TSE:6141

Stock Analysis Report

Executive Summary

DMG Mori Co., Ltd. manufactures and sells machine tools worldwide.


Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has DMG Mori's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6141's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.5%

6141

-5.8%

JP Machinery

-4.6%

JP Market


1 Year Return

-43.7%

6141

-25.4%

JP Machinery

-15.7%

JP Market

Return vs Industry: 6141 underperformed the JP Machinery industry which returned -20.5% over the past year.

Return vs Market: 6141 underperformed the JP Market which returned -12.1% over the past year.


Shareholder returns

6141IndustryMarket
7 Day-15.5%-5.8%-4.6%
30 Day-36.2%-15.3%-11.2%
90 Day-48.6%-27.9%-21.0%
1 Year-41.6%-43.7%-23.5%-25.4%-13.5%-15.7%
3 Year-43.4%-48.4%-16.8%-22.6%-2.3%-9.2%
5 Year-48.5%-54.8%-19.9%-28.5%-1.1%-11.8%

Price Volatility Vs. Market

How volatile is DMG Mori's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is DMG Mori undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6141 (¥868) is trading below our estimate of fair value (¥2503.31)

Significantly Below Fair Value: 6141 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6141 is good value based on its PE Ratio (6.3x) compared to the Machinery industry average (9.7x).

PE vs Market: 6141 is good value based on its PE Ratio (6.3x) compared to the JP market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6141 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 6141 is overvalued based on its PB Ratio (0.9x) compared to the JP Machinery industry average (0.6x).


Next Steps

Future Growth

How is DMG Mori forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6141's forecast earnings growth (17.6% per year) is above the savings rate (-0.09%).

Earnings vs Market: 6141's earnings (17.6% per year) are forecast to grow faster than the JP market (9.2% per year).

High Growth Earnings: 6141's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6141's revenue (1.9% per year) is forecast to grow slower than the JP market (3.3% per year).

High Growth Revenue: 6141's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6141's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has DMG Mori performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6141 has high quality earnings.

Growing Profit Margin: 6141's current net profit margins (3.5%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 6141's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: 6141's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6141 had negative earnings growth (-3%) over the past year, making it difficult to compare to the Machinery industry average (-11.5%).


Return on Equity

High ROE: 6141's Return on Equity (14.8%) is considered low.


Next Steps

Financial Health

How is DMG Mori's financial position?


Financial Position Analysis

Short Term Liabilities: 6141's short term assets (¥218.4B) do not cover its short term liabilities (¥272.6B).

Long Term Liabilities: 6141's short term assets (¥218.4B) exceed its long term liabilities (¥124.2B).


Debt to Equity History and Analysis

Debt Level: 6141's debt to equity ratio (82.3%) is considered high.

Reducing Debt: 6141's debt to equity ratio has increased from 34.1% to 82.3% over the past 5 years.

Debt Coverage: 6141's debt is well covered by operating cash flow (41.5%).

Interest Coverage: 6141's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: 6141 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6141's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is DMG Mori's current dividend yield, its reliability and sustainability?

6.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6141's dividend (6.91%) is higher than the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 6141's dividend (6.91%) is in the top 25% of dividend payers in the JP market (3.87%)


Stability and Growth of Payments

Stable Dividend: 6141's dividends per share have been stable in the past 10 years.

Growing Dividend: 6141's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), 6141's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Masahiko Mori (58yo)

20.83s

Tenure

JP¥240,000,000

Compensation

Dr. Eng. Masahiko Mori has been the President of DMG Mori Co., Ltd. since June 1999. Dr. Mori served as the President of Mori Seiki USA Inc. He has been a Representative Director of DMG Mori Co., Ltd. sinc ...


CEO Compensation Analysis

Compensation vs Market: Masahiko's total compensation ($USD2.23M) is above average for companies of similar size in the JP market ($USD1.59M).

Compensation vs Earnings: Masahiko's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Masahiko Mori
President & Representative Director20.83yrsJP¥240.00m2.93% ¥3.1b
Hirotake Kobayashi
EVP, CFO & Executive Director4.08yrsJP¥140.00m0.033% ¥34.7m
Hiroaki Tamai
EVP & Director16.83yrsJP¥140.00m0.046% ¥49.5m
Takashi Suetaka
General Manager of Marketing Strategyno datano datano data
Hiraku Nakata
Chief of Nara Campus and General Manager of Mori Seiki Technono datano datano data
Norihide Maeda
Chief of Chiba Campus and Deputy Executive Officer of Development & Manufacturing HQno datano datano data
Akihiko Takeda
President of DIXI Machines and Chief Operating Officer of DIXI Machinesno datano datano data
Christian Thönes
VP & Director1.08yrsno datano data
Toyofumi Nishio
President of Mori Seiki Chinano datano datano data
Takahiro Kobi
President of MORI SEIKI GmbHno datano datano data

5.8yrs

Average Tenure

59yo

Average Age

Experienced Management: 6141's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Masahiko Mori
President & Representative Director20.83yrsJP¥240.00m2.93% ¥3.1b
Hirotake Kobayashi
EVP, CFO & Executive Director4.08yrsJP¥140.00m0.033% ¥34.7m
Hiroaki Tamai
EVP & Director16.83yrsJP¥140.00m0.046% ¥49.5m
Christian Thönes
VP & Director1.08yrsno datano data
Noboru Watanabe
President of Taiyo Koki Co Ltd and Representative Director of Taiyo Koki Co Ltdno datano datano data
Makoto Fujishima
Executive Director1.08yrsno data0.019% ¥20.0m
Takashi Mitachi
External Director3.08yrsno data0.00082% ¥873.0k
Tsuyoshi Nomura
External Director4.83yrsno data0.00082% ¥873.0k
Makoto Nakajima
External Director3.08yrsno data0.00082% ¥873.0k
Tojiro Aoyama
External Director4.83yrsno data0.00082% ¥873.0k

4.1yrs

Average Tenure

65yo

Average Age

Experienced Board: 6141's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DMG Mori Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DMG Mori Co., Ltd.
  • Ticker: 6141
  • Exchange: TSE
  • Founded: 1948
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥106.467b
  • Shares outstanding: 122.66m
  • Website: https://www.dmgmori.co.jp

Number of Employees


Location

  • DMG Mori Co., Ltd.
  • 2-3-23 Shiomi
  • Koto-ku
  • Tokyo
  • 135-0052
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6141TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
0MODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

DMG Mori Co., Ltd. manufactures and sells machine tools worldwide. It offers 5-axis/multi-axis machines, machining centers, turning centers, and Lasertec and ultrasonic machines, as well as handling, shaping, measuring, and monitoring cycles. The company also provides pallet pool, workpiece handling, pallet handling, and tool handling systems; tool pre-setting, shrinking, measuring, and balancing devices; and CELOS, a system for operating machine tools, as well as CELOS software. In addition, it offers peripherals, such as tool wagon and tool cabinet products; tables/pallets; CAM software; measuring/monitoring devices; automation systems; and machining quality/environmental equipment comprising coolant systems, mist collectors, and compressed air cleaning equipment. The company was formerly known as DMG Mori Seiki Co., Ltd. and changed its name to DMG Mori Co., Ltd. in 2015. DMG Mori Co., Ltd. was founded in 1948 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 20:18
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.