DM Solutions Co.,Ltd (6549) AI Stock Analysis

• Market Cap: ¥4.45B
• Dividend Yield: 1.45%
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.38
• Revenue Growth: 14.61%
• EPS Growth: 13.42%
• Country: JP
• Employees: 293
• Sector: Communication Services
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): 26.07
• Shares Outstanding: 2,849,000
• 10 Day Avg. Volume: 1,010
• 30 Day Avg. Volume: 1,060
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,798.00
• Price Target Upside: 13.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,798.00 ▲(13.44% Upside)

The stock of DM Solutions Co., Ltd receives a strong overall score of 78.7, primarily driven by its solid financial performance and undervalued valuation metrics. The technical analysis supports a positive outlook, with the stock showing bullish momentum. The absence of earnings call and corporate events data did not impact the score, as these components were excluded from the calculation.

DM Solutions Co.,Ltd Business Overview & Revenue Model

Company Description

DM Solutions Co., Ltd (6549) is a technology-driven company specializing in digital marketing and software development services. The company operates in various sectors, including e-commerce, online advertising, and data analytics, providing innovative solutions to enhance customer engagement and drive business growth. Core products and services include web development, mobile app creation, search engine optimization (SEO), and social media marketing, all tailored to meet the specific needs of businesses in the digital landscape.

How the Company Makes Money

DM Solutions Co., Ltd generates revenue through multiple streams, primarily by offering its digital marketing and software development services on a project basis. The company charges clients for project-based work, ongoing maintenance contracts, and subscription services for its software solutions. Key revenue streams include fees from digital marketing campaigns, commissions on e-commerce sales facilitated through its platforms, and licensing fees for proprietary software. Additionally, DM Solutions has established strategic partnerships with various technology firms and marketing agencies, which enhance its service offerings and expand its client base, further contributing to its earnings.

DM Solutions Co.,Ltd Financial Statement Overview

Summary

DM Solutions Co.,Ltd exhibits robust financial health with strong revenue growth and improving profitability metrics. The balance sheet shows a well-managed leverage position and good equity usage. However, challenges remain in optimizing free cash flow and managing capital expenditures. The company is on a solid growth path but should focus on improving net margins and cash flow efficiency.

Income Statement

DM Solutions Co.,Ltd has shown impressive revenue growth over the years, with a recent increase of 16.2% from 2024 to 2025. The company maintains strong profitability with a consistent gross profit margin around 15.4% and a net profit margin improving to 2.3% in 2025. The EBIT and EBITDA margins have been healthy, reflecting operational efficiency. The primary strength lies in its revenue growth trajectory, although net margins could be further optimized.

Balance Sheet

The company's balance sheet is relatively strong, with a debt-to-equity ratio of 0.69, indicating moderate leverage. The return on equity (ROE) has improved to 14.8%, reflecting better profitability and management efficiency. The equity ratio is stable at 40.9%, showing a balanced asset structure. While the company is in a stable position, it should be cautious about increasing debt levels.

Cash Flow

Cash flow performance is improving, with operating cash flow increasing significantly to 746M JPY in 2025. However, the free cash flow is still low at 37M JPY due to high capital expenditures. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. The company needs to manage capital expenditures to improve free cash flow sustainability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.16B	18.21B	17.86B	16.68B	14.62B
Gross Profit	3.26B	3.18B	2.99B	2.77B	3.16B
EBITDA	943.33M	738.52M	603.03M	247.59M	798.15M
Net Income	496.11M	402.22M	315.06M	5.50M	427.27M
Balance Sheet
Total Assets	8.19B	7.14B	5.60B	5.19B	4.93B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.29B	1.32B	1.08B	1.11B
Total Debt	2.31B	2.16B	972.43M	1.24B	774.96M
Total Liabilities	4.84B	4.23B	3.12B	3.03B	2.77B
Stockholders Equity	3.35B	2.91B	2.48B	2.16B	2.16B
Cash Flow
Free Cash Flow	37.21M	-1.28B	522.86M	-279.28M	651.90M
Operating Cash Flow	746.42M	441.79M	609.42M	-194.93M	740.65M
Investing Cash Flow	-767.45M	-1.69B	-92.76M	-167.47M	-121.51M
Financing Cash Flow	89.92M	1.22B	-272.15M	331.67M	-374.64M

DM Solutions Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6549, the sentiment is Positive. The current price of 1585 is above the 20-day moving average (MA) of 1561.10, above the 50-day MA of 1560.26, and above the 200-day MA of 1411.29, indicating a bullish trend. The MACD of 6.70 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 84.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6549.

DM Solutions Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2411	79 Outperform	¥5.12B	11.58		4.58%	5.98%	421.55%
6549	79 Outperform	¥4.45B	9.52		1.45%	14.61%	13.42%
9159	66 Neutral	¥5.01B	31.81		―	2.38%	-50.61%
Sector *	60 Neutral	$43.32B	5.10	-7.47%	4.18%	2.51%	-40.18%
7078	56 Neutral	¥5.63B	12.72		―	-8.62%	-440.78%
7044	53 Neutral	¥4.46B	46.82		―	59.48%	―
7063	48 Neutral	¥6.31B	―		―	-88.51%	-29.38%