Nihon Dempa Kogyo Co., Ltd. (6779) AI Stock Analysis

• Market Cap: ¥22.43B
• Dividend Yield: 2.86%
• Average Volume (3M): 290.11K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.35
• Revenue Growth: 2.87%
• EPS Growth: -53.44%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 14.37
• Shares Outstanding: 23,128,605
• 10 Day Avg. Volume: 236,430
• 30 Day Avg. Volume: 290,106
• PEG Ratio: -0.46
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 7.79
• 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: 64 Neutral
• Price Target: ¥1,091.00 ▲(6.75% Upside)

The overall stock score of 64 reflects strong revenue growth and cash flow generation, but is tempered by challenges in profitability and bearish technical indicators. The stock's moderate valuation and decent dividend yield provide some support, but the lack of positive momentum and profitability pressures weigh on the score.

Positive Factors

Revenue Growth

TTM revenue growth of ~52.9% indicates sustained end-market demand and successful design-ins. Durable top-line expansion supports scale economies, larger absolute cash flow, and the ability to invest in capacity and R&D, strengthening competitive position over months.

Free Cash Flow Generation

Free cash flow growth of 120.26% demonstrates robust cash conversion and funding ability. Strong FCF provides durable resources for capex, deleveraging, dividends, and targeted investments in higher-value oscillators or automotive qualifications, improving resilience across cycles.

Leverage Improvement

An improved debt-to-equity of 0.96 reflects better leverage management and greater financial flexibility. Lower leverage reduces refinancing risk, supports sustained capital spending for production/qualification, and provides capacity to absorb cyclical downturns over the medium term.

Negative Factors

Compressed Net Profit Margin

A net margin of 2.22% is very thin, limiting the company's ability to self-fund growth and making earnings vulnerable to input-cost inflation or pricing pressure. In a component business prone to commoditization, sustained low margins weaken long-term return prospects and reinvestment capacity.

Weak Return on Equity

ROE of 4.03% signals weak capital efficiency despite revenue gains. Persistently low ROE constrains shareholder value creation, may limit access to attractive financing, and indicates the company struggles to translate sales growth into durable, profitable returns on invested capital.

Earnings Volatility

A ~-53% EPS decline highlights significant earnings volatility or one-off hits, reducing predictability of profit and cash available for investors. Such volatility complicates long-term planning and undermines confidence in the company's ability to deliver stable earnings through industry cycles.

Nihon Dempa Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Dempa Kogyo Co., Ltd. manufactures and sells quartz crystal devices. The company also offers crystal clock oscillators; high precision oscillators; simple packaged, temperature compensated, voltage-controlled, frequency controlled, and oven controlled crystal oscillators; and crystal units and filters, SAW devices, synthetic quartz crystals/crystal blanks/optical components, ultrasonic probes, bio sensors, outgas sensors, frequency synthesizers, millimeter-wave converters, and signal generators. Its products are used in various applications consisting of IoT products, automotive products, smartphones, network equipment, digital consumer electronics, personal computers, watches, digital cameras, and game consoles, as well as 5G applications. Nihon Dempa Kogyo Co., Ltd. primarily sells its products in Japan, rest of Asia, Europe, and North America. The company was formerly known as Nanbu Shoko Co., Ltd. and changed its name to Nihon Dempa Kogyo Co., Ltd. in 1950. Nihon Dempa Kogyo Co., Ltd. was incorporated in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Dempa Kogyo generates revenue through the sale of its quartz crystal products to various industries, including telecommunications, automotive, and consumer electronics. The company benefits from a diversified customer base, allowing it to tap into multiple revenue streams. Key revenue streams include direct sales of quartz oscillators and filters, which are critical for electronic signal processing. Additionally, the company engages in long-term partnerships with major electronics manufacturers, ensuring a steady demand for its products. Factors contributing to its earnings include technological advancements in product development, the growing demand for high-frequency and miniaturized components, and the expansion of the global electronics market.

Nihon Dempa Kogyo Co., Ltd. Financial Statement Overview

Summary

Nihon Dempa Kogyo Co., Ltd. demonstrates strong revenue growth and improved cash flow generation in the TTM period. However, profitability margins have faced pressure, and return on equity has decreased, indicating challenges in maintaining high profitability. The balance sheet shows improved leverage, but further enhancements in profitability metrics are necessary for a stronger financial position.

Income Statement

Nihon Dempa Kogyo Co., Ltd. has shown a strong revenue growth rate in the TTM period, with a significant increase of 52.9%. However, the net profit margin has decreased to 2.22% from previous higher levels, indicating pressure on profitability. The gross profit margin remains stable at around 27.8%, but EBIT and EBITDA margins have slightly declined, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.96 in the TTM, indicating better leverage management compared to previous years. However, the return on equity has decreased to 4.03%, reflecting lower profitability. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

The cash flow statement reveals a robust free cash flow growth of 120.26% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.42, and the free cash flow to net income ratio is 0.65, suggesting efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.44B	53.06B	50.31B	52.51B	45.41B	39.20B
Gross Profit	14.86B	15.36B	14.39B	16.41B	12.51B	6.58B
EBITDA	6.92B	7.07B	7.49B	11.21B	8.51B	6.28B
Net Income	1.19B	1.79B	2.33B	6.18B	5.46B	1.98B
Balance Sheet
Total Assets	72.53B	71.52B	66.17B	64.16B	61.22B	63.05B
Cash, Cash Equivalents and Short-Term Investments	16.36B	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	28.77B	30.32B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	42.53B	42.34B	38.80B	40.16B	41.18B	49.50B
Stockholders Equity	29.99B	29.17B	27.37B	24.00B	20.04B	13.55B
Cash Flow
Free Cash Flow	3.60B	2.44B	4.77B	3.29B	2.12B	-2.15B
Operating Cash Flow	5.57B	6.11B	8.53B	6.56B	4.56B	124.00M
Investing Cash Flow	-4.21B	-4.45B	-3.81B	-3.23B	-2.33B	313.00M
Financing Cash Flow	3.33B	1.91B	-2.95B	-3.52B	-8.91B	5.42B

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1022.00
• 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:6779, the sentiment is Positive. The current price of 1022 is above the 20-day moving average (MA) of 1017.30, above the 50-day MA of 985.98, and above the 200-day MA of 885.51, indicating a bullish trend. The MACD of 3.18 indicates Positive momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6779.

Nihon Dempa Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
6787	74 Outperform	¥327.05B	18.13	―	0.76%	15.02%	46.62%
6996	69 Neutral	¥114.01B	33.43	―	2.18%	-0.93%	-45.03%
6779	64 Neutral	¥22.43B	19.81	―	2.86%	2.87%	-53.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥18.68B	41.18	1.29%	4.91%	-1.71%	―
6976	54 Neutral	¥407.03B	94.12	―	2.57%	4.81%	-49.43%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Revises Financial Forecast Upward Amid Strong Market Demand

Nihon Dempa Kogyo Co., Ltd. has revised its financial forecast for the fiscal year ending March 2026, driven by increased demand for optical transceivers in AI data centers and a favorable exchange rate. The company expects higher operating income and net income than initially projected, reflecting strong market performance and strategic positioning in high-demand sectors.

The most recent analyst rating on (JP:6779) stock is a Buy with a Yen1288.00 price target. To see the full list of analyst forecasts on Nihon Dempa Kogyo Co., Ltd. stock, see the JP:6779 Stock Forecast page.