Denkyo Group Holdings Co., Ltd (8144) AI Stock Analysis

Denkyo Group Holdings Co., Ltd

(TSE/TYO:8144)

Select Model

Rating:47Neutral

Price Target:JPY 1,215.00▼(-3.88% Downside)

Action:reiterated

Date:08/17/26

The score is held back primarily by weak and inconsistent cash generation and thin profitability despite a strong, low-leverage balance sheet. Technical conditions are also decisively negative with price below key moving averages and bearish momentum indicators. Valuation is only moderately supportive: the dividend yield helps, but the high P/E offsets it given recent operating and cash-flow volatility.

Positive Factors

Conservative balance sheetThe marked decline in leverage and low absolute debt reduce financial risk and increase strategic optionality. Over the next 2–6 months this conservatism supports capacity to fund targeted investments, absorb demand shocks, and maintain operations without reliance on costly external financing.

Negative Factors

Weak revenue trendA multi-year flat-to-declining top line constrains scale economics and strategic reinvestment. Over 2–6 months this trend signals persistent demand or competitive issues that depress growth runway, limiting margin expansion and reducing the company's ability to build durable competitive advantages.

Denkyo Group Holdings Co., Ltd (8144) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.94B
Dividend Yield: 3.40%
Average Volume (3M): 4,282
Price to Earnings (P/E): 36.8
Beta (1Y): 0.18
Revenue Growth: -0.60%
EPS Growth: 114.08%
Country: Japan
Employees: 511
Sector: General
Sector Strength: 55
Industry: Consumer Electronics

Denkyo Group Holdings Co., Ltd Business Overview & Revenue Model

Company Description

Denkyo Group Holdings Co.,Ltd., a wholesale enterprise headquartered in Osaka, Japan, was established in 1948, initially operating as Denkyosha Co.,Ltd. The company's core business involves the distribution of a vast and varied assortment of consumer...

How the Company Makes Money

null

Denkyo Group Holdings Co., Ltd Financial Statement Overview

Summary

Overall fundamentals are mixed. The balance sheet is conservatively positioned with low leverage (Balance Sheet Score 72), but operating performance has weakened with flat-to-down revenue and very thin profits (Income Statement Score 46). Cash generation is the key risk: free cash flow has been inconsistent with multiple negative years and turned negative again in 2026 (Cash Flow Score 34).

Income Statement

46Neutral

Balance Sheet

72Positive

Cash Flow

34Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	53.51B	52.10B	54.33B	54.60B	52.80B	53.75B
Gross Profit	10.63B	10.61B	10.15B	9.92B	8.69B	9.05B
EBITDA	515.00M	485.00M	1.05B	732.00M	658.00M	1.35B
Net Income	216.00M	329.00M	420.00M	84.00M	120.00M	613.00M
Balance Sheet
Total Assets	36.32B	35.99B	35.73B	39.70B	37.89B	36.35B
Cash, Cash Equivalents and Short-Term Investments	3.21B	4.52B	5.22B	8.01B	7.78B	6.84B
Total Debt	1.15B	1.19B	1.36B	5.09B	4.10B	2.62B
Total Liabilities	9.10B	8.49B	9.31B	13.01B	11.54B	9.98B
Stockholders Equity	27.21B	27.49B	26.41B	26.69B	26.34B	26.37B
Cash Flow
Free Cash Flow	0	-108.00M	1.08B	-1.19B	-600.00M	-1.20B
Operating Cash Flow	0	-32.00M	1.13B	-71.00M	647.00M	-1.02B
Investing Cash Flow	0	-203.00M	55.00M	-345.00M	-968.00M	0
Financing Cash Flow	0	-460.00M	-3.99B	638.00M	1.24B	139.00M

Denkyo Group Holdings Co., Ltd Technical Analysis

Technical Analysis SentimentNeutral

Last Price1264.00

Price Trends

50DMA1252.33Positive

100DMA1258.76Positive

200DMA1275.34Negative

Market Momentum

MACD3.03Positive

RSI49.94Neutral

STOCH10.63Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8144, the sentiment is Neutral. The current price of 1264.00 is below the 20-day moving average (MA) of 1269.75, above the 50-day MA of 1252.33, and below the 200-day MA of 1275.34, indicating a neutral trend. The MACD of 3.03 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8144.

Denkyo Group Holdings Co., Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8144 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6927	78Outperform	JPY 17.77B	9.82	―	9.29%	85.99%	704.70%
JP:6794	71Outperform	JPY 72.88B	20.44	―	3.05%	-0.13%	-16.53%
JP:6632	67Neutral	JPY 123.99B	8.95	12.17%	2.49%	2.28%	8.82%
JP:6810	61Neutral	JPY 83.49B	9.74	―	2.34%	6.30%	92.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6694	47Neutral	JPY 3.28B	-3.24	―	4.16%	4.08%	-801.85%
JP:8144	47Neutral	JPY 7.74B	36.82	―	3.40%	-0.60%	114.08%

* General Sector Average

Performance Comparison

JP:8144 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8144	Denkyo Group Holdings Co., Ltd	1264.00	68.10	5.69%
JP:6632	JVCKENWOOD Corporation	885.00	-328.60	-27.08%
JP:6694	Zoom Corp.	770.00	173.04	28.99%
JP:6794	Foster Electric Company, Limited	3275.00	686.97	26.54%
JP:6810	Maxell, Ltd.	2265.00	76.33	3.49%
JP:6927	Helios Techno Holding Co., Ltd.	980.00	163.18	19.98%

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: Aug 17, 2026

Denkyo Group Holdings Co., Ltd AI Stock Analysis