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DMG MORI CO (JP:6141)
:6141
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DMG MORI CO (6141) AI Stock Analysis

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JP:6141

DMG MORI CO

(OTC:6141)

Rating:66Neutral
Price Target:
¥3,763.00
▲(10.61%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 (6141) vs. iShares MSCI Japan ETF (EWJ)

DMG MORI CO Business Overview & Revenue Model

Company DescriptionDMG 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 MoneyDMG 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, there are concerns with profit conversion and inconsistent revenue growth. The balance sheet is stable but carries moderate leverage risk. Cash flow performance highlights strong operating cash flow but weak free cash flow generation, suggesting potential liquidity constraints.
Income Statement
65
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue422.39B555.01B539.45B483.37B402.11B334.73B
Gross Profit229.80B342.41B327.49B286.26B224.05B193.60B
EBITDA33.46B75.22B82.81B66.08B42.81B32.12B
Net Income900.00M7.70B33.94B25.41B13.46B1.75B
Balance Sheet
Total Assets565.26B797.57B765.81B680.33B597.12B526.53B
Cash, Cash Equivalents and Short-Term Investments70.79B44.44B39.21B43.49B52.85B38.01B
Total Debt211.55B106.45B113.66B91.09B95.39B102.41B
Total Liabilities342.45B481.09B493.26B429.96B379.84B336.63B
Stockholders Equity147.44B314.52B157.17B245.90B213.14B185.42B
Cash Flow
Free Cash Flow30.32B774.00M9.14B28.64B26.48B-6.50B
Operating Cash Flow42.34B44.58B51.61B69.75B49.73B13.65B
Investing Cash Flow-4.48B-38.20B-36.73B-44.87B-19.38B-18.86B
Financing Cash Flow-29.58B-5.66B-16.37B-38.98B-18.27B10.79B

DMG MORI CO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3402.00
Price Trends
50DMA
3176.04
Positive
100DMA
2945.08
Positive
200DMA
2744.11
Positive
Market Momentum
MACD
104.52
Negative
RSI
63.90
Neutral
STOCH
55.07
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 3402 is above the 20-day moving average (MA) of 3360.40, above the 50-day MA of 3176.04, and above the 200-day MA of 2744.11, indicating a bullish trend. The MACD of 104.52 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 55.07 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥482.38B45.025.20%2.94%-4.91%-16.52%
64
Neutral
€14.01B15.382.05%3.20%4.71%-8.16%
$1.20B14.307.41%2.72%
€458.33M15.942.79%3.34%
78
Outperform
¥97.67B7.95
2.86%28.13%84.20%
74
Outperform
¥62.01B9.77
3.91%11.40%5.96%
69
Neutral
¥111.60B19.66
1.67%28.68%71.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6141
DMG MORI CO
3,402.00
743.56
27.97%
OSGCF
OSG
14.20
1.48
11.64%
DE:8UM
Nachi-Fujikoshi Corp.
18.80
2.25
13.60%
JP:6101
Tsugami Corp.
2,136.00
912.85
74.63%
JP:6278
Union Tool Co.
6,460.00
2,216.88
52.25%
JP:6877
Obara Group Incorporated
3,920.00
270.49
7.41%

DMG MORI CO Corporate Events

DMG MORI Reports Decline in H1 2025 Financial Performance
Aug 1, 2025

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
Jun 30, 2025

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
Jun 24, 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
Jun 6, 2025

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
May 7, 2025

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
May 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025