DMW Corporation (6365) AI Stock Analysis

• Market Cap: ¥21.71B
• Dividend Yield: 3.35%
• Average Volume (3M): 1.74K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.57
• 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: 1,620
• 30 Day Avg. Volume: 1,736
• 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: ¥5,785.00 ▲(15.70% 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

Revenue Growth

Strong revenue growth indicates expanding market presence and effective product demand, supporting long-term business expansion and stability.

Balance Sheet Health

Minimal leverage and high equity ratio provide financial stability and reduce risk, ensuring resilience against economic fluctuations.

Cash Flow Improvement

Improved cash flow enhances liquidity and financial flexibility, enabling strategic investments and operational stability.

Negative Factors

Cash Flow to Net Income Ratio

While cash generation is strong, the ratio suggests potential inefficiencies in converting income to cash, which could impact liquidity management.

Employee Base

A relatively small workforce may limit the company's ability to scale operations quickly, potentially impacting growth in rapidly expanding markets.

Earnings Call Data Absence

Lack of earnings call data may hinder transparency and investor confidence, affecting the company's ability to communicate strategic direction.

DMW Corporation Business Overview & Revenue Model

Company Description

DMW Corporation engages in the manufacture and sale of fluid machinery in Japan and internationally. The company offers pumps, fans, seawater desalination equipment, valves, and related equipment. It also manufactures and sells wastewater treatment and waste processing equipment; switchboards, electrical instrumentation and telecommunications control devices; equipment related to dredging and dredging works; and energy recovery devices for seawater desalination. In addition, the company offers planning, designing, supervision, and installation services for various equipment; and manages and leases real estate properties. Further, it provides investment and financial services to other businesses. The company was founded in 1910 and is headquartered in Tokyo, Japan.

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: Positive
• Last Price: 5000.00
• 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:6365, the sentiment is Positive. The current price of 5000 is below the 20-day moving average (MA) of 5082.50, below the 50-day MA of 5096.09, and above the 200-day MA of 4580.44, indicating a bullish trend. The MACD of -10.47 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥21.71B	7.12	―	3.35%	23.30%	104.31%
6488	79 Outperform	¥11.32B	11.08	―	2.87%	7.10%	18.03%
6373	79 Outperform	¥14.64B	12.42	―	1.76%	1.61%	117.39%
6482	74 Outperform	¥22.26B	13.40	―	2.96%	-4.47%	-24.47%
6469	65 Neutral	¥24.00B	28.09	―	0.61%	13.61%	94.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6405	61 Neutral	¥16.42B	14.61	―	2.29%	-6.08%	-56.08%