Dowa Holdings Co (5714) AI Stock Analysis

• Market Cap: ¥421.58B
• Dividend Yield: 2.12%
• Average Volume (3M): 210.27K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.82
• 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: ¥5,700.00
• Price Target Upside: -19.55% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥6,139.00 ▼(-13.35% Downside)

Dowa Holdings Co's overall stock score reflects a stable financial foundation with some challenges in revenue and cash flow. Technical analysis indicates positive momentum, while valuation metrics suggest a fair market price. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Business Model Diversification

Dowa's diversified revenue streams across non-ferrous metals, electronic materials, and environmental solutions provide resilience against sector-specific downturns, supporting long-term stability and growth.

Sustainability Focus

Dowa's emphasis on environmental solutions and recycling aligns with global sustainability trends, enhancing its competitive positioning and appeal to eco-conscious partners and consumers.

Solid Balance Sheet

A strong balance sheet with a manageable debt-to-equity ratio provides Dowa with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Revenue Decline

Declining revenues suggest challenges in market demand or competitive pressures, potentially impacting long-term profitability and market share if not addressed.

Cash Flow Concerns

Fluctuating and negative free cash flow can limit Dowa's ability to fund operations and invest in growth, potentially affecting its long-term financial health and strategic initiatives.

Margin Pressure

Pressure on net profit margins indicates cost management challenges or pricing pressures, which could erode profitability if not mitigated through operational efficiencies or strategic pricing adjustments.

Dowa Holdings Co Business Overview & Revenue Model

Company Description

Dowa Holdings Co., Ltd. (5714) is a diversified Japanese company engaged in the production and sale of non-ferrous metals, electronic materials, and environmental solutions. Operating primarily in the metal processing and recycling sectors, Dowa Holdings manufactures products such as copper and zinc alloys, as well as advanced materials used in electronics and semiconductors. The company also provides various industrial services, including waste treatment and resource recycling, contributing to sustainable development and environmental preservation.

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

Dowa Holdings Co shows a stable financial position with a solid balance sheet, but faces challenges in revenue growth and cash flow stability. The income statement indicates pressure on net profit margins and declining revenues, while cash flow concerns highlight 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	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: 7085.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 7085 is above the 20-day moving average (MA) of 6486.85, above the 50-day MA of 6024.32, and above the 200-day MA of 5131.28, indicating a bullish trend. The MACD of 337.95 indicates Negative momentum. The RSI at 76.94 is Negative, neither overbought nor oversold. The STOCH value of 93.03 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
5715	76 Outperform	¥134.69B	8.85	11.58%	1.62%	9.81%	30.20%
1515	76 Outperform	¥174.49B	17.50	6.77%	2.30%	8.19%	34.88%
5714	69 Neutral	¥421.58B	20.85	5.02%	2.12%	-7.98%	-42.51%
5711	66 Neutral	¥461.18B	30.98	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5727	58 Neutral	¥90.75B	26.38	5.78%	1.49%	0.82%	-1.72%
5713	57 Neutral	¥1.66T	67.98	1.33%	1.98%	3.15%	-63.65%

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.

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.

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.