| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4288.15 | 349 |
| Intrinsic value (DCF) | 479.73 | -50 |
| Graham-Dodd Method | 1355.69 | 42 |
| Graham Formula | 3213.16 | 237 |
D & M Company Co., Ltd. (189A.T) is a Japan-based firm specializing in management support services for the medical and long-term care welfare sectors. Founded in 2015 and headquartered in Osaka, the company provides fineness, consulting, and HR services tailored to healthcare and welfare professionals. Operating in the Specialty Business Services industry under the Industrials sector, D & M Company plays a crucial role in enhancing operational efficiency and workforce management in Japan's rapidly aging society. With a market capitalization of approximately ¥1.95 billion, the company serves a niche but growing market, leveraging Japan's increasing demand for healthcare and elder care services. Its strategic positioning in Osaka, a key economic hub, allows it to tap into regional and national healthcare networks effectively.
D & M Company Co., Ltd. presents a mixed investment profile. On the positive side, the company operates in a resilient sector with strong long-term growth potential due to Japan's aging population. However, financial metrics raise concerns: negative operating cash flow (-¥782.7 million) and high total debt (¥7.29 billion) against modest revenue (¥1.19 billion) and net income (¥177.4 million) suggest liquidity risks. The company pays a dividend (¥40 per share), which may appeal to income-focused investors, but sustainability is questionable given cash flow challenges. The negative beta (-0.25) indicates low correlation with broader market movements, potentially offering diversification benefits. Investors should weigh sector tailwinds against financial health before committing capital.
D & M Company Co., Ltd. competes in Japan's fragmented management support services market for healthcare and welfare sectors. Its niche focus on medical and long-term care provides specialized expertise, differentiating it from generalist HR and consulting firms. However, the company faces intense competition from larger players with greater resources and broader service portfolios. Its competitive advantage lies in deep sector knowledge and localized service delivery, critical in Japan's relationship-driven business culture. Challenges include scaling operations profitably and managing high debt levels, which may limit growth investments. The company's small size (¥1.19 billion revenue) restricts its ability to compete on price or technology with major industry players. Success depends on maintaining superior service quality and deepening client relationships in its specialized verticals. The negative operating cash flow suggests operational inefficiencies that competitors with stronger financial positions could exploit.