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

• Market Cap: ¥18.94B
• Dividend Yield: 3.47%
• Average Volume (3M): 144.39K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.41
• Revenue Growth: 5.48%
• EPS Growth: -23.11%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 92
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.90
• Shares Outstanding: 23,128,605
• 10 Day Avg. Volume: 199,470
• 30 Day Avg. Volume: 144,393
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥792.00
• Price Target Upside: -7.04% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥939.00 ▲(10.21% Upside)

Nihon Dempa Kogyo Co., Ltd. scores a 76, driven by strong technical analysis indicators and an attractive valuation, which suggest a good investment opportunity. The stable financial performance supports the score, though improvements in operational efficiency and cash flow management could enhance future prospects.

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. shows a stable financial performance with revenue growth and solid cash generation capacity. However, there are challenges in operational efficiency and cash flow management. The balance sheet indicates a balanced financial structure with manageable debt levels.

Income Statement

Nihon Dempa Kogyo Co., Ltd. has shown a solid performance in its income statement. The company achieved a gross profit margin of 28.96% and a net profit margin of 3.38% for the latest fiscal year. There was a notable revenue growth rate of 5.48% from the previous year, indicating positive business momentum. However, the EBIT margin of 8.52% suggests room for improvement in operational efficiency. Overall, the income statement reflects a stable financial position with growth potential.

Balance Sheet

The balance sheet reveals a moderate financial structure with a debt-to-equity ratio of 1.01, indicating a balanced use of debt and equity. The return on equity is relatively low at 6.14%, suggesting limited returns for shareholders. The equity ratio stands at 40.79%, reflecting a healthy level of equity financing. While the company maintains a stable financial position, there is potential risk due to the significant level of debt.

Cash Flow

The cash flow statement indicates mixed results. The free cash flow growth rate has decreased significantly, highlighting challenges in generating free cash flow. However, the operating cash flow to net income ratio of 3.41 suggests strong cash generation capability relative to net income. The free cash flow to net income ratio of 1.36 is positive, but there is room for improvement in cash flow management. Overall, the cash flow position is stable but could be strengthened further.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.06B	50.31B	52.51B	45.41B	39.20B
Gross Profit	15.36B	14.39B	16.41B	12.51B	6.58B
EBITDA	7.07B	7.49B	11.21B	8.51B	6.28B
Net Income	1.79B	2.33B	6.18B	5.46B	1.98B
Balance Sheet
Total Assets	71.52B	66.17B	64.16B	61.22B	63.05B
Cash, Cash Equivalents and Short-Term Investments	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	29.55B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	42.34B	38.80B	40.16B	41.18B	49.50B
Stockholders Equity	29.17B	27.37B	24.00B	20.04B	13.55B
Cash Flow
Free Cash Flow	2.44B	4.77B	3.29B	2.12B	-2.15B
Operating Cash Flow	6.11B	8.53B	6.56B	4.56B	124.00M
Investing Cash Flow	-4.45B	-3.81B	-3.23B	-2.33B	313.00M
Financing Cash Flow	1.91B	-2.95B	-3.52B	-8.91B	5.42B

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 852.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 852 is above the 20-day moving average (MA) of 786.50, above the 50-day MA of 747.92, and above the 200-day MA of 831.60, indicating a bullish trend. The MACD of 31.77 indicates Negative momentum. The RSI at 73.01 is Negative, neither overbought nor oversold. The STOCH value of 77.19 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	¥18.94B	10.96		3.47%	5.48%	-23.11%
Sector *	62 Neutral	$34.76B	5.42	-10.77%	2.07%	6.42%	-8.84%
90G	―	€111.74M	60.89	0.75%	5.12%	―	―
6787	76 Outperform	¥193.25B	13.19		1.03%	15.24%	35.69%
6814	75 Outperform	¥138.63B	10.13		2.50%	9.11%	114.88%
6996	73 Outperform	¥90.56B	15.53		2.62%	-3.24%	-29.08%
6976	59 Neutral	¥358.36B	152.85		3.15%	5.82%	-71.97%

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.