Di-Nikko Engineering Co., Ltd. (6635) AI Stock Analysis

• Market Cap: ¥4.35B
• Dividend Yield: 2.77%
• Average Volume (3M): 9.50K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.70
• Revenue Growth: -5.30%
• EPS Growth: -55.94%
• Country: JP
• Employees: 1,019
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -26.58
• Shares Outstanding: 6,800,600
• 10 Day Avg. Volume: 14,510
• 30 Day Avg. Volume: 9,496
• PEG Ratio: -0.55
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.87
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ¥676.00 ▲(27.79% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is primarily held back by weak financial performance (very thin/volatile margins, recent revenue pressure, and still-elevated leverage), partially offset by improved recent cash generation and a strong uptrend in the stock. Valuation remains a headwind given the P/E relative to the company’s low profitability, with only modest support from the dividend yield.

Positive Factors

Improved cash generation

Free cash flow shifted positive in 2023–2025, with 2025 FCF ~¥1.74B. That sustained cash conversion supports working capital, modest capex, and debt servicing, improving resilience versus prior negative years and giving management more flexibility across business cycles.

Negative Factors

Thin, volatile margins

Margins are very thin and have swung materially over recent years (operating margin ~1.7%, net ~0.5% in 2025). Low margin buffers leave earnings exposed to cost inflation, project timing, or input price shocks, weakening long-term return stability.

Di-Nikko Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Di-Nikko Engineering Co., Ltd. (6635) is a prominent engineering company based in Japan, specializing in the design, manufacturing, and servicing of precision machinery and equipment for various sectors, including semiconductor, electronics, and a...

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Di-Nikko Engineering Co., Ltd. (6635) is a prominent engineering company based in Japan, specializing in the design, manufacturing, and servicing of precision machinery and equipment for various sectors, including semiconductor, electronics, and a...

How the Company Makes Money

Di-Nikko Engineering generates revenue primarily through the sale of its machinery and equipment, which includes high-precision automated systems and specialized robotics tailored for the semiconductor and electronics industries. The company also ...

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Di-Nikko Engineering generates revenue primarily through the sale of its machinery and equipment, which includes high-precision automated systems and specialized robotics tailored for the semiconductor and electronics industries. The company also ...

Di-Nikko Engineering Co., Ltd. Financial Statement Overview

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.44B	36.95B	38.96B	39.20B	33.94B	29.86B
Gross Profit	4.07B	3.88B	4.20B	4.00B	3.57B	2.91B
EBITDA	1.36B	1.26B	1.35B	1.34B	1.73B	677.92M
Net Income	266.09M	184.27M	277.38M	349.50M	995.29M	-90.03M
Balance Sheet
Total Assets	27.63B	28.77B	29.56B	29.20B	29.86B	21.05B
Cash, Cash Equivalents and Short-Term Investments	4.13B	5.38B	4.30B	3.52B	2.93B	1.24B
Total Debt	12.23B	11.74B	12.43B	12.73B	13.06B	10.71B
Total Liabilities	20.07B	20.61B	21.54B	22.26B	23.67B	17.42B
Stockholders Equity	6.49B	6.89B	6.88B	5.97B	5.30B	3.45B
Cash Flow
Free Cash Flow	0.00	1.74B	1.14B	530.98M	-795.00M	-670.43M
Operating Cash Flow	0.00	2.56B	1.74B	976.12M	-546.49M	-184.71M
Investing Cash Flow	0.00	-645.57M	-529.51M	152.41M	-182.66M	-476.61M
Financing Cash Flow	0.00	-920.86M	-736.99M	-655.72M	2.36B	187.00M

Di-Nikko Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 529.00
• 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:6635, the sentiment is Neutral. The current price of 529 is below the 20-day moving average (MA) of 694.65, below the 50-day MA of 610.02, and above the 200-day MA of 525.32, indicating a neutral trend. The MACD of 13.38 indicates Positive momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 29.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6635.

Di-Nikko Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥27.45B	13.32	―	2.89%	6.15%	2.98%
6863	75 Outperform	¥13.45B	11.72	―	5.39%	6.45%	26.58%
6626	73 Outperform	¥27.90B	7.34	―	1.78%	4.47%	12.28%
6853	73 Outperform	¥18.12B	18.81	―	2.93%	-1.58%	12.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.02B	2.58	―	2.45%	15.66%	-69.17%
6635	50 Neutral	¥4.35B	17.62	―	2.77%	-5.30%	-55.94%