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

• Market Cap: ¥3.37B
• Dividend Yield: 2.77%
• Average Volume (3M): 9.50K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.81
• Revenue Growth: -5.30%
• EPS Growth: -55.94%
• Country: JP
• Employees: 1,019
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 16.72
• Shares Outstanding: 6,800,600
• 10 Day Avg. Volume: 14,510
• 30 Day Avg. Volume: 9,496
• PEG Ratio: -0.52
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 2.68
• 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: 69 Neutral
• Price Target: ¥581.00 ▲(9.83% Upside)

Di-Nikko Engineering Co., Ltd. demonstrates a stable financial position with promising operational margins and attractive valuation metrics. However, technical indicators suggest mixed signals, and financial challenges such as revenue consistency and leverage management need addressing.

Positive Factors

Operational Margins

Strong operational margins indicate efficient cost management and pricing power, supporting long-term profitability and competitive positioning.

Cash Generation

Positive free cash flow growth enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, strengthening long-term stability.

Product Offering

A focus on innovation in precision machinery and equipment supports competitive advantage and aligns with industry trends, driving sustainable growth.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential market challenges or competitive pressures, which could hinder long-term expansion and market share gains.

Leverage Management

High reliance on debt financing can increase financial risk and limit strategic flexibility, potentially impacting long-term financial health.

Return on Equity

Decreasing return on equity suggests inefficiencies in using equity capital, which may affect investor confidence and long-term shareholder value.

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 automotive industries. The company focuses on providing innovative solutions that enhance productivity and efficiency for its clients, offering a range of products such as automated systems, robotics, and inspection equipment.

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 earns money through service contracts that offer maintenance and support for its products post-sale. Additionally, Di-Nikko may engage in partnerships with other technology firms and manufacturers, enhancing its market reach and capabilities, thereby contributing to its earnings. Key revenue streams include direct sales to manufacturers, recurring service revenue from maintenance contracts, and potential licensing agreements for its technology.

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

Summary

Di-Nikko Engineering Co., Ltd. shows stable financial performance with strong gross and net profit margins. Cash flow is positive with good operational cash generation. However, the company faces challenges with fluctuating revenue growth and reliance on debt financing, indicating the need for improvements in leverage management.

Income Statement

Di-Nikko Engineering Co., Ltd. has demonstrated strong gross profit and net profit margins, with a recent gross profit margin of 10.78% and a net profit margin of 0.71%. The company has shown a mixed revenue growth trajectory, with fluctuations over the years but a notable increase from 2021 to 2022. EBIT and EBITDA margins indicate operational efficiency, although there is room for improvement.

Balance Sheet

The balance sheet shows moderate financial health with a debt-to-equity ratio of 1.81, indicating reliance on debt financing. The equity ratio at 23.28% suggests a balanced asset financing approach. Return on equity has decreased over time, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals positive free cash flow growth, with a significant increase in free cash flow in the latest period. Operating cash flow to net income ratio is strong, indicating efficient cash generation. However, fluctuations in free cash flow and reliance on financing activities suggest potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.44B	38.96B	39.20B	33.94B	29.86B	28.00B
Gross Profit	4.07B	4.20B	4.00B	3.57B	2.91B	2.61B
EBITDA	1.36B	1.35B	1.34B	1.73B	677.92M	972.32M
Net Income	266.09M	277.38M	349.50M	995.29M	-90.03M	306.90M
Balance Sheet
Total Assets	27.63B	29.56B	29.20B	29.86B	21.05B	19.66B
Cash, Cash Equivalents and Short-Term Investments	4.13B	4.30B	3.52B	2.93B	1.24B	1.68B
Total Debt	12.23B	12.43B	12.73B	13.06B	10.71B	10.29B
Total Liabilities	20.07B	21.54B	22.26B	23.67B	17.42B	16.36B
Stockholders Equity	6.49B	6.88B	5.97B	5.30B	3.45B	3.15B
Cash Flow
Free Cash Flow	0.00	1.14B	530.98M	-795.00M	-670.43M	-4.95M
Operating Cash Flow	0.00	1.74B	976.12M	-546.49M	-184.71M	650.99M
Investing Cash Flow	0.00	-529.51M	152.41M	-182.66M	-476.61M	-456.99M
Financing Cash Flow	0.00	-736.99M	-655.72M	2.36B	187.00M	-36.82M

Di-Nikko Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 529.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 529 is above the 20-day moving average (MA) of 498.75, above the 50-day MA of 495.95, and above the 200-day MA of 484.54, indicating a bullish trend. The MACD of 1.35 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6635	69 Neutral	¥3.37B	15.29	―	2.77%	-5.30%	-55.94%
7902	69 Neutral	¥3.45B	14.38	―	1.32%	18.14%	60.87%
7836	68 Neutral	¥3.16B	15.71	―	―	25.45%	83.12%
7746	62 Neutral	¥12.26B	-218.68	―	―	-9.50%	-170.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6977	55 Neutral	¥1.26B	-3.54	―	3.16%	-10.07%	-133.40%
6666	46 Neutral	¥3.87B	-17.33	―	2.33%	7.71%	-215.42%