Direct Marketing MiX Inc. (7354) AI Stock Analysis

• Market Cap: ¥12.33B
• Dividend Yield: 1.76%
• Average Volume (3M): 104.99K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.19
• Revenue Growth: -12.93%
• EPS Growth: N/A
• Country: JP
• Employees: 711
• Sector: Communication Services
• Sector Strength: 75
• Industry: Advertising Agencies
• EPS (TTM): 10.00
• Shares Outstanding: 47,614,838
• 10 Day Avg. Volume: 101,480
• 30 Day Avg. Volume: 104,986
• PEG Ratio: 24.80
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.37
• 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: ¥265.00
• Price Target Upside: 2.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥287.00 ▲(11.24%Upside)

Direct Marketing MiX Inc. has a strong financial foundation with robust cash flow and a solid balance sheet, which are key strengths. The technical analysis indicates a bullish trend, further supporting the stock's positive outlook. While the valuation is reasonable, the lack of revenue growth and moderate dividend yield slightly temper the overall score.

Direct Marketing MiX Inc. Business Overview & Revenue Model

Company Description

Direct Marketing MiX Inc. (7354) is a leading provider of innovative direct marketing solutions, specializing in data-driven marketing strategies and customer engagement services. The company operates primarily in the advertising and marketing sector, offering a comprehensive suite of services that includes targeted email campaigns, direct mail marketing, social media advertising, and analytics tools. With a focus on leveraging customer data for personalized marketing, Direct Marketing MiX Inc. serves a diverse range of industries, helping businesses enhance their customer acquisition and retention efforts.

How the Company Makes Money

Direct Marketing MiX Inc. generates revenue primarily through its service offerings in direct marketing solutions. Key revenue streams include fees from client contracts for marketing services, subscription models for access to analytics and data management tools, and commissions from advertising placements. The company may also engage in strategic partnerships with technology providers and marketing platforms to expand its service capabilities, thereby increasing its earnings potential. Additionally, upselling and cross-selling complementary services to existing clients contribute to the overall revenue growth.

Direct Marketing MiX Inc. Financial Statement Overview

Summary

Direct Marketing MiX Inc. demonstrates steady financial health with consistent profitability and efficient cash flow management. The company maintains strong operational efficiency and a solid balance sheet with manageable leverage, contributing to a stable financial position.

Income Statement

Direct Marketing MiX Inc. experienced a slight increase in revenue in the TTM period compared to the previous year, indicating stable growth. The gross profit margin stands at approximately 8.30%, and the net profit margin is around 4.01%, suggesting moderate profitability. Despite a decrease in total revenue over the last few years, the company has managed to maintain a consistent EBIT margin of about 6.69%, highlighting its operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a debt-to-equity ratio of approximately 0.46, indicating moderate leverage. The equity ratio is about 54.55%, reflecting a stable financial structure with a good portion of assets funded by equity. Return on equity (ROE) is around 6.01%, showing a reasonable return on shareholder investments.

Cash Flow

Cash flow analysis reveals a healthy free cash flow to net income ratio of about 3.15, indicating strong cash generation relative to earnings. The operating cash flow to net income ratio is approximately 3.30, suggesting robust operational cash flow. The free cash flow growth rate has shown a positive trend, underlining the company's efficient cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.95B	26.85B	34.67B	30.29B	22.46B
Gross Profit	1.76B	20.08B	26.67B	23.92B	18.00B
EBITDA	2.84B	2.84B	7.24B	5.89B	4.36B
Net Income	834.30M	310.01M	3.80B	3.22B	2.42B
Balance Sheet
Total Assets	24.97B	26.18B	30.53B	26.84B	21.25B
Cash, Cash Equivalents and Short-Term Investments	5.17B	4.46B	7.61B	5.07B	3.69B
Total Debt	5.77B	5.73B	4.98B	5.74B	6.50B
Total Liabilities	11.21B	13.09B	14.95B	15.24B	13.25B
Stockholders Equity	13.76B	13.09B	15.59B	11.60B	8.00B
Cash Flow
Free Cash Flow	1.88B	1.47B	4.68B	3.28B	3.75B
Operating Cash Flow	2.00B	1.61B	5.12B	4.14B	4.09B
Investing Cash Flow	-101.50M	-1.23B	-768.59M	-1.43B	-451.86M
Financing Cash Flow	-1.19B	-3.53B	-1.81B	-1.34B	-1.62B

Direct Marketing MiX Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.00
• 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 258 is above the 20-day moving average (MA) of 250.40, above the 50-day MA of 247.22, and above the 200-day MA of 254.75, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.74 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	79 Outperform	¥14.37B	14.90		1.76%	3.41%	117.22%
6045	77 Outperform	¥10.09B	15.06		1.80%	17.22%	96.65%
7354	73 Outperform	¥12.33B	14.24		1.76%	-12.93%	―
9554	72 Outperform	¥13.35B	32.31		―	17.41%	47.68%
Sector *	61 Neutral	$42.21B	-3.57	-11.12%	4.05%	2.99%	-33.83%
6094	53 Neutral	¥9.48B	223.05		―	32.30%	―
9162	50 Neutral	¥8.93B	―		―	3.95%	-178.93%

Direct Marketing MiX Inc. Corporate Events

Direct Marketing MiX Inc. Reports Q1 2025 Financial Results and Positive Outlook

Direct Marketing MiX Inc. reported its consolidated financial results for the three months ended March 31, 2025, showing a slight increase in revenue by 0.7% compared to the previous year. Despite a decrease in operating profit by 4.7%, the company anticipates a positive outlook for the fiscal year ending December 31, 2025, with expected revenue growth of 5% and a significant increase in profit attributable to owners by 31.8%, reflecting a strong strategic positioning in the market.