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DN HOLDINGS CO. LTD. (JP:7377)
:7377
Japanese Market
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DN HOLDINGS CO. LTD. (7377) AI Stock Analysis

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JP:7377

DN HOLDINGS CO. LTD.

(7377)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥1,831.00
▼(-10.46% Downside)
Action:Downgraded
Date:08/10/26
The score is primarily held back by weakened 2026 fundamentals (extreme revenue decline, margin compression) and inconsistent cash generation despite low leverage. Technicals also point to a soft trend with negative momentum and price below key moving averages. Offsetting these risks, valuation is moderately attractive with a reasonable P/E and a ~4.3% dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage gives the company durable financial flexibility in a cyclical industry. With debt-to-equity near 0.03 and rising equity, DN Holdings can fund projects, absorb shocks, and pursue opportunistic investments without immediate refinancing pressure, supporting multi-month resilience.
Negative Factors
Extreme 2026 revenue collapse
A near-100% revenue drop in 2026 represents a structural shock that materially erodes revenue visibility and scale economics. Such a collapse may reflect contract loss or one-off disruption; it impairs budgeting, weakens competitive positioning, and could take multiple quarters to recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives the company durable financial flexibility in a cyclical industry. With debt-to-equity near 0.03 and rising equity, DN Holdings can fund projects, absorb shocks, and pursue opportunistic investments without immediate refinancing pressure, supporting multi-month resilience.
Read all positive factors

DN HOLDINGS CO. LTD. (7377) vs. iShares MSCI Japan ETF (EWJ)

DN HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description
Established in Tokyo, Japan in 1963, DN Holdings Co.,Ltd. primarily offers construction consulting and geological survey services. The company's core activities encompass the design of vital infrastructure like bridges and roadways, as well as com...

DN HOLDINGS CO. LTD. Financial Statement Overview

Summary
Financials are mixed: the balance sheet is strong with very low leverage (debt-to-equity ~0.03), but operating results deteriorated sharply in 2026 with revenue down ~99% YoY and weaker profitability (net margin ~2.5% vs ~5.2% in 2025; operating margin ~3.8% vs ~7.5%). Cash flow is also inconsistent, including negative FCF in 2024 and a drop in 2026 FCF (~¥0.68B vs ~¥2.6B in 2025), reducing confidence in earnings/cash visibility.
Income Statement
58
Neutral
Balance Sheet
81
Very Positive
Cash Flow
46
Neutral
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue38.44B38.06B36.98B34.13B32.58B32.11B
Gross Profit12.48B11.33B12.02B10.70B10.02B9.63B
EBITDA3.37B1.97B3.41B2.73B2.96B2.74B
Net Income1.87B945.79M1.92B1.56B1.76B1.51B
Balance Sheet
Total Assets37.57B27.84B25.97B24.44B21.48B19.59B
Cash, Cash Equivalents and Short-Term Investments4.46B2.61B2.90B2.12B4.27B4.60B
Total Debt12.57B510.64M843.50M1.98B1.10B1.30B
Total Liabilities21.09B10.67B10.47B10.96B9.62B9.64B
Stockholders Equity16.48B17.17B15.50B13.49B11.86B9.95B
Cash Flow
Free Cash Flow0.00680.28M2.59B-2.09B457.92M316.94M
Operating Cash Flow0.00987.56M2.99B-1.92B804.12M616.18M
Investing Cash Flow0.00-294.04M-528.77M-144.23M-375.25M-1.00B
Financing Cash Flow0.00-992.60M-1.68B-87.20M-771.10M-591.04M

DN HOLDINGS CO. LTD. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2045.00
Price Trends
50DMA
1735.50
Negative
100DMA
1763.88
Negative
200DMA
1854.09
Negative
Market Momentum
MACD
-5.22
Negative
RSI
52.62
Neutral
STOCH
77.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7377, the sentiment is Neutral. The current price of 2045 is above the 20-day moving average (MA) of 1704.25, above the 50-day MA of 1735.50, and above the 200-day MA of 1854.09, indicating a neutral trend. The MACD of -5.22 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 77.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7377.

DN 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
76
Outperform
¥13.15B9.843.65%8.49%26.99%
76
Outperform
¥15.09B8.921.02%15.83%-13.46%
65
Neutral
¥4.87B19.050.61%-19.56%-58.80%
62
Neutral
¥29.17B5.331.57%11.59%88.95%
61
Neutral
¥14.58B14.973.90%2.94%-51.33%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7377
DN HOLDINGS CO. LTD.
1,727.00
-295.81
-14.62%
JP:4346
NEXYZ.Group Corporation
1,018.00
-14.45
-1.40%
JP:6580
Writeup Co., Ltd.
887.00
-1,514.28
-63.06%
JP:7373
Aidma Holdings Inc.
940.00
-1,636.47
-63.52%
JP:7814
JAPAN Creative Platform Group Co., Ltd.
644.00
-197.90
-23.51%
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 10, 2026