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DCM Holdings Co., Ltd. (JP:3050)
:3050
Japanese Market
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DCM Holdings Co., Ltd. (3050) AI Stock Analysis

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JP:3050

DCM Holdings Co., Ltd.

(3050)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥1,633.00
▲(0.49% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by stable but low-quality fundamentals (thin margins, modest earnings leverage, and inconsistent cash conversion despite recent improvement) and moderate leverage that has improved but remains meaningful. Technicals are mildly supportive with neutral momentum and price above key shorter-term averages, while valuation adds support via a reasonable P/E and ~3% dividend yield.
Positive Factors
Improving leverage
The material improvement in debt-to-equity to ~0.87 indicates sustained deleveraging versus recent years, which strengthens financial flexibility. Over 2–6 months this reduces refinancing pressure, supports dividend/capex funding and lowers interest vulnerability, aiding durable credit resilience.
Negative Factors
Thin profitability
Persistently thin net margins (~3–4%) limit the company's ability to absorb cost increases or invest without external funding. Over a multi-month horizon this constrains earnings leverage, reduces reinvestment scope and makes profitability sensitive to commodity or wage pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
The material improvement in debt-to-equity to ~0.87 indicates sustained deleveraging versus recent years, which strengthens financial flexibility. Over 2–6 months this reduces refinancing pressure, supports dividend/capex funding and lowers interest vulnerability, aiding durable credit resilience.
Read all positive factors

DCM Holdings Co., Ltd. (3050) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
DCM Holdings Co., Ltd. engages in the home improvement and e-commerce businesses in Japan. It operates specialty shops that sells tools, hardware, and work supplies; home convenience stores that offer everyday items, DIY products, and groceries; s...
How the Company Makes Money
null...

DCM Holdings Co., Ltd. Financial Statement Overview

Summary
Fundamentals appear stable but not high-quality: revenue is relatively steady, but profitability is thin and net income dipped in 2026. Leverage improved (lower debt-to-equity), yet debt remains meaningful. Cash flow is positive recently with better free cash flow vs. 2023–2024, but cash conversion has been inconsistent across the cycle (including a 2022 setback).
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue555.93B542.32B544.60B488.61B476.82B444.75B
Gross Profit196.82B192.30B179.62B156.74B153.09B143.67B
EBITDA48.87B47.16B48.14B47.44B44.33B42.38B
Net Income17.99B17.31B17.14B21.45B18.14B18.81B
Balance Sheet
Total Assets646.30B670.85B647.94B622.73B515.96B449.15B
Cash, Cash Equivalents and Short-Term Investments63.08B85.51B119.43B93.75B55.66B44.13B
Total Debt252.19B259.59B293.59B280.90B188.37B129.54B
Total Liabilities360.58B372.67B383.63B371.45B272.60B208.41B
Stockholders Equity285.73B298.18B264.30B251.27B243.35B240.74B
Cash Flow
Free Cash Flow0.0024.63B22.61B22.08B5.14B-9.72B
Operating Cash Flow0.0036.54B36.53B32.10B15.61B-3.72B
Investing Cash Flow0.00-11.36B-14.93B-57.98B-38.46B-7.49B
Financing Cash Flow0.00-59.57B4.07B63.97B34.38B-24.62B

DCM Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1625.00
Price Trends
50DMA
1528.18
Positive
100DMA
1523.49
Positive
200DMA
1554.43
Positive
Market Momentum
MACD
25.57
Negative
RSI
66.53
Neutral
STOCH
80.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3050, the sentiment is Positive. The current price of 1625 is above the 20-day moving average (MA) of 1570.55, above the 50-day MA of 1528.18, and above the 200-day MA of 1554.43, indicating a bullish trend. The MACD of 25.57 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 80.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3050.

DCM Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥190.66B12.171.58%2.57%7.49%
67
Neutral
¥136.97B15.353.50%3.06%10.37%
63
Neutral
¥142.34B8.762.97%5.63%6.92%
62
Neutral
¥222.69B12.412.83%2.68%1.62%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
45
Neutral
¥61.84B147.490.14%2.78%-2.53%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3050
DCM Holdings Co., Ltd.
1,625.00
151.83
10.31%
JP:2790
NAFCO Co., Ltd.
2,171.00
311.17
16.73%
JP:3191
Joyful Honda Co. Ltd.
2,292.00
206.20
9.89%
JP:7516
Kohnan Shoji Co., Ltd.
4,515.00
570.61
14.47%
JP:8218
KOMERI CO., LTD.
3,880.00
623.53
19.15%

DCM Holdings Co., Ltd. Corporate Events

DCM Holdings Delivers Profit Growth and Confirms Dividend Plan for FY2027
Jun 26, 2026
DCM Holdings reported strong results for the three months ended May 31, 2026, with operating revenues rising 9.8% year on year to ¥151.9 billion and profit attributable to owners of the parent up 11.5% to ¥6.6 billion, lifting basic earn...
DCM Holdings Completes ¥4.8 Billion Share Buyback Program
May 25, 2026
DCM Holdings has completed a share buyback program authorized by its board in December 2025, under which it repurchased a total of 3,000,000 shares of common stock for approximately 4.83 billion yen. The most recent tranche, conducted between May ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026