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

• Market Cap: ¥28.62B
• Dividend Yield: 2.86%
• Average Volume (3M): 290.11K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.24
• 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): 79.78
• Revenue Forecast (FY): ¥53.99B

• Rating: 62 Neutral
• Price Target: ¥1,471.00 ▲(43.93% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by deteriorating financial performance—sharp TTM revenue decline, margin compression, and notably weaker cash generation (near-breakeven free cash flow). These risks are partly offset by strong technical uptrend signals and a reasonable mid-range valuation with a moderate dividend yield.

Positive Factors

Diverse end-market exposure

NDK's products serve a broad set of end markets (communications, industrial, automotive, consumer). This reduces reliance on any single cyclical sector, supports steadier long-term demand, and raises the chance of recurring design-ins across multiple product cycles.

Higher value-add product mix and design-in stickiness

NDK's focus on oscillators and customized frequency-control products yields higher value-add and encourages long multi-year customer engagements. Design-in stickiness supports predictable revenue streams, protects margins versus commodity crystals, and strengthens customer switching costs.

Moderate leverage and stable asset base

A balanced capital structure (D/E ~0.96) and stable assets give NDK financial flexibility to fund working capital, targeted capex or product investments. Moderate leverage makes the company more resilient to industry cyclicality than highly leveraged peers.

Negative Factors

Sharp revenue decline

A 33.7% TTM revenue drop signals material demand loss or lost design share. Sustained top-line contraction erodes scale, reduces operating leverage, and can force price/mix concessions, making recovery slower and margins structurally weaker over the coming 2–6 months.

Weak cash generation

Severely weaker cash conversion and near-zero FCF limit NDK's ability to self-fund R&D, capex, or buffer downturns. Persistent low cash generation increases reliance on external financing, constrains strategic flexibility, and raises risks to dividend or investment plans.

Margin compression and low returns

Declining EBIT and net margins with low ROE indicate weakening pricing, worse product mix, or rising costs. Persistently compressed profitability reduces reinvestment capacity and shareholder returns, challenging long-term competitiveness versus higher-margin peers.

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

NDK primarily makes money by designing, manufacturing, and selling frequency-control components—especially quartz crystal units and crystal oscillators—to electronics manufacturers and module/system makers that integrate these parts into their products. Revenue is largely product sales recognized when components are delivered under customer supply agreements or purchase orders. Key revenue streams typically include: (1) Crystal units (quartz resonators) sold as discrete components that provide the fundamental frequency reference; (2) Crystal oscillators, which combine the resonator with circuitry to output a stable clock signal and generally carry higher value-add than basic crystal units; and (3) related frequency-control products and services (e.g., customized specifications, packaging, and reliability/qualification support) provided to meet customer design and certification requirements. Earnings are influenced by volume shipments tied to customer production cycles, product mix (higher-margin oscillator and specialized/automotive-grade parts vs. commodity crystals), pricing and cost competitiveness in manufacturing, and long-term customer relationships created through design-in wins where NDK components are specified into a customer’s platform for multi-year production runs. Specific partnership details and segment-level revenue breakdowns are null.

Nihon Dempa Kogyo Co., Ltd. Financial Statement Overview

Summary

Income statement trends are weakening (TTM revenue -33.7% with EBIT and net margin compression), while the balance sheet is acceptable with moderate leverage (debt-to-equity ~0.96) but lower ROE (~4.0%). Cash flow is the biggest drag: operating cash flow covers less than half of net income (~0.42x) and free cash flow is near breakeven with a sharp decline (~-94% YoY).

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	72.57B	67.03B	65.08B	61.67B	63.09B
Cash, Cash Equivalents and Short-Term Investments	12.98B	15.88B	12.30B	10.29B	10.36B	16.71B
Total Debt	28.85B	29.55B	26.15B	27.25B	27.13B	35.72B
Total Liabilities	41.87B	43.39B	39.64B	41.02B	41.60B	49.53B
Stockholders Equity	30.89B	29.17B	27.37B	24.04B	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: 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 1022 is below the 20-day moving average (MA) of 1296.00, below the 50-day MA of 1150.28, and above the 200-day MA of 970.06, indicating a bullish trend. The MACD of 57.49 indicates Positive momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.74 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
6981	74 Outperform	¥6.91T	59.16	8.95%	1.88%	2.88%	28.76%
6817	70 Outperform	¥36.58B	10.46	―	4.53%	-2.57%	3.43%
6762	67 Neutral	¥4.04T	15.03	―	1.41%	7.73%	-1.93%
6779	62 Neutral	¥28.62B	20.49	―	2.86%	2.87%	-53.44%
6772	62 Neutral	¥8.22B	65.95	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	56 Neutral	¥521.69B	15.62	―	2.57%	4.81%	-49.43%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Launches ESOP Support Trust to Align Employees With Long-Term Growth

Nihon Dempa Kogyo has approved the introduction of an Employee Stock Ownership Plan support trust designed to bolster its employee welfare system and strengthen links between staff incentives and the company’s medium- to long-term corporate value. The scheme, modeled on ESOP structures used in the U.S. and Japanese policy guidance, will use a trust to acquire company shares in advance and sell them steadily to the in-house employee stock ownership association.

Under the new framework, employees contribute monthly to the ESOP, which in turn buys shares from the trust while loan repayments to a financial institution are funded by share sale proceeds. Any trust profits from share price gains at termination will be distributed to eligible employees, while the company will cover any residual loan obligations if stock price declines create losses, underscoring a commitment to both employee participation in equity and support for long-term shareholding stability.

The most recent analyst rating on (JP:6779) stock is a Hold with a Yen1175.00 price target. To see the full list of analyst forecasts on Nihon Dempa Kogyo Co., Ltd. stock, see the JP:6779 Stock Forecast page.

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.