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

• Market Cap: ¥72.42B
• Dividend Yield: 2.63%
• Average Volume (3M): 18.77K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.89
• Revenue Growth: -6.00%
• EPS Growth: -13.74%
• Country: JP
• Employees: 1,408
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 55.41
• 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: ¥4,155.00 ▲(15.90% Upside)

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

Conservative Capital Structure

A high equity ratio and low leverage provide durable financial flexibility, lowering bankruptcy risk and enabling the company to fund capex, R&D or dividends from internal resources. This conservative structure supports resilience through cyclical downturns and long-term strategic moves.

Diversified, Repeat Revenue Streams

Sales of generators and welding machines plus after-sales maintenance and export partnerships create recurring and diversified cash inflows. This mix reduces reliance on single-product cycles, strengthens customer stickiness, and supports sustainable revenue base over multi-quarter horizons.

Sustained Profitability and Margins

Consistent gross and operating margins reflect cost discipline and scale in manufacturing. Durable profitability enhances the firm's ability to invest in product quality, maintain dividends, and absorb input-cost inflation, supporting long-term competitive positioning in industrial equipment markets.

Negative Factors

Recent Revenue Contraction

A recent drop in revenue signals weakening top-line momentum that could persist if end-market demand softens. Sustained revenue declines constrain reinvestment, slow scale benefits, and can pressure margins and returns unless new demand streams or market share gains are achieved.

Weakness and Volatility in Free Cash Flow

Declining and uneven free cash flow undermines the company’s ability to self-fund capex, pay consistent dividends, or pursue M&A. Even with positive operating cash flow, weak FCF reduces buffer against shocks and limits strategic flexibility over multiple quarters.

Earnings Decline Risk

Negative EPS growth points to profit pressure that may persist if revenue headwinds or cost pressures continue. Sustained earnings declines impair reinvestment capacity and shareholder returns, and can indicate structural issues in pricing, mix, or production efficiency needing management attention.

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. presents a strong financial profile with solid profitability and revenue growth trends. The balance sheet exhibits low financial leverage, ensuring stability. Despite positive operating cash flow, the company faces challenges in free cash flow management. Continued focus on cash flow optimization and revenue growth will be essential to sustain its financial strength.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 above the 20-day moving average (MA) of 3498.00, above the 50-day MA of 3288.46, and above the 200-day MA of 2867.09, indicating a bullish trend. The MACD of 95.11 indicates Negative momentum. The RSI at 69.15 is Neutral, neither overbought nor oversold. The STOCH value of 83.34 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
6517	78 Outperform	¥72.42B	15.07	―	2.63%	-6.00%	-13.74%
6237	76 Outperform	¥57.68B	12.68	―	2.79%	2.85%	3.17%
6381	75 Outperform	¥68.29B	15.93	―	3.95%	-1.67%	-4.39%
6333	72 Outperform	¥49.69B	11.32	―	3.95%	1.72%	101.76%
6364	71 Outperform	¥54.48B	10.46	―	3.18%	2.98%	10.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6363	62 Neutral	¥57.88B	16.51	―	3.09%	6.35%	-34.20%

Denyo Co., Ltd. Corporate Events

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.

Denyo Co., Ltd. Announces Share Repurchase Update

Denyo Co., Ltd. announced the repurchase of 48,100 shares of its own common stock at a total cost of 153,014,000 Yen, conducted through market purchases on the Tokyo Stock Exchange. This move is part of a broader resolution by the Board of Directors to acquire up to 300,000 shares, reflecting the company’s strategy to enhance shareholder value and optimize capital structure.

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.

Denyo Co., Ltd. Announces Treasury Share Disposal for Director Compensation Plan

Denyo Co., Ltd. has announced a resolution to dispose of its treasury shares through a third-party allotment as part of its performance-based share-based remuneration plan, known as the Board Benefit Trust (BBT). This move involves allocating shares to its directors as a form of compensation, with the Custody Bank of Japan, Ltd. acting as the formal allottee. The disposal aims to support the company’s ongoing director stock compensation plan, ensuring the necessary shares are available for future benefits, thereby maintaining alignment with its strategic goals and shareholder interests.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen3310.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Co., Ltd. Announces Share Repurchase Plan

Denyo Co., Ltd. announced a decision by its Board of Directors to repurchase up to 300,000 shares of its own stock, representing 1.46% of issued shares, with a maximum acquisition cost of 1,000 million yen. This move is aimed at improving capital efficiency and shareholder returns, while also allowing for flexible capital policies in the future.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen3310.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Co., Ltd. Increases Dividend Forecast to Enhance Shareholder Returns

Denyo Co., Ltd. announced an increase in its interim and year-end dividends, reflecting its commitment to enhancing shareholder returns. The company has revised its annual dividend forecast to 100 yen per share, a 20 yen increase from previous forecasts, as part of its ‘Denyo 2026’ medium-term management plan aimed at aligning shareholder returns with business performance.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen3310.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.

Denyo Co., Ltd. Reports Decline in Six-Month Financial Results

Denyo Co., Ltd. reported a decline in its financial performance for the six months ending September 30, 2025, with net sales and profits showing significant decreases compared to the previous year. Despite the downturn, the company plans to increase its annual dividend, indicating a commitment to returning value to shareholders.

The most recent analyst rating on (JP:6517) stock is a Buy with a Yen3310.00 price target. To see the full list of analyst forecasts on Denyo Co., Ltd. stock, see the JP:6517 Stock Forecast page.