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

• Market Cap: ¥56.94B
• Dividend Yield: 3.14%
• Average Volume (3M): 26.25K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.90
• Revenue Growth: -3.26%
• EPS Growth: 11.02%
• Country: JP
• Employees: 1,408
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 77.97
• Shares Outstanding: 21,859,660
• 10 Day Avg. Volume: 23,020
• 30 Day Avg. Volume: 26,246
• PEG Ratio: 0.29
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.55
• 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

• Rating: 82 Outperform
• Price Target: ¥3,117.00 ▲(8.76%Upside)

Denyo Co., Ltd. shows a robust financial position with strong profitability and a conservative balance sheet. Technical analysis indicates bullish momentum, although valuation metrics highlight potential undervaluation. Free cash flow management remains a concern, slightly offsetting the overall positive outlook.

Denyo Co., Ltd. Business Overview & Revenue Model

Company Description

Denyo Co., Ltd. (6517) is a Japanese company specializing in the manufacturing and distribution of power generation equipment, including generators, welders, air compressors, and related accessories. Founded in 1948, Denyo operates globally, serving industries such as construction, telecommunications, and emergency services, providing reliable and efficient power solutions tailored to diverse applications.

How the Company Makes Money

Denyo Co., Ltd. generates revenue primarily through the sale of its power generation equipment, including generators, welders, and air compressors. The company targets various industries that require portable and stationary power solutions. Its revenue streams include direct sales to end-users, distribution through authorized dealers and agents, and leasing services. Denyo also engages in after-sales support and maintenance services, which contribute to its earnings. Key partnerships with construction and telecommunication firms, as well as emergency service providers, are significant contributors to Denyo's revenue, ensuring a steady demand for its products and services.

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.

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	72.31B	70.75B	73.14B	64.31B	55.17B	55.01B
Gross Profit	18.15B	17.79B	15.86B	13.63B	11.72B	13.32B
EBITDA	10.45B	9.83B	8.66B	6.14B	5.02B	6.50B
Net Income	6.31B	5.65B	5.09B	3.63B	2.75B	3.86B
Balance Sheet
Total Assets	102.44B	103.10B	100.54B	89.74B	80.77B	79.06B
Cash, Cash Equivalents and Short-Term Investments	22.43B	24.50B	24.04B	22.33B	23.36B	22.91B
Total Debt	4.57B	4.45B	4.04B	3.58B	1.35B	1.58B
Total Liabilities	24.47B	22.44B	24.70B	21.09B	17.02B	17.50B
Stockholders Equity	74.86B	77.28B	72.81B	65.89B	61.41B	59.36B
Cash Flow
Free Cash Flow	-173.50M	1.53B	2.35B	-2.13B	1.83B	3.06B
Operating Cash Flow	4.34B	7.32B	4.18B	2.03B	2.69B	4.94B
Investing Cash Flow	-2.42B	-5.55B	-1.83B	-4.12B	-819.00M	-1.75B
Financing Cash Flow	57.50M	-1.79B	-819.00M	937.00M	-1.64B	-1.09B

Denyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2866.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2866 is above the 20-day moving average (MA) of 2791.10, above the 50-day MA of 2655.90, and above the 200-day MA of 2584.39, indicating a bullish trend. The MACD of 46.85 indicates Positive momentum. The RSI at 66.37 is Neutral, neither overbought nor oversold. The STOCH value of 64.52 is Neutral, 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	82 Outperform	¥56.94B	10.46		3.14%	-3.26%	11.02%
6333	82 Outperform	¥48.44B	14.16		4.42%	4.55%	27.64%
6381	79 Outperform	¥56.55B	13.13		3.24%	1.85%	-11.39%
6364	75 Outperform	¥53.36B	10.66		4.00%	5.64%	-4.56%
6363	74 Outperform	¥53.84B	13.41		2.92%	6.66%	-34.82%
6237	66 Neutral	¥51.48B	11.63		3.23%	2.75%	-0.09%
Sector *	61 Neutral	C$6.57B	7.28	3.44%	2.84%	6.71%	-16.74%

Denyo Co., Ltd. Corporate Events

Denyo Co., Ltd. Announces Increased Dividends for Fiscal Year 2025

Denyo Co., Ltd. announced a resolution to distribute dividends of surplus, with a record date of March 31, 2025. The company aims to return profits to shareholders while maintaining a competitive edge, with a total payout ratio of approximately 40%. For the fiscal year ended March 31, 2025, Denyo will pay a year-end dividend of 45 yen per share, resulting in an annual dividend of 75 yen per share, an increase from the previous year’s 64 yen per share.

Denyo Co., Ltd. Announces Cancellation of Treasury Shares

Denyo Co., Ltd. has announced the cancellation of 1,000,000 treasury shares, which represents 4.37% of its total issued shares, as per a resolution by its Board of Directors. This move, scheduled for May 22, 2025, will result in a total of 21,859,660 shares remaining, potentially impacting shareholder value and market perception.

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

Denyo Co., Ltd. announced a revision of its dividend forecast, increasing the year-end dividend from 40 yen to 45 yen per share and the annual dividend from 70 yen to 75 yen per share. This decision reflects the company’s commitment to returning profits to shareholders while maintaining a payout ratio of approximately 40%, aiming to strengthen its future competitiveness and profitability.

Denyo Co., Ltd. Reports Increased Profits Despite Decline in Sales

Denyo Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decline in net sales by 3.3% to 70,753 million yen. Despite this, the company experienced growth in operating profit and ordinary profit, which increased by 4.3% and 8.5% respectively, indicating improved operational efficiency. The profit attributable to owners of the parent also rose by 10.8%, reflecting a positive impact on shareholder value. The company announced an increase in annual dividends per share from 64 yen to 75 yen, demonstrating a commitment to returning value to shareholders. The forecast for the next fiscal year anticipates a modest growth in net sales and a slight decrease in profits, suggesting a cautious outlook amid market challenges.

Denyo Co., Ltd. Updates Share Repurchase Details

Denyo Co., Ltd. announced corrections to a previously released notice regarding their share repurchase program. The corrections involve minor adjustments to the reported acquisition costs of shares, reflecting a slight decrease in the total amount spent. This update ensures accuracy in financial reporting and transparency for stakeholders.