DMW Corporation (6365) AI Stock Analysis

• Market Cap: ¥22.86B
• Dividend Yield: 3.35%
• Average Volume (3M): 1.41K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.59
• Revenue Growth: 23.30%
• EPS Growth: 104.31%
• Country: JP
• Employees: 532
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 46.60
• Shares Outstanding: 4,776,900
• 10 Day Avg. Volume: 1,190
• 30 Day Avg. Volume: 1,406
• PEG Ratio: 0.18
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 11.33
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥6,636.00 ▲(32.72% Upside)

DMW Corporation's strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust revenue growth, solid profitability, and low leverage provide a stable foundation. While technical analysis indicates some short-term weakness, the overall trend remains positive. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt and a high equity ratio give DMW durable financial resilience, lowering refinancing and interest risk. This balance sheet strength supports long-term capital allocation for engineered projects, funds uneven project cash flows, and preserves strategic optionality over years.

Sustained profitability and margins

Healthy gross and operating margins indicate consistent cost control and pricing power in engineered pump systems. Sustained margins support reinvestment in R&D and service capabilities and provide a buffer through cyclical downturns, underpinning steady long-term cash earnings.

Improved and positive free cash flow

The shift to substantial positive free cash flow enhances financial flexibility for dividends, maintenance capex, and service network investments. Reliable cash generation reduces dependence on external funding and strengthens the firm's ability to support long-lived installed-base revenue streams.

Negative Factors

Project-driven revenue cyclicality

A large share of revenue comes from bespoke equipment and project contracts, which are inherently lumpy and correlated with industrial capex cycles. This structure can produce uneven order flow and revenue volatility across quarters, challenging steady medium-term growth visibility.

Modest return on equity

An ROE below double digits in a capital-intensive machinery business suggests limited efficiency in converting equity into profits. Over the medium term this can constrain shareholder returns versus peers unless asset turnover or margin expansion is achieved through better pricing or operational improvements.

Limited scale relative to global peers

A smaller workforce implies constrained scale for global project execution, R&D breadth, and after-sales footprint compared with larger machinery competitors. Over months this can limit bidding competitiveness on large EPC contracts and slow geographic expansion of service revenues.

DMW Corporation Business Overview & Revenue Model

Company Description

DMW Corporation (6365) is a diversified company specializing in advanced technology solutions and services across various sectors, including automation, manufacturing, and smart infrastructure. The company focuses on delivering innovative products that enhance operational efficiency and productivity for its clients, leveraging cutting-edge technology to meet the evolving needs of industries worldwide.

How the Company Makes Money

DMW Corporation generates revenue through multiple channels, primarily by offering a range of technology-driven products and services. Key revenue streams include the sale of automation equipment, software solutions, and consulting services tailored to improve operational performance for businesses in sectors such as manufacturing and logistics. Additionally, the company engages in strategic partnerships with other technology firms to enhance its product offerings and expand its market reach, which contributes significantly to its earnings. Maintenance contracts and after-sales support services also provide a recurring revenue stream, ensuring continued financial stability.

DMW Corporation Financial Statement Overview

Summary

DMW Corporation exhibits strong financial performance with robust revenue and profit growth, supported by efficient cost management. The balance sheet is exceptionally strong with low leverage and high equity, mitigating risk. Cash flow has significantly improved, demonstrating enhanced cash generation capabilities.

Income Statement

DMW Corporation shows robust revenue growth with a recent increase of 16.5% from the previous year. Gross profit margin remains strong at 25.9%, reflecting effective cost management. Net profit margin improved to 8.6%, and the EBIT margin increased to 11.5%, signaling enhanced operational efficiency. The EBITDA margin is also solid at 14.6%, indicating healthy earnings before interest, taxes, depreciation, and amortization. Overall, the company demonstrates strong profitability and growth trajectory.

Balance Sheet

The balance sheet of DMW Corporation is solid, with a very low debt-to-equity ratio of 0.002, demonstrating minimal leverage and strong financial stability. The return on equity stands at 8.7%, reflecting efficient use of shareholder's equity. A high equity ratio of 68.8% indicates that a significant portion of assets is financed through equity, providing a cushion against potential risks. This highlights the company's excellent financial health and low-risk profile.

Cash Flow

DMW Corporation's cash flow statement shows significant improvement, with a robust free cash flow growth rate from a negative to a positive 1549 million. The operating cash flow to net income ratio of 0.87 reflects strong cash generation relative to net income, although there is room for improvement. Free cash flow to net income ratio is strong at 0.64, indicating effective cash management. Despite past fluctuations, current cash flow health is promising.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.84B	28.08B	24.10B	23.87B	22.82B	21.75B
Gross Profit	7.53B	7.33B	5.99B	5.92B	5.72B	5.64B
EBITDA	4.62B	4.09B	2.91B	3.10B	2.96B	3.03B
Net Income	2.79B	2.43B	1.75B	1.87B	1.88B	2.00B
Balance Sheet
Total Assets	35.56B	40.47B	36.98B	34.01B	32.35B	30.64B
Cash, Cash Equivalents and Short-Term Investments	10.68B	6.71B	6.20B	6.48B	5.91B	7.03B
Total Debt	117.00M	67.00M	59.00M	54.00M	27.00M	31.00M
Total Liabilities	7.85B	12.64B	10.83B	10.10B	9.70B	9.66B
Stockholders Equity	27.70B	27.83B	26.15B	23.92B	22.65B	20.98B
Cash Flow
Free Cash Flow	0.00	1.55B	-28.00M	649.00M	-586.00M	588.00M
Operating Cash Flow	0.00	2.11B	730.00M	1.57B	162.00M	1.30B
Investing Cash Flow	0.00	-834.00M	-148.00M	-886.00M	-788.00M	-1.03B
Financing Cash Flow	0.00	-961.00M	-545.00M	-523.00M	-490.00M	-587.00M

DMW Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5000.00
• 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:6365, the sentiment is Neutral. The current price of 5000 is below the 20-day moving average (MA) of 5545.50, below the 50-day MA of 5293.20, and above the 200-day MA of 4835.49, indicating a neutral trend. The MACD of 68.10 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 10.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6365.

DMW Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6365	80 Outperform	¥22.86B	7.49	―	3.35%	23.30%	104.31%
6488	79 Outperform	¥12.10B	12.29	―	2.82%	7.10%	18.03%
6482	74 Outperform	¥25.90B	20.33	―	2.77%	-4.47%	-24.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6469	62 Neutral	¥33.28B	37.51	―	0.45%	13.61%	94.37%
6405	61 Neutral	¥15.71B	25.28	―	2.71%	-6.08%	-56.08%