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Nihon Dempa Kogyo Co., Ltd. (JP:6779)
:6779
Japanese Market

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

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JP

Nihon Dempa Kogyo Co., Ltd.

(6779)

Rating:68Neutral
Price Target:
¥764.00
▲(6.85%Upside)
Nihon Dempa Kogyo Co., Ltd. has a stable financial foundation with positive growth prospects. The stock is attractively valued, offering a strong dividend yield. However, technical indicators suggest bearish market sentiment, which could impact short-term stock performance. The company's financial health and valuation provide a solid base for future growth, but market conditions should be monitored.

Nihon Dempa Kogyo Co., Ltd. (6779) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNihon Dempa Kogyo Co., Ltd. (NDK) is a Japan-based company primarily engaged in the manufacturing and sale of crystal devices. It operates in sectors including telecommunications, automotive, and consumer electronics, providing essential components such as crystal oscillators, resonators, and filters. These components are crucial for ensuring the stability and accuracy of frequency control in various electronic devices, making NDK a key player in the global electronic components market.
How the Company Makes MoneyNihon Dempa Kogyo Co., Ltd. generates revenue through the production and sale of crystal devices, which are utilized in a wide range of applications across different industries. The company's primary revenue streams include the sale of crystal oscillators and resonators used in devices like smartphones, GPS systems, and automotive electronics. NDK also benefits from strategic partnerships with electronics manufacturers and telecommunications companies, which rely on its high-precision products to maintain operational efficiency and performance. Additionally, the company's investment in research and development helps it innovate and expand its product offerings, thereby contributing to its revenue growth.

Nihon Dempa Kogyo Co., Ltd. Financial Statement Overview

Summary
Nihon Dempa Kogyo Co., Ltd. presents a stable financial condition with solid revenue and margins. The balance sheet reflects a well-managed debt level, though with slightly decreasing liquidity. Cash flow generation is efficient, but future capital management will be crucial to sustaining growth. The company remains in a strong position within the hardware industry, though it faces challenges in maintaining profit margins and cash flow growth.
Income Statement
75
Positive
The company showed stable revenue with a slight TTM (Trailing-Twelve-Months) increase from the previous year. Gross profit margin is healthy at approximately 30.2%. However, net profit margin dropped to 4.5% from 4.6%, indicating slight pressure on net income despite revenue growth. The EBIT margin also showed a decrease to 9.3% from the previous year's 8.6%, yet EBITDA margin improved slightly, reflecting better operational efficiency.
Balance Sheet
68
Positive
The company maintains a moderate debt-to-equity ratio of 0.8, suggesting a balanced approach to leveraging. Return on equity is fairly strong at 8.1%, though decreased from previous years, indicating some pressure on equity returns. The equity ratio stands at 44.8%, demonstrating solid equity backing, though liquidity has slightly decreased with a lower cash position.
Cash Flow
72
Positive
Operating cash flow is robust, though it decreased from the previous year, reflecting a cautious liquidity position. The free cash flow to net income ratio is strong at 1.3, indicating efficient cash generation relative to net income. However, free cash flow growth rate showed a negative trend, requiring attention to future capital expenditures.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
52.49B50.31B52.51B45.41B39.20B39.47B
Gross Profit
15.86B14.39B16.41B12.51B6.58B3.77B
EBIT
4.89B4.34B8.33B5.18B2.84B-8.29B
EBITDA
7.90B7.49B11.21B8.51B6.28B-4.64B
Net Income Common Stockholders
2.37B2.33B6.18B5.46B1.98B-8.71B
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.94B12.30B10.29B10.36B16.71B10.06B
Total Assets
65.65B66.17B64.16B61.22B63.05B54.55B
Total Debt
23.63B26.15B27.25B27.13B35.72B34.32B
Net Debt
13.70B13.85B16.96B16.77B19.02B24.26B
Total Liabilities
36.24B38.80B40.16B41.18B49.50B49.20B
Stockholders Equity
29.41B27.37B24.00B20.04B13.55B5.35B
Cash FlowFree Cash Flow
3.08B4.77B3.29B2.12B-2.15B-1.24B
Operating Cash Flow
7.03B8.53B6.56B4.56B124.00M948.00M
Investing Cash Flow
-4.64B-3.81B-3.23B-2.33B313.00M1.20B
Financing Cash Flow
-4.38B-2.95B-3.52B-8.91B5.42B-23.00M

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price715.00
Price Trends
50DMA
727.38
Negative
100DMA
787.76
Negative
200DMA
889.01
Negative
Market Momentum
MACD
-9.56
Negative
RSI
42.80
Neutral
STOCH
28.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6779, the sentiment is Negative. The current price of 715 is above the 20-day moving average (MA) of 705.70, below the 50-day MA of 727.38, and below the 200-day MA of 889.01, indicating a bearish trend. The MACD of -9.56 indicates Negative momentum. The RSI at 42.80 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6779.

Nihon Dempa Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥96.52B8.44
3.62%10.54%83.58%
71
Outperform
¥152.85B10.43
1.51%15.24%32.83%
68
Neutral
¥15.44B9.03
4.27%5.48%-23.11%
68
Neutral
¥80.05B13.73
2.96%-3.24%-28.68%
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
60
Neutral
¥16.84B59.770.75%5.79%-1.84%-84.75%
55
Neutral
¥303.92B129.63
3.72%5.82%-71.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6779
Nihon Dempa Kogyo Co., Ltd.
731.00
-345.14
-32.07%
JP:6787
Meiko Electronics Co., Ltd.
5,940.00
-1,265.82
-17.57%
JP:6814
Furuno Electric Co., Ltd.
3,060.00
1,047.30
52.03%
JP:6976
Taiyo Yuden Co., Ltd.
2,436.50
-1,084.95
-30.81%
JP:6996
Nichicon Corporation
1,180.00
69.43
6.25%
JP:6962
Daishinku Corp.,
530.00
-129.91
-19.69%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Unveils Strategic Medium-term Management Plan
May 13, 2025

Nihon Dempa Kogyo Co., Ltd. announced its Third Medium-term Management Plan, targeting sustainable growth by focusing on high profitability and capital efficiency. The plan includes investments in AI-related, defense, space, and optical products, as well as enhancing photolithographic processing technology and transforming factories into smart ones. The company aims to improve human resource engagement and remuneration to secure talent, acknowledging the potential short-term impact on profits for long-term growth.

Nihon Dempa Kogyo Announces Leadership Changes
Mar 26, 2025

Nihon Dempa Kogyo Co., Ltd. announced changes in its directors and corporate officers, effective June 26, 2025, following a resolution at the Board of Directors Meeting. These changes are pending approval at the upcoming Ordinary General Meeting of Shareholders, indicating a strategic shift in leadership roles.

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.