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NIHON DENGI CO., LTD. (JP:1723)
:1723
Japanese Market
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NIHON DENGI CO., LTD. (1723) AI Stock Analysis

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JP:1723

NIHON DENGI CO., LTD.

(1723)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
¥2,980.00
▼(-40.76% Downside)
Action:ReiteratedDate:05/08/26
The score is driven primarily by strong financial performance—rapid margin expansion, rising returns, and very low balance-sheet risk—partially offset by only mixed technical momentum (negative MACD despite an uptrend) and a fair-but-not-compelling valuation (moderate P/E and modest yield).
Positive Factors
Balance sheet strength
Extremely low leverage and rising returns give durable financial flexibility. With debt-to-equity near 1% and ROE improving, the company can fund operations, absorb shocks, pursue selective investments or pay dividends without refinancing risk, lowering long-term downside.
Negative Factors
Cash conversion shortfall
OCF consistently under net income indicates working-capital or timing volatility that can recur. Until coverage exceeds 1.0 sustainably, earnings are less reliable as a cash source, raising operational liquidity and capital-allocation risks during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low leverage and rising returns give durable financial flexibility. With debt-to-equity near 1% and ROE improving, the company can fund operations, absorb shocks, pursue selective investments or pay dividends without refinancing risk, lowering long-term downside.
Read all positive factors

NIHON DENGI CO., LTD. (1723) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Nihon Dengi Co., Ltd. engages in the automatic control system business in Japan. It operates through two segments, Air Conditioning Instrumentation Related Business and Industrial System Related Business. The Air Conditioning Instrumentation Relat...

NIHON DENGI CO., LTD. Financial Statement Overview

Summary
Strong fundamentals: expanding profitability and margins (gross margin ~34% to ~46% from 2023–2026; net margin ~9% to ~18%), improving earnings power, and an exceptionally conservative balance sheet with minimal leverage (debt-to-equity ~1% in 2026). Main risk area is cash conversion: operating cash flow remains below net income (coverage ~0.84 in 2026), implying working-capital/timing volatility.
Income Statement
90
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
84
Very Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue44.93B46.37B43.06B38.89B34.31B31.67B
Gross Profit19.65B21.56B18.27B14.19B11.28B10.40B
EBITDA10.06B12.28B9.57B6.66B4.89B4.47B
Net Income6.78B8.44B6.41B4.67B3.17B3.03B
Balance Sheet
Total Assets48.55B61.10B53.57B46.63B43.59B38.90B
Cash, Cash Equivalents and Short-Term Investments14.00B19.92B15.54B11.83B11.48B11.55B
Total Debt752.00M482.00M644.00M755.00M425.00M382.00M
Total Liabilities8.81B14.24B14.07B12.16B12.51B10.03B
Stockholders Equity39.74B46.86B39.49B34.46B31.08B28.86B
Cash Flow
Free Cash Flow0.008.57B8.01B4.17B3.44B1.26B
Operating Cash Flow0.0011.04B8.13B4.27B3.52B1.36B
Investing Cash Flow0.00-5.82B-4.28B-2.12B-2.20B-1.44B
Financing Cash Flow0.00-2.38B-1.64B-2.11B-989.00M-1.07B

NIHON DENGI CO., LTD. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5030.00
Price Trends
50DMA
2634.09
Negative
100DMA
2318.42
Positive
200DMA
1792.94
Positive
Market Momentum
MACD
6.85
Negative
RSI
49.50
Neutral
STOCH
56.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1723, the sentiment is Neutral. The current price of 5030 is above the 20-day moving average (MA) of 2408.85, above the 50-day MA of 2634.09, and above the 200-day MA of 1792.94, indicating a neutral trend. The MACD of 6.85 indicates Negative momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 56.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1723.

NIHON DENGI CO., LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥157.35B14.323.23%5.32%-3.12%
80
Outperform
¥28.86B13.322.89%11.21%19.46%
80
Outperform
¥82.44B8.262.31%3.01%4.40%
79
Outperform
¥170.21B16.691.83%7.69%31.56%
72
Outperform
¥23.25B7.242.84%4.18%2.42%
66
Neutral
¥9.18B7.402.45%14.74%-73.19%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1723
NIHON DENGI CO., LTD.
2,603.00
1,664.55
177.37%
JP:6850
Chino Corporation
1,628.00
691.28
73.80%
JP:6858
Ono Sokki Co., Ltd.
819.00
312.67
61.75%
JP:6866
Hioki E.E.Corporation
11,530.00
6,058.16
110.72%
JP:6874
Kyoritsu Electric Corporation
2,770.00
626.82
29.25%
JP:7745
A&D HOLON Holdings Company. Limited
3,010.00
1,248.30
70.86%

NIHON DENGI CO., LTD. Corporate Events

Nihon Dengi Delivers Strong FY2026 Earnings and Lifts Dividend Outlook
May 7, 2026
Nihon Dengi Co., Ltd. reported solid results for the fiscal year ended March 31, 2026, with net sales rising 7.7% to ¥46.37 billion and operating profit jumping 29.6% to ¥11.82 billion. Profit attributable to owners of the parent climbed...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 08, 2026