Denyo Co., Ltd. (JP:6517)
:6517
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Denyo Co., Ltd.
(6517)
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Rating:80Outperform
Price Target:
¥3,916.00
▲(9.23% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial fundamentals—especially an exceptionally conservative balance sheet and improving margins—supported by bullish technical trends (price above key moving averages, positive momentum). Valuation is also supportive with a modest P/E and a moderate dividend yield, while the main offset is cash-flow consistency given prior volatility.
Positive Factors
Conservative Balance Sheet
Extremely low leverage provides durable financial flexibility and downside protection. With minimal debt the company can fund capex or weather demand cycles without heavy refinancing risk, supporting long-term investment, dividend stability, and strategic optionality.
Negative Factors
Volatile Cash Conversion
Free cash flow has swung materially year-to-year, indicating inconsistent cash conversion despite profit improvements. This variability can constrain reliable reinvestment, dividends, or acquisitions and elevates execution risk during industry downturns or capex cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage provides durable financial flexibility and downside protection. With minimal debt the company can fund capex or weather demand cycles without heavy refinancing risk, supporting long-term investment, dividend stability, and strategic optionality.
Read all positive factors
Denyo Co., Ltd. (6517) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥69.54B
Dividend Yield2.63%
Average Volume (3M)18.77K
Price to Earnings (P/E)12.9
Beta (1Y)0.81
Revenue Growth2.11%
EPS Growth0.91%
CountryJP
Employees1,408
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)236.67
Shares Outstanding21,859,660
10 Day Avg. Volume14,740
30 Day Avg. Volume18,766
Financial Highlights & Ratios
PEG Ratio13.70
Price to Book (P/B)0.86
Price to Sales (P/S)0.97
P/FCF Ratio19.86
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)280.1
Revenue Forecast (FY)¥74.50B
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 compress...
How the Company Makes Money
Denyo makes money primarily by selling equipment—most notably engine-driven generators and engine-driven air compressors—used as temporary or mobile infrastructure at worksites and in emergency or backup-power situations. Revenue is recognized mai...
Denyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 68.13B | 72.24B | 70.75B | 73.14B | 64.31B | 55.17B |
| Gross Profit | 16.94B | 17.94B | 17.32B | 15.86B | 13.30B | 11.41B |
| EBITDA | 7.85B | 9.67B | 8.79B | 8.32B | 6.14B | 5.02B |
| Net Income | 4.87B | 5.64B | 5.65B | 5.10B | 3.63B | 2.75B |
Balance Sheet | ||||||
| Total Assets | 100.54B | 104.54B | 103.10B | 100.54B | 89.74B | 80.77B |
| Cash, Cash Equivalents and Short-Term Investments | 25.45B | 22.13B | 24.50B | 24.04B | 22.33B | 23.36B |
| Total Debt | 4.35B | 3.16B | 4.49B | 4.14B | 3.67B | 1.35B |
| Total Liabilities | 21.07B | 19.21B | 22.44B | 24.70B | 21.08B | 17.01B |
| Stockholders Equity | 76.26B | 81.83B | 77.28B | 72.82B | 65.89B | 61.41B |
Cash Flow | ||||||
| Free Cash Flow | 1.71B | 3.52B | 1.53B | 2.52B | -2.03B | 1.90B |
| Operating Cash Flow | 5.15B | 4.47B | 7.32B | 4.18B | 2.03B | 2.69B |
| Investing Cash Flow | -3.13B | -2.38B | -5.55B | -1.83B | -4.12B | -819.00M |
| Financing Cash Flow | -1.85B | -4.32B | -1.79B | -819.00M | 937.00M | -1.64B |
Denyo Co., Ltd. Technical Analysis
Positive
3585.00
Price Trends
3587.71
Negative
3615.41
Negative
3302.17
Positive
Market Momentum
-27.46
Positive
47.73
Neutral
64.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6517, the sentiment is Positive. The current price of 3585 is below the 20-day moving average (MA) of 3665.00, below the 50-day MA of 3587.71, and above the 200-day MA of 3302.17, indicating a neutral trend. The MACD of -27.46 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 64.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6517.
Denyo Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥64.03B | 11.83 | ― | 3.95% | 2.75% | 25.75% | |
80 Outperform | ¥69.54B | 12.92 | ― | 2.63% | 2.11% | 0.91% | |
78 Outperform | ¥85.10B | 16.20 | 7.34% | 3.69% | -0.50% | -6.61% | |
74 Outperform | ¥32.60B | 8.87 | ― | 2.78% | 0.66% | -4.90% | |
66 Neutral | ¥29.72B | 13.90 | ― | 2.13% | 0.12% | 59.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥65.90B | 13.95 | ― | 0.55% | 2.93% | 10.00% |
* Industrials Sector Average
JP:6517
Denyo Co., Ltd.
3,500.00
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28.72%
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Denyo Co., Ltd. Corporate Events
Denyo Reports Progress on Share Buyback Under ¥1 Billion Authorization
Jun 1, 2026
Denyo Co., Ltd. has disclosed the latest status of its ongoing share buyback program authorized under Japan’s Companies Act, reporting the repurchase of 22,600 shares of common stock on the Tokyo Stock Exchange between May 15 and May 31, 202...
Denyo Board Rejects Shareholder Bid to Mandate More Outside Directors
May 18, 2026
Denyo Co., Ltd., a TSE Prime-listed manufacturer operating under an Audit and Supervisory Committee structure, has built a governance system that blends internal and independent outside directors with diverse skills and backgrounds. Its 13-member ...
Denyo Raises Annual Dividend, Signals Stronger Shareholder Returns
May 18, 2026
Denyo Co., Ltd. has approved a year-end dividend of 55 yen per share for the fiscal year ended March 31, 2026, bringing the total annual dividend to 100 yen per share, up from 75 yen in the previous year. The total payout for the year-end dividend...
Denyo Launches Share Buyback of Up to ¥1 Billion to Boost Capital Efficiency
May 14, 2026
Denyo Co., Ltd. has authorized a share repurchase program, with its board approving the buyback of up to 280,000 common shares, or about 1.38% of its outstanding stock, for a maximum of 1 billion yen. The purchases, to be executed on the Tokyo Sto...
Denyo posts higher sales, lifts dividends and projects further growth for FY2027
May 14, 2026
Denyo Co., Ltd. reported a modest 2.1% increase in net sales to ¥72.2 billion for the fiscal year ended March 31, 2026, with operating and ordinary profit up 4.9% and 6.5%, respectively, while profit attributable to owners of parent was essen...
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.