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DN HOLDINGS CO. LTD. (7377) AI Stock Analysis

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JP:7377

DN HOLDINGS CO. LTD.

(TSE/TYO:7377)

Select Model
Rating:60Neutral
Price Target:JPY 1,710.00▲(2.46% Upside)
Action:reiterated
Date:11/11/26

The score is held back primarily by weak and volatile recent fundamentals (sharp 2026 revenue/margin deterioration and uneven cash flow) and bearish technical momentum (below major moving averages with negative MACD). These risks are partially offset by a conservatively levered balance sheet and relatively supportive valuation with a high dividend yield.

Positive Factors
Conservative Balance SheetVery low leverage gives the company financial flexibility in a cyclical industry and reduces pressure from interest obligations. This stronger balance-sheet position can help DN HOLDINGS absorb operating volatility, preserve funding capacity, and continue investing when conditions improve.
Negative Factors
Severe Revenue ContractionThe abrupt 2026 revenue reversal is a major threat to the durability of the business model because it sharply reduces operating scale and weakens visibility into future earnings. Sustained demand or project disruption at this magnitude could impair recovery and competitive execution.

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

-20%-10%0%10%20%30%JP:7377-16.70%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 13.88B
Dividend Yield
4.49%
Average Volume (3M)
5,411
Price to Earnings (P/E)
14.7
Beta (1Y)
0.09
Revenue Growth
2.94%
EPS Growth
-51.33%
Country
Japan
Employees
1,462
Sector
General
Sector Strength
55
Industry
Engineering & Construction

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 compre...

DN HOLDINGS CO. LTD. Financial Statement Overview

Summary

Strong balance sheet strength (low leverage; balance sheet score 81) is offset by a severe 2026 operational setback (income statement score 58 with ~99% revenue decline and margin compression) and inconsistent cash generation (cash flow score 46 with large year-to-year swings and a weak 2026 versus 2025).

Income Statement

58Neutral

Balance Sheet

81Very Positive

Cash Flow

46Neutral
Financial statement breakdown
BreakdownTTMJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue38.06B38.06B36.98B34.13B32.58B32.11B
Gross Profit11.33B11.33B12.02B10.70B10.02B9.63B
EBITDA2.02B1.97B3.41B2.73B2.96B2.74B
Net Income945.79M945.79M1.92B1.56B1.76B1.51B
Balance Sheet
Total Assets27.84B27.84B25.97B24.44B21.48B19.59B
Cash, Cash Equivalents and Short-Term Investments2.61B2.61B2.90B2.12B4.27B4.60B
Total Debt510.64M510.64M843.50M1.98B1.10B1.30B
Total Liabilities10.67B10.67B10.47B10.96B9.62B9.64B
Stockholders Equity17.17B17.17B15.50B13.49B11.86B9.95B
Cash Flow
Free Cash Flow0680.28M2.59B-2.09B457.92M316.94M
Operating Cash Flow0987.56M2.99B-1.92B804.12M616.18M
Investing Cash Flow0-294.04M-528.77M-144.23M-375.25M-1.00B
Financing Cash Flow0-992.60M-1.68B-87.20M-771.10M-591.04M

DN HOLDINGS CO. LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price1669.00

Price Trends

50DMA1701.98Negative
100DMA1719.86Negative
200DMA1789.26Negative

Market Momentum

MACD-16.76Positive
RSI45.29Neutral
STOCH38.40Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7377, the sentiment is Negative. The current price of 1669.00 is below the 20-day moving average (MA) of 1679.55, below the 50-day MA of 1701.98, and below the 200-day MA of 1789.26, indicating a bearish trend. The MACD of -16.76 indicates Positive momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 38.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7377.

DN HOLDINGS CO. LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7377 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4346JP:434673OutperformJPY 9.86B7.41―3.96%8.49%26.99%
JP:7373JP:737373OutperformJPY 10.95B6.69―4.22%7.73%-18.80%
JP:6580JP:658065NeutralJPY 3.74B15.07―2.01%-19.56%-58.80%
JP:7814JP:781463NeutralJPY 27.09B4.72―6.54%11.59%88.95%
JP:7377JP:737760NeutralJPY 13.83B14.68―4.49%2.94%-51.33%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-75%-50%-25%0%JP:7377JP:4346JP:6580JP:7373JP:7814Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7377 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7377DN HOLDINGS CO. LTD.1669.00-342.31-17.02%
JP:4346NEXYZ.Group Corporation758.00-237.52-23.86%
JP:6580Writeup Co., Ltd.698.00-2027.17-74.39%
JP:7373Aidma Holdings Inc.711.00-2045.76-74.21%
JP:7814JAPAN Creative Platform Group Co., Ltd.577.00-153.14-20.97%
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: Nov 11, 2026