DMG MORI CO (6141) AI Stock Analysis

• Market Cap: $465.65B
• Dividend Yield: 3.01%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.38
• Revenue Growth: -8.83%
• EPS Growth: -39.67%
• Country: JP
• Employees: 12,839
• Sector: Industrials
• Sector Strength: 80
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 9.84
• Shares Outstanding: 142,325,930
• 10 Day Avg. Volume: 1,023,510
• 30 Day Avg. Volume: 1,037,146
• 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: 1.43
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: 9.88
• 1Y Price Target: $3,764.01
• Price Target Upside: 13.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥3,763.00 ▲(13.24% Upside)

DMG MORI CO's strong operational efficiency and bullish technical indicators are major positives, but these are offset by valuation concerns and liquidity challenges. While the stock has performed well recently, its high P/E ratio and overbought technical indicators suggest caution due to potential for price corrections.

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 operational efficiency with strong gross margins and stable EBIT and EBITDA margins. However, challenges exist in profit conversion and revenue growth instability. The balance sheet is stable but moderately leveraged, with strong operating cash flows but weak free cash flow generation, indicating potential liquidity concerns.

Income Statement

The income statement shows a mixed performance. Gross profit margin for TTM (Trailing-Twelve-Months) is strong at approximately 57.5%, indicating efficient cost management. However, the net profit margin for TTM is relatively low at 3.1%, reflecting challenges in translating revenue into profit. Revenue growth has been inconsistent, with a decline from the previous year. Despite the challenges, the EBIT and EBITDA margins for TTM remain positive, suggesting operational resilience.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.22 for TTM, indicating moderate leverage. The return on equity (ROE) for TTM is a healthy 8.52%, showing effective use of equity capital. However, the equity ratio is relatively low at 24.75%, suggesting a high reliance on debt financing. Overall, the company maintains a balanced financial structure, but with a risk of high leverage.

Cash Flow

Cash flow analysis reveals some concerns. The operating cash flow to net income ratio for TTM is robust at 1.89, indicating strong cash generation relative to net income. However, free cash flow has decreased significantly compared to previous periods, with a negative growth rate. The free cash flow to net income ratio is low at 0.18, suggesting limited free cash flow generation relative to net income. These factors highlight potential challenges in cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	527.82B	555.01B	539.45B	483.37B	402.11B	334.73B
Gross Profit	303.37B	342.41B	327.49B	286.26B	224.05B	193.60B
EBITDA	67.29B	75.22B	82.81B	66.08B	42.81B	32.12B
Net Income	16.53B	7.70B	33.94B	25.41B	13.46B	1.75B
Balance Sheet
Total Assets	783.63B	797.57B	765.81B	680.33B	597.12B	526.53B
Cash, Cash Equivalents and Short-Term Investments	41.62B	44.44B	39.21B	43.49B	52.85B	38.01B
Total Debt	236.90B	106.45B	113.66B	91.09B	95.39B	102.41B
Total Liabilities	588.09B	481.09B	493.26B	429.96B	379.84B	336.63B
Stockholders Equity	193.97B	314.52B	157.17B	245.90B	213.14B	185.42B
Cash Flow
Free Cash Flow	2.90B	774.00M	9.14B	28.64B	26.48B	-6.50B
Operating Cash Flow	31.25B	44.58B	51.61B	69.75B	49.73B	13.65B
Investing Cash Flow	-32.71B	-38.20B	-36.73B	-44.87B	-19.38B	-18.86B
Financing Cash Flow	6.18B	-5.66B	-16.37B	-38.98B	-18.27B	10.79B

DMG MORI CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3323.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3323 is below the 20-day moving average (MA) of 3423.80, above the 50-day MA of 3296.22, and above the 200-day MA of 2788.77, indicating a neutral trend. The MACD of 13.12 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 16.29 is Positive, 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
6141	66 Neutral	$465.65B	43.47	5.20%	3.01%	-8.83%	-39.67%
Sector *	58 Neutral	HK$14.10B	4.53	-3.70%	5.60%	2.27%	-65.55%
OSGCF	―	$1.28B	13.95	7.41%	2.81%	―	―
8UM	―	€472.19M	16.53	2.79%	―	―	―
6101	78 Outperform	¥98.88B	8.05		2.65%	28.13%	84.20%
6877	77 Outperform	¥67.29B	9.88		3.57%	10.78%	12.90%
6278	69 Neutral	¥134.92B	24.04		1.43%	21.67%	40.87%

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.