Improved Cash GenerationSustained positive operating and free cash flow across 2023–2025 provides durable internal funding for working capital, modest capex and shareholder returns. Reliable FCF reduces reliance on external financing and supports strategic choices over the next 2–6 months.

Deleveraging TrendMeaningful reduction in leverage from early-2020s peaks improves financial flexibility and lowers refinancing/default risk for a low-margin business. Continued de-risking increases capacity to fund operations, pursue selective investments and withstand cyclical pressure.

Cash Conversion Supporting ProfitsHigh conversion of reported earnings into free cash flow implies earnings quality and credible cash backing for profits. This supports durable operations and gives management latitude to allocate cash to debt paydown or targeted growth initiatives.

Bears Say

Thin Operating And Net MarginsVery low operating and net margins constrain the firm's ability to absorb cost inflation or bid competitively while maintaining returns. Persistent thin margins limit reinvestment capacity and raise default vulnerability if revenue or cash flow weakens.

Recent Revenue DeclineDeclining top-line in 2024–2025 signals weakening demand or loss of pricing/project mix, limiting scale benefits. Over 2–6 months this reduces margin recovery prospects and constrains cash flow upside, making operational leverage and turnaround harder.

Residual Balance Sheet RiskAlthough leverage improved, the balance sheet remains relatively stretched for a low-margin operator. This sustained financial risk can limit strategic flexibility, raise borrowing costs, and amplify impact of any future revenue or margin setbacks.

6635 FAQ

What was Di-Nikko Engineering Co., Ltd.’s price range in the past 12 months?

Di-Nikko Engineering Co., Ltd. lowest stock price was ¥382.00 and its highest was ¥640.00 in the past 12 months.

What is Di-Nikko Engineering Co., Ltd.’s market cap?

Di-Nikko Engineering Co., Ltd.’s market cap is ¥3.62B.

When is Di-Nikko Engineering Co., Ltd.’s upcoming earnings report date?

Di-Nikko Engineering Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 78 days.

How were Di-Nikko Engineering Co., Ltd.’s earnings last quarter?

Di-Nikko Engineering Co., Ltd. released its earnings results on Feb 16, 2026. The company reported -¥26.58 earnings per share for the quarter, missing the consensus estimate of N/A by -¥26.58.

Is Di-Nikko Engineering Co., Ltd. overvalued?

According to Wall Street analysts Di-Nikko Engineering Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Di-Nikko Engineering Co., Ltd. pay dividends?

Di-Nikko Engineering Co., Ltd. pays a Semiannually dividend of ¥8 which represents an annual dividend yield of 2.77%. See more information on Di-Nikko Engineering Co., Ltd. dividends here

What is Di-Nikko Engineering Co., Ltd.’s EPS estimate?

Di-Nikko Engineering Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Di-Nikko Engineering Co., Ltd. have?

Di-Nikko Engineering Co., Ltd. has 6,800,600 shares outstanding.

What happened to Di-Nikko Engineering Co., Ltd.’s price movement after its last earnings report?

Di-Nikko Engineering Co., Ltd. reported an EPS of -¥26.58 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 5.556%.

Which hedge fund is a major shareholder of Di-Nikko Engineering Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6635

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Di-Nikko Engineering Co., Ltd.

Di-Nikko Engineering Co., Ltd. (6635) is a prominent engineering company based in Japan, specializing in the design, manufacturing, and servicing of precision machinery and equipment for various sectors, including semiconductor, electronics, and automotive industries. The company focuses on providing innovative solutions that enhance productivity and efficiency for its clients, offering a range of products such as automated systems, robotics, and inspection equipment.