Direct Marketing MiX Inc. (7354) AI Stock Analysis

• Market Cap: ¥12.48B
• Dividend Yield: 1.57%
• Average Volume (3M): 185.18K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥337.00 ▲(13.85% Upside)

Direct Marketing MiX Inc. scores a 70, driven primarily by stable financial performance and strong technical indicators. The stock's valuation is reasonable, with a moderate P/E ratio and a decent dividend yield. While financial performance shows some areas for improvement, particularly in cash flow management, the overall outlook remains positive due to strong market momentum.

Positive Factors

Business Model Strength

The company's diversified revenue streams from digital marketing, direct mail, and consulting services provide a robust foundation for long-term growth.

Balance Sheet Health

A moderate debt-to-equity ratio suggests a stable financial structure, allowing for financial flexibility and resilience against economic fluctuations.

Operational Efficiency

Healthy EBIT and EBITDA margins indicate strong operational efficiency, which can sustain profitability and competitive positioning over time.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth can strain liquidity, potentially impacting the company's ability to invest in growth opportunities or manage debt.

Revenue Growth Concerns

Sluggish revenue growth may indicate challenges in market expansion or competitive pressures, potentially affecting long-term market share.

Gross Profit Margin

A low gross profit margin suggests cost management challenges, which could impact profitability and limit reinvestment in business growth.

Direct Marketing MiX Inc. Business Overview & Revenue Model

Company Description

Direct Marketing MiX Inc. (7354) is a leading provider in the direct marketing sector, specializing in integrated marketing solutions that encompass digital and traditional advertising channels. The company focuses on delivering targeted marketing strategies, including email campaigns, direct mail, and digital advertising, to help businesses enhance customer engagement and drive sales. With a client base that spans various industries, Direct Marketing MiX Inc. leverages data analytics and customer insights to optimize marketing effectiveness and ROI for its clients.

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	21.89B	20.95B	26.85B	34.67B	30.29B	22.46B
Gross Profit	2.00B	15.52B	20.08B	26.67B	23.92B	18.00B
EBITDA	2.97B	2.84B	2.84B	7.24B	5.89B	4.36B
Net Income	1.06B	834.30M	310.01M	3.80B	3.22B	2.42B
Balance Sheet
Total Assets	25.33B	24.97B	26.18B	30.53B	26.84B	21.25B
Cash, Cash Equivalents and Short-Term Investments	4.93B	5.17B	4.46B	7.61B	5.07B	3.69B
Total Debt	6.18B	5.77B	5.73B	4.98B	5.74B	6.50B
Total Liabilities	10.94B	11.21B	13.09B	14.95B	15.24B	13.25B
Stockholders Equity	14.39B	13.76B	13.09B	15.59B	11.60B	8.00B
Cash Flow
Free Cash Flow	1.92B	1.88B	1.47B	4.68B	3.28B	3.75B
Operating Cash Flow	2.20B	2.00B	1.61B	5.12B	4.14B	4.09B
Investing Cash Flow	-339.55M	-101.50M	-1.23B	-768.59M	-1.43B	-451.86M
Financing Cash Flow	-1.30B	-1.19B	-3.53B	-1.81B	-1.34B	-1.62B

Direct Marketing MiX Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 296.00
• 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:7354, the sentiment is Positive. The current price of 296 is above the 20-day moving average (MA) of 276.40, above the 50-day MA of 284.56, and above the 200-day MA of 267.70, indicating a bullish trend. The MACD of 3.16 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 34.95 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	¥16.59B	14.88	―	1.47%	7.24%	215.65%
9554	71 Outperform	¥13.41B	24.97	―	―	38.56%	72.44%
7354	70 Outperform	¥12.48B	11.45	―	1.57%	7.96%	―
6045	68 Neutral	¥12.06B	16.36	―	2.18%	14.43%	10.99%
9162	61 Neutral	¥8.17B	26.73	―	―	26.73%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	47 Neutral	¥8.80B	-48.29	―	―	-2.69%	91.68%

Direct Marketing MiX Inc. Corporate Events

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.

Direct Marketing MiX Inc. Acquires SAIYOUBU to Enhance Recruitment Services

Direct Marketing MiX Inc. has announced its decision to acquire SAIYOUBU Co., Ltd., making it a subsidiary to strengthen its recruitment process outsourcing capabilities. This strategic acquisition is expected to enhance SAIYOUBU’s service quality and profitability by leveraging Direct Marketing MiX’s sales solutions expertise and extensive recruiting experience, addressing labor shortages in specialized fields and improving employee retention rates.

The most recent analyst rating on (JP:7354) stock is a Buy with a Yen287.00 price target. To see the full list of analyst forecasts on Direct Marketing MiX Inc. stock, see the JP:7354 Stock Forecast page.