DMG MORI CO (6141) AI Stock Analysis

• Market Cap: $430.48B
• Dividend Yield: 3.29%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.33
• Revenue Growth: -4.91%
• EPS Growth: -16.52%
• Country: JP
• Employees: 12,839
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -1.90
• Shares Outstanding: 142,325,930
• 10 Day Avg. Volume: 956,040
• 30 Day Avg. Volume: 1,586,680
• PEG Ratio: 0.08
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.68
• 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: $3,618.67
• Price Target Upside: 19.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ¥3,322.00 ▲(9.42%Upside)

The overall stock score of 66.8 is primarily influenced by strong technical indicators, indicating positive market momentum. Financial performance shows operational strength despite profit conversion and liquidity challenges. The valuation is less favorable, with a high P/E ratio suggesting the stock might be overvalued, moderated by a decent dividend yield.

DMG MORI CO Business Overview & Revenue Model

Company Description

DMG MORI CO., Ltd. is a leading global manufacturer of machine tools, headquartered in Japan. The company operates primarily in the industrial machinery sector, specializing in the production of advanced CNC (Computer Numerical Control) machine tools, such as lathes, milling machines, and machining centers. DMG MORI serves a wide range of industries, including automotive, aerospace, medical, and electronics, providing solutions that enhance manufacturing efficiency and precision.

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 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

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
422.39B	555.01B	539.45B	483.37B	402.11B	334.73B
	Gross Profit
229.80B	342.41B	327.49B	286.26B	224.05B	193.60B
	EBIT
14.25B	43.73B	82.24B	41.21B	23.07B	10.67B
	EBITDA
33.46B	75.22B	82.81B	66.08B	42.81B	32.12B
	Net Income Common Stockholders
900.00M	7.70B	33.94B	25.41B	13.46B	1.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.79B	44.44B	39.21B	43.49B	52.85B	38.01B
	Total Assets
565.26B	797.57B	765.81B	680.33B	597.12B	526.53B
	Total Debt
211.55B	106.45B	113.66B	91.09B	95.39B	102.41B
	Net Debt
148.59B	64.70B	74.45B	54.10B	48.09B	68.65B
	Total Liabilities
342.45B	481.09B	493.26B	429.96B	379.84B	336.63B
	Stockholders Equity
147.44B	314.52B	157.17B	245.90B	213.14B	185.42B
Cash Flow		Free Cash Flow
30.32B	774.00M	9.14B	28.64B	26.48B	-6.50B
	Operating Cash Flow
42.34B	44.58B	51.61B	69.75B	49.73B	13.65B
	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	-18.27B	10.79B

DMG MORI CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3036.00
• 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 3036 is above the 20-day moving average (MA) of 3025.35, above the 50-day MA of 2713.87, and above the 200-day MA of 2760.04, indicating a bullish trend. The MACD of 78.32 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 26.26 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	79 Outperform	¥85.87B	7.93		3.49%	27.98%	104.69%
6136	76 Outperform	$158.80B	11.54	7.26%	3.37%	4.25%	-6.41%
6877	74 Outperform	¥55.52B	8.75		3.46%	11.40%	5.96%
6474	69 Neutral	€71.35B	15.65	2.66%	3.49%	-8.38%	-3.11%
6278	69 Neutral	¥80.16B	14.12		1.94%	28.68%	71.70%
6141	67 Neutral	$430.48B	26.42	8.94%	3.29%	-4.91%	-16.52%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

DMG MORI CO Corporate Events

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.