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

• Market Cap: ¥15.44B
• Dividend Yield: 4.27%
• Average Volume (3M): 109.88K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.36
• Revenue Growth: 5.48%
• EPS Growth: -23.11%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.90
• Shares Outstanding: 23,128,605
• 10 Day Avg. Volume: 100,090
• 30 Day Avg. Volume: 109,880
• PEG Ratio: -1.08
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.89
• 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

• Rating: 68 Neutral
• 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. Business Overview & Revenue Model

Company Description

Nihon 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 Money

Nihon 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
52.49B	50.31B	52.51B	45.41B	39.20B	39.47B
	Gross Profit
15.86B	14.39B	16.41B	12.51B	6.58B	3.77B
	EBIT
4.89B	4.34B	8.33B	5.18B	2.84B	-8.29B
	EBITDA
7.90B	7.49B	11.21B	8.51B	6.28B	-4.64B
	Net Income Common Stockholders
2.37B	2.33B	6.18B	5.46B	1.98B	-8.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.94B	12.30B	10.29B	10.36B	16.71B	10.06B
	Total Assets
65.65B	66.17B	64.16B	61.22B	63.05B	54.55B
	Total Debt
23.63B	26.15B	27.25B	27.13B	35.72B	34.32B
	Net Debt
13.70B	13.85B	16.96B	16.77B	19.02B	24.26B
	Total Liabilities
36.24B	38.80B	40.16B	41.18B	49.50B	49.20B
	Stockholders Equity
29.41B	27.37B	24.00B	20.04B	13.55B	5.35B
Cash Flow		Free Cash Flow
3.08B	4.77B	3.29B	2.12B	-2.15B	-1.24B
	Operating Cash Flow
7.03B	8.53B	6.56B	4.56B	124.00M	948.00M
	Investing Cash Flow
-4.64B	-3.81B	-3.23B	-2.33B	313.00M	1.20B
	Financing Cash Flow
-4.38B	-2.95B	-3.52B	-8.91B	5.42B	-23.00M

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 715.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6814	78 Outperform	¥96.52B	8.44		3.62%	10.54%	83.58%
6787	71 Outperform	¥152.85B	10.43		1.51%	15.24%	32.83%
6779	68 Neutral	¥15.44B	9.03		4.27%	5.48%	-23.11%
6996	68 Neutral	¥80.05B	13.73		2.96%	-3.24%	-28.68%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
6962	60 Neutral	¥16.84B	59.77	0.75%	5.79%	-1.84%	-84.75%
6976	55 Neutral	¥303.92B	129.63		3.72%	5.82%	-71.99%

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.

Nihon Dempa Kogyo Announces Leadership Changes

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.