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Di-Nikko Engineering Co., Ltd. (JP:6635)
:6635
Japanese Market
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Di-Nikko Engineering Co., Ltd. (6635) AI Stock Analysis

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JP:6635

Di-Nikko Engineering Co., Ltd.

(6635)

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Neutral 52 (OpenAI - Gpt-5.6Sol)
Rating:52Neutral
Price Target:
¥675.00
▲(27.60% Upside)
Action:Reiterated
Date:08/30/26
The score is held back primarily by weak financial performance—thin margins, revenue declines, and still-elevated leverage—despite improved cash flow in recent years. Technicals are neutral with limited momentum, while a reasonable P/E and moderate dividend yield provide partial valuation support.
Positive Factors
Improved Cash Generation
The shift to positive operating and free cash flow provides internally generated funding for operations and investment. If sustained, it can reduce reliance on external financing and improve resilience despite the company’s low-margin profile.
Negative Factors
Recent Revenue Declines
The recent contraction indicates pressure on demand, project activity, or competitive positioning. Without a return to sustained revenue growth, operating leverage will remain limited and the company may struggle to absorb fixed costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
The shift to positive operating and free cash flow provides internally generated funding for operations and investment. If sustained, it can reduce reliance on external financing and improve resilience despite the company’s low-margin profile.
Read all positive factors

Di-Nikko Engineering Co., Ltd. (6635) vs. iShares MSCI Japan ETF (EWJ)

Di-Nikko Engineering Co., Ltd. Business Overview & Revenue Model

Company Description
Di-Nikko Engineering Co., Ltd., established in Nikko, Japan, in 1979, operates as a comprehensive contract manufacturer. Their services encompass the full spectrum of production, ranging from initial circuit design and electronic component mountin...

Di-Nikko Engineering Co., Ltd. Financial Statement Overview

Summary
Overall fundamentals are constrained by very thin and volatile profitability and recent revenue pressure (down in 2024 and more in 2025). While cash generation has improved with positive operating/free cash flow in 2023–2025, leverage remains elevated (debt-to-equity ~1.7x in 2025), which is a meaningful risk for a low-margin business.
Income Statement
46
Neutral
Balance Sheet
39
Negative
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue37.63B36.95B38.96B39.20B33.94B29.86B
Gross Profit3.73B3.88B4.20B4.00B3.57B2.91B
EBITDA1.31B1.26B1.35B1.34B1.73B677.92M
Net Income251.62M208.83M277.38M349.50M995.29M-90.03M
Balance Sheet
Total Assets30.96B28.77B29.56B29.20B29.86B21.05B
Cash, Cash Equivalents and Short-Term Investments7.17B5.38B4.30B3.52B2.93B1.24B
Total Debt12.66B11.74B12.43B12.73B13.06B10.71B
Total Liabilities22.08B20.61B21.54B22.26B23.67B17.42B
Stockholders Equity7.27B6.89B6.88B5.97B5.30B3.45B
Cash Flow
Free Cash Flow0.001.74B1.14B530.98M-795.00M-670.43M
Operating Cash Flow0.002.56B1.74B976.12M-546.49M-184.71M
Investing Cash Flow0.00-645.57M-529.51M152.41M-182.66M-476.61M
Financing Cash Flow0.00-920.86M-736.99M-655.72M2.36B187.00M

Di-Nikko Engineering Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price529.00
Price Trends
50DMA
677.13
Negative
100DMA
679.04
Negative
200DMA
614.24
Positive
Market Momentum
MACD
-2.97
Negative
RSI
51.41
Neutral
STOCH
44.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6635, the sentiment is Positive. The current price of 529 is below the 20-day moving average (MA) of 666.05, below the 50-day MA of 677.13, and below the 200-day MA of 614.24, indicating a neutral trend. The MACD of -2.97 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 44.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6635.

Di-Nikko Engineering 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
75
Outperform
¥20.55B15.805.39%9.71%-3.36%
74
Outperform
¥30.18B13.862.89%1.92%9.05%
72
Outperform
¥25.11B7.741.78%3.68%-4.84%
71
Outperform
¥19.53B20.122.93%2.51%0.17%
69
Neutral
¥9.22B9.972.45%14.65%88.54%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
52
Neutral
¥4.47B12.812.77%4.51%40.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6635
Di-Nikko Engineering Co., Ltd.
671.00
167.07
33.15%
JP:6626
Semitec Corporation
2,264.00
-143.98
-5.98%
JP:6850
Chino Corporation
1,689.00
454.93
36.86%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
777.00
131.29
20.33%
JP:6858
Ono Sokki Co., Ltd.
832.00
281.92
51.25%
JP:6863
Nireco Corporation
998.00
364.49
57.54%
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: Aug 30, 2026