Direct Marketing MiX Inc. (7354) AI Stock Analysis

• Market Cap: ¥14.90B
• Dividend Yield: 1.51%
• Average Volume (3M): 185.18K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.04
• Revenue Growth: 7.96%
• EPS Growth: N/A
• Country: JP
• Employees: 711
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 5.18
• Shares Outstanding: 47,614,838
• 10 Day Avg. Volume: 156,070
• 30 Day Avg. Volume: 185,183
• PEG Ratio: 0.09
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 6.60
• 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: 70 Outperform
• Price Target: ¥354.00 ▲(21.65% Upside)

Direct Marketing MiX Inc. scores well due to its strong financial performance, particularly in cash flow generation and a stable balance sheet. Technical indicators support a bullish outlook, with the stock trading above key moving averages. Valuation metrics suggest the stock is reasonably priced, offering a modest dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Free Cash Flow Generation

Sustained free cash flow growth of 39.17% TTM indicates strong cash conversion and internal funding capacity. Durable FCF supports multi-quarter investments in tech, client solutions or M&A, reduces dependence on external finance, and provides resilience through demand cycles.

Balance Sheet Health

A moderate debt-to-equity ratio (~0.43) and a strong equity ratio signify conservative leverage and financial flexibility. This capital structure lowers refinancing risk, enables sustained investment in capabilities, and supports stability across several quarters of uneven ad spending.

Business Model & Partnerships

Integrated, data-driven marketing services plus tech/data partnerships create differentiated, sticky offerings and analytics-led upsell opportunities. This structural positioning aligns with long-term demand for personalized marketing and supports durable client retention and revenue streams.

Negative Factors

Low Gross Margin

A 9.16% gross margin (TTM) signals structural cost pressures or commoditization in core services. Persistently low gross margins limit reinvestment capacity, compress operating leverage, and make profitability highly sensitive to pricing and input cost changes over multiple quarters.

Weak Revenue Growth

TTM revenue growth of ~1.67% reflects slow top-line momentum in a competitive market. Limited organic growth constrains scale benefits and may force reliance on share gains or new offerings to produce sustainable earnings expansion over the next several quarters.

Modest Return on Equity

ROE around 7.6% suggests modest capital returns relative to growth needs. Sustained low-to-mid single-digit ROE can limit shareholder value creation and restrict capital allocation choices, forcing trade-offs between reinvestment, M&A, and shareholder distributions over the medium term.

Direct Marketing MiX Inc. Business Overview & Revenue Model

Company Description

Direct Marketing MiX Inc. engages in the marketing, consulting, temporary staffing, and business process outsourcing businesses. The company was incorporated in 2017 and is based in Osaka, Japan.

How the Company Makes Money

Direct Marketing MiX Inc. generates revenue primarily through its range of marketing services offered to businesses. Key revenue streams include fees for digital marketing campaigns, direct mail services, and consulting for marketing strategy development. The company may also earn income through performance-based incentives tied to the success of its marketing initiatives. Additionally, partnerships with technology providers and data analytics firms enhance its service offerings, allowing for the integration of advanced marketing tools that attract more clients and expand its market reach. The reliance on data-driven marketing solutions further positions the company to capitalize on the growing demand for personalized marketing strategies.

Direct Marketing MiX Inc. Financial Statement Overview

Summary

Direct Marketing MiX Inc. demonstrates a solid financial performance with strengths in cash flow generation and a stable balance sheet. While revenue growth is modest, profitability metrics are improving, indicating effective cost management. The company maintains a balanced leverage position, though it should continue to monitor cost pressures affecting gross margins. The strong cash flow position supports future growth and operational stability.

