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

• Market Cap: ¥29.34B
• Dividend Yield: 2.86%
• Average Volume (3M): 290.11K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.33
• Revenue Growth: 2.87%
• EPS Growth: -53.44%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 12.51
• 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): 94.54
• Revenue Forecast (FY): ¥53.99B

• Rating: 59 Neutral
• Price Target: ¥1,228.00 ▲(20.16% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by deteriorating financial performance, especially the sharp revenue decline, margin compression, and weakened free cash flow/cash conversion. Technical signals are relatively supportive with an uptrend versus key moving averages and positive MACD, while valuation is only average (P/E ~25.5) with a moderate dividend yield (~2.66%).

Positive Factors

Specialized frequency-control business

NDK’s focused product set (quartz crystals and oscillators) supplies many end markets with long product lifecycles. Design‑in relationships and multi‑year production runs create durable revenue streams and customer stickiness versus commodity suppliers, supporting steady demand over months to years.

Higher value‑add oscillator product mix

A mix tilted toward oscillators and specialized/automotive-grade parts supports stronger margins and differentiation. Value‑added modules are harder to commoditize, increase switching costs, and allow pricing leverage from customization and qualification processes that persist beyond short market cycles.

Moderate leverage and stable asset base

Debt roughly in line with equity and a stable asset base provide financial flexibility to fund R&D, capex, or working capital needs without immediate distress. Improved capital structure versus earlier years reduces refinancing pressure and supports execution over the next several quarters.

Negative Factors

Sharp revenue decline and margin compression

A steep revenue drop erodes scale and operating leverage, making margins more vulnerable to fixed costs and cost swings. If demand or design‑in momentum remains weak, profitability may stay depressed and limit reinvestment, weakening competitive position over the medium term.

Weak cash generation and near‑breakeven FCF

Poor cash conversion and almost zero free cash flow reduce internal funding for capex, customer qualification, and inventory build. Over several quarters this increases reliance on external financing, constrains strategic investments, and raises execution risk in capital‑intensive customer programs.

Low returns on equity

A low ROE indicates the balance sheet is not being efficiently monetized, signaling pricing pressure, weaker mix, or operational inefficiency. Persistently low returns limit the company’s ability to self-fund growth initiatives and weaken long‑term shareholder value creation unless turnaround actions succeed.

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

Financials are mixed but weakening: TTM revenue fell sharply (-33.7%) with compressed profitability (EBIT margin ~6.4%, net margin ~2.2%). Balance sheet leverage is moderate (debt-to-equity ~0.96) but returns are soft (ROE ~4.0%). Cash generation is the main concern, with weak cash conversion (OCF ~0.42x net income) and near-breakeven free cash flow (~¥0.2B) after a steep decline.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp revenue decline (-33.7%) and a meaningful step-down in profitability versus the prior annual periods: EBIT margin fell to ~6.4% and net margin to ~2.2% (vs. ~6.9% and ~3.4% in FY2025, and much higher in FY2023–FY2022). Gross margin remains fairly stable around the high-20% range, but the earnings compression suggests weaker pricing/mix, higher costs, or lower operating leverage. Profitability is still positive, but the trajectory is clearly weaker recently.

Balance Sheet

Leverage is moderate with debt roughly in line with equity (debt-to-equity ~0.96 in TTM (Trailing-Twelve-Months)), an improvement from the elevated leverage seen earlier (e.g., FY2021). The asset base has been relatively stable, and the capital structure looks more balanced than in prior years. The main offset is softer shareholder returns recently (return on equity ~4.0% in TTM (Trailing-Twelve-Months), down from stronger historical levels), indicating the balance sheet is acceptable but current earnings are not fully utilizing it.

Cash Flow

Cash generation has weakened materially in TTM (Trailing-Twelve-Months): operating cash flow is positive but covers less than half of net income (~0.42x), and free cash flow is near breakeven (¥0.2B) with a steep decline versus the prior year period (free cash flow growth about -94%). While free cash flow still exceeds reported net income on a proportional basis (~0.65x), the absolute drop in free cash flow and weaker cash conversion raise near-term quality-of-earnings and funding flexibility concerns compared with FY2024–FY2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.26B	53.06B	50.31B	52.51B	45.41B	39.20B
Gross Profit	14.49B	15.36B	14.39B	16.41B	12.51B	6.58B
EBITDA	6.42B	7.07B	7.49B	11.21B	8.51B	6.28B
Net Income	883.00M	1.79B	2.33B	6.18B	5.46B	1.98B
Balance Sheet
Total Assets	72.78B	71.52B	66.17B	64.16B	61.22B	63.05B
Cash, Cash Equivalents and Short-Term Investments	12.98B	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	30.97B	30.32B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	41.87B	42.34B	38.80B	40.16B	41.18B	49.50B
Stockholders Equity	30.89B	29.17B	27.37B	24.00B	20.04B	13.55B
Cash Flow
Free Cash Flow	208.00M	2.44B	4.77B	3.29B	2.12B	-2.15B
Operating Cash Flow	4.08B	6.11B	8.53B	6.56B	4.56B	124.00M
Investing Cash Flow	-6.26B	-4.45B	-3.81B	-3.23B	-2.33B	313.00M
Financing Cash Flow	3.60B	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: 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 Positive. The current price of 1022 is below the 20-day moving average (MA) of 1123.85, below the 50-day MA of 1058.86, and above the 200-day MA of 923.49, indicating a bullish trend. The MACD of 59.52 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 68.91 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	¥250.13B	15.44	―	1.88%	6.56%	106.55%
6787	67 Neutral	¥565.07B	32.87	―	0.76%	15.02%	46.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥21.86B	58.77	1.29%	4.91%	-1.71%	―
6996	60 Neutral	¥146.21B	52.89	―	2.18%	-0.93%	-45.03%
6779	59 Neutral	¥29.34B	34.80	―	2.86%	2.87%	-53.44%
6976	56 Neutral	¥602.32B	88.44	―	2.57%	4.81%	-49.43%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Posts Lower Nine-Month Profit but Keeps Full-Year Outlook and Dividend

Nihon Dempa Kogyo reported consolidated financial results for the nine months ended December 31, 2025, showing net sales of 39,681 million yen and operating income of 1,518 million yen, both down year on year, with net income attributable to owners of the parent falling to 1,518 million yen. Despite weaker earnings, the company’s financial position remained solid, with total assets of 72,777 million yen and an equity ratio of 42.4%, and it kept its full-year forecast and dividend plan unchanged, signaling stable capital management and no immediate shift in shareholder return policy.

For the full fiscal year ending March 31, 2026, Nihon Dempa Kogyo continues to forecast net sales of 53,400 million yen and net income attributable to owners of the parent of 3,200 million yen, implying a recovery in profitability in the final quarter. The maintained guidance and consistent annual dividend of 30 yen per share suggest management’s confidence in demand for its crystal devices and a commitment to stable returns, even as current-period results reflect a tougher operating environment.

The most recent analyst rating on (JP:6779) stock is a Hold with a Yen1129.00 price target. To see the full list of analyst forecasts on Nihon Dempa Kogyo Co., Ltd. stock, see the JP:6779 Stock Forecast page.