Nihon Denkei Co., Ltd. (9908) AI Stock Analysis

• Market Cap: ¥23.95B
• Dividend Yield: 4.28%
• Average Volume (3M): 7.16K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.48
• Revenue Growth: 13.63%
• EPS Growth: 17.47%
• Country: JP
• Employees: 1,166
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 63.07
• Shares Outstanding: 11,818,507
• 10 Day Avg. Volume: 4,600
• 30 Day Avg. Volume: 7,163
• PEG Ratio: 3.34
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -635.10
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,290.00 ▲(10.57% Upside)

Nihon Denkei Co., Ltd. scores well due to its strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, technical analysis indicates some bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Strategic Partnerships

Strategic partnerships enhance market reach and product development capabilities, providing a competitive edge and fostering innovation.

Operational Efficiency

Strong operational efficiency with robust margins reflects effective cost management, contributing to sustained profitability and business resilience.

Negative Factors

Cash Flow Challenges

Cash flow challenges may hinder the ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Debt Levels

Rising debt levels could strain financial resources and limit flexibility, posing risks to the company's ability to navigate economic fluctuations.

EPS Decline

Declining EPS suggests potential profitability challenges, which may affect investor confidence and the company's ability to reinvest in growth.

Nihon Denkei Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Denkei Co., Ltd. (9908) is a prominent Japanese company that specializes in the manufacturing and sales of electronic components and systems. The company operates primarily in the telecommunications and electronics sectors, providing a wide range of products including resistors, capacitors, and inductors. Nihon Denkei focuses on high-quality and innovative solutions to meet the needs of various industries, including automotive, consumer electronics, and industrial automation.

How the Company Makes Money

Nihon Denkei generates revenue through the production and sale of its electronic components and systems. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and distributors, as well as contracts with large enterprises in need of customized electronic solutions. The company benefits from strategic partnerships with major technology firms and automotive manufacturers, which enhance its market reach and product development capabilities. Additionally, Nihon Denkei invests in research and development to innovate new products, thereby creating additional revenue opportunities through advanced technology offerings in the rapidly evolving electronics market.

Nihon Denkei Co., Ltd. Financial Statement Overview

Summary

Nihon Denkei Co., Ltd. exhibits strong financial health with consistent revenue and profit growth, supported by efficient operational performance and a solid balance sheet. However, cash flow management poses some challenges, requiring attention to improve liquidity and ensure sustainable growth.

Income Statement

Nihon Denkei Co., Ltd. demonstrates strong income statement performance with consistent revenue growth, indicated by a revenue growth rate of 11.70% from 2024 to 2025. The company maintains a healthy gross profit margin of 13.97% in 2025, slightly improved from the previous year. Net profit margin remains stable at 2.45%, showcasing reliable profitability. EBIT and EBITDA margins are robust at 3.91% and 4.57%, respectively, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet exhibits strong equity support with a debt-to-equity ratio of 0.51 in 2025, indicating moderate leverage. Return on equity is healthy at 9.95%, demonstrating effective use of shareholder funds. The equity ratio of 40.30% reflects a stable capital structure. However, total debt levels have increased, which could pose potential risks if not managed carefully.

Cash Flow

Cash flow performance shows some challenges, with a decline in operating cash flow and negative free cash flow growth. The free cash flow to net income ratio is negative, indicating insufficient cash generation to cover net income. However, the operating cash flow to net income ratio is slightly positive, suggesting operational activities still contribute to cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.65B	121.24B	108.54B	104.78B	91.86B	82.67B
Gross Profit	17.14B	16.93B	15.47B	13.79B	11.45B	9.69B
EBITDA	5.18B	5.54B	5.57B	4.71B	3.95B	2.59B
Net Income	2.63B	2.97B	2.95B	2.91B	2.25B	1.47B
Balance Sheet
Total Assets	63.51B	74.16B	66.06B	64.11B	56.64B	50.96B
Cash, Cash Equivalents and Short-Term Investments	6.61B	10.26B	7.90B	8.43B	8.17B	7.28B
Total Debt	16.63B	15.22B	12.51B	14.63B	11.95B	9.43B
Total Liabilities	33.85B	43.46B	37.86B	38.11B	32.85B	29.31B
Stockholders Equity	28.88B	29.89B	27.41B	25.23B	23.04B	20.83B
Cash Flow
Free Cash Flow	0.00	-32.90M	3.13B	-1.54B	-1.07B	4.06B
Operating Cash Flow	0.00	251.24M	3.60B	-96.77M	-539.21M	4.57B
Investing Cash Flow	0.00	309.92M	-764.62M	-1.24B	-280.79M	-311.41M
Financing Cash Flow	0.00	1.51B	-3.54B	1.45B	1.47B	-2.24B

Nihon Denkei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2071.00
• 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:9908, the sentiment is Positive. The current price of 2071 is above the 20-day moving average (MA) of 2048.65, above the 50-day MA of 2049.57, and above the 200-day MA of 1969.26, indicating a bullish trend. The MACD of 5.63 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 89.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9908.

Nihon Denkei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9763	81 Outperform	¥12.40B	8.03	―	3.83%	6.66%	13.62%
9619	78 Outperform	¥49.24B	6.93	―	3.63%	3.70%	-43.85%
9991	77 Outperform	¥46.72B	8.40	―	3.83%	-6.09%	31.18%
9908	75 Outperform	¥23.95B	8.82	―	4.28%	13.63%	17.47%
8439	72 Outperform	¥946.96B	6.97	―	3.62%	5.24%	69.92%
8424	64 Neutral	¥367.30B	7.53	―	3.79%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%