DMG MORI CO (6141) AI Stock Analysis

• Market Cap: $419.07B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 1.35
• Revenue Growth: -4.91%
• EPS Growth: -16.52%
• Country: JP
• Employees: 12,839
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -1.90
• Shares Outstanding: 142,325,930
• 10 Day Avg. Volume: 2,512,750
• 30 Day Avg. Volume: 1,751,320
• PEG Ratio: -1.04
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.03
• 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: $3,166.33
• Price Target Upside: 7.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

DMG MORI CO shows solid revenue growth and a stable equity position, which are positive indicators of financial health. However, recent declines in profitability margins and cash flow metrics highlight operational challenges. The stock's technical indicators show mixed signals, with some downward momentum potential. Valuation appears relatively high, but the attractive dividend yield provides some offset.

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., Ltd. generates revenue primarily through the sale of its machine tools and related products. The company's key revenue streams include direct sales of CNC machines, spare parts, and accessories, as well as service contracts for maintenance and support. Additionally, DMG MORI offers software solutions that integrate with its hardware products to optimize manufacturing processes. Significant partnerships with industry leaders and ongoing investments in technology innovation also contribute to its earnings by enhancing the value proposition of its offerings. The company's global presence, with numerous production plants and sales offices worldwide, allows it to effectively cater to diverse market needs and sustain its financial growth.

DMG MORI CO Financial Statement Overview

Summary

DMG MORI CO demonstrates solid revenue growth and a stable equity position, which are positive indicators of financial health. However, profitability margins and cash flow metrics have worsened in recent periods, indicating operational and cash management challenges. Improving profitability and cash flow stability will be crucial for enhancing financial performance.

Income Statement

The company has shown consistent revenue growth with a notable increase in Total Revenue from 2020 to 2024. Gross Profit Margin has been stable, indicating efficient production processes. However, the Net Profit Margin has decreased significantly in 2024, indicating increased expenses or other income impacts. EBIT and EBITDA margins were strong in prior years but have declined sharply in 2024, suggesting potential cost management issues or operational challenges.

Balance Sheet

The company's leverage position is moderate with a consistent Debt-to-Equity ratio. The Return on Equity (ROE) has fluctuated, indicating variability in profitability relative to equity. However, the Equity Ratio has improved over the years, reflecting a stronger equity position relative to total assets, enhancing financial stability.

Cash Flow

Free Cash Flow has shown volatility with a significant decline in 2024, indicating potential liquidity constraints. The Operating Cash Flow to Net Income Ratio has been robust, suggesting strong cash generation relative to reported earnings. However, the decline in Free Cash Flow to Net Income Ratio in 2024 raises concerns about cash management and capital expenditure impacts.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
555.01B	539.45B	483.37B	402.11B	334.73B
	Gross Profit
342.41B	327.49B	286.26B	224.05B	193.60B
	EBIT
43.73B	81.11B	41.21B	23.07B	10.67B
	EBITDA
75.22B	81.81B	66.08B	42.81B	32.12B
	Net Income Common Stockholders
7.70B	33.94B	25.41B	13.46B	1.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.44B	39.21B	43.49B	52.85B	38.01B
	Total Assets
797.57B	765.81B	680.33B	597.12B	526.53B
	Total Debt
106.45B	113.66B	91.09B	95.39B	102.41B
	Net Debt
64.70B	74.45B	54.10B	48.09B	68.65B
	Total Liabilities
481.09B	493.26B	429.96B	379.84B	336.63B
	Stockholders Equity
314.52B	157.17B	245.90B	213.14B	185.42B
Cash Flow		Free Cash Flow
774.00M	9.14B	28.64B	26.48B	-6.50B
	Operating Cash Flow
44.58B	51.61B	69.75B	49.73B	13.65B
	Investing Cash Flow
-38.20B	-36.73B	-44.87B	-19.38B	-18.86B
	Financing Cash Flow
-5.66B	-16.37B	-38.98B	-18.27B	10.79B

DMG MORI CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2955.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2955.5 is above the 20-day moving average (MA) of 2566.80, above the 50-day MA of 2760.79, and above the 200-day MA of 2809.68, indicating a bullish trend. The MACD of 88.85 indicates Negative momentum. The RSI at 62.49 is Neutral, neither overbought nor oversold. The STOCH value of 73.63 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
6877	76 Outperform	¥56.08B	8.84		4.29%	11.40%	5.96%
6101	74 Outperform	¥86.67B	8.00		3.19%	12.42%	82.93%
6278	69 Neutral	¥67.29B	11.85		2.69%	28.68%	71.70%
6141	68 Neutral	$419.07B	25.72	8.94%	3.19%	-4.91%	-16.52%
Sector *	64 Neutral	$4.42B	11.99	5.16%	249.23%	4.02%	-11.68%

DMG MORI CO Corporate Events

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.

DMG MORI Proposes Stable Year-End Dividend Amid Strategic Investments

DMG MORI CO., LTD. announced a proposal to maintain a year-end dividend of ¥50.00 per share, resulting in a total annual dividend of ¥100.00 per share for the fiscal year ended December 31, 2024. This decision reflects the company’s commitment to stable dividends and its strategic focus on reinvesting in new product development and production capabilities to strengthen market competitiveness.

DMG MORI Enhances Shareholder Benefits with Orchestra Concerts

DMG MORI CO., LTD. announced that it will include tickets to Japan National Orchestra concerts as part of its fiscal year 2024 shareholder benefit program. Eligible shareholders, those holding 500 or more shares for at least a year by the end of 2024, can choose concert tickets or a CD of the orchestra, enhancing shareholder engagement and offering cultural enrichment.