NIHON DENGI CO., LTD. (1723) AI Stock Analysis

• Market Cap: ¥171.46B
• Dividend Yield: 1.83%
• Average Volume (3M): 39.50K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.71
• Revenue Growth: 22.05%
• EPS Growth: 52.10%
• Country: JP
• Employees: 897
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 169.46
• Shares Outstanding: 16,395,000
• 10 Day Avg. Volume: 54,040
• 30 Day Avg. Volume: 39,500
• PEG Ratio: 0.25
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 7.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥12,061.00 ▲(139.78% Upside)

The score is driven primarily by strong financial performance—healthy margins and growth, a very low-leverage balance sheet, and excellent free cash flow generation. The main offset is technical overextension (very high RSI/Stochastics) despite a clear uptrend, plus only moderate valuation support with a modest dividend yield.

Positive Factors

High margins and revenue growth

Sustained high gross and net margins with double-digit revenue growth indicate durable pricing power and operational efficiency. Over the next 2–6 months this supports steady cash generation, reinvestment capacity, and resilience to input cost swings versus lower-margin peers.

Strong cash generation and conversion

Large FCF improvement and operating-to-net-income conversion above 1.0 show the firm consistently turns earnings into cash. This durable cash profile enhances financing flexibility, funds capex/dividends, and cushions cyclical downturns without needing external debt.

Very low leverage and strong capitalization

Minimal leverage and a high equity ratio provide structural financial stability and optionality. A strong capital base plus double-digit ROE enables cautious balance sheet management, supports investment, and reduces refinancing and insolvency risk across business cycles.

Negative Factors

Modest dividend income support

A low dividend yield limits long-term income appeal to yield-focused investors and means the company must rely more on growth or buybacks to reward shareholders. Over months, this can reduce attraction to income-sensitive capital despite strong cash generation.

Exposure to cyclical hardware/equipment demand

Operating in hardware and equipment links revenues to capex cycles and industrial demand, which can compress orders and margins during macro slowdowns. Even with strong fundamentals, cyclical end-markets create durable variability in revenue and capital spending needs.

No recent disclosed strategic corporate events

Absence of reported M&A, major partnerships, or strategic initiatives reduces visibility into potential step-change growth drivers. Over a multi-month horizon, lack of disclosed strategic catalysts may limit upside and investor confidence in future expansion plans.

NIHON DENGI CO., LTD. Business Overview & Revenue Model

Company Description

NIHON DENGI CO., LTD. (1723) is a Japanese company specializing in the manufacturing and sale of electronic components, particularly focusing on semiconductor devices and related technologies. The company serves various sectors including consumer electronics, automotive, and industrial applications, providing innovative solutions that enhance the performance and efficiency of electronic systems. Its core products include integrated circuits, sensors, and power management devices, which are essential in modern electronic applications.

How the Company Makes Money

NIHON DENGI generates revenue primarily through the sale of its semiconductor products and electronic components to manufacturers in various industries. The company operates on a business model that includes both direct sales and partnerships with distributors and OEMs (original equipment manufacturers). Key revenue streams come from bulk orders for integrated circuits and sensors, as well as ongoing contracts with large corporations in the automotive and consumer electronics sectors. Additionally, NIHON DENGI invests in research and development to create innovative products that meet the evolving needs of technology markets, further enhancing its profitability through advanced product offerings and potential licensing agreements.

NIHON DENGI CO., LTD. Financial Statement Overview

Summary

Strong fundamentals supported by rising profitability (2025 gross margin 43.3%, net margin 14.9%) and solid revenue growth (+10.7% YoY). Balance sheet risk is low with minimal leverage (debt-to-equity 0.01) and strong capitalization (equity ratio 74.7%), while cash generation is excellent with sharply higher free cash flow (+98.4%) and strong cash conversion (OCF/NI 1.27; FCF/NI 1.25).

Income Statement

The company demonstrates strong profitability with a consistent increase in gross profit and net profit margins over the past five years. Notably, the gross profit margin is 43.3% and the net profit margin is 14.9% for 2025. Revenue growth is substantial at 10.7% from 2024 to 2025, indicating robust business expansion. EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.01, indicating minimal leverage and a strong equity base. The return on equity (ROE) is impressive at 16.2%, showcasing effective use of equity to generate profits. The equity ratio is 74.7%, underscoring the company's strong capital structure and low financial risk.

