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

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

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JP

Denyo Co., Ltd.

(6517)

Rating:82Outperform
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. (6517) vs. iShares MSCI Japan ETF (EWJ)

Denyo Co., Ltd. Business Overview & Revenue Model

Company DescriptionDenyo 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 MoneyDenyo 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
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue72.31B70.75B73.14B64.31B55.17B55.01B
Gross Profit18.15B17.79B15.86B13.63B11.72B13.32B
EBITDA10.45B9.83B8.66B6.14B5.02B6.50B
Net Income6.31B5.65B5.09B3.63B2.75B3.86B
Balance Sheet
Total Assets102.44B103.10B100.54B89.74B80.77B79.06B
Cash, Cash Equivalents and Short-Term Investments22.43B24.50B24.04B22.33B23.36B22.91B
Total Debt4.57B4.45B4.04B3.58B1.35B1.58B
Total Liabilities24.47B22.44B24.70B21.09B17.02B17.50B
Stockholders Equity74.86B77.28B72.81B65.89B61.41B59.36B
Cash Flow
Free Cash Flow-173.50M1.53B2.35B-2.13B1.83B3.06B
Operating Cash Flow4.34B7.32B4.18B2.03B2.69B4.94B
Investing Cash Flow-2.42B-5.55B-1.83B-4.12B-819.00M-1.75B
Financing Cash Flow57.50M-1.79B-819.00M937.00M-1.64B-1.09B

Denyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2866.00
Price Trends
50DMA
2655.90
Positive
100DMA
2566.37
Positive
200DMA
2584.39
Positive
Market Momentum
MACD
46.85
Positive
RSI
66.37
Neutral
STOCH
64.52
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥56.94B10.46
3.14%-3.26%11.02%
82
Outperform
¥48.44B14.16
4.42%4.55%27.64%
79
Outperform
¥56.55B13.13
3.24%1.85%-11.39%
75
Outperform
¥53.36B10.66
4.00%5.64%-4.56%
74
Outperform
¥53.84B13.41
2.92%6.66%-34.82%
66
Neutral
¥51.48B11.63
3.23%2.75%-0.09%
61
Neutral
C$6.57B7.283.44%2.84%6.71%-16.74%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6517
Denyo Co., Ltd.
2,836.00
254.12
9.84%
JP:6237
Iwaki Co. Ltd.
2,297.00
-609.81
-20.98%
JP:6333
Teikoku Electric Manufacturing Co., Ltd.
3,105.00
552.43
21.64%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,071.00
-964.59
-31.78%
JP:6364
HOKUETSU INDUSTRIES CO., LTD.
1,876.00
-387.38
-17.12%
JP:6381
ANEST IWATA Corp.
1,426.00
-136.91
-8.76%

Denyo Co., Ltd. Corporate Events

Denyo Co., Ltd. Announces Increased Dividends for Fiscal Year 2025
May 15, 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
May 8, 2025

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
May 8, 2025

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
May 8, 2025

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
Apr 23, 2025

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.

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 27, 2025