Direct Marketing MiX Inc. (7354) AI Stock Analysis

• Market Cap: ¥14.19B
• Dividend Yield: 1.51%
• Average Volume (3M): 185.18K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.03
• 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: ¥337.00 ▲(15.81% 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

Cash Flow Generation

Strong cash flow generation provides the company with the ability to fund operations and invest in growth initiatives, supporting long-term stability.

Stable Balance Sheet

A stable balance sheet with moderate leverage ensures financial flexibility and reduces risk, aiding in sustainable growth.

Improving Profitability

Improving profitability through effective cost management enhances the company's ability to reinvest in the business and improve shareholder value.

Negative Factors

Low Gross Profit Margin

A low gross profit margin indicates increased cost pressures, which could impact long-term profitability and competitiveness.

Modest Revenue Growth

Modest revenue growth may limit the company's ability to scale operations and capture market share, affecting long-term expansion potential.

Cost Pressures

Persistent cost pressures could erode margins and profitability, challenging the company's ability to maintain competitive pricing and invest in growth.

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 stable profitability and operational efficiency, with a focus on maintaining healthy margins. However, challenges in cash flow management and modest revenue growth highlight areas for improvement. The balance sheet remains solid with moderate leverage, supporting long-term financial stability.

Income Statement

The company shows a modest revenue growth of 4.27% in the TTM, recovering from previous declines. Gross profit margin is relatively low at 8.30%, indicating potential cost management issues. Net profit margin is stable at 4.01%, showing consistent profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The debt-to-equity ratio is 0.46, indicating a moderate leverage level. Return on equity is 6.15%, suggesting moderate efficiency in generating profits from equity. The equity ratio is not explicitly calculated, but the balance sheet shows a stable financial structure with a focus on equity financing.

Cash Flow

Free cash flow growth is negative at -27.89%, indicating potential cash management challenges. The operating cash flow to net income ratio is 0.41, suggesting that cash generation is lower than net income, which could impact liquidity. However, the free cash flow to net income ratio is strong at 0.95, indicating efficient cash conversion.

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 291.22, above the 50-day MA of 282.89, and above the 200-day MA of 262.55, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 59.72 is Neutral, neither overbought nor oversold. The STOCH value of 34.56 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	¥16.56B	12.84	―	1.27%	7.24%	215.65%
9554	73 Outperform	¥14.07B	25.57	―	―	38.56%	71.77%
7354	70 Outperform	¥14.19B	10.92	―	1.51%	7.96%	―
6045	68 Neutral	¥13.17B	19.82	―	2.19%	14.43%	10.99%
9162	61 Neutral	¥7.99B	18.06	―	―	26.73%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	46 Neutral	¥9.83B	34.69	―	―	-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.