DMG MORI CO (6141) AI Stock Analysis

• Market Cap: ¥438.99B
• Dividend Yield: 3.77%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.34
• Revenue Growth: -9.34%
• EPS Growth: 164.21%
• Country: JP
• Employees: 12,839
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 17.74
• Shares Outstanding: 142,325,930
• 10 Day Avg. Volume: 1,331,640
• 30 Day Avg. Volume: 2,000,420
• PEG Ratio: 0.06
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 39.84
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 100.15
• Revenue Forecast (FY): ¥530.67B

• Rating: 57 Neutral
• Price Target: ¥3,012.00 ▲(18.51% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held back by weakening cash conversion and a sharp increase in leverage alongside 2025 revenue decline and margin compression. Technicals are broadly neutral with modest positive momentum, and valuation is reasonable with a supportive dividend yield, but these are not enough to offset the elevated financial risk signals.

Positive Factors

Recurring revenue from services, parts and software

A large installed base plus diversified after-sales streams (service, parts, software, retrofits, training) provides recurring revenue that smooths cyclicality in new machine orders, supports margins over time, and increases customer stickiness and lifetime value.

Broad CNC product portfolio and automation capability

A wide product lineup across turning, milling and multi-axis machines plus automation and production-support tech addresses diverse industrial needs, preserves addressable market breadth, and supports cross-sell of software and automation, reinforcing competitive positioning.

Demonstrated growth history and margin recovery ability

Prior multiyear revenue expansion and a rebound in net margin indicate the company can recover through cycles via pricing, product mix or cost actions. This historical resilience suggests the business can regain operating leverage when demand normalizes.

Negative Factors

Material rise in leverage

A threefold rise in debt-to-equity meaningfully reduces financial flexibility, increases interest burden sensitivity to rate changes, and limits the company's ability to invest or support operations during downturns without raising costly external capital.

Weakened cash generation and low FCF conversion

Substantially weaker operating cash flow and poor FCF coverage mean reported earnings are less liquid, reducing internal funding for capex, dividends, or debt paydown and increasing reliance on external financing, which is risky given higher leverage.

Revenue decline and compressed operating margins

A meaningful YoY revenue drop and sharp EBIT margin compression point to demand softness and/or mix and cost pressures. Sustained weaker top-line and margins would erode reinvestment capacity and undermine long-term competitiveness in capital equipment markets.

DMG MORI CO Business Overview & Revenue Model

Company Description

DMG MORI CO (6141) is a leading global manufacturer of machine tools, specializing in CNC (computerized numerical control) technology. The company operates primarily in the manufacturing sector, providing advanced solutions for various industries, including automotive, aerospace, medical, and precision engineering. DMG MORI offers a comprehensive range of products, including turning centers, milling machines, and additive manufacturing systems, along with integrated software solutions and services that enhance operational efficiency.

How the Company Makes Money

DMG MORI generates revenue through multiple key streams, primarily by selling its machine tools and related equipment. The company also earns significant income from providing maintenance, repair, and spare parts services to its customers. Additionally, software solutions that optimize production processes contribute to its earnings. DMG MORI engages in strategic partnerships and collaborations with various technology firms and research institutions to enhance its product offerings and enter new markets, further bolstering its revenue potential. The company's strong presence in global markets, particularly in Europe and Asia, also plays a critical role in its financial performance, as it caters to a diverse clientele across different sectors.

DMG MORI CO Financial Statement Overview

Summary

Mixed fundamentals: revenue declined in 2025 (~7% YoY) and operating margin compressed materially (EBIT margin ~3.7% vs ~10.3% in 2023). Leverage stepped up sharply (debt-to-equity ~1.03 vs ~0.34 in 2024), while cash generation weakened (operating cash flow down and free cash flow covering only ~36% of net income), increasing risk if demand stays soft.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 fell (~7% YoY), pointing to a cooling cycle. Profitability has been volatile: net margin improved sharply in 2025 (~4.7%) after a weak 2024 (~1.4%), but remains below the stronger 2022–2023 period (~5–6%). Operating profitability also compressed versus prior peaks (EBIT margin ~3.7% in 2025 vs ~10.3% in 2023), suggesting margin pressure despite still-solid gross margins.

Balance Sheet

Leverage increased materially in 2025: debt-to-equity moved to ~1.03 from ~0.34 in 2024, reducing financial flexibility. Equity also declined versus 2024, while total assets rose, implying a more debt-funded balance sheet. Returns on equity recovered to ~10.5% in 2025 (from ~2.4% in 2024), but the higher leverage elevates risk if earnings weaken.

Cash Flow

Cash generation weakened in 2025: operating cash flow fell meaningfully (to ~¥26.0B from ~¥44.6B) and free cash flow declined (~¥9.35B), with negative free-cash-flow growth. Free cash flow covered only ~36% of net income in 2025, indicating earnings quality is mixed and cash conversion is not consistently strong (notably better in 2021–2022).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	514.98B	555.01B	548.52B	474.77B	402.11B
Gross Profit	285.89B	342.41B	337.41B	286.26B	224.05B
EBITDA	53.59B	75.22B	82.81B	65.72B	45.42B
Net Income	24.03B	7.70B	33.94B	25.41B	13.46B
Balance Sheet
Total Assets	868.97B	797.57B	765.81B	680.33B	597.12B
Cash, Cash Equivalents and Short-Term Investments	39.86B	44.44B	39.21B	36.99B	47.30B
Total Debt	236.45B	106.45B	113.66B	91.09B	95.39B
Total Liabilities	637.58B	481.09B	493.26B	429.96B	379.84B
Stockholders Equity	229.71B	314.52B	267.99B	245.90B	213.14B
Cash Flow
Free Cash Flow	9.35B	774.00M	9.14B	28.64B	26.48B
Operating Cash Flow	25.98B	44.58B	51.61B	69.75B	49.73B
Investing Cash Flow	-11.21B	-38.20B	-36.73B	-44.87B	-19.38B
Financing Cash Flow	-20.36B	-5.66B	-16.37B	-38.98B	-18.27B

