TSE:6141Machinery
DMG Mori (TSE:6141) Revenue Jumps While Thin Margins Keep Valuation In Focus
DMG Mori shareholders watched the stock grind sideways into this earnings print, with a mild 7 day gain and a flat 3 month picture, yet the headline numbers tell a more charged story. The market is paying a trailing P/E of 73.9x for a machine tool maker that currently earns a 1.2% net margin. That spread between a high valuation and low profitability is the key sentiment fault line today.
Everything in this quarter hinges on one question: Is that slim margin a temporary squeeze or a...