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

• Market Cap: ¥20.39B
• Dividend Yield: 3.24%
• Average Volume (3M): 290.11K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.36
• Revenue Growth: 2.87%
• EPS Growth: -53.44%
• Country: JP
• Employees: 2,366
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 14.37
• 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): 13,462.26
• Revenue Forecast (FY): ¥8.49T

• Rating: 64 Neutral
• Price Target: ¥1,010.00 ▲(8.95% Upside)

The overall stock score of 64 reflects strong revenue growth and cash flow generation, but is tempered by challenges in profitability and bearish technical indicators. The stock's moderate valuation and decent dividend yield provide some support, but the lack of positive momentum and profitability pressures weigh on the score.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand for the company's products and successful market penetration, which can support long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

Profitability Margins

Declining profitability margins indicate challenges in cost management and pricing power, potentially impacting long-term earnings stability.

Return on Equity

A decrease in return on equity suggests reduced efficiency in generating profits from shareholders' equity, which can affect investor confidence and capital attraction.

Operational Challenges

Declining operational margins may indicate inefficiencies or increased competition, potentially hindering the company's ability to maintain competitive pricing and profitability.

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

Company Description

Nihon Dempa Kogyo Co., Ltd. (6779) is a leading Japanese manufacturer specializing in the design, development, and production of quartz crystals and related electronic components. Established in 1952, the company operates primarily in the electronics sector, providing essential components for a wide range of applications, including telecommunications, automotive, and consumer electronics. Its core products include quartz crystal oscillators, resonators, and filters, which are crucial for maintaining the precision and performance of electronic devices.

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

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	53.44B	53.06B	50.31B	52.51B	45.41B	39.20B
Gross Profit	14.86B	15.36B	14.39B	16.41B	12.51B	6.58B
EBITDA	6.92B	7.07B	7.49B	11.21B	8.51B	6.28B
Net Income	1.19B	1.79B	2.33B	6.18B	5.46B	1.98B
Balance Sheet
Total Assets	72.53B	71.52B	66.17B	64.16B	61.22B	63.05B
Cash, Cash Equivalents and Short-Term Investments	16.36B	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	28.77B	30.32B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	42.53B	42.34B	38.80B	40.16B	41.18B	49.50B
Stockholders Equity	29.99B	29.17B	27.37B	24.00B	20.04B	13.55B
Cash Flow
Free Cash Flow	3.60B	2.44B	4.77B	3.29B	2.12B	-2.15B
Operating Cash Flow	5.57B	6.11B	8.53B	6.56B	4.56B	124.00M
Investing Cash Flow	-4.21B	-4.45B	-3.81B	-3.23B	-2.33B	313.00M
Financing Cash Flow	3.33B	1.91B	-2.95B	-3.52B	-8.91B	5.42B

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 927.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 927 is below the 20-day moving average (MA) of 941.55, below the 50-day MA of 1026.92, and above the 200-day MA of 851.04, indicating a neutral trend. The MACD of -25.34 indicates Negative momentum. The RSI at 40.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 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
6787	76 Outperform	¥287.42B	15.94	―	0.76%	15.02%	46.62%
6814	76 Outperform	¥255.49B	15.44	―	1.85%	6.56%	106.55%
6996	69 Neutral	¥115.03B	33.73	―	2.12%	-0.93%	-45.03%
6779	64 Neutral	¥20.39B	18.00	―	3.24%	2.87%	-53.44%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥18.11B	39.92	1.29%	4.91%	-1.71%	―
6976	54 Neutral	¥456.76B	105.62	―	2.47%	4.81%	-49.43%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Revises Financial Forecast Upward Amid Strong Market Demand

Nihon Dempa Kogyo Co., Ltd. has revised its financial forecast for the fiscal year ending March 2026, driven by increased demand for optical transceivers in AI data centers and a favorable exchange rate. The company expects higher operating income and net income than initially projected, reflecting strong market performance and strategic positioning in high-demand sectors.