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

• Market Cap: ¥4.64B
• Dividend Yield: 2.4%
• Average Volume (3M): 3.35K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.39
• Revenue Growth: 15.59%
• EPS Growth: 14.03%
• Country: JP
• Employees: 293
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 63.99
• Shares Outstanding: 2,851,000
• 10 Day Avg. Volume: 2,660
• 30 Day Avg. Volume: 3,353
• PEG Ratio: 0.34
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 102.80
• 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: 75 Outperform
• Price Target: ¥1,890.00 ▲(27.96% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

DM Solutions Co., Ltd scores well due to its strong financial performance and attractive valuation, indicating robust operational and financial management. Technical analysis presents mixed signals, with a slight bearish trend offset by neutral momentum indicators. The absence of earnings call data and corporate events does not impact the overall assessment.

Positive Factors

Revenue Growth Trend

Sustained ~16% revenue growth indicates expanding client adoption and successful commercial execution. Over 2–6 months this trend supports recurring contract wins, improves pricing leverage and funds reinvestment in products and sales, strengthening the company’s medium-term growth runway.

Cash Generation

Improving operating cash flow and positive free cash flow provide durable financial flexibility. This underpins sustainable investment in technology and client delivery, lowers reliance on external funding, and enhances ability to fund growth initiatives or cushion economic variability over the next several quarters.

Balance Sheet Strength

A healthy capital structure and manageable leverage preserve strategic optionality. With improved ROE and a solid equity ratio, the company can pursue selective M&A, invest in product development, or absorb client churn without stressing finances, supporting durable operational resilience.

Negative Factors

Limited Scale

A workforce of under 300 suggests limited scale versus large agency competitors. Over months this can constrain capacity for large, complex engagements, slow geographic expansion, and raise per-project overheads, making it harder to capture sizable enterprise deals or scale rapidly.

Commoditized Service Mix

Core offerings in SEO and social media face intense competition and price pressure. Without continuous product differentiation and proprietary IP, the business risks margin compression and client churn. Sustained investment in tech and unique services is necessary to maintain margins over time.

Limited Public Guidance

Absence of formal guidance or earnings-call detail reduces visibility on near-term strategy and targets. This can hinder stakeholder assessment of execution risk and make it harder to preemptively address operational challenges, limiting predictable planning and accountability over subsequent quarters.

DM Solutions Co.,Ltd Business Overview & Revenue Model

Company Description

DM Solutions Co., Ltd (6549) is a technology-driven company specializing in digital marketing solutions, software development, and data analytics. Operating primarily in the information technology sector, the company offers a range of services including search engine optimization (SEO), social media marketing, and custom software applications tailored to meet the needs of businesses looking to enhance their online presence and operational efficiency.

How the Company Makes Money

DM Solutions Co., Ltd generates revenue through multiple streams including service fees for digital marketing campaigns, subscription models for software solutions, and project-based income from custom software development. The company also benefits from strategic partnerships with other tech firms and advertising platforms, allowing it to offer integrated marketing solutions and leverage shared resources to enhance its service offerings. Additionally, recurring revenue from long-term contracts with clients in various industries contributes significantly to the company's financial stability.

DM Solutions Co.,Ltd Financial Statement Overview

Summary

DM Solutions Co., Ltd demonstrates strong financial health with consistent revenue growth and improving profitability. The balance sheet is stable with manageable leverage, and cash flows are strengthening, indicating robust operational and financial management. The company is well-positioned for future growth, although maintaining positive free cash flow will be crucial for sustained financial stability.

Income Statement

The company has shown consistent revenue growth over the years, with a significant increase from 2024 to 2025. Gross profit margin remains healthy, indicating efficient cost management. The net profit margin has improved, reflecting better profitability. EBIT and EBITDA margins are stable, suggesting strong operational performance.

Balance Sheet

The balance sheet shows a stable financial position with a reasonable debt-to-equity ratio, indicating manageable leverage. Return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Cash flow from operations has improved significantly, indicating strong cash generation capabilities. Free cash flow has turned positive, reflecting better capital expenditure management. The operating cash flow to net income ratio is robust, suggesting efficient cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.34B	21.16B	18.21B	17.86B	16.68B	14.62B
Gross Profit	3.28B	3.26B	3.18B	2.99B	2.77B	3.16B
EBITDA	919.86M	943.33M	738.52M	603.03M	247.59M	798.15M
Net Income	464.04M	496.11M	402.22M	315.06M	5.50M	427.27M
Balance Sheet
Total Assets	8.23B	8.19B	7.14B	5.60B	5.19B	4.93B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.36B	1.29B	1.32B	1.08B	1.11B
Total Debt	2.20B	2.31B	2.16B	972.43M	1.24B	774.96M
Total Liabilities	4.90B	4.84B	4.23B	3.12B	3.03B	2.77B
Stockholders Equity	3.32B	3.35B	2.91B	2.48B	2.16B	2.16B
Cash Flow
Free Cash Flow	0.00	37.21M	-1.28B	522.86M	-279.28M	651.90M
Operating Cash Flow	0.00	746.42M	441.79M	609.42M	-194.93M	740.65M
Investing Cash Flow	0.00	-767.45M	-1.69B	-92.76M	-167.47M	-121.51M
Financing Cash Flow	0.00	89.92M	1.22B	-272.15M	331.67M	-374.64M

DM Solutions Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1477.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1477 is below the 20-day moving average (MA) of 1614.95, below the 50-day MA of 1601.48, and below the 200-day MA of 1548.87, indicating a bullish trend. The MACD of 17.28 indicates Negative momentum. The RSI at 77.84 is Negative, neither overbought nor oversold. The STOCH value of 75.01 is Neutral, 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
6549	75 Outperform	¥4.64B	8.33	―	2.40%	15.59%	14.03%
2411	74 Outperform	¥5.72B	11.88	―	4.65%	5.94%	617.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9159	56 Neutral	¥4.41B	28.78	―	―	-14.77%	-76.32%
7078	52 Neutral	¥4.19B	-3.56	―	―	-8.67%	-407.35%
7044	48 Neutral	¥3.64B	17.90	―	―	42.12%	―
7063	45 Neutral	¥2.68B	-4.25	―	―	-83.17%	91.97%