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Dowa Holdings Co Ltd (JP:5714)
:5714
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Dowa Holdings Co (5714) AI Stock Analysis

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JP:5714

Dowa Holdings Co

(5714)

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Neutral 67 (OpenAI - Gpt-5.6Sol)
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)

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
Earnings improved in FY2026 with revenue rebounding (+14.7% YoY) and net margin rising to ~8.4%, and leverage has become more manageable (debt-to-equity ~0.32) with ROE improving (~13.7%). The major offset is weak cash conversion: operating cash flow dropped sharply (¥5.2B) and free cash flow was deeply negative for two consecutive years (FY2026 ¥-29.4B; FY2025 ¥-33.0B), raising concerns about sustainability of reported profits.
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue745.41B678.67B717.19B780.06B831.79B
Gross Profit89.80B83.38B78.80B88.82B104.59B
EBITDA110.68B68.71B70.05B70.91B100.84B
Net Income62.46B27.13B27.85B25.04B51.01B
Balance Sheet
Total Assets794.48B673.54B632.77B655.28B657.28B
Cash, Cash Equivalents and Short-Term Investments51.23B43.58B75.07B38.82B36.85B
Total Debt144.74B136.16B116.24B159.43B173.15B
Total Liabilities319.84B257.50B243.98B294.68B328.70B
Stockholders Equity455.56B398.40B372.99B344.89B313.45B
Cash Flow
Free Cash Flow-29.36B-33.03B82.19B21.03B30.96B
Operating Cash Flow5.24B12.83B118.63B50.73B59.91B
Investing Cash Flow12.06B-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

Technical Analysis Sentiment
Negative
Last Price10450.00
Price Trends
50DMA
9094.30
Negative
100DMA
8994.38
Negative
200DMA
9190.76
Negative
Market Momentum
MACD
-304.87
Positive
RSI
32.35
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥2.20T9.4011.97%3.29%21.72%995.36%
67
Neutral
¥466.20B5.9618.49%3.42%29.07%266.58%
66
Neutral
¥557.34B5.9313.21%2.53%6.91%956.99%
66
Neutral
¥216.31B13.9410.11%2.92%12.77%96.53%
65
Neutral
¥114.00B8.079.99%2.56%10.17%-15.24%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
52
Neutral
¥14.05B2.2761.43%4.55%9.75%―
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5714
Dowa Holdings Co
8,016.00
2,729.31
51.63%
JP:5711
Mitsubishi Materials
4,352.00
1,515.34
53.42%
JP:5713
Sumitomo Metal Mining Co
8,335.00
3,564.78
74.73%
JP:5707
Toho Zinc Co
742.00
40.00
5.70%
JP:1515
Nittetsu Mining Co., Ltd.
2,774.00
1,166.49
72.57%
JP:5715
Furukawa Co., Ltd.
3,630.00
677.49
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.Date of analysis: Aug 25, 2026