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DMW Corporation (6365) AI Stock Analysis

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JP:6365

DMW Corporation

(TSE/TYO:6365)

Select Model
Rating:74Outperform
Price Target:JPY 6,171.00â–²(16.65% Upside)
Action:reiterated
Date:08/17/26

The score is driven primarily by strong financial resilience (very low leverage and improving margins) and compelling valuation (low P/E and solid dividend yield). Offsetting these positives are uneven cash conversion (weak FY2026 operating/free cash flow) and only moderate technical momentum.

Positive Factors
Conservative balance sheetExtremely low leverage (debt-to-equity ~0.003) gives DMW durable financial flexibility. Low refinancing risk and ample equity capacity support sustained investment, dividend coverage and shock absorption across industrial cycles, strengthening long-term resilience.
Negative Factors
Volatile cash generationInconsistent operating cash flow and intermittent negative free cash flow indicate weak cash conversion and working-capital swings. This undermines the firm’s ability to self-fund capex, sustain dividends or pursue opportunities without drawing on reserves, a multi-quarter risk.

DMW Corporation (6365) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:6365+6.49%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 22.12B
Dividend Yield
3.97%
Average Volume (3M)
933
Price to Earnings (P/E)
7.4
Beta (1Y)
0.47
Revenue Growth
-0.59%
EPS Growth
7.41%
Country
Japan
Employees
556
Sector
Industrials
Sector Strength
63
Industry
Industrial - Machinery

DMW Corporation Business Overview & Revenue Model

Company Description

DMW Corporation, a Tokyo, Japan-based company founded in 1910, operates internationally, specializing in the production and distribution of various fluid machinery. Its comprehensive offerings include pumps, fans, seawater desalination equipment, val...

How the Company Makes Money

null

DMW Corporation Financial Statement Overview

Summary

Strong financial safety and profitability are partly offset by cash-flow quality concerns. The balance sheet is very conservative (debt-to-equity ~0.003) and margins improved (gross margin ~24.8% to ~27.0%; operating margin ~10.7% to ~12.4%), but cash generation is volatile with weak FY2026 operating cash flow (Â¥0.5B) and slightly negative free cash flow (Â¥-0.05B), alongside a FY2026 revenue dip (-2.3%).

Income Statement

76Positive

Balance Sheet

92Very Positive

Cash Flow

48Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue28.67B28.19B28.08B24.10B23.87B22.82B
Gross Profit8.21B7.62B7.27B5.94B5.88B5.69B
EBITDA4.88B4.14B3.93B2.91B3.10B2.96B
Net Income2.99B2.62B2.43B1.75B1.87B1.88B
Balance Sheet
Total Assets38.49B41.72B40.47B36.98B34.33B32.35B
Cash, Cash Equivalents and Short-Term Investments11.63B6.04B6.71B6.20B6.48B5.91B
Total Debt133.00M88.00M67.00M59.00M54.00M27.00M
Total Liabilities7.39B11.06B12.64B10.83B10.40B9.70B
Stockholders Equity31.09B30.66B27.83B26.15B23.92B22.65B
Cash Flow
Free Cash Flow0-46.00M1.55B48.00M725.00M-394.00M
Operating Cash Flow0527.00M2.11B730.00M1.57B162.00M
Investing Cash Flow0-114.00M-834.00M-148.00M-886.00M-788.00M
Financing Cash Flow0-839.00M-961.00M-545.00M-523.00M-490.00M

DMW Corporation Technical Analysis

Technical Analysis SentimentNegative
Last Price5290.00

Price Trends

50DMA5514.10Negative
100DMA5445.08Negative
200DMA5520.63Negative

Market Momentum

MACD-71.84Positive
RSI41.67Neutral
STOCH43.74Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6365, the sentiment is Negative. The current price of 5290.00 is below the 20-day moving average (MA) of 5448.50, below the 50-day MA of 5514.10, and below the 200-day MA of 5520.63, indicating a bearish trend. The MACD of -71.84 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 43.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6365.

DMW Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:6365 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6118JP:611881OutperformJPY 53.45B15.35―3.63%-1.63%-23.69%
JP:6365JP:636574OutperformJPY 22.31B7.38―3.97%-0.59%7.41%
JP:6482JP:648265NeutralJPY 21.27B34.91―3.15%-8.01%-62.48%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:6258JP:625862NeutralJPY 99.66B13.3710.14%2.12%9.33%45.31%
JP:6125JP:612552NeutralJPY 27.37B31.07―3.76%-1.08%-44.97%
JP:6203JP:620340UnderperformJPY 23.13B31.11―0.99%-7.53%-13.28%

* Industrials Sector Average

Performance Comparison

0%50%100%JP:6365JP:6258JP:6118JP:6125JP:6203JP:6482Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6365 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6365DMW Corporation5290.00322.306.49%
JP:6258Hirata Corporation3300.001185.8656.09%
JP:6118Aida Engineering,Ltd.1074.0096.709.89%
JP:6125Okamoto Machine Tool Works,Ltd.4260.0026.840.63%
JP:6203Howa Machinery, Ltd.2022.00637.2846.02%
JP:6482Yushin Precision Equipment Co., Ltd.634.00-16.23-2.50%
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 17, 2026