Want to see JP:1723 full AI Analyst Report?
Top Page
NIHON DENGI CO., LTD.
(1723)
Select Model
Select Model
Rating:71Outperform
Price Target:
¥2,434.00
▼(-51.61% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by strong financial performance (expanding margins and an exceptionally conservative balance sheet). This is offset by weak technical positioning with the stock trading below key moving averages and low RSI. Valuation is supportive with a reasonable P/E and a ~2% dividend yield.
Positive Factors
Expanding Profit Margins
The sharp, multi-year expansion in gross and net margins indicates stronger profitability and operating leverage in the core business. If maintained, this gives NIHON DENGI more internal resources to fund projects, withstand cost pressure, and compound earnings over the next several quarters.
Negative Factors
Operating Cash Flow Below Net Income
Operating cash flow still trailing net income means reported profits are not converting fully into cash on a sustained basis. Working-capital or project-timing effects may create volatility, potentially limiting the cash available for reinvestment, debt-free expansion, or shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanding Profit Margins
The sharp, multi-year expansion in gross and net margins indicates stronger profitability and operating leverage in the core business. If maintained, this gives NIHON DENGI more internal resources to fund projects, withstand cost pressure, and compound earnings over the next several quarters.
Read all positive factors
NIHON DENGI CO., LTD. (1723) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥144.06B
Dividend Yield2.04%
Average Volume (3M)214.26K
Price to Earnings (P/E)16.0
Beta (1Y)1.30
Revenue Growth3.80%
EPS Growth29.90%
CountryJP
Employees989
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)106.41
Shares Outstanding65,580,000
10 Day Avg. Volume190,880
30 Day Avg. Volume214,256
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)3.01
Price to Sales (P/S)3.04
P/FCF Ratio16.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)141.2
Revenue Forecast (FY)¥50.00B
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
Income Statement
90
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.93B | 46.37B | 43.06B | 38.89B | 34.31B | 31.67B |
| Gross Profit | 19.65B | 21.56B | 18.27B | 14.19B | 11.28B | 10.40B |
| EBITDA | 10.11B | 12.60B | 9.59B | 6.72B | 5.00B | 4.79B |
| Net Income | 6.78B | 8.44B | 6.41B | 4.67B | 3.17B | 3.03B |
Balance Sheet | ||||||
| Total Assets | 48.55B | 61.10B | 53.57B | 46.63B | 43.59B | 38.90B |
| Cash, Cash Equivalents and Short-Term Investments | 14.00B | 19.92B | 15.54B | 11.83B | 11.48B | 11.55B |
| Total Debt | 752.00M | 482.00M | 644.00M | 755.00M | 425.00M | 382.00M |
| Total Liabilities | 8.81B | 14.24B | 14.07B | 12.16B | 12.51B | 10.03B |
| Stockholders Equity | 39.74B | 46.86B | 39.49B | 34.46B | 31.08B | 28.86B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 8.57B | 8.01B | 4.17B | 3.44B | 1.26B |
| Operating Cash Flow | 0.00 | 11.04B | 8.13B | 4.27B | 3.52B | 1.36B |
| Investing Cash Flow | 0.00 | -5.82B | -4.28B | -2.12B | -2.20B | -1.44B |
| Financing Cash Flow | 0.00 | -2.38B | -1.64B | -2.11B | -989.00M | -1.07B |
NIHON DENGI CO., LTD. Technical Analysis
Negative
5030.00
Price Trends
2276.79
Negative
2295.98
Negative
2334.35
Negative
Market Momentum
30.45
Positive
38.22
Neutral
15.49
Positive
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 5030 is above the 20-day moving average (MA) of 2433.61, above the 50-day MA of 2276.79, and above the 200-day MA of 2334.35, indicating a bearish trend. The MACD of 30.45 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥144.11B | 19.93 | ― | 2.08% | 12.39% | 22.44% | |
74 Outperform | ¥30.94B | 14.73 | ― | 2.81% | 1.92% | 9.05% | |
72 Outperform | ¥80.87B | 14.61 | ― | 2.02% | 2.11% | -19.76% | |
71 Outperform | ¥144.06B | 15.99 | ― | 2.04% | 3.80% | 29.90% | |
69 Neutral | ¥9.55B | 10.25 | ― | 3.13% | 14.65% | 88.54% | |
69 Neutral | ¥19.73B | 9.91 | ― | 3.81% | -3.24% | -10.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:1723
NIHON DENGI CO., LTD.
2,189.00
944.92
75.95%
JP:6850
Chino Corporation
1,780.00
570.97
47.23%
JP:6858
Ono Sokki Co., Ltd.
864.00
306.20
54.89%
JP:6866
Hioki E.E.Corporation
10,600.00
4,684.27
79.18%
JP:6874
Kyoritsu Electric Corporation
2,361.00
-18.98
-0.80%
JP:7745
A&D HOLON Holdings Company. Limited
2,974.00
984.56
49.49%
NIHON DENGI CO., LTD. Corporate Events
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 risi...
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...
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.