DM SOLUTIONS Co., Ltd. (6549) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

U-NEXT HOLDINGS Co., Ltd.

DM SOLUTIONS Co., Ltd.

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Accrete, Inc.

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IPS Inc. /Japan/

Techfirm Holdings, Inc.

JTOWER, Inc.

Kanda Tsushinki Co., Ltd.

Giga Prize Co., Ltd.

Why is DM SOLUTIONS Co., Ltd. ?

High Management Efficiency with a high ROE of 12.67%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 84.70

Healthy long term growth as Net Sales has grown by an annual rate of 9.51% and Operating profit at 26.19%

With a growth in Net Profit of 67.25%, the company declared Very Positive results in Dec 25

ROCE(HY) Highest at 16.31%
INTEREST COVERAGE RATIO(Q) Highest at 7,653.19
RAW MATERIAL COST(Y) Fallen by -3.08% (YoY)

With ROE of 14.82%, it has a attractive valuation with a 1.34 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.97%, its profits have risen by 23.3% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 24.97% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 38.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DM SOLUTIONS Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DM SOLUTIONS Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

DM SOLUTIONS Co., Ltd.

-100.0%

1.66

25.25%

Japan Nikkei 225

40.96%

1.35

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.51%

EBIT Growth (5y)

26.19%

EBIT to Interest (avg)

84.70

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

3.91

Tax Ratio

27.65%

Dividend Payout Ratio

12.94%

Pledged Shares

Institutional Holding

ROCE (avg)

18.61%

ROE (avg)

12.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.34

EV to EBIT

8.03

EV to EBITDA

5.94

EV to Capital Employed

1.27

EV to Sales

0.26

PEG Ratio

0.41

Dividend Yield

ROCE (Latest)

15.80%

ROE (Latest)

14.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

ROCE(HY)

Highest at 16.31%

INTEREST COVERAGE RATIO(Q)

Highest at 7,653.19

RAW MATERIAL COST(Y)

Fallen by -3.08% (YoY

NET SALES(Q)

Highest at JPY 6,501.06 MM

OPERATING PROFIT(Q)

Highest at JPY 349.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.37 %

PRE-TAX PROFIT(Q)

Highest at JPY 263.43 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for DM SOLUTIONS Co., Ltd.

Interest Coverage Ratio

Highest at 7,653.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at JPY 6,501.06 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 6,501.06 MM has Grown at 17.21%

over average net sales of the previous four periods of JPY 5,546.37 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 349.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 5.37 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 263.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 263.43 MM has Grown at 62.84%

over average net sales of the previous four periods of JPY 161.77 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Raw Material Cost

Fallen by -3.08% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 85.08 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)