DMG MORI CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2541.50
• 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:6141, the sentiment is Positive. The current price of 2541.5 is below the 20-day moving average (MA) of 2991.03, below the 50-day MA of 2832.61, and below the 200-day MA of 2942.84, indicating a bullish trend. The MACD of 53.38 indicates Positive momentum. The RSI at 61.93 is Neutral, neither overbought nor oversold. The STOCH value of 73.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	83 Outperform	¥184.85B	12.31	―	2.33%	25.95%	66.92%
6877	74 Outperform	¥94.37B	12.81	―	3.85%	9.38%	8.88%
5851	72 Outperform	¥95.38B	8.73	4.34%	3.36%	3.80%	-15.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	63 Neutral	¥5.88B	-750.55	―	2.05%	-6.69%	-80.28%
6474	62 Neutral	¥127.72B	23.00	2.64%	2.30%	-4.11%	46.76%
6141	57 Neutral	¥438.99B	19.90	5.32%	3.77%	-9.34%	164.21%

DMG MORI CO Corporate Events

DMG MORI Sets ¥3,113 Disposal Price for Restricted Stock Compensation

DMG MORI has set the disposal price for treasury shares to be used as restricted stock compensation at ¥3,113 per share, with a total disposal value of approximately ¥5.7 billion. The shares will be allotted to executive officers and employees of the company and its group firms as part of an equity-based compensation program aimed at aligning their interests with shareholders.

To determine the price, the company compared the closing share prices on February 9 and February 17, 2026, and selected the higher value to avoid arbitrariness and protect existing shareholders. Management emphasized that the chosen price reflects the firm’s corporate value and does not represent a preferential discount for beneficiaries, underscoring governance considerations around dilution and fair treatment of investors.

The most recent analyst rating on (JP:6141) stock is a Hold with a Yen2943.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI Reshapes Top Management With New Representative Director

DMG MORI has announced a change in its top management structure, appointing long-time executive Makoto Fujishima as Representative Director and Executive Vice President, effective March 27, 2026. Fujishima brings decades of experience in control technology, R&D, and quality management, signaling a continuity-focused leadership shift grounded in the company’s engineering and manufacturing core.

Current Representative Director and Executive Vice President Hirotake Kobayashi will retire from his representative role and move to the new position of Vice President and Executive Officer. The reshuffle aims to refresh the management lineup while retaining senior expertise, potentially reinforcing DMG MORI’s operational stability and technical leadership in the machine tool industry.

The most recent analyst rating on (JP:6141) stock is a Hold with a Yen2943.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI Lifts Profit and Dividend Despite Lower Sales, Flags Tougher 2026 Outlook

DMG MORI reported 2025 sales revenues of ¥514.98 billion, down 4.8% year on year, with operating profit plunging 56.6% to ¥18.97 billion, but profit attributable to owners of the parent surged more than threefold to ¥24.03 billion on improved comprehensive income and discontinued operations treatment. The company strengthened its balance sheet, lifting total assets to ¥868.97 billion and equity to ¥342.16 billion, raised its annual dividend to ¥105 per share for 2025, and forecast modest 2026 revenue growth to ¥535 billion alongside a recovery in operating profit but a sharp decline in net profit, signaling continued industry headwinds and a cautious earnings outlook despite stable shareholder returns.

DMG MORI also reported steady cash generation with ¥25.98 billion in operating cash flow in 2025, though this was down from the prior year, while investing and financing outflows reduced its cash and cash equivalents slightly to ¥39.86 billion. The maintained high level of dividends relative to earnings and a forecast payout plan for 2026 suggest management is prioritizing shareholder returns even as profitability metrics, including the operating margin and return on equity, remain under pressure in a challenging machine tool market environment.

The most recent analyst rating on (JP:6141) stock is a Hold with a Yen2943.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.

DMG MORI to Grant 1.83 Million Treasury Shares as New Restricted Stock Compensation

DMG MORI will dispose of 1,829,500 treasury shares of its common stock on April 30, 2026, as restricted stock compensation to 17 executive officers, 1,055 employees, and three group company employees, with the final price set by reference to recent market closing prices to avoid preferential treatment and protect existing shareholders. The move forms part of a shift from granting DMG MORI AG shares to granting DMG MORI CO. stock under a new restricted stock plan intended to support long-term asset formation, boost medium- to long-term performance motivation, and tie continued employment through a multi-year vesting schedule to the lifting of transfer restrictions.

Under the new plan, eligible officers and employees will contribute monetary claims as payment in kind to receive the allotted shares, subject to a restriction period lasting until after they leave all positions at the group, with full vesting contingent on continuous service from April 30, 2026, to December 21, 2031. Shares may be acquired by the company without compensation if recipients resign for non-legitimate reasons or commit serious misconduct, while retirement due to term expiration, mandatory retirement, or other legitimate reasons, including death, will trigger immediate lifting of transfer restrictions and vesting of the restricted stock.

The most recent analyst rating on (JP:6141) stock is a Hold with a Yen2943.00 price target. To see the full list of analyst forecasts on DMG MORI CO stock, see the JP:6141 Stock Forecast page.