Diamond Electric Holdings Co., Ltd. (6699) AI Stock Analysis

• Market Cap: ¥4.82B
• Dividend Yield: 6.53%
• Average Volume (3M): 17.84K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 1.18
• Revenue Growth: 1.95%
• EPS Growth: N/A
• Country: JP
• Employees: 3,751
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 50.54
• Shares Outstanding: 9,252,901
• 10 Day Avg. Volume: 20,040
• 30 Day Avg. Volume: 17,843
• PEG Ratio: -0.10
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 2.24
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥703.00 ▲(22.47% Upside)

Diamond Electric Holdings shows a promising valuation with a low P/E ratio and high dividend yield, making it attractive for value and income investors. The technical indicators suggest strong bullish momentum, although the stock may be overbought. Financial performance is improving, but inconsistent profitability and high leverage remain concerns.

Positive Factors

Revenue Growth

The moderate revenue growth indicates that Diamond Electric is successfully expanding its market presence, which is crucial for sustaining long-term business operations and competitiveness in the automotive components industry.

Cash Flow Improvement

Improved operating cash flow reflects better cash management, enhancing the company's ability to fund operations and invest in growth opportunities, supporting long-term financial stability.

Product Innovation

Investing in R&D for product innovation helps Diamond Electric maintain a competitive edge and adapt to industry trends, ensuring sustained relevance and market leadership.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in volatile markets, potentially impacting the company's ability to invest in growth and weather economic downturns.

Inconsistent Profitability

Inconsistent profitability can hinder long-term financial planning and investor confidence, making it challenging to sustain growth and competitive positioning.

Margin Concerns

Low net profit margins suggest potential pricing pressures or cost inefficiencies, which could affect the company's ability to generate sustainable profits and invest in future growth.

Diamond Electric Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Diamond Electric Holdings Co., Ltd. manages automobile and electronic control equipment businesses in Japan. The company manufactures and sells ignition coils for automobiles, air conditioning equipment, electronic control devices, etc.; and transformers for electronic devices, power supplies for electronic devices, and various electronic devices and parts. It also offers heating and cooling igniters, electronic control devices, automotive electrical components, etc. Diamond Electric Holdings Co., Ltd. was founded in 2018 and is headquartered in Osaka, Japan.

How the Company Makes Money

Diamond Electric generates revenue through the sale of its automotive components, which constitute a significant portion of its earnings. The company has established key partnerships with major automotive manufacturers, enabling it to supply essential components for a wide range of vehicles. Additionally, Diamond Electric benefits from long-term contracts and agreements with clients, ensuring a steady stream of income. The company also explores opportunities in emerging markets and invests in new technologies to diversify its product lineup, which contributes to its overall financial performance.

Diamond Electric Holdings Co., Ltd. Financial Statement Overview

Summary

Diamond Electric Holdings is in a recovery phase, showing signs of operational improvement and better cash flow management. However, profitability remains inconsistent, and leverage levels pose a risk, requiring careful financial management. Maintaining revenue growth and improving profit margins are crucial for long-term financial health.

Income Statement

Diamond Electric Holdings displayed moderate growth in revenue with a slight increase from the previous period. However, the net profit margin remains concerning, with recent years showing a mix of losses and small profits. The EBIT margin improved compared to previous losses, indicating operational efficiencies are being realized. However, consistent profitability remains a challenge.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which poses a risk in volatile markets. However, the equity ratio is reasonable, suggesting a balanced approach to asset financing. Return on equity has been inconsistent but shows potential for improvement as profitability stabilizes.

Cash Flow

The company shows improvement in operating cash flow, which now aligns better with net income, reflecting healthier cash management. Free cash flow has turned positive, reducing previous deficits, but sustainability will depend on maintaining operational efficiencies and managing capital expenditures effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.72B	91.72B	93.33B	91.11B	76.27B	70.64B
Gross Profit	13.83B	13.83B	12.54B	11.25B	11.12B	11.92B
EBITDA	5.15B	5.15B	2.71B	2.16B	3.81B	3.46B
Net Income	181.00M	411.00M	-1.90B	-1.07B	1.29B	95.00M
Balance Sheet
Total Assets	79.05B	79.05B	82.03B	78.73B	68.73B	64.08B
Cash, Cash Equivalents and Short-Term Investments	7.49B	7.49B	8.16B	9.75B	10.84B	15.51B
Total Debt	38.47B	38.47B	41.88B	40.62B	34.35B	30.69B
Total Liabilities	67.72B	67.72B	71.75B	67.83B	58.55B	56.90B
Stockholders Equity	11.16B	11.16B	10.14B	10.79B	10.07B	7.07B
Cash Flow
Free Cash Flow	1.70B	2.24B	-1.93B	-6.51B	-7.95B	1.73B
Operating Cash Flow	2.38B	3.59B	2.12B	-3.49B	-4.39B	3.72B
Investing Cash Flow	-84.00M	-638.00M	-4.01B	-2.84B	-3.87B	-1.86B
Financing Cash Flow	-1.53B	-3.77B	125.00M	4.91B	3.23B	5.51B

