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

• Market Cap: ¥24.46B
• Dividend Yield: 4.19%
• Average Volume (3M): 9.71K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.50
• Revenue Growth: 14.39%
• EPS Growth: -4.41%
• Country: JP
• Employees: 1,166
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 3.10
• Shares Outstanding: 11,818,507
• 10 Day Avg. Volume: 9,670
• 30 Day Avg. Volume: 9,710
• 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: ¥2,299.00
• Price Target Upside: 10.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥2,299.00 ▲(10.64% Upside)

Nihon Denkei Co., Ltd. scores well due to strong financial performance and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, the technical analysis indicates neutral momentum, which slightly tempers the overall score. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

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

Competitive Advantage

Partnerships enhance product offerings and pricing competitiveness, strengthening market position and driving sustained revenue streams.

Operational Efficiency

Strong margins reflect effective cost management and operational efficiency, contributing to stable profitability and financial health.

Negative Factors

Cash Flow Challenges

Negative cash flow growth indicates potential liquidity issues, which could impact the company's ability to invest in growth opportunities and meet financial obligations.

Debt Levels

Rising debt levels could strain financial resources and increase risk, potentially affecting the company's long-term financial stability and flexibility.

Earnings Growth

Negative EPS growth suggests challenges in profitability, which may hinder the company's ability to deliver shareholder value and fund future expansions.

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

Company Description

Nihon Denkei Co., Ltd. is a Japan-based company primarily engaged in the distribution and sale of electronic measuring instruments. The company operates in various sectors including telecommunications, automotive, medical, and industrial, catering to a wide range of industries with its diverse portfolio of high-quality electronic testing and measurement devices. Nihon Denkei is committed to providing innovative solutions and exceptional customer service to meet the evolving needs of its clients.

How the Company Makes Money

Nihon Denkei Co., Ltd. generates revenue through the sale and distribution of electronic measuring instruments. The company's key revenue streams include direct sales to businesses across different industries such as telecommunications, automotive, and healthcare. It also earns income from providing after-sales support and maintenance services, ensuring long-term customer satisfaction and repeat business. Strategic partnerships with leading manufacturers and suppliers of electronic measurement tools contribute significantly to its earnings by enabling Nihon Denkei to offer a wide range of products and maintain competitive pricing. Additionally, the company may engage in collaborative research and development projects, enhancing its product offerings and market presence.

Nihon Denkei Co., Ltd. Financial Statement Overview

Summary

Nihon Denkei Co., Ltd. demonstrates strong financial performance with consistent revenue and profit growth, effective cost management, and a solid balance sheet. However, challenges in cash flow management suggest a need for improved liquidity strategies.

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	121.24B	121.24B	108.54B	104.78B	91.86B	82.67B
Gross Profit	16.93B	16.93B	15.47B	13.79B	11.45B	9.69B
EBITDA	5.54B	5.54B	5.57B	4.71B	3.95B	2.59B
Net Income	2.97B	2.97B	2.95B	2.91B	2.25B	1.47B
Balance Sheet
Total Assets	74.16B	74.16B	66.06B	64.11B	56.64B	50.96B
Cash, Cash Equivalents and Short-Term Investments	10.26B	10.26B	7.90B	8.43B	8.17B	7.28B
Total Debt	15.22B	15.22B	12.51B	14.63B	11.95B	9.43B
Total Liabilities	43.46B	43.46B	37.86B	38.11B	32.85B	29.31B
Stockholders Equity	29.89B	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: 2078.00
• 50DMA: Negative
• 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:9908, the sentiment is Positive. The current price of 2078 is above the 20-day moving average (MA) of 2068.95, below the 50-day MA of 2088.56, and above the 200-day MA of 1933.91, indicating a neutral trend. The MACD of -0.84 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 26.25 is Neutral, 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
9991	80 Outperform	¥48.24B	9.91		3.38%	-9.58%	13.22%
9619	75 Outperform	¥46.66B	6.85		3.32%	7.39%	-46.08%
9908	74 Outperform	¥24.46B	8.90		4.19%	14.39%	-4.41%
8439	74 Outperform	¥949.41B	11.19		3.21%	2.26%	9.98%
9763	71 Outperform	¥11.68B	8.89		3.71%	9.16%	6.01%
8424	70 Outperform	¥406.61B	8.33		6.73%	-3.25%	1.65%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%