DCM Holdings Co., Ltd. (3050) AI Stock Analysis

• Market Cap: ¥175.00B
• Dividend Yield: 3.38%
• Average Volume (3M): 251.19K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.34
• Revenue Growth: 11.46%
• EPS Growth: -19.73%
• Country: JP
• Employees: 4,955
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Home Improvement
• EPS (TTM): 128.01
• Shares Outstanding: 146,500,000
• 10 Day Avg. Volume: 177,230
• 30 Day Avg. Volume: 251,190
• PEG Ratio: 1.94
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.45
• 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

DCM Holdings Co., Ltd. exhibits strong financial performance with robust revenue growth and efficient cash flow management. Despite some pressure on profitability margins, the company's stable capital structure and moderate leverage are positive indicators. Technical analysis shows mixed signals, with a slight downward trend and bearish momentum, offset by a near-neutral RSI. The valuation is reasonable with a good dividend yield, supporting the stock's attractiveness in the market.

DCM Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

DCM Holdings Co., Ltd. (3050) is a Japan-based company primarily engaged in the operation of home improvement centers. The company offers a wide array of products including home improvement goods, garden supplies, tools, hardware, and household products. DCM Holdings operates through multiple subsidiaries, providing a comprehensive range of products and services aimed at improving living environments and supporting DIY enthusiasts across Japan.

How the Company Makes Money

DCM Holdings Co., Ltd. generates revenue primarily through the sale of products in its home improvement centers. The company earns money by retailing a diverse range of products including tools, gardening supplies, home decor, and other household items. These products are sold through its network of physical retail stores located across Japan. Additional revenue is derived from its online sales platform, catering to customers who prefer shopping from home. Strategic partnerships with various suppliers enable DCM Holdings to offer a wide range of products, often at competitive prices, which attracts a broad customer base. The company's earnings are further supported by its focus on cost management and operational efficiencies across its retail operations.

DCM Holdings Co., Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
529.29B	488.61B	476.82B	444.75B	471.19B	437.37B
	Gross Profit
184.40B	167.57B	163.32B	154.41B	161.68B	148.72B
	EBIT
31.95B	28.68B	30.07B	30.65B	30.25B	20.83B
	EBITDA
50.94B	43.57B	43.70B	43.42B	42.26B	33.01B
	Net Income Common Stockholders
22.42B	21.45B	18.14B	18.81B	18.59B	13.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.39B	93.75B	56.84B	45.36B	81.24B	39.63B
	Total Assets
415.68B	622.73B	515.96B	449.15B	490.85B	434.73B
	Total Debt
146.37B	280.90B	188.37B	129.54B	142.74B	140.16B
	Net Debt
130.60B	187.16B	132.70B	85.41B	62.78B	101.85B
	Total Liabilities
227.28B	371.46B	272.60B	208.42B	256.64B	234.52B
	Stockholders Equity
188.40B	251.27B	243.35B	240.73B	234.21B	200.21B
Cash Flow		Free Cash Flow
7.18B	20.07B	1.96B	-12.87B	27.61B	24.30B
	Operating Cash Flow
7.18B	32.10B	15.61B	-3.72B	45.24B	36.75B
	Investing Cash Flow
0.00	-57.98B	-38.46B	-7.49B	-16.00B	-5.37B
	Financing Cash Flow
0.00	63.97B	34.38B	-24.62B	12.42B	-8.85B

DCM Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1345.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3050, the sentiment is Negative. The current price of 1345 is above the 20-day moving average (MA) of 1331.15, below the 50-day MA of 1363.74, and below the 200-day MA of 1393.39, indicating a neutral trend. The MACD of -1.98 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3050.

DCM Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	75 Outperform	¥175.00B	10.40		3.38%	11.46%	-19.73%
7649	74 Outperform	¥569.01B	21.27	10.45%	1.09%	17.94%	18.31%
7516	74 Outperform	¥120.50B	7.79		2.61%	6.08%	5.22%
9843	74 Outperform	¥1.83T	23.86	8.13%	0.87%	―	―
8218	69 Neutral	¥149.71B	10.41		1.79%	2.28%	1.13%
2730	68 Neutral	¥196.30B	14.02		2.50%	5.06%	23.42%
Sector *	61 Neutral	$7.00B	11.55	3.07%	3.89%	2.60%	-21.53%

DCM Holdings Co., Ltd. Corporate Events

DCM Holdings to Acquire Encho in Strategic Share Exchange

DCM Holdings Co., Ltd. has announced a share exchange agreement with Encho Co., Ltd., making Encho a wholly-owned subsidiary. This strategic move, set to take effect on September 1, 2025, aims to enhance competitiveness in the challenging retail and home center market by leveraging combined resources and expertise.

DCM Holdings Announces Leadership Restructuring

DCM Holdings Co., Ltd. announced significant changes in its leadership structure, including the appointment of Yasunori Ishiguro as the new Representative Director and President, CEO, and Toshihiro Hisada as Chairman. These changes, effective after the 19th Ordinary General Meeting of Shareholders on May 29, 2025, aim to strengthen the company’s strategic direction and operational efficiency. The announcement reflects DCM Holdings’ commitment to adapting its leadership to better align with its business objectives and market demands, potentially impacting its industry positioning and stakeholder relations.

DCM Holdings Revises Medium-Term Management Plan Amid Economic Shifts

DCM Holdings Co., Ltd. has revised its Medium-Term Management Plan for FY2023 to FY2025 due to significant changes in the external economic environment, including inflation and currency depreciation. The company has adjusted its performance targets for FY2025, reducing expected net sales and profits, while maintaining its strategic focus on cost-effective operations and employee compensation adjustments.

DCM Holdings Proposes Dividend Increase to Enhance Shareholder Returns

DCM Holdings Co., Ltd. announced a proposed increase in its year-end dividend per share from 22 yen to 23 yen, reflecting its commitment to shareholder returns and profit growth. This decision aligns with the company’s medium-term management plan and its philosophy of providing stable dividends, highlighting its strategic focus on enhancing business performance and shareholder value.

DCM Holdings Reports Revenue Growth Amid Profit Challenges

DCM Holdings Co., Ltd. reported a significant increase in operating revenues and profits for the fiscal year ended February 28, 2025, with operating revenues rising by 11.5% and operating profit by 15.8%. Despite the growth in revenues and profits, the profit attributable to owners of the parent decreased by 20.1%, indicating challenges in maintaining net profitability. The company also announced an increase in annual dividends per share, reflecting a commitment to returning value to shareholders. The forecast for the next fiscal year shows a modest growth expectation, with anticipated increases in operating revenues and profits, suggesting a cautiously optimistic outlook for the company’s financial performance.