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Dowa Holdings Co
(5714)
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Rating:67Neutral
Price Target:
¥8,503.00
▼(-18.63% Downside)
Action:Reiterated
Date:08/25/26
The score is driven by attractive valuation (low P/E and ~2.65% yield) and improving profitability/leverage trends. This is tempered by a significant financial quality risk from weak cash-flow conversion, including two straight years of deeply negative free cash flow, and technical indicators that suggest the stock may be overbought in the near term.
Positive Factors
Integrated recycling model
The integrated model combines processing fees with value captured from recovered metals, creating multiple revenue streams across recycling, environmental services, and refined products. This structure can support customer relevance and resilience by connecting waste management with resource recovery.
Negative Factors
Weak cash conversion
Deeply negative free cash flow for two consecutive years means accounting profits have not consistently translated into available cash. Continued weakness could constrain internally funded investment, dividends, or debt reduction, making cash generation a key risk to the sustainability of earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated recycling model
The integrated model combines processing fees with value captured from recovered metals, creating multiple revenue streams across recycling, environmental services, and refined products. This structure can support customer relevance and resilience by connecting waste management with resource recovery.
Read all positive factors
Dowa Holdings Co (5714) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥466.20B
Dividend Yield3.42%
Average Volume (3M)371.47K
Price to Earnings (P/E)6.0
Beta (1Y)1.25
Revenue Growth29.07%
EPS Growth266.58%
CountryJP
Employees8,355
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)1049.82
Shares Outstanding61,989,210
10 Day Avg. Volume401,210
30 Day Avg. Volume371,470
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.14
Price to Sales (P/S)0.70
P/FCF Ratio-17.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥11,200.00Price Target Upside7.18% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1,074.79
Revenue Forecast (FY)¥978.07B
Dowa Holdings Co Business Overview & Revenue Model
Company Description
Established in Tokyo, Japan, in 1884, Dowa Holdings Co., Ltd. is a global enterprise conducting diverse operations across several key industrial sectors: environmental management and recycling, nonferrous metals, electronic materials, metal proces...
How the Company Makes Money
DOWA Holdings makes money through a combination of (1) selling non-ferrous metals and related products and (2) providing recycling and environmental services that generate both processing fees and recovered-material value.
Key revenue streams inc...
Dowa Holdings Co Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 745.41B | 678.67B | 717.19B | 780.06B | 831.79B |
| Gross Profit | 89.80B | 83.38B | 78.80B | 88.82B | 104.59B |
| EBITDA | 110.68B | 68.71B | 70.05B | 70.91B | 100.84B |
| Net Income | 62.46B | 27.13B | 27.85B | 25.04B | 51.01B |
Balance Sheet | |||||
| Total Assets | 794.48B | 673.54B | 632.77B | 655.28B | 657.28B |
| Cash, Cash Equivalents and Short-Term Investments | 51.23B | 43.58B | 75.07B | 38.82B | 36.85B |
| Total Debt | 144.74B | 136.16B | 116.24B | 159.43B | 173.15B |
| Total Liabilities | 319.84B | 257.50B | 243.98B | 294.68B | 328.70B |
| Stockholders Equity | 455.56B | 398.40B | 372.99B | 344.89B | 313.45B |
Cash Flow | |||||
| Free Cash Flow | -29.36B | -33.03B | 82.19B | 21.03B | 30.96B |
| Operating Cash Flow | 5.24B | 12.83B | 118.63B | 50.73B | 59.91B |
| Investing Cash Flow | 12.06B | -41.32B | -26.26B | -30.14B | -11.34B |
| Financing Cash Flow | -9.95B | -4.22B | -59.20B | -19.96B | -31.19B |
Dowa Holdings Co Technical Analysis
Negative
10450.00
Price Trends
9094.30
Negative
8994.38
Negative
9190.76
Negative
Market Momentum
-304.87
Positive
32.35
Neutral
19.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5714, the sentiment is Negative. The current price of 10450 is above the 20-day moving average (MA) of 8457.70, above the 50-day MA of 9094.30, and above the 200-day MA of 9190.76, indicating a bearish trend. The MACD of -304.87 indicates Positive momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5714.
Dowa Holdings Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥2.20T | 9.40 | 11.97% | 3.29% | 21.72% | 995.36% | |
67 Neutral | ¥466.20B | 5.96 | 18.49% | 3.42% | 29.07% | 266.58% | |
66 Neutral | ¥557.34B | 5.93 | 13.21% | 2.53% | 6.91% | 956.99% | |
66 Neutral | ¥216.31B | 13.94 | 10.11% | 2.92% | 12.77% | 96.53% | |
65 Neutral | ¥114.00B | 8.07 | 9.99% | 2.56% | 10.17% | -15.24% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
52 Neutral | ¥14.05B | 2.27 | 61.43% | 4.55% | 9.75% | ― |
* Basic Materials Sector Average
JP:5714
Dowa Holdings Co
8,016.00
2,729.31
51.63%
JP:5711
Mitsubishi Materials
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53.42%
JP:5713
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8,335.00
3,564.78
74.73%
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JP:1515
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JP:5715
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3,630.00
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22.95%
Dowa Holdings Co Corporate Events
Dowa Holdings Delivers Strong Q1 on Metals Tailwind but Keeps FY Forecast Unchanged
Aug 7, 2026
Dowa Holdings reported a strong start to fiscal 2026, as first-quarter net sales rose 58% year on year while operating and ordinary profits surged more than threefold, supported by favorable metal prices, foreign exchange movements, and gains from...
Dowa Holdings Posts Surge in Q1 Earnings and Confirms Robust Dividend Payouts
Aug 7, 2026
Dowa Holdings reported a sharp rebound in performance for the three months ended June 30, 2026, with net sales climbing 58.2% year on year to ¥253.4 billion and operating profit surging 281.0% to ¥24.7 billion. Ordinary profit rose 277.5...
Dowa Holdings Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Aug 3, 2026
DOWA HOLDINGS has completed payment procedures for the disposal of 11,743 shares of its treasury stock as part of a restricted stock compensation plan for management. The shares, valued at a disposal price of 8,425 yen per share for a total of 98,...
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.