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Nihon Dempa Kogyo Co., Ltd. (6779) AI Stock Analysis

JP:6779

Nihon Dempa Kogyo Co., Ltd.

(TSE/TYO:6779)

Select Model
Rating:51Neutral
Price Target:JPY 2,489.00â–²(1.30% Upside)
Action:reiterated
Date:09/10/26

Nihon Dempa Kogyo receives a score of 51, primarily weighed down by operational headwinds—specifically shrinking margins and negative free cash flow—despite maintaining a healthy balance sheet. A bearish short-term technical setup and a relatively high valuation multiple further temper the stock's near-term appeal.

Positive Factors
Essential timing componentsNDK operates in a technically essential component category: its products generate, stabilize, and reference frequencies within electronic systems. Broad exposure across communications, industrial, automotive, and consumer applications supports recurring relevance as customers develop and refresh multiple product generations.
Negative Factors
Negative free cash flowNegative free cash flow means operating cash generation is not currently covering investment and other cash requirements. The sharp deterioration from the prior year can increase reliance on the balance sheet and make financial flexibility more sensitive to execution, working-capital movements, and investment discipline.

Nihon Dempa Kogyo Co., Ltd. (6779) vs. iShares MSCI Japan ETF (EWJ)

-50%0%50%100%150%200%250%300%350%JP:6779+120.27%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 56.80B
Dividend Yield
1.21%
Average Volume (3M)
804.41K
Price to Earnings (P/E)
24.0
Beta (1Y)
1.76
Revenue Growth
7.66%
EPS Growth
49.51%
Country
Japan
Employees
2,313
Sector
General
Sector Strength
55
Industry
Hardware, Equipment & Parts

Nihon Dempa Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Dempa Kogyo Co., Ltd. is engaged in the manufacturing and worldwide sale of a diverse range of quartz crystal-based devices. Their comprehensive product lineup features various crystal clock oscillators and high-precision oscillators, including...

How the Company Makes Money

NDK primarily makes money by designing, manufacturing, and selling frequency control components—most notably crystal resonators and crystal oscillators—used by electronics manufacturers and module makers as essential inputs in their finished products...

Nihon Dempa Kogyo Co., Ltd. Financial Statement Overview

Summary

The balance sheet remains robust with growing equity and manageable leverage. However, overall financial health is significantly offset by contracting profit margins, declining net income, and a concerning transition to negative free cash flow.

Income Statement

50Neutral

Balance Sheet

80Positive

Cash Flow

35Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue57.23B54.63B53.06B50.31B52.51B45.41B
Gross Profit15.56B14.71B15.36B14.39B16.41B12.51B
EBITDA7.04B6.94B7.07B7.49B11.21B8.51B
Net Income2.37B2.06B1.79B2.33B6.18B5.46B
Balance Sheet
Total Assets77.36B76.33B72.57B67.03B65.08B61.67B
Cash, Cash Equivalents and Short-Term Investments13.47B11.61B15.88B12.30B10.29B10.36B
Total Debt28.11B29.54B29.55B26.15B27.25B27.13B
Total Liabilities44.50B44.41B43.39B39.64B41.02B41.60B
Stockholders Equity32.85B31.92B29.17B27.37B24.04B20.04B
Cash Flow
Free Cash Flow-874.00M-1.50B2.44B4.77B3.29B2.12B
Operating Cash Flow4.49B4.20B6.11B8.53B6.56B4.56B
Investing Cash Flow-5.33B-7.38B-4.45B-3.81B-3.23B-2.33B
Financing Cash Flow-3.78B-2.44B1.91B-2.95B-3.52B-8.91B

Nihon Dempa Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2457.00

Price Trends

50DMA2953.92Negative
100DMA3176.41Negative
200DMA2380.11Positive

Market Momentum

MACD-162.88Positive
RSI33.37Neutral
STOCH39.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6779, the sentiment is Negative. The current price of 2457.00 is below the 20-day moving average (MA) of 3016.60, below the 50-day MA of 2953.92, and above the 200-day MA of 2380.11, indicating a neutral trend. The MACD of -162.88 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 39.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6779.

Nihon Dempa Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6779 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6762JP:676262NeutralJPY 4.88T20.79―1.56%25.38%50.76%
JP:6981JP:698162NeutralJPY 11.73T40.1910.61%1.10%14.53%24.27%
JP:6817JP:681757NeutralJPY 36.49B16.73―4.78%9.71%23.67%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6772JP:677252NeutralJPY 7.35B870.16―3.71%-12.84%-98.58%
JP:6779JP:677951NeutralJPY 54.48B24.01―1.21%7.66%49.51%
JP:6976JP:697644NeutralJPY 1.14T58.89―1.05%5.60%―

* General Sector Average

Performance Comparison

0%100%200%300%400%JP:6779JP:6981JP:6762JP:6772JP:6817JP:6976Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6779 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6779Nihon Dempa Kogyo Co., Ltd.2477.001366.25123.00%
JP:6981Murata Manufacturing Co 6358.003012.3990.04%
JP:6762TDK Corporation2572.00-57.75-2.20%
JP:6772Tokyo Cosmos Electric Co., Ltd.1079.00-583.09-35.08%
JP:6817Sumida Corporation1109.0032.793.05%
JP:6976Taiyo Yuden Co., Ltd.8553.004221.5597.46%

Nihon Dempa Kogyo Co., Ltd. Corporate Events

Nihon Dempa Kogyo Raises Earnings Forecasts on AI and Automotive Demand

Aug 7, 2026

Nihon Dempa Kogyo has revised upward its consolidated forecasts for the first half and full fiscal year ending March 31, 2027, citing stronger‑than‑expected demand for optical transceivers used in AI data centers and for automotive electr...

Nihon Dempa Kogyo Q1 Profit Slump Accompanied by Upbeat Full-Year Outlook

Aug 7, 2026

Nihon Dempa Kogyo reported consolidated financial results for the first quarter of the fiscal year ending March 31, 2027, showing a sharp year-on-year decline in net sales, operating income, and net income attributable to owners of the parent. Despit...

Nihon Dempa Kogyo Lifts Earnings Outlook on AI and Auto Demand, Weak Yen

Aug 7, 2026

Nihon Dempa Kogyo has revised its consolidated forecasts for the first half and full fiscal year ending March 31, 2027, citing stronger-than-expected demand for optical transceivers for AI data centers and automotive electronics. The company now anti...

Nihon Dempa Kogyo Cuts Q1 Profit but Lifts Full-Year Outlook

Aug 7, 2026

Nihon Dempa Kogyo reported consolidated results for the first quarter of the fiscal year ending March 31, 2027, with net sales and profit declining sharply year on year, reflecting a difficult operating environment. Despite weaker earnings, the compa...

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: Sep 10, 2026