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

• Market Cap: ¥7.40B
• Dividend Yield: 3.33%
• Average Volume (3M): 2.65K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.23
• Revenue Growth: -0.51%
• EPS Growth: 420.31%
• Country: JP
• Employees: 524
• Sector: Technology
• Sector Strength: 89
• Industry: Consumer Electronics
• EPS (TTM): 17.99
• Shares Outstanding: 6,665,021
• 10 Day Avg. Volume: 3,420
• 30 Day Avg. Volume: 2,650
• PEG Ratio: 0.00
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.30
• 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: 9.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,317.00 ▲(9.48%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 Japan-based company primarily engaged in the wholesale business. The company operates through various segments, including the electrical materials segment, which provides electrical equipment and materials. Denkyo Group Holdings specializes in the distribution of electrical components and systems, serving a diverse range of industries including construction, manufacturing, and infrastructure development. The company is committed to delivering high-quality products and innovative solutions to meet the evolving needs of its clients.

How the Company Makes Money

Denkyo Group Holdings Co., Ltd generates revenue primarily through the distribution and sale of electrical materials and equipment. The company's key revenue streams are derived from its wholesale operations, where it sources electrical components and systems from manufacturers and supplies them to businesses across various sectors. Denkyo leverages its extensive distribution network to reach a broad customer base, ensuring efficient delivery and service. Additionally, the company's earnings are supported by strategic partnerships with leading manufacturers, allowing it to offer a wide array of products and maintain competitive pricing. The company's focus on innovation and quality further enhances its market position, contributing to consistent revenue generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.10B	54.33B	54.60B	52.80B	53.75B	57.36B
Gross Profit	9.77B	10.15B	9.92B	8.69B	9.05B	10.75B
EBITDA	503.50M	1.05B	732.00M	58.00M	863.00M	1.47B
Net Income	-119.00M	420.00M	84.00M	120.00M	613.00M	1.28B
Balance Sheet
Total Assets	39.69B	35.73B	39.70B	37.89B	36.35B	36.68B
Cash, Cash Equivalents and Short-Term Investments	4.85B	5.22B	8.01B	7.78B	6.84B	7.66B
Total Debt	2.76B	1.36B	5.09B	4.10B	2.62B	2.12B
Total Liabilities	13.09B	9.31B	13.01B	11.55B	9.99B	9.88B
Stockholders Equity	26.60B	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: 1203.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1203 is above the 20-day moving average (MA) of 1191.00, above the 50-day MA of 1181.44, and above the 200-day MA of 1158.35, indicating a bullish trend. The MACD of 6.67 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 86.02 is Negative, 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	80 Outperform	¥34.80B	8.89		5.12%	12.38%	68.86%
8144	71 Outperform	¥7.40B	17.31		3.33%	-0.51%	420.31%
5906	71 Outperform	¥7.26B	5.42		1.61%	-0.72%	86.46%
6927	66 Neutral	¥15.00B	20.58		4.23%	-9.21%	-68.22%
Sector *	63 Neutral	$34.08B	6.06	-11.85%	1.82%	5.31%	-18.34%
6694	60 Neutral	¥2.91B	72.82		4.53%	-1.04%	-163.70%
6898	58 Neutral	¥1.98B	―		―	-4.72%	-400.98%