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Diamond Electric Holdings Co., Ltd. (JP:6699)
:6699
Japanese Market
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Diamond Electric Holdings Co., Ltd. (6699) AI Stock Analysis

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JP:6699

Diamond Electric Holdings Co., Ltd.

(6699)

Rating:68Neutral
Price Target:
¥633.00
▲(4.28% Upside)
The overall score reflects strong technical momentum and attractive valuation, offset by moderate financial performance concerns. Key risks include inconsistent profitability and high leverage, but operational improvements provide a positive outlook.

Diamond Electric Holdings Co., Ltd. (6699) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionDiamond Electric Holdings Co., Ltd. (6699) is a Japan-based company primarily engaged in the manufacture and sale of electronic components. The company operates in sectors such as automotive electronics, industrial equipment, and consumer electronics. Its core products include ignition coils for automobiles, power conversion units, and other electronic components.
How the Company Makes MoneyDiamond Electric Holdings Co., Ltd. generates revenue through the production and sale of electronic components, primarily focusing on the automotive industry. The company earns money by supplying ignition coils to major automobile manufacturers, which constitute a significant portion of its revenue. It also diversifies its income streams by selling power conversion units and other electronic parts to industrial equipment manufacturers and consumer electronics companies. Strategic partnerships with global automotive and electronics companies further bolster its revenue, alongside continuous innovation and adaptation to market demands, ensuring sustained earnings.

Diamond Electric Holdings Co., Ltd. Financial Statement Overview

Summary
Diamond Electric Holdings is showing operational improvements and healthier cash flow management. However, inconsistent profitability and high leverage remain concerns, requiring ongoing financial diligence.
Income Statement
58
Neutral
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
65
Positive
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
60
Neutral
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue91.72B93.33B91.11B76.27B70.64B
Gross Profit13.83B12.54B11.25B11.12B11.92B
EBITDA5.15B2.71B2.16B3.81B3.46B
Net Income182.00M-1.90B-1.07B1.29B95.00M
Balance Sheet
Total Assets79.05B82.03B78.73B68.73B64.08B
Cash, Cash Equivalents and Short-Term Investments7.49B8.16B9.75B10.84B15.51B
Total Debt38.47B41.88B40.62B34.35B30.69B
Total Liabilities67.72B71.75B67.83B58.55B56.90B
Stockholders Equity11.16B10.14B10.79B10.07B7.07B
Cash Flow
Free Cash Flow2.24B-1.93B-6.51B-7.95B1.73B
Operating Cash Flow3.59B2.12B-3.49B-4.39B3.72B
Investing Cash Flow-638.00M-4.01B-2.84B-3.87B-1.86B
Financing Cash Flow-3.77B125.00M4.91B3.23B5.51B

Diamond Electric Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price607.00
Price Trends
50DMA
586.00
Positive
100DMA
578.98
Positive
200DMA
553.76
Positive
Market Momentum
MACD
6.20
Negative
RSI
57.76
Neutral
STOCH
60.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6699, the sentiment is Positive. The current price of 607 is above the 20-day moving average (MA) of 598.55, above the 50-day MA of 586.00, and above the 200-day MA of 553.76, indicating a bullish trend. The MACD of 6.20 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 60.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6699.

Diamond Electric Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥4.62B6.98
3.37%0.05%9.31%
78
Outperform
¥4.56B7.89
4.67%4.74%-193.39%
68
Neutral
¥5.09B9.76
4.12%-1.72%
68
Neutral
¥4.06B16.91
3.33%-12.15%-123.44%
66
Neutral
¥4.23B7.36
4.10%4.93%
56
Neutral
HK$25.46B5.05-2.69%5.69%-0.43%-53.15%
39
Underperform
¥4.06B
33.86%69.12%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6699
Diamond Electric Holdings Co., Ltd.
613.00
15.88
2.66%
JP:6901
Sawafuji Electric Co., Ltd.
941.00
-77.69
-7.63%
JP:7208
Kanemitsu Corporation
903.00
47.83
5.59%
JP:7214
GMB Corporation
856.00
-309.45
-26.55%
JP:7256
Kasai Kogyo Co., Ltd.
105.00
-71.00
-40.34%
JP:7284
Meiwa Industry Co., Ltd.
1,203.00
208.37
20.95%

Diamond Electric Holdings Co., Ltd. Corporate Events

Diamond Electric Announces New Share Issuance for Executive Compensation
Jul 22, 2025

Diamond Electric Holdings Co., Ltd. announced the issuance of new shares as restricted stock compensation, aimed at incentivizing directors and executives to align with the company’s long-term growth objectives. This move is part of a broader strategy to enhance corporate value and ensure value-sharing with shareholders, reflecting the company’s commitment to sustainable growth and improved governance.

