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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DM SOLUTIONS Co., Ltd.

U-NEXT HOLDINGS Co., Ltd.

Benefit Japan Co., Ltd.

Fibergate, Inc.

AI CROSS, Inc.

IPS Inc. /Japan/

Techfirm Holdings, Inc.

Accrete, Inc.

Kanda Tsushinki Co., Ltd.

JTOWER, Inc.

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%

The company declared positive results in Mar'25 after negative results in Dec'24

CASH AND EQV(HY) Highest at JPY 2,793.77 MM

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 25.88%, its profits have risen by 23.3% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you buy?

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, Low Return

Absolute

Risk Adjusted

Volatility

DM SOLUTIONS Co., Ltd.

27.11%

0.85

27.43%

Japan Nikkei 225

28.54%

1.14

25.81%

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)

4.03

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

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

CASH AND EQV(HY)

Highest at JPY 2,793.77 MM

-17What is not working for the Company

INTEREST(HY)

At JPY 9.89 MM has Grown at 19.06%

INVENTORY TURNOVER RATIO(HY)

Lowest at 46.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,660.17

OPERATING PROFIT(Q)

Lowest at JPY 180.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.42 %

PRE-TAX PROFIT(Q)

Lowest at JPY 106.86 MM

NET PROFIT(Q)

Lowest at JPY 72.15 MM

EPS(Q)

Lowest at JPY 25.23

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

Cash and Eqv

Highest at JPY 2,793.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at JPY 80.13 MM

in the last five periods

MOJO Watch

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

Depreciation (JPY MM)

Here's what is not working for DM SOLUTIONS Co., Ltd.

Interest

At JPY 9.89 MM has Grown at 19.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 3,660.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 46.6% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at JPY 180.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 3.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 106.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 106.86 MM has Fallen at -37.67%

over average net sales of the previous four periods of JPY 171.43 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 72.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Net Profit

At JPY 72.15 MM has Fallen at -41.83%

over average net sales of the previous four periods of JPY 124.03 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 25.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Non Operating Income

Highest at JPY 0.11 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income