Dowa Holdings Co Ltd (JP:5714)
:5714
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Dowa Holdings Co
(5714)
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Rating:69Neutral
Price Target:
¥10,955.00
▲(9.97% Upside)
Action:Downgraded
Date:05/16/26
The score is driven by strong technical trend and attractive valuation (low P/E with a moderate dividend). These positives are partially offset by financial quality concerns, primarily the sharp deterioration in operating cash flow and two straight years of deeply negative free cash flow despite improved earnings and leverage.
Positive Factors
Diversified, integrated business model
Dowa's combination of metal smelting/refining plus environmental and recycling services creates multiple revenue streams and vertical integration. This reduces reliance on a single commodity cycle, allows internal feedstock sourcing, and supports more stable long-term cash flows and customer relationships.
Negative Factors
Weak cash generation and negative FCF
Two consecutive years of deeply negative free cash flow and a collapse in operating cash flow show profits are not converting to cash. This undermines liquidity, hampers debt servicing and investment capacity, and increases reliance on external financing if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, integrated business model
Dowa's combination of metal smelting/refining plus environmental and recycling services creates multiple revenue streams and vertical integration. This reduces reliance on a single commodity cycle, allows internal feedstock sourcing, and supports more stable long-term cash flows and customer relationships.
Read all positive factors
Dowa Holdings Co (5714) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥595.32B
Dividend Yield2.12%
Average Volume (3M)210.27K
Price to Earnings (P/E)9.5
Beta (1Y)1.13
Revenue Growth9.83%
EPS Growth130.42%
CountryJP
Employees7,801
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)365.23
Shares Outstanding61,989,210
10 Day Avg. Volume278,480
30 Day Avg. Volume210,270
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
¥10,700.00Price Target Upside7.41% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)905.68
Revenue Forecast (FY)¥830.74B
Dowa Holdings Co Business Overview & Revenue Model
Company Description
Dowa Holdings Co., Ltd. engages in the environmental management and recycling, nonferrous metals, electronic materials, metal processing, and heat treatment businesses worldwide. The company's Environmental Management & Recycling segment offers in...
How the Company Makes Money
Dowa Holdings makes money through a portfolio of operating businesses that generate revenue primarily from (1) selling non-ferrous metals and metal-related products and (2) providing environmental and recycling services. In its metals-related oper...
Dowa Holdings Co Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 649.81B | 745.41B | 678.67B | 717.19B | 780.06B | 831.79B |
| Gross Profit | 80.75B | 89.80B | 83.38B | 78.80B | 88.82B | 104.59B |
| EBITDA | 57.16B | 65.66B | 61.52B | 55.80B | 69.06B | 86.91B |
| Net Income | 21.75B | 62.46B | 27.13B | 27.85B | 25.04B | 51.01B |
Balance Sheet | ||||||
| Total Assets | 649.53B | 794.48B | 673.54B | 632.77B | 655.28B | 657.28B |
| Cash, Cash Equivalents and Short-Term Investments | 41.02B | 51.23B | 43.58B | 75.07B | 38.82B | 36.85B |
| Total Debt | 126.21B | 144.74B | 136.16B | 116.24B | 159.43B | 173.15B |
| Total Liabilities | 239.55B | 319.84B | 257.50B | 243.98B | 294.68B | 328.70B |
| Stockholders Equity | 391.80B | 455.56B | 398.40B | 372.99B | 344.89B | 313.45B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -29.36B | -33.03B | 82.19B | 21.03B | 30.96B |
| Operating Cash Flow | 0.00 | 5.24B | 12.83B | 118.63B | 50.73B | 59.91B |
| Investing Cash Flow | 0.00 | 12.06B | -41.32B | -26.26B | -30.14B | -11.34B |
| Financing Cash Flow | 0.00 | -9.95B | -4.22B | -59.20B | -19.96B | -31.19B |
Dowa Holdings Co Technical Analysis
Positive
9962.00
Price Trends
9907.74
Positive
9557.54
Positive
7580.96
Positive
Market Momentum
46.45
Positive
47.00
Neutral
22.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5714, the sentiment is Positive. The current price of 9962 is below the 20-day moving average (MA) of 10474.70, above the 50-day MA of 9907.74, and above the 200-day MA of 7580.96, indicating a neutral trend. The MACD of 46.45 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 22.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥595.32B | 9.53 | 5.02% | 2.12% | 9.83% | 130.42% | |
68 Neutral | ¥2.36T | 14.31 | 5.18% | 1.98% | 9.30% | 981.30% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | ¥193.04B | 13.53 | 6.77% | 2.30% | 6.58% | 63.12% | |
59 Neutral | ¥124.38B | 9.74 | 11.58% | 1.62% | 4.90% | -24.31% | |
58 Neutral | ¥640.69B | 15.79 | 3.12% | 2.83% | -6.02% | 19.06% | |
51 Neutral | ¥16.72B | 5.67 | -111.61% | ― | -0.57% | ― |
* Basic Materials Sector Average
JP:5714
Dowa Holdings Co
10,005.00
5,568.51
125.52%
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Dowa Holdings Co Corporate Events
Dowa Holdings weighs reduction of share investment unit to boost liquidity
May 20, 2026
Dowa Holdings has outlined its stance on reducing the minimum investment unit for its shares, stating that it views such a move as an effective means to invigorate the equity market. The company emphasizes that a lower investment threshold can enh...
Dowa Holdings Boosts FY2025 Dividend With Large Special Payout, Plans Lower but Strong FY2026 Dividend
May 19, 2026
Dowa Holdings has approved a year-end dividend of ¥368 per share for the fiscal year ended March 31, 2026, consisting of an ordinary dividend of ¥268 and a special dividend of ¥100, with total payouts reaching ¥21,766 million, ...
Dowa Holdings Lifts Dividend Forecast on Stronger Earnings and Asset Sale Proceeds
May 14, 2026
Dowa Holdings Co., Ltd. has revised its dividend forecast for the fiscal year ended March 31, 2026, under its Medium-Term Plan 2027 policy of paying the higher of a 35% payout ratio or ¥150 per share. Reflecting an upward revision in full-yea...
Dowa Holdings Posts Record Profit and Boosts Payouts on Metal Price Tailwind
May 14, 2026
Dowa Holdings reported fiscal 2025 net sales of 745.4 billion yen, up 9.8% year on year, with operating profit rising 6.1% and ordinary profit jumping 24.6%. Profit attributable to owners of parent surged 130.2% to a record 62.4 billion yen, helpe...
Dowa Holdings Posts Profit Surge and Hikes Dividend on Strong FY2026 Results
May 14, 2026
Dowa Holdings reported a strong rebound for the fiscal year ended March 31, 2026, with net sales rising 9.8% to ¥745.4 billion and profit attributable to owners of the parent surging 130.2% to ¥62.5 billion. Earnings per share more than ...
Dowa Holdings Discloses Reduction in Major Shareholder’s Stake
Mar 10, 2026
Dowa Holdings has disclosed a change in one of its major shareholders after investment adviser Silchester International Investors LLP filed an updated large-shareholding report with Japan’s Kanto Local Finance Bureau. The London-based firm r...
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.