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Denyo Co., Ltd. (6517) AI Stock Analysis

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JP:6517

Denyo Co., Ltd.

(TSE/TYO:6517)

Select Model
Rating:71Outperform
Price Target:JPY 4,089.00â–²(19.04% Upside)
Action:reiterated
Date:11/04/26

The score is primarily supported by strong financial fundamentals (especially the low-leverage balance sheet and improving margins) and favorable valuation (low P/E with a solid dividend yield). These positives are partially offset by weak technical momentum, with the stock trading below key moving averages and a negative MACD despite near-oversold readings.

Positive Factors
Conservative balance sheetVery low leverage gives Denyo substantial financial flexibility and downside protection through construction and industrial cycles. A modest debt burden should also reduce financing pressure, preserve capacity for investment, and support resilience if customer capital spending weakens.
Negative Factors
Volatile cash conversionCash generation is positive but less dependable than reported earnings, with meaningful year-to-year swings in free cash flow and operating cash conversion. This variability can complicate reinvestment and shareholder-return planning, and may reduce flexibility during weaker demand periods.

Denyo Co., Ltd. (6517) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:6517+25.93%EWJ+10.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 69.15B
Dividend Yield
4.08%
Average Volume (3M)
59.84K
Price to Earnings (P/E)
10.2
Beta (1Y)
0.95
Revenue Growth
9.99%
EPS Growth
41.83%
Country
Japan
Employees
1,362
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Denyo Co., Ltd. Business Overview & Revenue Model

Company Description

Denyo Co., Ltd., along with its subsidiary companies, specializes in the design, production, and worldwide distribution of engine-powered equipment. Their primary offerings include a diverse range of generators, welding apparatus, and air compressors...

How the Company Makes Money

Denyo makes money primarily by selling its equipment—most notably engine-driven generators, welders, and air compressors—into end markets such as construction and infrastructure worksites, industrial facilities, and emergency/disaster-response use ca...

Denyo Co., Ltd. Financial Statement Overview

Summary

Strong overall financial profile driven by an exceptionally conservative balance sheet (very low leverage) and improving profitability (gross and operating margins trending higher). The main offset is cash-flow quality: free cash flow and operating cash flow have been volatile versus earnings despite a strong rebound in 2026.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

66Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue74.94B72.24B70.75B73.14B64.31B55.17B
Gross Profit18.62B17.94B17.32B15.86B13.30B11.41B
EBITDA10.25B9.67B8.79B8.32B6.14B5.02B
Net Income6.83B5.64B5.65B5.10B3.63B2.75B
Balance Sheet
Total Assets106.03B104.54B103.10B100.54B89.74B80.77B
Cash, Cash Equivalents and Short-Term Investments23.25B22.13B24.50B24.04B22.33B23.36B
Total Debt3.10B3.16B4.49B4.14B3.67B1.35B
Total Liabilities19.38B19.21B22.44B24.70B21.08B17.01B
Stockholders Equity83.12B81.83B77.28B72.82B65.89B61.41B
Cash Flow
Free Cash Flow03.52B1.53B2.52B-2.03B1.90B
Operating Cash Flow04.47B7.32B4.18B2.03B2.69B
Investing Cash Flow0-2.38B-5.55B-1.83B-4.12B-819.00M
Financing Cash Flow0-4.32B-1.79B-819.00M937.00M-1.64B

Denyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price3435.00

Price Trends

50DMA3907.95Negative
100DMA3809.39Negative
200DMA3674.97Negative

Market Momentum

MACD-97.80Positive
RSI23.52Positive
STOCH21.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6517, the sentiment is Negative. The current price of 3435.00 is below the 20-day moving average (MA) of 3818.75, below the 50-day MA of 3907.95, and below the 200-day MA of 3674.97, indicating a bearish trend. The MACD of -97.80 indicates Positive momentum. The RSI at 23.52 is Positive, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6517.

Denyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6517 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6381JP:638183OutperformJPY 64.15B11.34―5.28%6.49%36.18%
JP:6016JP:601674OutperformJPY 83.95B17.50―0.98%-2.20%16.26%
JP:6137JP:613774OutperformJPY 31.20B8.57―3.57%1.97%6.87%
JP:6459JP:645972OutperformJPY 79.89B15.527.06%3.83%0.19%-6.40%
JP:6517JP:651771OutperformJPY 68.24B10.23―4.08%9.99%41.83%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6151JP:615154NeutralJPY 27.47B9.90―2.45%2.42%406.25%

* General Sector Average

Performance Comparison

-20%0%20%40%JP:6517JP:6459JP:6016JP:6137JP:6151JP:6381Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6517 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6517Denyo Co., Ltd.3435.00654.2123.53%
JP:6459DAIWA INDUSTRIES1565.0048.883.22%
JP:6016Japan Engine Corp10000.00-1760.73-14.97%
JP:6137Koike Sanso Kogyo Co., Ltd.1402.00-140.57-9.11%
JP:6151Nitto Kohki Co., Ltd.1468.00-261.81-15.14%
JP:6381ANEST IWATA Corp.1612.00182.4312.76%

Denyo Co., Ltd. Corporate Events

Denyo Repurchases 61,800 Shares in October

Nov 2, 2026

Denyo Co., Ltd., listed on the Tokyo Stock Exchange, reported the repurchase of 61,800 common shares during October 2026 for a total cost of ¥242.6 million. The purchases were conducted through market transactions on the Tokyo Stock Exchange und...

Denyo Advances Share Buyback, Repurchasing 23,000 Shares in September

Oct 1, 2026

Denyo Co., Ltd. reported that it repurchased 23,000 shares of its common stock on the Tokyo Stock Exchange between September 1 and September 30, 2026, at a total cost of ¥91.7 million. The buyback is being executed under the authority granted by...

Denyo Advances Share Buyback, Repurchases 169,500 Shares Under Ongoing Program

Sep 1, 2026

Denyo Co., Ltd. has reported the latest status of its ongoing share buyback program, conducted under provisions of Japan’s Companies Act and the company’s articles of incorporation. Between August 1 and August 31, 2026, the company repurc...

Denyo lifts interim profit forecast on extraordinary income from securities sale

Aug 6, 2026

Denyo Co., Ltd. has revised its consolidated forecast for the first half of the fiscal year ending March 31, 2027, while leaving net sales and operating and ordinary profit projections unchanged. The Tokyo-listed equipment maker now expects higher in...

Denyo Delivers Profit Rebound and Plans Higher Dividends for FY2027

Aug 6, 2026

Denyo Co., Ltd. reported a strong recovery in earnings for the three months ended June 30, 2026, with net sales rising 19.2% year-on-year to ¥16.8 billion and operating profit surging 89.5%. Profit attributable to owners of parent jumped 245.3%...

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: Nov 04, 2026