Denkyo Group Holdings Co., Ltd (8144) AI Stock Analysis

• Market Cap: ¥7.63B
• Dividend Yield: 3.21%
• Average Volume (3M): 1.64K
• Price to Earnings (P/E): 77.6
• Beta (1Y): 0.22
• Revenue Growth: -0.85%
• EPS Growth: N/A
• Country: JP
• Employees: 524
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -34.02
• Shares Outstanding: 6,665,021
• 10 Day Avg. Volume: 1,720
• 30 Day Avg. Volume: 1,640
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,317.00
• Price Target Upside: 5.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,317.00 ▲(5.53% Upside)

Denkyo Group Holdings Co., Ltd receives a score of 71, driven by robust technical analysis and reasonable valuation metrics. The company's strong balance sheet and cash flow position add to its financial stability, though challenges in profitability and revenue growth are notable. The stock's technical indicators suggest positive momentum, but potential overbought conditions warrant caution.

Denkyo Group Holdings Co., Ltd Business Overview & Revenue Model

Company Description

Denkyo Group Holdings Co., Ltd (8144) is a Japanese company primarily engaged in the wholesale and distribution of electrical equipment and components. The company operates across several sectors, providing products and solutions that cater to a wide array of industries, including manufacturing, construction, and information technology. Denkyo Group is known for its comprehensive range of products, which include semiconductors, electronic components, and industrial equipment, supporting both domestic and international markets.

How the Company Makes Money

Denkyo Group Holdings Co., Ltd generates revenue primarily through the sale and distribution of electrical equipment and components. The company acts as an intermediary between manufacturers and end-users, leveraging its extensive network and expertise in logistics to facilitate the supply of products. Key revenue streams include the wholesale of semiconductors, electronic components, and industrial equipment to various industries such as manufacturing, construction, and IT. Additionally, Denkyo Group may engage in partnerships with manufacturers to distribute exclusive or proprietary products, enhancing its product offerings and market reach. The company's revenue is influenced by factors such as technological advancements, industry demand, and its ability to maintain competitive pricing and strong supplier relationships.

Denkyo Group Holdings Co., Ltd Financial Statement Overview

Summary

Denkyo Group Holdings Co., Ltd demonstrates financial stability with a strong balance sheet and satisfactory cash flow position. The company maintains a healthy gross margin and ample liquidity to support operations. However, challenges remain in achieving consistent revenue growth and profitability, highlighted by a low net profit margin and inconsistent revenue growth.

Income Statement

Denkyo Group Holdings Co., Ltd shows a stable revenue base with moderate fluctuations. The gross profit margin is healthy at approximately 18.7% in 2025, indicating good control over production costs. However, the net profit margin is low at 0.77% due to high expenses relative to revenue. Despite a positive EBIT and EBITDA margin improvement from 2024, the company still struggles with profitability, as seen in prior years' negative EBIT. Revenue growth has been inconsistent, highlighting potential challenges in sustaining growth.

Balance Sheet

The company maintains a solid equity ratio above 70%, suggesting a strong capital base and low leverage with a debt-to-equity ratio of 0.05 in 2025. This indicates financial stability and a low risk of insolvency. Return on equity was modest at 1.59%, reflecting limited profitability. The balance sheet strength is evident in the significant cash reserves, supporting operational liquidity.

Cash Flow

The cash flow position is robust with substantial free cash flow in 2025, showing a significant recovery from previous negative free cash flow. The operating cash flow to net income ratio is favorable, indicating efficient cash generation from operations. However, the company has faced volatility in cash flows, particularly in investing and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.33B	54.33B	54.60B	52.80B	53.75B	57.36B
Gross Profit	10.15B	10.15B	9.92B	8.69B	9.05B	10.75B
EBITDA	876.50M	1.05B	732.00M	658.00M	1.35B	2.09B
Net Income	420.00M	420.00M	84.00M	120.00M	613.00M	1.28B
Balance Sheet
Total Assets	35.73B	35.73B	39.70B	37.89B	36.35B	36.68B
Cash, Cash Equivalents and Short-Term Investments	5.22B	5.22B	8.01B	7.78B	6.84B	7.66B
Total Debt	1.36B	1.36B	5.09B	4.10B	2.62B	2.12B
Total Liabilities	9.31B	9.31B	13.01B	11.55B	9.99B	9.88B
Stockholders Equity	26.41B	26.41B	26.69B	26.34B	26.36B	26.81B
Cash Flow
Free Cash Flow	0.00	1.08B	-1.19B	-600.00M	-1.20B	2.74B
Operating Cash Flow	0.00	1.13B	-71.00M	647.00M	-1.02B	2.86B
Investing Cash Flow	0.00	55.00M	-345.00M	-968.00M	0.00	479.00M
Financing Cash Flow	0.00	-3.99B	638.00M	1.24B	139.00M	-1.34B

Denkyo Group Holdings Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1248.00
• 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:8144, the sentiment is Positive. The current price of 1248 is above the 20-day moving average (MA) of 1232.45, above the 50-day MA of 1224.94, and above the 200-day MA of 1179.06, indicating a bullish trend. The MACD of 7.92 indicates Negative momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 39.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8144.

Denkyo Group Holdings Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6794	79 Outperform	51.21B	11.99	7.20%	2.61%	9.24%	23.83%
8144	71 Outperform	¥7.63B	77.64		3.21%	-0.85%	―
5906	70 Neutral	8.16B	7.77	8.00%	1.43%	-6.74%	-1.02%
6927	63 Neutral	16.08B	71.55	4.52%	3.95%	-34.28%	-90.06%
6898	58 Neutral	1.92B	92.56	0.00%	―	1.98%	0.00%
6694	55 Neutral	2.73B	-24.30	0.57%	4.84%	0.11%	33.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%