Diamond Electric Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 574.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6699, the sentiment is Neutral. The current price of 574 is below the 20-day moving average (MA) of 587.85, below the 50-day MA of 576.84, and above the 200-day MA of 571.06, indicating a neutral trend. The MACD of -3.83 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 40.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6699.

Diamond Electric Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.15B	8.18	―	3.03%	-1.94%	-5.96%
7284	71 Outperform	¥4.27B	7.02	―	4.10%	3.46%	―
6699	68 Neutral	¥4.82B	2.58	―	6.53%	1.95%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6901	54 Neutral	¥4.33B	-17.45	―	3.19%	-9.28%	-219.81%
7256	51 Neutral	¥5.18B	-0.90	―	―	-9.54%	21.21%
7214	49 Neutral	¥4.62B	-100.27	―	4.61%	0.61%	-453.99%

Diamond Electric Holdings Co., Ltd. Corporate Events

Diamond Electric Announces Corrections to Stock Acquisition Rights Notice

Diamond Electric Holdings Co., Ltd. announced corrections to a previous notice regarding the issuance of stock acquisition rights. The corrected information pertains to the allocation of funds for the development of next-generation power conditioners and energy storage systems, with specific expenditure dates outlined. This correction may impact the company’s financial planning and stakeholder expectations regarding its investment in energy solutions.

Diamond Electric Holdings Adjusts Financial Strategy Amid Stock Rights Shortfall

Diamond Electric Holdings Co., Ltd. announced the acquisition and cancellation of its 5th and 6th Stock Acquisition Rights, initially issued to EVO FUND, due to a significant shortfall in the expected fundraising from these rights. The company’s stock price fell below the minimum exercise price, leading to limited exercise of the rights. To address the funding gap for its ongoing projects, including next-generation power conditioners and V2H systems, the company is reallocating borrowed funds to continue its development efforts. The move is expected to impact the company’s financial strategy and project timelines, with a focus on launching new products in the coming years.

Diamond Electric Revises Annual Profit Forecast Amid Market Shifts

Diamond Electric Holdings Co., Ltd. announced a discrepancy between its forecasted and actual consolidated results for the second quarter of FY2026/3, leading to a revision of its annual profit forecast. The company experienced higher-than-expected sales in its Mobility Equipment business due to increased production of internal combustion engine vehicles, while its Energy Solutions business faced challenges from overseas competition. Despite lower net sales, the company expects operating profit to remain stable and has revised its earnings forecast upward due to favorable foreign exchange impacts and tax expense reviews.

Diamond Electric Announces Interim Dividend from Capital Surplus

Diamond Electric Holdings Co., Ltd. announced an interim dividend of JPY 12.50 per share, totaling JPY 115 million, sourced from other capital surplus. This decision aligns with the company’s policy to maintain stable dividends and secure internal reserves for future investments, reflecting a strategic approach to balance shareholder returns with long-term financial stability.

Diamond Electric Reports Increased Sales but Lower Profits in H1 2025

Diamond Electric Holdings Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 5.7% increase in net sales compared to the previous year, reaching ¥46,628 million. Despite the rise in sales, the company experienced a decline in operating and ordinary profits, with profit attributable to owners of the parent improving to ¥425 million from a loss in the previous year. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating a slight decrease in expected profits, reflecting challenges in maintaining profitability amidst market conditions.

Diamond Electric Resolves Ransomware Incident Without Impact

Diamond Electric Holdings Co., Ltd. announced that its subsidiary, Thai Diamond & Zebra Electric Co., Ltd., has successfully resolved a ransomware incident without any impact on production or financial results. The company emphasizes its commitment to resilience and cybersecurity, having restored operations using backup data and confirming no information leakage.

Ransomware Attack on Diamond Electric’s Overseas Subsidiary

Diamond Electric Holdings Co., Ltd. announced a ransomware attack on its subsidiary, Thai Diamond & Zebra Electric Co., Ltd., which led to unauthorized access and data encryption on local servers and personal computers. The company has taken immediate measures to contain the incident, including disconnecting affected systems and collaborating with cybersecurity experts to assess the damage and prevent future occurrences. While the financial impact is expected to be minor, the company is committed to strengthening its cybersecurity measures and will keep stakeholders informed of any significant developments.