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NIHON DENGI CO., LTD. (JP:1723)
:1723
Japanese Market
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NIHON DENGI CO., LTD. (1723) AI Stock Analysis

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JP:1723

NIHON DENGI CO., LTD.

(1723)

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Outperform 72 (OpenAI - Gpt-5.6Sol)
Rating:72Outperform
Price Target:
¥2,601.00
▼(-48.29% Downside)
Action:Reiterated
Date:07/30/26
The score is primarily supported by very strong financial performance—expanding margins, improving profitability, and an exceptionally low-leverage balance sheet—offset by weak technicals with the stock trading below major moving averages. Valuation is reasonable and the dividend provides modest support but is not a major driver.
Positive Factors
Expanding profitability
Substantial margin expansion indicates stronger project economics and operating leverage. If maintained, higher profitability can improve resilience against cost pressure and support internally funded growth across the electrical construction business.
Negative Factors
Incomplete cash conversion
Cash conversion below accounting earnings suggests working-capital or project-timing effects remain material. Persistent gaps could limit the funds available for investment and create greater liquidity variability despite otherwise solid reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanding profitability
Substantial margin expansion indicates stronger project economics and operating leverage. If maintained, higher profitability can improve resilience against cost pressure and support internally funded growth across the electrical construction business.
Read all positive factors

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

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 Instrum...
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...

NIHON DENGI CO., LTD. Financial Statement Overview

Summary
Strong profitability and improving margins with consistent revenue growth from 2023–2026. Balance sheet is exceptionally conservative with minimal leverage and improving ROE (~18% in 2026). Cash flow is solid and rising, but cash conversion remains a watch item as operating cash flow is still below net income (coverage ~0.84 in 2026).
Income Statement
90
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
84
Very Positive
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 Flow0.008.57B8.01B4.17B3.44B1.26B
Operating Cash Flow0.0011.04B8.13B4.27B3.52B1.36B
Investing Cash Flow0.00-5.82B-4.28B-2.12B-2.20B-1.44B
Financing Cash Flow0.00-2.38B-1.64B-2.11B-989.00M-1.07B

NIHON DENGI CO., LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5030.00
Price Trends
50DMA
2238.76
Positive
100DMA
2314.19
Positive
200DMA
2264.01
Positive
Market Momentum
MACD
7.92
Negative
RSI
58.20
Neutral
STOCH
93.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1723, the sentiment is Positive. The current price of 5030 is above the 20-day moving average (MA) of 2178.30, above the 50-day MA of 2238.76, and above the 200-day MA of 2264.01, indicating a bullish trend. The MACD of 7.92 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1723.

NIHON DENGI CO., LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥147.25B20.223.23%12.39%22.44%
76
Outperform
¥30.28B13.962.89%1.92%9.05%
72
Outperform
¥153.93B16.951.83%3.80%29.90%
72
Outperform
¥79.53B14.241.90%2.11%-19.76%
69
Neutral
¥9.26B9.852.45%14.65%88.54%
69
Neutral
¥19.92B9.902.84%-3.24%-10.30%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1723
NIHON DENGI CO., LTD.
2,343.00
1,075.42
84.84%
JP:6850
Chino Corporation
1,702.00
467.93
37.92%
JP:6858
Ono Sokki Co., Ltd.
822.00
271.92
49.43%
JP:6866
Hioki E.E.Corporation
10,720.00
4,823.76
81.81%
JP:6874
Kyoritsu Electric Corporation
2,360.00
-106.94
-4.34%
JP:7745
A&D HOLON Holdings Company. Limited
2,892.00
955.21
49.32%

NIHON DENGI CO., LTD. Corporate Events

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 mai...
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 gro...
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 risi...
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: Jul 30, 2026