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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 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
¥662.00
▲(25.14% Upside)
Action:Reiterated
Date:05/30/26
The score is held back primarily by weak financial performance (thin/volatile margins and still-elevated leverage), partially offset by strong technical uptrend signals. Valuation is only moderate given a ~23x P/E against low profitability, with a modest dividend yield.
Positive Factors
Recovered Free Cash Flow
Positive operating and free cash flow over three consecutive years improves the company’s ability to fund operations and investment internally. This provides a more durable financial foundation, although historical volatility means cash conversion still requires monitoring.
Negative Factors
Thin Profit Margins
Very thin margins leave limited protection against input-cost increases, project delays, or unfavorable mix changes. The weak profitability also reduces the company’s ability to absorb shocks and makes durable earnings improvement dependent on better pricing or cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Recovered Free Cash Flow
Positive operating and free cash flow over three consecutive years improves the company’s ability to fund operations and investment internally. This provides a more durable financial foundation, although historical volatility means cash conversion still requires monitoring.
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
Profitability is thin and volatile (2025 net margin ~0.5%, operating margin ~1.7%) alongside recent revenue declines. Leverage remains elevated (debt-to-equity ~1.7x in 2025) despite improvement versus prior years, while cash flow has recovered with positive operating and free cash flow in 2023–2025 but shows historical volatility.
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
Negative
Last Price529.00
Price Trends
50DMA
679.01
Negative
100DMA
677.78
Negative
200DMA
612.55
Positive
Market Momentum
MACD
-5.04
Negative
RSI
45.34
Neutral
STOCH
22.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6635, the sentiment is Negative. The current price of 529 is below the 20-day moving average (MA) of 662.40, below the 50-day MA of 679.01, and below the 200-day MA of 612.55, indicating a neutral trend. The MACD of -5.04 indicates Negative momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 22.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
76
Outperform
¥30.44B14.012.89%1.92%9.05%
75
Outperform
¥20.74B15.575.39%9.71%-3.36%
72
Outperform
¥24.79B7.461.78%3.68%-4.84%
71
Outperform
¥19.40B19.812.93%2.51%0.17%
69
Neutral
¥9.22B9.902.45%14.65%88.54%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
¥4.42B12.392.77%4.51%40.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6635
Di-Nikko Engineering Co., Ltd.
668.00
158.23
31.04%
JP:6626
Semitec Corporation
2,208.00
-212.73
-8.79%
JP:6850
Chino Corporation
1,702.00
465.51
37.65%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
765.00
110.54
16.89%
JP:6858
Ono Sokki Co., Ltd.
822.00
268.06
48.39%
JP:6863
Nireco Corporation
975.00
337.66
52.98%
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: May 30, 2026