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Denyo Co., Ltd. (JP:6517)
:6517
Japanese Market
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Denyo Co., Ltd. (6517) AI Stock Analysis

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JP:6517

Denyo Co., Ltd.

(6517)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
¥3,151.00
▲(3.99% Upside)
Denyo Co., Ltd. has a strong financial foundation with solid profitability and a stable balance sheet, contributing significantly to its overall score. However, technical indicators suggest bearish momentum, which impacts the stock's attractiveness. The reasonable valuation and dividend yield provide some support, but challenges in cash flow management and weak market momentum are notable risks.

Denyo Co., Ltd. (6517) vs. iShares MSCI Japan ETF (EWJ)

Denyo Co., Ltd. Business Overview & Revenue Model

Company DescriptionDenyo 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 MoneyDenyo Co., Ltd. generates revenue primarily through the sale of its industrial equipment, such as generators, welders, and air compressors. The company serves a broad range of industries, including construction, infrastructure development, and event management, providing essential machinery for power generation and other applications. Additionally, Denyo has a global distribution network, allowing it to reach international markets and expand its customer base. Key revenue streams include direct sales to construction companies, rental service providers, and distributors. The company may also earn income from maintenance and after-sales services, ensuring long-term customer relationships and recurring revenue.

Denyo Co., Ltd. Financial Statement Overview

Summary
Denyo Co., Ltd. shows strong financial performance with robust revenue growth and profitability. The balance sheet is stable with low leverage, though cash flow management needs improvement.
Income Statement
83
Very Positive
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
88
Very Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue70.75B70.75B73.14B64.31B55.17B55.01B
Gross Profit17.79B17.79B16.23B13.63B11.72B13.32B
EBITDA9.49B9.83B8.66B6.54B5.32B6.50B
Net Income5.65B5.65B5.09B3.63B2.75B3.86B
Balance Sheet
Total Assets103.10B103.10B100.54B89.74B80.77B79.06B
Cash, Cash Equivalents and Short-Term Investments24.50B24.50B24.04B22.33B23.36B22.91B
Total Debt4.45B4.45B4.04B3.58B1.35B1.58B
Total Liabilities22.44B22.44B24.70B21.09B17.02B17.50B
Stockholders Equity77.28B77.28B72.81B65.89B61.41B59.36B
Cash Flow
Free Cash Flow1.53B1.53B2.35B-2.13B1.83B3.06B
Operating Cash Flow7.32B7.32B4.18B2.03B2.69B4.94B
Investing Cash Flow-5.55B-5.55B-1.83B-4.12B-819.00M-1.75B
Financing Cash Flow-1.79B-1.79B-819.00M937.00M-1.64B-1.09B

Denyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3030.00
Price Trends
50DMA
2945.30
Positive
100DMA
2829.82
Positive
200DMA
2701.71
Positive
Market Momentum
MACD
24.50
Negative
RSI
62.15
Neutral
STOCH
85.36
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 3030 is above the 20-day moving average (MA) of 2897.15, above the 50-day MA of 2945.30, and above the 200-day MA of 2701.71, indicating a bullish trend. The MACD of 24.50 indicates Negative momentum. The RSI at 62.15 is Neutral, neither overbought nor oversold. The STOCH value of 85.36 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥51.95B14.3411.64%3.72%1.90%36.12%
74
Outperform
¥64.95B15.639.13%2.76%0.52%-8.88%
71
Outperform
¥57.88B12.7711.78%2.84%2.79%-14.83%
71
Outperform
¥60.20B12.802.48%-6.68%-11.92%
69
Neutral
¥58.75B13.5011.79%2.72%2.55%1.34%
66
Neutral
¥55.55B22.767.26%2.88%9.31%-62.88%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6517
Denyo Co., Ltd.
3,030.00
444.24
17.18%
JP:6237
Iwaki Co. Ltd.
2,682.00
-264.08
-8.96%
JP:6333
Teikoku Electric Manufacturing Co., Ltd.
3,330.00
613.05
22.56%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,116.00
-594.80
-21.94%
JP:6364
HOKUETSU INDUSTRIES CO., LTD.
1,993.00
115.44
6.15%
JP:6381
ANEST IWATA Corp.
1,632.00
287.76
21.41%

Denyo Co., Ltd. Corporate Events

Denyo Co., Ltd. Reports Decline in Q1 2025 Financial Results
Aug 7, 2025

Denyo Co., Ltd. reported a significant decline in its financial performance for the three months ending June 30, 2025, with net sales dropping by 15.7% and operating profit decreasing by 64.3% compared to the same period last year. Despite the downturn, the company maintains a strong equity ratio of 75.9%, and it has forecasted a slight recovery in net sales and profit for the full fiscal year ending March 31, 2026, indicating potential stabilization in its operations.

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: Sep 09, 2025