Diamond Electric Holdings Co., Ltd. (6699) AI Stock Analysis

• Market Cap: ¥5.05B
• Dividend Yield: 4.16%
• Average Volume (3M): 18.16K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.09
• Revenue Growth: 0.86%
• EPS Growth: N/A
• Country: JP
• Employees: 3,751
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.08
• Shares Outstanding: 9,252,901
• 10 Day Avg. Volume: 18,190
• 30 Day Avg. Volume: 18,160
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥637.00
• Price Target Upside: 5.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥637.00 ▲(5.99% Upside)

The overall stock score of 66 reflects a balanced view of Diamond Electric Holdings. The company's valuation is attractive due to a low P/E ratio and a high dividend yield, which are significant strengths. However, the financial performance indicates a recovery phase with inconsistent profitability and high leverage, posing risks. Technical analysis suggests a neutral to slightly bullish trend, but bearish momentum could be a concern.

Diamond Electric Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Diamond Electric Holdings Co., Ltd. manages automobile and electronic control equipment businesses in Japan. The company manufactures and sells ignition coils for automobiles, air conditioning equipment, electronic control devices, etc.; and transformers for electronic devices, power supplies for electronic devices, and various electronic devices and parts. It also offers heating and cooling igniters, electronic control devices, automotive electrical components, etc. Diamond Electric Holdings Co., Ltd. was founded in 2018 and is headquartered in Osaka, Japan.

How the Company Makes Money

Diamond Electric Holdings Co., Ltd. generates revenue through the production and sale of electronic components, primarily focusing on the automotive industry. The company earns money by supplying ignition coils to major automobile manufacturers, which constitute a significant portion of its revenue. It also diversifies its income streams by selling power conversion units and other electronic parts to industrial equipment manufacturers and consumer electronics companies. Strategic partnerships with global automotive and electronics companies further bolster its revenue, alongside continuous innovation and adaptation to market demands, ensuring sustained earnings.

Diamond Electric Holdings Co., Ltd. Financial Statement Overview

Summary

Diamond Electric Holdings is showing operational improvements and healthier cash flow management. However, inconsistent profitability and high leverage remain concerns, requiring ongoing financial diligence.

Income Statement

Diamond Electric Holdings displayed moderate growth in revenue with a slight increase from the previous period. However, the net profit margin remains concerning, with recent years showing a mix of losses and small profits. The EBIT margin improved compared to previous losses, indicating operational efficiencies are being realized. However, consistent profitability remains a challenge.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which poses a risk in volatile markets. However, the equity ratio is reasonable, suggesting a balanced approach to asset financing. Return on equity has been inconsistent but shows potential for improvement as profitability stabilizes.

Cash Flow

The company shows improvement in operating cash flow, which now aligns better with net income, reflecting healthier cash management. Free cash flow has turned positive, reducing previous deficits, but sustainability will depend on maintaining operational efficiencies and managing capital expenditures effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.72B	91.72B	93.33B	91.11B	76.27B	70.64B
Gross Profit	13.83B	13.83B	12.54B	11.25B	11.12B	11.92B
EBITDA	4.34B	5.15B	2.71B	2.16B	3.81B	3.46B
Net Income	181.00M	182.00M	-1.90B	-1.07B	1.29B	95.00M
Balance Sheet
Total Assets	79.05B	79.05B	82.03B	78.73B	68.73B	64.08B
Cash, Cash Equivalents and Short-Term Investments	7.49B	7.49B	8.16B	9.75B	10.84B	15.51B
Total Debt	38.47B	38.47B	41.88B	40.62B	34.35B	30.69B
Total Liabilities	67.72B	67.72B	71.75B	67.83B	58.55B	56.90B
Stockholders Equity	11.16B	11.16B	10.14B	10.79B	10.07B	7.07B
Cash Flow
Free Cash Flow	1.70B	2.24B	-1.93B	-6.51B	-7.95B	1.73B
Operating Cash Flow	2.38B	3.59B	2.12B	-3.49B	-4.39B	3.72B
Investing Cash Flow	-84.00M	-638.00M	-4.01B	-2.84B	-3.87B	-1.86B
Financing Cash Flow	-1.53B	-3.77B	125.00M	4.91B	3.23B	5.51B

Diamond Electric Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 601.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6699, the sentiment is Positive. The current price of 601 is above the 20-day moving average (MA) of 582.00, above the 50-day MA of 591.76, and above the 200-day MA of 557.44, indicating a bullish trend. The MACD of 2.28 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6699.

Diamond Electric Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.17B	7.82	4.71%	3.02%	0.05%	9.31%
6901	68 Neutral	¥4.58B	-43.64	1.96%	3.01%	-12.15%	-123.44%
6699	66 Neutral	¥5.05B	9.57	―	4.16%	0.86%	―
7284	66 Neutral	¥4.22B	7.34	3.77%	4.15%	4.93%	―
7214	54 Neutral	¥4.87B	-9.87	-2.24%	4.37%	4.74%	-193.39%
7256	39 Underperform	¥3.33B	-0.62	―	―	13.02%	15.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Diamond Electric Holdings Co., Ltd. Corporate Events

Diamond Electric Completes New Share Issuance for Stock Compensation

Diamond Electric Holdings Co., Ltd. announced the completion of payment procedures for the issuance of new shares as restricted stock compensation, a decision made during the Board of Directors meeting on July 21, 2025. This issuance involves 89,900 shares at an issue price of 585 JPY per share, totaling 52,591,500 JPY, and is aimed at directors, executive officers, and chief engineers, reflecting the company’s strategy to incentivize key personnel and align their interests with the company’s growth objectives.

Diamond Electric Holdings Reports Q1 2025 Financial Results

Diamond Electric Holdings Co., Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a 7.6% increase in net sales compared to the previous year. However, the company experienced a significant drop in ordinary profit by 72.6%, highlighting challenges in maintaining profitability despite increased sales. The company’s financial position showed a slight decrease in net assets and capital adequacy ratio, indicating potential concerns for stakeholders regarding financial stability.

Diamond Electric Holdings Reports Mixed Financial Results for 1Q FY2026/3

Diamond Electric Holdings Co., Ltd. reported an increase in sales and profit for its mobility equipment segment, driven by higher production in the U.S. and China. However, the energy solutions segment faced profit declines due to lower insurance recovery, and the home electronics segment saw a revenue decrease due to weak European demand, despite a slight profit increase from improved sales mix and manufacturing efficiencies. The overall financial performance showed a significant rise in operating profit, although ordinary profit and net profit were impacted by higher interest expenses and corporate taxes.

Diamond Electric Announces New Share Issuance for Executive Compensation

Diamond Electric Holdings Co., Ltd. announced the issuance of new shares as restricted stock compensation, aimed at incentivizing directors and executives to align with the company’s long-term growth objectives. This move is part of a broader strategy to enhance corporate value and ensure value-sharing with shareholders, reflecting the company’s commitment to sustainable growth and improved governance.

Diamond Electric Holdings Faces Potential Delisting from Tokyo Stock Exchange

Diamond Electric Holdings Co., Ltd. is currently not in compliance with the Tokyo Stock Exchange’s Prime Market listing requirements due to insufficient market capitalization of tradable shares. The company has outlined a plan to address these issues, including improving business performance and enhancing shareholder value. If compliance is not achieved by March 31, 2026, the company may face delisting. Recent improvements in operating profit and net profit have been noted, driven by favorable market conditions and strategic business shifts.