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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

(5714)

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Neutral 59 (OpenAI - 5.2)
Rating:59Neutral
Price Target:
¥9,973.00
▲(20.51% Upside)
Action:Reiterated
Date:07/18/26
The score is held back primarily by weak and inconsistent cash flow (including two years of negative free cash flow) and bearish technical signals (below key moving averages with negative MACD). Offsetting factors include improved FY2026 profitability and balance-sheet leverage, plus an attractive valuation with a low P/E and a ~3.2% dividend yield.
Positive Factors
Integrated resource-to-recycling model
DOWA's vertically integrated model captures value from waste acceptance, metal recovery and downstream sales, enabling revenue from both service fees and recovered materials. This structural integration improves margin capture, customer stickiness and resilience versus standalone recyclers.
Negative Factors
Weak cash generation / negative FCF
Two consecutive years of deeply negative free cash flow show profits have not translated into cash, likely from working-capital swings or heavy investment. Persistent negative FCF undermines self-funding for capex, dividends and debt reduction, raising medium-term financing risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated resource-to-recycling model
DOWA's vertically integrated model captures value from waste acceptance, metal recovery and downstream sales, enabling revenue from both service fees and recovered materials. This structural integration improves margin capture, customer stickiness and resilience versus standalone recyclers.
Read all positive factors

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

Dowa Holdings Co Business Overview & Revenue Model

Company Description
Established in Tokyo, Japan, in 1884, Dowa Holdings Co., Ltd. is a global enterprise conducting diverse operations across several key industrial sectors: environmental management and recycling, nonferrous metals, electronic materials, metal proces...
How the Company Makes Money
DOWA Holdings makes money through a combination of (1) selling non-ferrous metals and related products and (2) providing recycling and environmental services that generate both processing fees and recovered-material value. Key revenue streams inc...

Dowa Holdings Co Financial Statement Overview

Summary
Earnings improved in FY2026 with a strong revenue rebound and higher net margin, and the balance sheet shows healthier leverage and better ROE. However, cash generation is a major concern: operating cash flow dropped sharply and free cash flow was deeply negative for two consecutive years, indicating weak cash conversion despite higher profits.
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue745.41B678.67B717.19B780.06B831.79B
Gross Profit89.80B83.38B78.80B88.82B104.59B
EBITDA110.68B68.71B70.05B70.91B100.84B
Net Income62.46B27.13B27.85B25.04B51.01B
Balance Sheet
Total Assets794.48B673.54B632.77B655.28B657.28B
Cash, Cash Equivalents and Short-Term Investments51.23B43.58B75.07B38.82B36.85B
Total Debt144.74B136.16B116.24B159.43B173.15B
Total Liabilities319.84B257.50B243.98B294.68B328.70B
Stockholders Equity455.56B398.40B372.99B344.89B313.45B
Cash Flow
Free Cash Flow-29.36B-33.03B82.19B21.03B30.96B
Operating Cash Flow5.24B12.83B118.63B50.73B59.91B
Investing Cash Flow12.06B-41.32B-26.26B-30.14B-11.34B
Financing Cash Flow-9.95B-4.22B-59.20B-19.96B-31.19B

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
70
Outperform
¥2.77T11.139.31%2.93%21.72%995.36%
66
Neutral
¥264.69B16.729.39%2.30%12.77%96.53%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
¥567.89B7.1615.13%3.24%29.07%266.58%
59
Neutral
¥129.89B10.259.36%1.62%4.90%-24.31%
58
Neutral
¥667.86B7.335.82%2.37%6.91%956.99%
49
Neutral
¥18.30B3.6762.50%-0.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5714
Dowa Holdings Co
9,499.00
4,571.72
92.78%
JP:5711
Mitsubishi Materials
5,290.00
2,861.75
117.85%
JP:5713
Sumitomo Metal Mining Co
9,684.00
6,154.90
174.40%
JP:5707
Toho Zinc Co
1,006.00
222.00
28.32%
JP:1515
Nittetsu Mining Co., Ltd.
3,305.00
1,786.78
117.69%
JP:5715
Furukawa Co., Ltd.
3,980.00
1,441.89
56.81%

Dowa Holdings Co Corporate Events

Dowa Holdings Delivers Strong Q1 on Metals Tailwind but Keeps FY Forecast Unchanged
Aug 7, 2026
Dowa Holdings reported a strong start to fiscal 2026, as first-quarter net sales rose 58% year on year while operating and ordinary profits surged more than threefold, supported by favorable metal prices, foreign exchange movements, and gains from...
Dowa Holdings Posts Surge in Q1 Earnings and Confirms Robust Dividend Payouts
Aug 7, 2026
Dowa Holdings reported a sharp rebound in performance for the three months ended June 30, 2026, with net sales climbing 58.2% year on year to ¥253.4 billion and operating profit surging 281.0% to ¥24.7 billion. Ordinary profit rose 277.5...
Dowa Holdings Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Aug 3, 2026
DOWA HOLDINGS has completed payment procedures for the disposal of 11,743 shares of its treasury stock as part of a restricted stock compensation plan for management. The shares, valued at a disposal price of 8,425 yen per share for a total of 98,...
Dowa Holdings to Use Treasury Shares for Executive Restricted Stock Plan
Jul 9, 2026
Dowa Holdings has approved the disposal of 11,743 shares of its treasury stock to implement a restricted stock compensation plan for six internal directors and seven executive officers. The shares, valued at a total of about ¥98.9 million at ...
Dowa Holdings weighs reduction of share investment unit to boost liquidity
May 20, 2026
Dowa Holdings has outlined its stance on reducing the minimum investment unit for its shares, stating that it views such a move as an effective means to invigorate the equity market. The company emphasizes that a lower investment threshold can enh...
Dowa Holdings Boosts FY2025 Dividend With Large Special Payout, Plans Lower but Strong FY2026 Dividend
May 19, 2026
Dowa Holdings has approved a year-end dividend of ¥368 per share for the fiscal year ended March 31, 2026, consisting of an ordinary dividend of ¥268 and a special dividend of ¥100, with total payouts reaching ¥21,766 million, ...
Dowa Holdings Lifts Dividend Forecast on Stronger Earnings and Asset Sale Proceeds
May 14, 2026
Dowa Holdings Co., Ltd. has revised its dividend forecast for the fiscal year ended March 31, 2026, under its Medium-Term Plan 2027 policy of paying the higher of a 35% payout ratio or ¥150 per share. Reflecting an upward revision in full-yea...
Dowa Holdings Posts Record Profit and Boosts Payouts on Metal Price Tailwind
May 14, 2026
Dowa Holdings reported fiscal 2025 net sales of 745.4 billion yen, up 9.8% year on year, with operating profit rising 6.1% and ordinary profit jumping 24.6%. Profit attributable to owners of parent surged 130.2% to a record 62.4 billion yen, helpe...
Dowa Holdings Posts Profit Surge and Hikes Dividend on Strong FY2026 Results
May 14, 2026
Dowa Holdings reported a strong rebound for the fiscal year ended March 31, 2026, with net sales rising 9.8% to ¥745.4 billion and profit attributable to owners of the parent surging 130.2% to ¥62.5 billion. Earnings per share more than ...
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: Jul 18, 2026