MA) of 8901.00, below the 50-day MA of 7640.72, and above the 200-day MA of 5703.01, indicating a bullish trend. The MACD of 477.88 indicates Positive momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 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	77 Outperform	¥182.73B	11.36	11.58%	1.62%	9.81%	30.20%
1515	74 Outperform	¥317.87B	28.55	6.77%	2.30%	8.19%	34.88%
5714	64 Neutral	¥570.39B	27.04	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥610.90B	38.91	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5713	57 Neutral	$2.56T	98.32	1.33%	1.98%	3.15%	-63.65%
5707	53 Neutral	¥22.17B	-3.45	-111.61%	―	-11.92%	61.16%

Dowa Holdings Co Corporate Events

Dowa Holdings Boosts Capital for Key Asian Subsidiaries

Dowa Holdings Co., Ltd. announced capital increases for its subsidiaries in Singapore and Thailand, namely Modern Asia Environmental Holdings Pte. Ltd. and Waste Management Siam Ltd. This move aims to enhance the company’s waste treatment capabilities in these regions, with the Singapore subsidiary planning to construct a new hazardous waste incinerator and the Thailand subsidiary strengthening its waste management business. These capital increases will classify both subsidiaries as specified subsidiaries, reflecting their growing significance within the company’s operations.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen6139.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.

Dowa Holdings Revises Financial and Dividend Forecasts Upward

Dowa Holdings Co., Ltd. has revised its full-year consolidated financial forecasts for the fiscal year ending March 31, 2026, due to improved performance driven by rising metal prices and favorable market conditions. The company has increased its annual dividend forecast from 159 yen to 183 yen per share, reflecting its commitment to a dividend payout ratio of 35% or 150 yen per share, whichever is higher, as part of its Medium-Term Plan 2027.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen6139.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.

Dowa Holdings Reports Decline in Half-Year Profits and Revises Forecasts

Dowa Holdings Co. reported a decrease in net sales and profits for the six months ended September 30, 2025, compared to the previous year. The company also revised its financial forecasts and dividend payments, indicating a cautious outlook for the fiscal year ending March 31, 2026, amidst challenging market conditions.

The most recent analyst rating on (JP:5714) stock is a Hold with a Yen6139.00 price target. To see the full list of analyst forecasts on Dowa Holdings Co stock, see the JP:5714 Stock Forecast page.