Denyo Co., Ltd. (6517) AI Stock Analysis

• Market Cap: ¥77.38B
• Dividend Yield: 2.63%
• Average Volume (3M): 18.77K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.85
• Revenue Growth: -6.00%
• EPS Growth: -13.74%
• Country: JP
• Employees: 1,408
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 94.37
• Shares Outstanding: 21,859,660
• 10 Day Avg. Volume: 14,740
• 30 Day Avg. Volume: 18,766
• PEG Ratio: 0.81
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 32.78
• 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: ¥4,440.00 ▲(23.85% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

Denyo Co., Ltd. demonstrates strong financial performance with solid profitability and a stable balance sheet. The technical indicators suggest a bullish trend, though caution is advised due to potential overbought conditions. The stock's valuation is reasonable, supported by a healthy dividend yield. These factors collectively contribute to a favorable stock score.

Positive Factors

Balance sheet strength

A high equity ratio and low debt-to-equity indicate conservative financing that materially reduces refinancing and liquidity risk. This durable balance sheet supports capital expenditure, dividend payments, and strategic investments during cyclical downturns, improving long-term resilience.

Sustained profitability

Consistent gross and net margins and stable EBIT/EBITDA point to efficient manufacturing and cost control. Sustained profitability supports reinvestment, shareholder returns, and the capacity to absorb cyclical revenue shocks, underpinning durable cash generation ability.

Aftermarket revenue stream

A meaningful aftermarket and service business creates recurring, higher-margin revenue tied to the installed base, deepening customer relationships and reducing reliance on new-equipment cycles. This structural mix improves revenue predictability and lifetime customer value.

Negative Factors

Recent revenue softness

A recent drop in revenue interrupts prior growth and may signal weakening end-market demand or lost share. Persistent revenue contraction strains operating leverage and could erode margins and reinvestment capacity if not reversed through product, market, or distribution improvements.

Free cash flow variability

Declining and volatile free cash flow constrains financial flexibility for capex, dividends, and acquisitions. Even with positive operating cash flow, weaker FCF conversion increases reliance on balance sheet buffers and can limit investment in growth initiatives over the medium term.

Cyclical end-market exposure

Heavy exposure to construction, civil engineering, and industrial capex makes core equipment sales cyclical. This structural demand sensitivity can amplify revenue and margin volatility across economic cycles, requiring active diversification or aftermarket expansion to smooth performance.

Denyo Co., Ltd. Business Overview & Revenue Model

Company Description

Denyo Co., Ltd., together with its subsidiaries, engages in the developing, manufacturing, and selling of engine-driven generators, welders, and air compressors in Japan, the United States, rest of Asia, and Europe. The company offers soundless, industrial, rental, portable, caravan, residence, telecom, and ultra-silence generators; gasoline and diesel welding machines; and box type, trailer type, high pressure type, after cooler type, and dry air type air compressors. It also manufactures, sells, services, leases, and rents industrial electrical machinery and parts. The company was formerly known as Japan Power Welding Machine Co., Ltd. and changed its name to Denyo Co., Ltd. in July 1966. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Denyo generates revenue primarily through the sale of its power generation equipment and related services. The company's key revenue streams include the manufacturing and distribution of diesel generators, inverter generators, and welding machines. Additionally, Denyo earns income from providing maintenance and support services for its products. Significant partnerships with construction and industrial companies, along with a strong export market, further contribute to its earnings. The company also benefits from its reputation for high-quality products, which helps in maintaining customer loyalty and driving repeat business.

Denyo Co., Ltd. Financial Statement Overview

Summary

Denyo Co., Ltd. exhibits strong financial performance with robust profitability and revenue growth trends. The balance sheet shows low financial leverage, ensuring stability. However, there are challenges in free cash flow management despite positive operating cash flow.

Income Statement

Denyo Co., Ltd. has demonstrated strong revenue growth over the years, with a notable increase from 2022 to 2023. The gross profit margin and net profit margin show healthy profitability, with consistent EBIT and EBITDA margins indicating efficient operations. However, the slight decline in revenue from 2024 to 2025 suggests potential challenges in sustaining growth momentum.

Balance Sheet

The company maintains a robust financial position with a high equity ratio, indicating strong financing through equity rather than debt. The debt-to-equity ratio remains low, underscoring a conservative financial strategy. Return on equity has been stable, reflecting effective utilization of shareholders' funds. Overall, the balance sheet reflects financial stability and low leverage risk.

Cash Flow

Denyo Co., Ltd. has experienced fluctuations in free cash flow, with a decrease in recent periods. However, operating cash flow remains positive, supporting ongoing operations. The free cash flow to net income ratio indicates a need for improved cash flow management despite positive operating cash flow trends. The company should focus on enhancing free cash flow generation to bolster financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	68.13B	70.75B	73.14B	64.31B	55.17B	55.01B
Gross Profit	16.94B	17.79B	16.23B	13.63B	11.72B	13.32B
EBITDA	8.52B	9.83B	8.66B	6.54B	5.32B	6.50B
Net Income	4.87B	5.65B	5.09B	3.63B	2.75B	3.86B
Balance Sheet
Total Assets	100.54B	103.10B	100.54B	89.74B	80.77B	79.06B
Cash, Cash Equivalents and Short-Term Investments	25.45B	24.50B	24.04B	22.33B	23.36B	22.91B
Total Debt	4.35B	4.45B	4.04B	3.58B	1.35B	1.58B
Total Liabilities	21.07B	22.44B	24.70B	21.09B	17.02B	17.50B
Stockholders Equity	76.26B	77.28B	72.81B	65.89B	61.41B	59.36B
Cash Flow
Free Cash Flow	1.71B	1.53B	2.35B	-2.13B	1.83B	3.06B
Operating Cash Flow	5.15B	7.32B	4.18B	2.03B	2.69B	4.94B
Investing Cash Flow	-3.13B	-5.55B	-1.83B	-4.12B	-819.00M	-1.75B
Financing Cash Flow	-1.85B	-1.79B	-819.00M	937.00M	-1.64B	-1.09B

Denyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6517, the sentiment is Positive. The current price of 3585 is below the 20-day moving average (MA) of 3788.75, below the 50-day MA of 3648.60, and above the 200-day MA of 3087.43, indicating a bullish trend. The MACD of 70.79 indicates Negative momentum. The RSI at 60.58 is Neutral, neither overbought nor oversold. The STOCH value of 80.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6517.

Denyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6364	84 Outperform	¥65.06B	11.68	―	3.18%	2.98%	10.15%
6517	78 Outperform	¥77.38B	15.50	―	2.63%	-6.00%	-13.74%
6237	76 Outperform	¥64.73B	14.88	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥69.80B	16.94	―	3.95%	-1.67%	-4.39%
6333	72 Outperform	¥49.67B	12.42	―	3.95%	1.72%	101.76%
6363	70 Outperform	¥69.83B	14.83	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Denyo Co., Ltd. Corporate Events

Denyo Nears Full Execution of ¥1 Billion Share Buyback Program

Denyo Co., Ltd. has completed a share repurchase program authorized under its Articles of Incorporation, buying back 59,100 shares of its common stock on the Tokyo Stock Exchange between February 1 and February 12, 2026, for a total of ¥222.4 million. This tranche concludes the buyback framework approved by the board on November 13, 2025, under which the company has cumulatively repurchased 286,300 shares for approximately ¥1.0 billion, a move that signals ongoing shareholder return efforts and may support earnings per share and capital efficiency.

The completed buyback falls just short of the 300,000-share and ¥1.0 billion ceilings set by the board, indicating near-full execution of the authorized capacity and active use of balance sheet flexibility. For shareholders, the reduction in shares outstanding is likely to have a marginally accretive effect on per-share metrics and underscores management’s confidence in the company’s financial position and long-term value.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen4292.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Revamps Executive Lineup and Group Leadership for 2026

Denyo Co., Ltd. announced a series of senior personnel changes effective April 1, 2026, including promotions within its executive officer ranks and adjustments to divisional leadership. Key moves include elevating Hirokazu Tsukasaki to managing executive officer while retaining oversight of the Production Division, and promoting Kenjiro Shirai and Koji Ikeda to senior executive officer roles within the Administration and Sales divisions, respectively.

The company is also appointing Yoshihisa Furuta as a senior executive officer while he continues leadership roles at group company Denyo Kosan Co., Ltd., and newly naming Keiichi Ohno as an executive officer in charge of sales planning. Additional changes include the promotion of Katsuyuki Fujie and Kentaro Kawabata to general managers in development and patent administration, as well as the planned retirement of Denyo Kosan director Toshiya Tozawa in June 2026, signaling a broader refresh of group leadership aimed at strengthening governance and operational execution.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen4292.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Posts Lower Nine-Month Profit but Lifts Dividend and Sees Modest Sales Growth

Denyo Co., Ltd. reported consolidated net sales of ¥51.29 billion for the nine months ended December 31, 2025, down 2.4% year on year, with operating profit falling 9.5% to ¥4.80 billion and profit attributable to owners of parent dropping 12.3% to ¥3.55 billion. The weaker earnings led to lower earnings per share of ¥173.44, while the balance sheet remained solid with total assets of ¥104.67 billion and an equity ratio of 76.0%.

Despite the earnings decline, Denyo raised interim dividends to ¥45 per share and plans a full-year dividend of ¥100, up from ¥75 in the previous year, signaling continued shareholder returns. For the full year ending March 31, 2026, the company forecasts modest net sales growth of 1.8% to ¥72.0 billion but expects operating profit and net income to remain below the prior year, reflecting ongoing margin pressure even as it maintains a conservative but robust financial position.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen4292.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Reports Progress on Share Buyback Program Under Board Authorization

Denyo Co., Ltd. has reported the status of its ongoing share repurchase program, conducted under the authority granted by its Articles of Incorporation and Japan’s Companies Act. During the period from January 1 to January 31, 2026, the company bought back 102,800 shares of its common stock via market purchases on the Tokyo Stock Exchange for a total of ¥372.3 million, bringing cumulative repurchases under the November 13, 2025 board resolution to 227,200 shares at a cost of ¥777.6 million. This buyback progresses toward the approved ceiling of 300,000 shares or up to ¥1.0 billion by May 13, 2026, signaling continued capital allocation to enhance shareholder value and potentially support the stock price by reducing the number of shares outstanding.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen4178.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Reports Progress on Ongoing Share Buyback Program

Denyo Co., Ltd. has reported progress on its ongoing share repurchase program authorized under its Articles of Incorporation, acquiring 76,300 shares of its common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of ¥252.27 million. Under the board resolution approved on November 13, 2025, the company is permitted to buy back up to 300,000 shares for as much as ¥1.0 billion through May 13, 2026, and as of December 31, 2025, it has repurchased a cumulative 124,400 shares for ¥405.28 million, signaling an active capital policy that may support shareholder value by reducing the number of shares outstanding and potentially improving per-share metrics.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen3614.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.