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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 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥4,877.00
▲(36.04% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance—especially the very low leverage balance sheet and improving margins—partly offset by inconsistent cash-flow conversion. Technicals show a strong uptrend but overbought signals reduce the near-term technical score. Valuation is reasonable with a moderate P/E and a solid dividend yield.
Positive Factors
Conservative balance sheet
Exceptionally low leverage and steady equity growth give Denyo durable financial flexibility and downside protection. This conservatism supports investment through cycles, capacity for dividends or M&A, and resilience when construction and industrial capex slow, helping preserve long-term stability.
Negative Factors
Volatile cash-flow conversion
Inconsistent conversion of earnings into operating and free cash flow limits predictability for capital allocation. Volatility complicates funding of capex, service footprint expansion, and shareholder returns without tapping balance-sheet flexibility, reducing the reliability of cash-driven strategies.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Exceptionally low leverage and steady equity growth give Denyo durable financial flexibility and downside protection. This conservatism supports investment through cycles, capacity for dividends or M&A, and resilience when construction and industrial capex slow, helping preserve long-term stability.
Read all positive factors

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

Denyo Co., Ltd. Business Overview & Revenue Model

Company Description
Denyo Co., Ltd., along with its subsidiary companies, specializes in the design, production, and worldwide distribution of engine-powered equipment. Their primary offerings include a diverse range of generators, welding apparatus, and air compress...
How the Company Makes Money
Denyo makes money primarily by selling its equipment—most notably engine-driven generators, welders, and air compressors—into end markets such as construction and infrastructure worksites, industrial facilities, and emergency/disaster-response use...

Denyo Co., Ltd. Financial Statement Overview

Summary
Strong overall financial profile led by an exceptionally conservative balance sheet (very low leverage) and improving profitability (gross and operating margins trending higher). The main offset is cash-flow quality: free cash flow and operating cash flow have been volatile despite stable earnings, though 2026 showed a meaningful rebound.
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
66
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue72.24B70.75B73.14B64.31B55.17B
Gross Profit17.94B17.32B15.86B13.30B11.41B
EBITDA9.67B8.79B8.32B6.14B5.02B
Net Income5.64B5.65B5.10B3.63B2.75B
Balance Sheet
Total Assets104.54B103.10B100.54B89.74B80.77B
Cash, Cash Equivalents and Short-Term Investments22.13B24.50B24.04B22.33B23.36B
Total Debt3.16B4.49B4.14B3.67B1.35B
Total Liabilities19.21B22.44B24.70B21.08B17.01B
Stockholders Equity81.83B77.28B72.82B65.89B61.41B
Cash Flow
Free Cash Flow3.52B1.53B2.52B-2.03B1.90B
Operating Cash Flow4.47B7.32B4.18B2.03B2.69B
Investing Cash Flow-2.38B-5.55B-1.83B-4.12B-819.00M
Financing Cash Flow-4.32B-1.79B-819.00M937.00M-1.64B

Denyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3585.00
Price Trends
50DMA
3681.40
Positive
100DMA
3638.11
Positive
200DMA
3489.32
Positive
Market Momentum
MACD
183.90
Negative
RSI
65.41
Neutral
STOCH
75.38
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 3585 is below the 20-day moving average (MA) of 3784.75, below the 50-day MA of 3681.40, and above the 200-day MA of 3489.32, indicating a bullish trend. The MACD of 183.90 indicates Negative momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 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 (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥71.75B13.253.95%2.75%25.74%
77
Outperform
¥88.47B16.887.26%3.17%-0.50%-6.61%
75
Outperform
¥79.77B14.522.63%2.11%0.91%
74
Outperform
¥34.09B9.342.78%0.66%-4.91%
66
Neutral
¥32.02B14.942.13%0.12%59.35%
65
Neutral
¥78.41B16.460.55%2.93%10.00%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6517
Denyo Co., Ltd.
4,215.00
1,232.01
41.30%
JP:6459
DAIWA
1,772.00
74.10
4.36%
JP:6016
Japan Engine Corp
9,310.00
805.96
9.48%
JP:6137
Koike Sanso Kogyo Co., Ltd.
1,531.00
111.45
7.85%
JP:6151
Nitto Kohki Co., Ltd.
1,759.00
-83.09
-4.51%
JP:6381
ANEST IWATA Corp.
1,890.00
391.56
26.13%

Denyo Co., Ltd. Corporate Events

Denyo Updates Progress on Share Buyback Program
Aug 3, 2026
Denyo Co., Ltd. has reported the latest status of its ongoing share repurchase program, conducted under the authority of its Articles of Incorporation in line with Japan’s Companies Act. Between July 1 and July 31, 2026, the company bought b...
Denyo Lifts Annual Dividend Forecast by 42% to Boost Shareholder Returns
Jul 31, 2026
Denyo Co., Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2027, announcing a substantial increase in annual dividends per share from 120 yen to 170 yen. The new plan sets both the second-quarter and year-end dividends ...
Denyo Reports Progress on Share Buyback Under Board-Approved Program
Jul 1, 2026
Denyo Co., Ltd. has disclosed the progress of its ongoing share repurchase program, conducted under the authority of its Articles of Incorporation and in line with Japan’s Companies Act. The company is buying back its own common stock via ma...
Denyo Reports Progress on Share Buyback Under ¥1 Billion Authorization
Jun 1, 2026
Denyo Co., Ltd. has disclosed the latest status of its ongoing share buyback program authorized under Japan’s Companies Act, reporting the repurchase of 22,600 shares of common stock on the Tokyo Stock Exchange between May 15 and May 31, 202...
Denyo Board Rejects Shareholder Bid to Mandate More Outside Directors
May 18, 2026
Denyo Co., Ltd., a TSE Prime-listed manufacturer operating under an Audit and Supervisory Committee structure, has built a governance system that blends internal and independent outside directors with diverse skills and backgrounds. Its 13-member ...
Denyo Raises Annual Dividend, Signals Stronger Shareholder Returns
May 18, 2026
Denyo Co., Ltd. has approved a year-end dividend of 55 yen per share for the fiscal year ended March 31, 2026, bringing the total annual dividend to 100 yen per share, up from 75 yen in the previous year. The total payout for the year-end dividend...
Denyo Launches Share Buyback of Up to ¥1 Billion to Boost Capital Efficiency
May 14, 2026
Denyo Co., Ltd. has authorized a share repurchase program, with its board approving the buyback of up to 280,000 common shares, or about 1.38% of its outstanding stock, for a maximum of 1 billion yen. The purchases, to be executed on the Tokyo Sto...
Denyo posts higher sales, lifts dividends and projects further growth for FY2027
May 14, 2026
Denyo Co., Ltd. reported a modest 2.1% increase in net sales to ¥72.2 billion for the fiscal year ended March 31, 2026, with operating and ordinary profit up 4.9% and 6.5%, respectively, while profit attributable to owners of parent was essen...
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: Aug 04, 2026