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

• Market Cap: ¥19.99B
• Dividend Yield: 3.31%
• Average Volume (3M): 144.22K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.40
• Revenue Growth: 3.56%
• EPS Growth: -44.16%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 20.43
• Shares Outstanding: 23,128,605
• 10 Day Avg. Volume: 111,140
• 30 Day Avg. Volume: 144,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,052.00
• Price Target Upside: 15.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,052.00 ▲(15.73% Upside)

Nihon Dempa Kogyo Co., Ltd. receives a strong overall score driven by robust technical indicators and a solid valuation. While the financial performance shows areas for improvement, particularly in profit margins and cash flow, the stock's current momentum and fair valuation make it an attractive option. Investors should be mindful of the overbought technical indicators, which may suggest potential short-term volatility.

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 Co., Ltd. generates revenue through the design, manufacturing, and sale of quartz crystal devices. Its primary revenue streams include the sale of crystal units and oscillators, which are utilized in various industries such as telecommunications, consumer electronics, automotive, and industrial equipment. The company also engages in R&D to innovate new products, ensuring a competitive edge in the market. Strategic partnerships with major electronic manufacturers and an extensive global distribution network further contribute to its earnings. NDK's ability to adapt to technological advancements and maintain high-quality production standards helps sustain its profitability.

Nihon Dempa Kogyo Co., Ltd. Financial Statement Overview

Summary

Nihon Dempa Kogyo Co., Ltd. demonstrates strong revenue growth and a stable financial position, with a balanced use of debt. However, declining profit margins and free cash flow highlight areas for improvement. The company should focus on enhancing operational efficiency and cash flow management to sustain growth and profitability in the competitive hardware industry.

Income Statement

Nihon Dempa Kogyo Co., Ltd. shows a solid revenue growth rate of 18.3% in the TTM, indicating strong market demand. The gross profit margin is healthy at 28.95%, and the net profit margin is stable at 3.38%. However, the net profit margin has decreased from previous years, suggesting increased costs or competitive pressures. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also indicating room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio is slightly above 1, indicating a balanced approach to leveraging debt for growth. The return on equity (ROE) is modest at 6.21%, showing profitability but with potential for improvement. The equity ratio is reasonable, suggesting a stable financial structure. However, the increase in total debt over the years poses a risk if not managed carefully.

Cash Flow

The operating cash flow is robust, but the free cash flow has declined by 33.17% in the TTM, raising concerns about cash generation efficiency. The operating cash flow to net income ratio is 0.50, indicating that cash generation is in line with earnings. The free cash flow to net income ratio is 0.40, suggesting that a significant portion of earnings is being converted into free cash flow, albeit at a declining rate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.16B	53.06B	50.31B	52.51B	45.41B	39.20B
Gross Profit	15.02B	15.36B	14.39B	16.41B	12.51B	6.58B
EBITDA	7.39B	7.07B	7.49B	11.21B	8.51B	6.28B
Net Income	1.59B	1.79B	2.33B	6.18B	5.46B	1.98B
Balance Sheet
Total Assets	71.36B	71.52B	66.17B	64.16B	61.22B	63.05B
Cash, Cash Equivalents and Short-Term Investments	17.37B	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	29.54B	29.55B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	42.13B	42.34B	38.80B	40.16B	41.18B	49.50B
Stockholders Equity	29.22B	29.17B	27.37B	24.00B	20.04B	13.55B
Cash Flow
Free Cash Flow	1.63B	2.44B	4.77B	3.29B	2.12B	-2.15B
Operating Cash Flow	5.68B	6.11B	8.53B	6.56B	4.56B	124.00M
Investing Cash Flow	-4.76B	-4.45B	-3.81B	-3.23B	-2.33B	313.00M
Financing Cash Flow	3.92B	1.91B	-2.95B	-3.52B	-8.91B	5.42B

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 909.00
• 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 909 is above the 20-day moving average (MA) of 901.00, above the 50-day MA of 825.12, and above the 200-day MA of 816.39, indicating a bullish trend. The MACD of 25.84 indicates Positive momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 48.23 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
6779	76 Outperform	¥19.99B	13.13		3.31%	3.56%	-44.16%
Sector *	61 Neutral	$35.45B	8.20	-10.61%	1.91%	8.56%	-9.51%
90G	―	€106.47M	60.52	-1.44%	―	―	―
6787	76 Outperform	¥252.17B	16.07		0.81%	15.13%	31.79%
6814	75 Outperform	¥177.90B	13.25		1.91%	9.11%	114.88%
6996	70 Outperform	¥91.30B	17.16		2.62%	-2.07%	-18.83%
6976	59 Neutral	¥381.28B	152.85		3.01%	4.21%	-135.36%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Unveils Strategic Medium-term Management Plan

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.