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NIHON DENGI CO., LTD. (1723) AI Stock Analysis

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JP:1723

NIHON DENGI CO., LTD.

(TSE/TYO:1723)

Select Model
Rating:73.5Outperform
Price Target:JPY 2,244.00â–²(12.76% Upside)
Action:reiterated
Date:10/16/26

The score is driven primarily by strong financial performance (expanding margins, solid profitability, and very low leverage). This is tempered by weak technical conditions (price below major moving averages with negative MACD and low RSI/Stoch), while valuation is supportive but not exceptionally cheap.

Positive Factors
Expanding ProfitabilityMeaningful margin expansion indicates that recent earnings growth is supported by stronger operating economics, not merely higher sales. If retained, improved gross and net margins can strengthen internal funding, increase resilience, and support durable profitability over the next several quarters.
Negative Factors
Incomplete Cash ConversionCash conversion below reported earnings indicates that working-capital or project-timing effects can delay the realization of accounting profits. Although the ratio has improved substantially, persistent undercoverage may create cash-flow volatility and constrain flexibility during periods of heavier project funding needs.

NIHON DENGI CO., LTD. (1723) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:1723+31.23%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 126.83B
Dividend Yield
2.25%
Average Volume (3M)
423.09K
Price to Earnings (P/E)
14.4
Beta (1Y)
1.40
Revenue Growth
3.80%
EPS Growth
29.90%
Country
Japan
Employees
989
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

NIHON DENGI CO., LTD. Business Overview & Revenue Model

Company Description

Established in 1959 and headquartered in Tokyo, Japan, Nihon Dengi Co., Ltd. specializes in providing automatic control systems throughout the country. The company's activities are organized into two primary divisions. The Air Conditioning Instrument...

How the Company Makes Money

The company primarily makes money by earning contract revenue from undertaking electrical construction and related engineering/installation projects. Revenue is generated when NIHON DENGI is awarded jobs (typically via bids or negotiated contracts) t...

NIHON DENGI CO., LTD. Financial Statement Overview

Summary

Financials are strong: rising revenue and sharply expanding profitability through 2026, with a very conservative balance sheet (minimal debt) and improving ROE. The main watch item is cash conversion—operating cash flow remains below net income, which can add volatility despite improvement.

Income Statement

90Very Positive

Balance Sheet

93Very Positive

Cash Flow

84Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue44.93B46.37B43.06B38.89B34.31B31.67B
Gross Profit19.65B21.56B18.27B14.19B11.28B10.40B
EBITDA10.11B12.60B9.59B6.72B5.00B4.79B
Net Income6.78B8.44B6.41B4.67B3.17B3.03B
Balance Sheet
Total Assets48.55B61.10B53.57B46.63B43.59B38.90B
Cash, Cash Equivalents and Short-Term Investments14.00B19.92B15.54B11.83B11.48B11.55B
Total Debt752.00M482.00M644.00M755.00M425.00M382.00M
Total Liabilities8.81B14.24B14.07B12.16B12.51B10.03B
Stockholders Equity39.74B46.86B39.49B34.46B31.08B28.86B
Cash Flow
Free Cash Flow08.57B8.01B4.17B3.44B1.26B
Operating Cash Flow011.04B8.13B4.27B3.52B1.36B
Investing Cash Flow0-5.82B-4.28B-2.12B-2.20B-1.44B
Financing Cash Flow0-2.38B-1.64B-2.11B-989.00M-1.07B

NIHON DENGI CO., LTD. Technical Analysis

Technical Analysis SentimentNegative
Last Price1990.00

Price Trends

50DMA2254.97Negative
100DMA2244.24Negative
200DMA2368.20Negative

Market Momentum

MACD-68.93Positive
RSI39.05Neutral
STOCH57.89Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1723, the sentiment is Negative. The current price of 1990.00 is below the 20-day moving average (MA) of 2127.00, below the 50-day MA of 2254.97, and below the 200-day MA of 2368.20, indicating a bearish trend. The MACD of -68.93 indicates Positive momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 57.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1723.

NIHON DENGI CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:1723 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6866JP:686678OutperformJPY 120.91B15.44―2.48%16.76%35.84%
JP:1723JP:172374OutperformJPY 130.13B14.39―2.25%3.80%29.90%
JP:6850JP:685072OutperformJPY 30.96B14.32―2.86%1.92%9.05%
JP:7745JP:774572OutperformJPY 80.05B14.40―2.05%2.11%-19.76%
JP:6874JP:687469NeutralJPY 19.05B9.53―3.96%-3.24%-10.28%
JP:6858JP:685866NeutralJPY 8.30B9.75―3.65%15.62%50.30%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

0%50%100%JP:1723JP:6850JP:6858JP:6866JP:6874JP:7745Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:1723 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1723NIHON DENGI CO., LTD.1990.00645.3247.99%
JP:6850Chino Corporation1746.00404.1430.12%
JP:6858Ono Sokki Co., Ltd.740.00167.7229.31%
JP:6866Hioki E.E.Corporation8860.003080.7153.31%
JP:6874Kyoritsu Electric Corporation2270.00-183.41-7.48%
JP:7745A&D HOLON Holdings Company. Limited2923.00939.4347.36%

NIHON DENGI CO., LTD. Corporate Events

Nihon Dengi Sets Terms for Multibillion-Yen Secondary Share Offering

Oct 6, 2026

Nihon Dengi Co., Ltd. has set the terms for a secondary offering of its common stock, confirming a selling price of 2,174 yen per share and an aggregate selling price of approximately 8.38 billion yen for the main tranche. Underwriters will purchase...

Nihon Dengi Posts Strong Q1 Profit Growth and Confirms Figures Ahead of Secondary Offering

Sep 28, 2026

Nihon Dengi Co., Ltd. reported consolidated net sales of ¥8.7 billion for the three months ended June 30, 2026, a 3.2% year-on-year increase, with operating profit up 39.4% to ¥1.8 billion and profit attributable to owners of parent rising...

Nihon Dengi Plans Large Secondary Share Offering to Boost Liquidity

Sep 28, 2026

Nihon Dengi Co., Ltd. has approved a secondary offering of 3,852,600 existing common shares, to be sold by major shareholders including Mizuho Bank, Sumitomo Mitsui Banking Corporation, President Ryosuke Shimada, other individuals, and a corporate ho...

Nihon Dengi Sets 2030 Target to Cut Strategic Shareholdings and Boost Capital Efficiency

Jul 24, 2026

Nihon Dengi Co., Ltd., a construction and engineering firm listed on the Tokyo Stock Exchange Standard Market, reviews its strategic shareholdings annually to balance business ties with financial risk and return. The company places emphasis on mainta...

Nihon Dengi Boosts Margins and Profits on Strong Q1 Construction Demand

Jul 24, 2026

Nihon Dengi Co., Ltd. reported that first-quarter fiscal 2027 net sales rose 3.2% year on year to 8.7 billion yen, driven by growth in both air conditioning instrumentation-related and industrial systems-related businesses. The company’s gross...

Nihon Dengi posts strong Q1 profit growth and hikes dividend outlook

Jul 24, 2026

Nihon Dengi reported consolidated net sales of ¥8.7 billion for the three months ended June 30, 2026, a 3.2% year-on-year increase, with operating profit jumping 39.4% to ¥1.76 billion and profit attributable to owners of the parent rising...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 16, 2026