Diamond Electric Holdings Faces Potential Delisting from Tokyo Stock Exchange
Jun 30, 2025

Diamond Electric Holdings Co., Ltd. is currently not in compliance with the Tokyo Stock Exchange’s Prime Market listing requirements due to insufficient market capitalization of tradable shares. The company has outlined a plan to address these issues, including improving business performance and enhancing shareholder value. If compliance is not achieved by March 31, 2026, the company may face delisting. Recent improvements in operating profit and net profit have been noted, driven by favorable market conditions and strategic business shifts.

Diamond Electric Holdings Corrects Financial Results, Boosts Profitability
May 28, 2025

Diamond Electric Holdings Co., Ltd. announced a correction to its previously disclosed financial results for the fiscal year ending March 31, 2025. The correction was due to an error in the calculation of business taxes, which led to adjustments in various financial metrics, including an increase in operating profit by JPY 229 million. This correction positively impacts the company’s financial standing, reflecting improved profitability and potentially enhancing its market position.

Diamond Electric Holdings Revises Financial Results for FY 2025
May 28, 2025

Diamond Electric Holdings Co., Ltd. announced corrections to its financial results for the fiscal year ended March 31, 2025, highlighting discrepancies between forecasted and actual results. The company recorded a foreign exchange loss of JPY 163 million in the fourth quarter, impacting its financial performance. The revised forecast shows an increase in net sales and profits compared to previous estimates, indicating a positive adjustment in the company’s financial outlook.

Diamond Electric Holdings Announces Capital Reserve Reduction and Dividend Strategy
May 28, 2025

Diamond Electric Holdings Co., Ltd. has announced a strategic financial restructuring involving the reduction of its capital reserve to eliminate a deficit in retained earnings and secure funds for future dividend payments. This internal financial maneuver, which involves reallocating funds within the company’s net assets, is not expected to impact overall business performance or total net assets, but it will facilitate the payment of a final dividend for the fiscal year.

Diamond Electric Holdings Announces Year-End Dividend Amid Financial Adjustments
May 28, 2025

Diamond Electric Holdings Co., Ltd. announced a year-end dividend of JPY 25.00 per share, sourced from other capital surplus, despite a deficit in retained earnings due to recent financial adjustments. This decision reflects the company’s commitment to maintaining stable dividends and supporting long-term growth, while a separate resolution regarding capital reserve reduction will be addressed at the upcoming General Meeting of Shareholders.

Diamond Electric Holdings Announces Change in Certified Public Accountants
May 28, 2025

Diamond Electric Holdings Co., Ltd. announced a change in its certified public accountants, transitioning from Gyosei & Co. to Crowe Toyo & Co. This decision follows the expiration of Gyosei & Co.’s term and their decision not to renew due to challenges in maintaining audit quality. The new appointment is based on Crowe Toyo & Co.’s expertise and suitability for the company’s scale of operations.

Diamond Electric Holdings Reports Improved Operating Income Amidst Sales Decline
May 15, 2025

Diamond Electric Holdings Co., Ltd. reported its financial results for the fourth quarter of fiscal year 2025, highlighting a significant improvement in operating income driven by increased sales in mobility equipment and energy solutions. Despite a decline in net sales, the company saw an improvement in net income due to favorable material cost ratios and a business segment reclassification. The results indicate a positive shift in the company’s financial health, although challenges such as foreign exchange losses and decreased demand in home electronics remain.

Diamond Electric Holdings Reports Extraordinary Losses Due to Subsidiary Insolvencies
May 15, 2025

Diamond Electric Holdings Co., Ltd. announced significant extraordinary losses in its non-consolidated financial results for the fiscal year ended March 31, 2025. The company recorded provisions for allowance for doubtful accounts due to insolvency issues at its subsidiaries in Japan and Indonesia, totaling JPY 2,264 million. Additionally, the company reported valuation losses on shares of its subsidiaries in Japan and Hungary, amounting to JPY 1,624 million. Despite these losses, the company stated that they will not impact its consolidated financial results.

Diamond Electric Holdings Reports Foreign Exchange Losses but Exceeds Profit Forecasts
May 15, 2025

Diamond Electric Holdings Co., Ltd. reported non-operating expenses due to foreign exchange losses in the fourth quarter of the fiscal year ending March 31, 2025. Despite this, the company exceeded its forecasted operating and net profits due to effective cost management and strategic initiatives across its business segments, leading to improved profitability and a positive bottom-line result.

Diamond Electric Holdings Reports Strong Operating Profit Growth Amid Slight Sales Decline
May 15, 2025

Diamond Electric Holdings Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight decrease in net sales by 1.7% to ¥91,724 million. However, the company achieved a significant increase in operating profit by 784% to ¥2,040 million, indicating improved operational efficiency. The company also announced an increase in dividends, reflecting a positive outlook for stakeholders. Despite a challenging market environment, Diamond Electric’s strategic focus on operational improvements and financial stability positions it well for future growth.

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: Jul 12, 2025