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

• Market Cap: ¥57.12B
• Dividend Yield: 2.61%
• Average Volume (3M): 18.77K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.87
• Revenue Growth: -6.68%
• EPS Growth: -11.92%
• Country: JP
• Employees: 1,408
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 23.66
• 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: ¥3,210.00
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥3,210.00 ▲(11.65% Upside)

Denyo Co., Ltd. has a strong financial foundation with solid profitability and a stable balance sheet, which are the most significant factors in its score. The technical analysis indicates potential bearish momentum, while the valuation suggests the stock may be undervalued. The absence of earnings call data and corporate events means these factors did not influence the score.

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 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 profitability and revenue growth trends. The balance sheet is stable with low financial leverage, but there are challenges in free cash flow management that need addressing.

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: 2875.00
• 50DMA: Negative
• 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 2875 is below the 20-day moving average (MA) of 2905.38, below the 50-day MA of 2905.77, and above the 200-day MA of 2680.07, indicating a neutral trend. The MACD of -10.40 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 55.18 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
6237	76 Outperform	¥56.87B	12.68	―	2.90%	2.55%	1.34%
6364	76 Outperform	¥57.91B	12.66	―	2.86%	2.79%	-14.83%
6381	74 Outperform	¥61.88B	14.61	―	2.95%	0.52%	-8.88%
6517	73 Outperform	¥57.12B	12.15	―	2.61%	-6.68%	-11.92%
6333	73 Outperform	¥48.36B	13.28	―	4.02%	1.90%	36.12%
6363	69 Neutral	¥55.49B	22.05	―	2.98%	9.31%	-62.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Denyo Co., Ltd. Corporate Events

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

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.