Direct Marketing MiX Inc. (7354) AI Stock Analysis

• Market Cap: ¥14.90B
• Dividend Yield: 1.44%
• Average Volume (3M): 248.52K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.15
• Revenue Growth: -0.12%
• EPS Growth: N/A
• Country: JP
• Employees: 711
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): 7.13
• Shares Outstanding: 47,614,838
• 10 Day Avg. Volume: 539,650
• 30 Day Avg. Volume: 248,523
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥287.00
• Price Target Upside: -8.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥287.00 ▼(-8.31% Downside)

The overall stock score of 73 reflects strong technical momentum and reasonable valuation, despite challenges in financial performance, particularly in cash flow management. The stock's bullish trend is a significant positive factor, while stable profitability and a solid balance sheet provide a foundation for long-term stability.

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 solid financial health with strong cash flow generation and a stable balance sheet. While revenue has declined, the company maintains healthy profit margins and low leverage, positioning it well for future growth opportunities. The financial stability is reinforced by strong equity and cash flow metrics, although revenue growth remains a challenge.

Income Statement

The company has shown a stable gross profit margin of approximately 8.3% in the TTM, with a slight decline from the previous year. The net profit margin is 4.0%, indicating moderate profitability. Revenue growth has been negative, with a significant drop from 2023 to 2024. EBIT and EBITDA margins are healthy at 6.7% and 13.1% respectively, suggesting efficient operations despite revenue challenges.

Balance Sheet

The balance sheet reflects a strong equity position, with a debt-to-equity ratio of 0.46, indicating low leverage. The return on equity is 6.0%, showing moderate profitability on shareholder investments. The equity ratio is 54.6%, highlighting a solid financial structure with more than half of the assets financed by equity.

Cash Flow

The cash flow statement shows a robust free cash flow growth rate of 41.5% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 3.3, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio is 3.2, further supporting strong cash flow relative to net income.

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: 313.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 313 is above the 20-day moving average (MA) of 281.30, above the 50-day MA of 261.98, and above the 200-day MA of 259.83, indicating a bullish trend. The MACD of 14.73 indicates Negative momentum. The RSI at 80.20 is Negative, neither overbought nor oversold. The STOCH value of 92.03 is Negative, 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	76 Outperform	¥14.22B	15.68		1.74%	3.41%	117.10%
6045	75 Outperform	¥12.62B	16.78		1.43%	13.59%	43.49%
7354	73 Outperform	¥14.90B	13.64		1.44%	-0.12%	―
9162	66 Neutral	¥9.75B	31.94		―	24.29%	―
9554	66 Neutral	¥14.02B	30.74		―	23.13%	54.75%
Sector *	60 Neutral	$44.01B	4.42	-12.81%	4.08%	1.86%	-42.71%
6094	47 Neutral	¥9.08B	228.95		―	13.70%	94.10%

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.