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

• Market Cap: ¥55.21B
• Dividend Yield: 2.7%
• Average Volume (3M): 41.44K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.89
• Revenue Growth: -3.26%
• EPS Growth: 11.02%
• Country: JP
• Employees: 1,408
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 77.97
• Shares Outstanding: 21,859,660
• 10 Day Avg. Volume: 24,770
• 30 Day Avg. Volume: 41,440
• PEG Ratio: 0.87
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -284.40
• 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 ▲(12.16%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. showcases strong financial performance with impressive revenue and profit growth, stable margins, and a strong balance sheet with low leverage. However, the negative free cash flow in TTM raises concerns about cash management. Overall, the company's financial health is robust, focusing on growth and stability.

Income Statement

Denyo Co., Ltd. demonstrated strong revenue growth with a 12.56% increase from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin in TTM was 25.10%, indicating efficient production processes. The net profit margin improved to 8.73% in TTM, reflecting enhanced profitability. EBIT and EBITDA margins were robust at 11.76% and 13.88%, respectively, showcasing operational efficiency. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 73.08% as of TTM, indicating financial stability. The debt-to-equity ratio was 0.06, demonstrating low financial leverage and risk. Return on equity (ROE) was 8.44% in TTM, reflecting a satisfactory return for shareholders. Overall, the balance sheet is strong with a healthy equity position and low debt levels.

Cash Flow

Denyo Co., Ltd. experienced a decline in free cash flow, resulting in negative free cash flow in TTM. However, the operating cash flow to net income ratio was positive at 0.69, indicating that operations are generating sufficient cash. The free cash flow to net income ratio was negative due to capital expenditure. While operational cash generation is adequate, the negative free cash flow highlights potential concerns.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
72.31B	73.14B	64.31B	55.17B	55.01B	62.89B
	Gross Profit
18.15B	15.86B	13.63B	11.72B	13.32B	14.60B
	EBIT
8.50B	7.09B	4.87B	3.65B	5.33B	6.06B
	EBITDA
10.04B	8.66B	6.14B	5.02B	6.50B	7.22B
	Net Income Common Stockholders
6.31B	5.09B	3.63B	2.75B	3.86B	4.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.43B	24.04B	22.33B	23.36B	22.91B	21.05B
	Total Assets
102.44B	100.54B	89.74B	80.77B	79.06B	75.63B
	Total Debt
4.57B	4.04B	3.58B	1.35B	1.58B	1.58B
	Net Debt
-16.87B	-19.00B	-17.76B	-21.01B	-20.33B	-18.47B
	Total Liabilities
24.47B	24.70B	21.09B	17.02B	17.50B	17.27B
	Stockholders Equity
74.86B	72.81B	65.89B	61.41B	59.36B	56.06B
Cash Flow		Free Cash Flow
-173.50M	2.35B	-2.13B	1.83B	3.06B	6.00B
	Operating Cash Flow
4.34B	4.18B	2.03B	2.69B	4.94B	7.27B
	Investing Cash Flow
-2.42B	-1.83B	-4.12B	-819.00M	-1.75B	-874.00M
	Financing Cash Flow
57.50M	-819.00M	937.00M	-1.64B	-1.09B	-1.53B

Denyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2779.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2779 is above the 20-day moving average (MA) of 2663.50, above the 50-day MA of 2470.02, and above the 200-day MA of 2555.47, indicating a bullish trend. The MACD of 77.32 indicates Negative momentum. The RSI at 75.04 is Negative, neither overbought nor oversold. The STOCH value of 89.16 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	82 Outperform	¥55.21B	10.14		2.70%	-3.26%	11.02%
6333	82 Outperform	¥50.70B	14.82		3.38%	4.55%	26.80%
6364	80 Outperform	¥53.71B	10.72		3.06%	5.64%	-4.54%
6237	79 Outperform	¥53.86B	12.16		2.89%	2.75%	-0.10%
6381	79 Outperform	¥55.87B	12.98		3.22%	1.85%	-11.35%
6363	67 Neutral	¥50.56B	12.59		3.19%	6.66%	-34.80%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%

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.