DMG MORI CO (6141) AI Stock Analysis

• Market Cap: $423.89B
• Dividend Yield: 3.35%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.38
• Revenue Growth: -8.83%
• EPS Growth: -39.67%
• Country: JP
• Employees: 12,839
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 9.84
• Shares Outstanding: 142,325,930
• 10 Day Avg. Volume: 799,930
• 30 Day Avg. Volume: 1,041,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: 11.03
• 1Y Price Target: $3,056.90
• Price Target Upside: 0.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥3,079.00 ▲(1.08% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong cash flow but declining revenue and profitability. Technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued, despite a decent dividend yield.

DMG MORI CO Business Overview & Revenue Model

Company Description

DMG Mori Co., Ltd. manufactures and sells machine tools worldwide. It offers 5-axis/multi-axis machines, turning centers, machining centers, and Lasertec and ultrasonic machines, as well as handling, machining, measuring, and monitoring technology cycles. The company also provides pallet pool, workpiece handling, pallet handling, and tool handling systems; tool pre-setting, shrinking, measuring, and balancing devices; and CELOS, an operating system for machine tools, as well as CELOS software. In addition, it offers peripherals, such as coolant oil, oil skimmer, compressor, coolant filtration, air dryer, and coolant nozzle machines; measuring devices, including tool presetter, shrink fit and balancing machines, and on-machine measurement devices; bar feeder machines; and electrical cabinet coolers. The company was formerly known as DMG Mori Seiki Co., Ltd. and changed its name to DMG Mori Co., Ltd. in 2015. DMG Mori Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DMG MORI CO. generates revenue primarily through the sale of its machine tools and related services. The company's key revenue streams include the sale of high-precision machine tools, after-sales services such as maintenance and repair, and the provision of digital solutions that enhance machine performance. Additionally, DMG MORI invests in research and development to continuously innovate its product offerings, which helps maintain its competitive edge. Strategic partnerships and collaborations with other industry leaders also contribute to its revenue by expanding its market reach and integrating cutting-edge technologies into its product lines.

DMG MORI CO Financial Statement Overview

Summary

DMG MORI CO shows strong gross margins and significant cash flow improvements, but faces challenges with declining revenue growth and profitability margins. The balance sheet indicates increased leverage, which could pose risks if not managed carefully.

Income Statement

DMG MORI CO's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 57.48%, indicating efficient cost management. However, the net profit margin has decreased to 3.13% from 6.29% in 2023, reflecting reduced profitability. Revenue growth has turned negative at -3.29% in the TTM period, a concern after previous growth. The EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity base with a debt-to-equity ratio of 1.22 in the TTM period, up from 0.72 in 2023, indicating increased leverage. Return on equity has decreased to 8.22% from 21.60% in 2023, showing reduced efficiency in generating returns from equity. The equity ratio remains healthy, suggesting a solid asset base.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 644.18% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.79, showing good cash conversion. However, the free cash flow to net income ratio is relatively low at 0.09, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	510.43B	555.01B	548.52B	474.77B	402.11B	328.28B
Gross Profit	295.81B	342.41B	337.41B	286.26B	224.05B	193.60B
EBITDA	60.29B	75.22B	82.81B	65.72B	45.42B	35.15B
Net Income	10.70B	7.70B	33.94B	25.41B	13.46B	1.75B
Balance Sheet
Total Assets	789.88B	797.57B	765.81B	680.33B	597.12B	526.53B
Cash, Cash Equivalents and Short-Term Investments	28.01B	44.44B	39.21B	36.99B	47.30B	33.75B
Total Debt	220.81B	106.45B	113.66B	91.09B	95.39B	102.41B
Total Liabilities	589.27B	481.09B	493.26B	429.96B	379.84B	336.63B
Stockholders Equity	199.11B	314.52B	267.99B	245.90B	213.14B	185.42B
Cash Flow
Free Cash Flow	21.61B	774.00M	9.14B	28.64B	26.48B	-6.50B
Operating Cash Flow	45.83B	44.58B	51.61B	69.75B	49.73B	13.65B
Investing Cash Flow	-32.28B	-38.20B	-36.73B	-44.87B	-19.38B	-18.86B
Financing Cash Flow	-12.42B	-5.66B	-16.37B	-38.98B	-18.27B	10.79B

DMG MORI CO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3046.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6141, the sentiment is Negative. The current price of 3046 is below the 20-day moving average (MA) of 3128.60, below the 50-day MA of 3284.84, and above the 200-day MA of 2824.84, indicating a neutral trend. The MACD of -77.22 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 56.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6141.