Cash Flow

The cash flow statement reflects excellent cash generation, with a significant increase in free cash flow by 98.4% from 2024 to 2025. The operating cash flow to net income ratio of 1.27 and the free cash flow to net income ratio of 1.25 indicate strong cash conversion and effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.93B	43.06B	38.89B	34.31B	31.67B	34.08B
Gross Profit	19.65B	18.66B	14.54B	11.60B	10.72B	11.30B
EBITDA	10.26B	9.57B	6.66B	4.89B	4.47B	4.82B
Net Income	6.78B	6.41B	4.67B	3.17B	3.03B	3.32B
Balance Sheet
Total Assets	48.55B	52.89B	46.02B	43.29B	38.57B	37.63B
Cash, Cash Equivalents and Short-Term Investments	14.00B	15.54B	11.83B	11.48B	11.55B	12.51B
Total Debt	752.00M	543.00M	658.00M	343.00M	314.00M	383.00M
Total Liabilities	8.81B	13.39B	11.56B	12.21B	9.71B	10.97B
Stockholders Equity	39.74B	39.49B	34.46B	31.08B	28.86B	26.66B
Cash Flow
Free Cash Flow	0.00	8.01B	4.04B	3.31B	1.24B	3.76B
Operating Cash Flow	0.00	8.13B	4.27B	3.52B	1.36B	4.10B
Investing Cash Flow	0.00	-4.28B	-2.12B	-2.20B	-1.44B	-2.38B
Financing Cash Flow	0.00	-1.64B	-2.11B	-989.00M	-1.07B	-1.02B

NIHON DENGI CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5030.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1723, the sentiment is Positive. The current price of 5030 is below the 20-day moving average (MA) of 9454.50, below the 50-day MA of 8099.80, and below the 200-day MA of 5602.15, indicating a bullish trend. The MACD of 678.42 indicates Negative momentum. The RSI at 75.42 is Negative, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1723.

NIHON DENGI CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1723	78 Outperform	¥171.46B	20.59	―	1.83%	22.05%	52.10%
6859	75 Outperform	¥76.84B	13.73	―	3.12%	2.78%	-5.32%
7433	75 Outperform	¥78.09B	15.38	―	5.86%	-0.80%	-3.80%
8159	74 Outperform	¥73.80B	10.13	―	3.17%	-2.96%	6.43%
6914	71 Outperform	¥86.52B	12.48	―	1.68%	2.72%	33.10%
6908	70 Outperform	¥77.92B	19.74	―	3.05%	10.79%	12.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

NIHON DENGI CO., LTD. Corporate Events

Nihon Dengi Lifts Earnings and Dividend Outlook on Strong Nine-Month Results

Nihon Dengi Co., Ltd. reported robust results for the nine months ended 31 December 2025, with net sales rising 14.1% year on year to ¥29.87 billion and profit attributable to owners of the parent jumping 45.4% to ¥5.67 billion, driving basic earnings per share to ¥355.81 after a 2-for-1 stock split. The company also strengthened its balance sheet, lifting its equity ratio to 80.6%, and revised upward both its full‑year earnings and dividend forecasts for the year ending 31 March 2026, now targeting ¥46.0 billion in net sales and ¥8.07 billion in profit attributable to owners of the parent while planning a total annual dividend of ¥152 per share, signalling confidence in sustained earnings growth and an increasing return of profits to shareholders.

The most recent analyst rating on (JP:1723) stock is a Buy with a Yen10294.00 price target. To see the full list of analyst forecasts on NIHON DENGI CO., LTD. stock, see the JP:1723 Stock Forecast page.

NIHON DENGI Reports Robust Financial Growth and Increased Dividends

NIHON DENGI CO., LTD. reported a substantial increase in its financial performance for the six months ended September 30, 2025, with net sales rising by 24.6% and operating profit surging by 78.6% compared to the previous year. The company also announced an increase in dividends, reflecting its strong financial position and commitment to returning value to shareholders.

The most recent analyst rating on (JP:1723) stock is a Buy with a Yen5606.00 price target. To see the full list of analyst forecasts on NIHON DENGI CO., LTD. stock, see the JP:1723 Stock Forecast page.