Income Statement

Direct Marketing MiX Inc. shows a mixed performance in its income statement. The TTM data indicates a modest revenue growth rate of 1.67%, recovering from previous declines. The gross profit margin is relatively low at 9.16% in the TTM, a significant drop from historical levels, indicating increased cost pressures. However, the net profit margin has improved to 4.85% in the TTM, reflecting better cost management. EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The company's balance sheet reflects a stable financial position. The debt-to-equity ratio is moderate at 0.43 in the TTM, indicating a balanced approach to leverage. Return on equity has improved to 7.62% in the TTM, showing enhanced profitability. The equity ratio remains strong, suggesting a solid capital structure. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a strong performance with a significant free cash flow growth rate of 39.17% in the TTM. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is robust at 87.30%, highlighting strong cash conversion. These metrics suggest the company is well-positioned to fund operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.25B	20.95B	26.85B	34.67B	30.29B	22.46B
Gross Profit	1.95B	15.52B	20.08B	26.67B	23.92B	18.00B
EBITDA	3.21B	2.84B	2.84B	7.24B	5.89B	4.36B
Net Income	1.27B	834.30M	310.01M	3.80B	3.22B	2.42B
Balance Sheet
Total Assets	25.26B	24.97B	26.18B	30.53B	26.84B	21.25B
Cash, Cash Equivalents and Short-Term Investments	5.22B	5.17B	4.46B	7.61B	5.07B	3.69B
Total Debt	6.92B	5.77B	5.73B	4.98B	5.74B	6.50B
Total Liabilities	10.62B	11.21B	13.09B	14.95B	15.24B	13.25B
Stockholders Equity	14.64B	13.76B	13.09B	15.59B	11.60B	8.00B
Cash Flow
Free Cash Flow	2.67B	1.88B	1.47B	4.68B	3.28B	3.75B
Operating Cash Flow	2.99B	2.00B	1.61B	5.12B	4.14B	4.09B
Investing Cash Flow	-425.15M	-101.50M	-1.23B	-768.59M	-1.43B	-451.86M
Financing Cash Flow	-2.14B	-1.19B	-3.53B	-1.81B	-1.34B	-1.62B

Direct Marketing MiX Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 291.00
• 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:7354, the sentiment is Positive. The current price of 291 is below the 20-day moving average (MA) of 307.65, below the 50-day MA of 296.65, and above the 200-day MA of 267.58, indicating a bullish trend. The MACD of 6.04 indicates Positive momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 22.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7354.

Direct Marketing MiX Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7068	75 Outperform	¥15.26B	12.05	―	1.27%	7.24%	215.65%
9554	73 Outperform	¥13.74B	24.97	―	―	38.56%	71.77%
7354	70 Outperform	¥14.90B	11.36	―	1.51%	7.96%	―
6045	68 Neutral	¥14.41B	21.89	―	2.19%	14.43%	10.99%
9162	61 Neutral	¥7.61B	17.19	―	―	26.73%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	46 Neutral	¥9.46B	33.37	―	―	-2.68%	91.68%

Direct Marketing MiX Inc. Corporate Events

Direct Marketing MiX to Shift Listing from TSE Prime to Standard Market in Strategic Reallocation of Resources

Direct Marketing MiX Inc. will transfer its stock listing from the Tokyo Stock Exchange Prime Market to the Standard Market effective January 14, 2026, after determining that concentrating management resources on strengthening core businesses and growth investments is preferable to pursuing short-term measures to satisfy stricter Prime Market maintenance requirements. The company, which already meets all of the Standard Market’s listing maintenance criteria including shareholder count, tradable share volume and net asset levels, has withdrawn its previously submitted plan to comply with Prime Market standards but says it will continue initiatives aimed at enhancing corporate value, seeking to improve disclosure quality, investor communication and market liquidity for shareholders and investors under the new market segment.

The most recent analyst rating on (JP:7354) stock is a Buy with a Yen337.00 price target. To see the full list of analyst forecasts on Direct Marketing MiX Inc. stock, see the JP:7354 Stock Forecast page.

Direct Marketing MiX Inc. Revises Financial Forecasts and Increases Dividends

Direct Marketing MiX Inc. has revised its financial forecasts for the fiscal year ending December 31, 2025, projecting increases in revenue, operating profit, and net income due to successful outsourcing services and improved profitability. Additionally, the company has increased its fiscal year-end cash dividends per share from 6.0 yen to 7.0 yen, reflecting its commitment to shareholder returns and improved financial performance.

The most recent analyst rating on (JP:7354) stock is a Hold with a Yen293.00 price target. To see the full list of analyst forecasts on Direct Marketing MiX Inc. stock, see the JP:7354 Stock Forecast page.

Direct Marketing MiX Inc. Reports Strong Financial Growth in 2025

Direct Marketing MiX Inc. reported a significant improvement in its financial performance for the nine months ending September 30, 2025, with a notable increase in revenue and profits compared to the previous year. This financial growth positions the company favorably within the industry, highlighting its operational efficiency and potential for future expansion, which may positively impact stakeholders.

The most recent analyst rating on (JP:7354) stock is a Hold with a Yen293.00 price target. To see the full list of analyst forecasts on Direct Marketing MiX Inc. stock, see the JP:7354 Stock Forecast page.