DN HOLDINGS CO. LTD. (7377) AI Stock Analysis

• Market Cap: ¥17.46B
• Dividend Yield: 3.9%
• Average Volume (3M): 5.27K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.10
• Revenue Growth: 4.47%
• EPS Growth: 0.42%
• Country: JP
• Employees: 1,453
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -25.23
• Shares Outstanding: 8,420,000
• 10 Day Avg. Volume: 2,200
• 30 Day Avg. Volume: 5,273
• PEG Ratio: 0.39
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 6.42
• 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: 72 Outperform
• Price Target: ¥2,270.00 ▲(11.00% Upside)

The overall stock score for DN HOLDINGS CO. LTD. is driven primarily by its strong financial performance and attractive valuation. The company's solid balance sheet and low leverage provide financial stability, while its low P/E ratio and high dividend yield suggest it is undervalued. However, technical indicators point to a bearish trend, which tempers the overall score.

Positive Factors

Strong Financial Position

The company's low debt-to-equity ratio of 0.054 indicates minimal financial risk, providing stability and flexibility for future investments.

Cash Flow Improvement

Improved cash flow management enhances the company's ability to fund operations and invest in growth opportunities, supporting long-term sustainability.

Revenue Diversification

Diversified revenue streams reduce dependency on a single market, enhancing resilience against sector-specific downturns and supporting stable growth.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies that could affect profitability, requiring strategic focus to enhance operational performance.

Inconsistent Revenue Growth

Fluctuating revenue growth can signal market challenges or operational issues, potentially impacting long-term growth prospects if not addressed.

Volatile Cash Flow Generation

Volatility in cash flow generation may hinder the company's ability to consistently fund operations and strategic initiatives, posing a risk to financial stability.

DN HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

DN Holdings Co.,Ltd. engages in the construction consulting and geological survey businesses in Japan. The company is involved in the design of bridges and road structures; and research, design, and supervision of resilience, environmental impact reduction, and sustainable town development of compact plus network from the perspectives of road, town, and environment fields. It engages in the development of organizations capable of responding to intense natural disasters against the background of the increased awareness of environments in society; land suitability investigation where the suitability of strata for underground storage of CO2; and provision of ground investigation and analysis technology. DN Holdings Co.,Ltd. was founded in 1963 and is headquartered in Tokyo, Japan.

How the Company Makes Money

DN HOLDINGS CO. LTD. generates revenue through multiple streams, including software licensing, service contracts, and subscription fees for its cloud-based solutions. The company also earns income from consultancy services provided to enterprises aiming to optimize their technological infrastructure. Key partnerships with major tech firms and telecommunications providers bolster its market presence and facilitate joint ventures that enhance product offerings. Additionally, DN HOLDINGS capitalizes on emerging market trends by investing in research and development, ensuring a steady pipeline of innovative products that attract new customers and retain existing ones.

DN HOLDINGS CO. LTD. Financial Statement Overview

Summary

DN HOLDINGS CO. LTD. demonstrates a solid financial position with strong equity and low leverage. Profitability metrics are stable but could benefit from improved efficiency. Cash flow management has shown improvement, though historical volatility suggests the need for continued focus on cash generation. Overall, the company is financially sound with opportunities for growth and efficiency enhancements.

Income Statement

DN HOLDINGS CO. LTD. shows a stable gross profit margin around 32%, indicating consistent cost management. However, the net profit margin is relatively low at 5.2%, suggesting room for improvement in operational efficiency. Revenue growth has been inconsistent, with a recent decline of 1.9%, which could be a concern if it continues. EBIT and EBITDA margins are moderate, reflecting decent profitability but with potential for enhancement.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.054, indicating minimal leverage and financial risk. Return on equity is healthy at 12.4%, showcasing effective use of shareholder funds. The equity ratio is robust, suggesting a solid capital structure and financial stability.

Cash Flow

Operating cash flow has improved significantly, turning positive after previous negative figures, indicating better cash management. The free cash flow to net income ratio is high at 0.87, showing strong cash generation relative to earnings. However, the free cash flow growth rate is not meaningful due to previous negative values, highlighting volatility in cash flow generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	36.98B	36.98B	34.13B	32.58B	32.11B	16.50B
Gross Profit	12.02B	12.02B	10.70B	10.02B	9.63B	5.75B
EBITDA	3.19B	3.36B	2.73B	2.96B	2.74B	1.83B
Net Income	1.92B	1.92B	1.56B	1.76B	1.51B	1.12B
Balance Sheet
Total Assets	25.55B	25.55B	24.05B	21.03B	19.59B	13.52B
Cash, Cash Equivalents and Short-Term Investments	2.90B	2.90B	2.12B	4.27B	4.60B	5.22B
Total Debt	842.00M	842.00M	1.98B	1.10B	1.30B	0.00
Total Liabilities	10.06B	10.06B	10.56B	9.17B	9.64B	7.03B
Stockholders Equity	15.50B	15.50B	13.49B	11.86B	9.95B	6.49B
Cash Flow
Free Cash Flow	0.00	2.63B	-2.19B	293.95M	209.86M	-1.03B
Operating Cash Flow	0.00	3.03B	-1.92B	793.99M	608.10M	-736.79M
Investing Cash Flow	0.00	-528.77M	-127.56M	-347.38M	-978.20M	-456.33M
Financing Cash Flow	0.00	-1.68B	-111.00M	-788.84M	-606.21M	-129.05M

DN HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2045.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7377, the sentiment is Positive. The current price of 2045 is below the 20-day moving average (MA) of 2054.40, below the 50-day MA of 2063.06, and below the 200-day MA of 2050.20, indicating a bullish trend. The MACD of -1.10 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 81.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7377.

DN HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7377	72 Outperform	¥17.46B	9.22	―	3.90%	4.47%	0.42%
4809	72 Outperform	¥20.57B	10.04	―	3.27%	7.63%	11.84%
6083	71 Outperform	¥37.09B	16.15	―	1.75%	17.36%	70.92%
6086	67 Neutral	¥24.84B	17.73	―	1.34%	16.06%	31.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7320	44 Neutral	¥17.13B	-16.85	―	0.98%	18.21%	-179.11%