DMG MORI CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6101	81 Outperform	107.96B	8.78	19.34%	2.36%	28.13%	84.20%
6136	79 Outperform	190.75B	13.83	8.07%	2.91%	0.32%	-5.70%
6877	77 Outperform	70.10B	10.29	9.12%	3.43%	10.78%	12.90%
6278	74 Outperform	138.55B	24.69	7.22%	1.21%	21.67%	40.87%
6474	69 Neutral	88.00B	19.15	2.11%	2.68%	-4.76%	78.57%
6141	55 Neutral	$423.89B	40.39	5.20%	3.35%	-8.83%	-39.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

DMG MORI CO Corporate Events

DMG MORI Reports Decline in H1 2025 Financial Performance

DMG MORI CO., LTD. reported a significant decline in its financial performance for the first half of 2025, with sales revenues dropping by 13.7% and operating profit plummeting by 73% compared to the previous year. The company attributes these results to the exclusion of discontinued operations in Russia and a completed price adjustment for a business combination, impacting its financial standing and future outlook.

The most recent analyst rating on (JP:6141) stock is a Sell with a Yen2200.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI CO., LTD. Announces 50 Billion Yen Fundraising Initiative

DMG MORI CO., LTD. has announced a fundraising initiative through a Third Perpetual Subordinated Loan amounting to 50 billion yen. This move is aimed at refinancing existing loans and is structured to be classified as equity under IFRS, enhancing the company’s financial flexibility and potentially improving its credit evaluation.

The most recent analyst rating on (JP:6141) stock is a Buy with a Yen3770.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI CO. Continues Shareholder Benefits for 2025

DMG MORI CO., LTD. has announced the continuation of its shareholder benefit program for fiscal year 2025, which remains unchanged from the previous year. Eligible shareholders who own 500 or more shares for at least one year can choose to receive tickets to the Japan National Orchestra concerts in 2026 or a CD of the orchestra if they cannot attend.

The most recent analyst rating on (JP:6141) stock is a Sell with a Yen2200.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI Announces Issuance of Fifth Perpetual Subordinated Bonds

DMG MORI CO., LTD. has announced the issuance of its Fifth Perpetual Subordinated Bonds, valued at 7.0 billion yen, with the aim of replacing existing hybrid financing. These bonds, which carry a BBB rating, will be publicly offered in Japan primarily targeting institutional investors. The funds raised will be used to repay the Second Perpetual Subordinated Loan, reflecting the company’s strategic financial management and commitment to optimizing its capital structure.

The most recent analyst rating on (JP:6141) stock is a Buy with a Yen3770.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI CO., LTD. Announces Fundraising Through Perpetual Subordinated Bonds

DMG MORI CO., LTD. announced its plan to raise funds through the issuance of Perpetual Subordinated Bonds and Loans to replace its existing hybrid financing. This strategic move, involving up to 57 billion yen, aims to optimize the company’s financial structure without diluting its shares, potentially enhancing its credit evaluation and market positioning.

DMG MORI Reports Decline in Q1 2025 Financial Results

DMG MORI reported a significant decline in its financial performance for the first quarter of 2025, with sales revenues and operating profit dropping by 14.2% and 85.5% respectively compared to the same period last year. The company has classified its Russian subsidiary’s operations as discontinued, which has impacted its financial results. Despite the downturn, the company maintains its forecast for the full year, expecting a modest recovery in profits attributable to owners of the parent.