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Nihon Denkei Co., Ltd. (9908) AI Stock Analysis

JP:9908

Nihon Denkei Co., Ltd.

(TSE/TYO:9908)

Select Model
Rating:71Outperform
Price Target:JPY 3,253.00â–²(22.57% Upside)
Action:upgraded
Date:08/17/26

The stock scores 71, reflecting a combination of strong valuation and technical momentum, tempered by concerns over cash flow generation. The low P/E and above-average yield indicate undervaluation, while price trends are bullish. However, inconsistent operating cash flows raise questions about earnings quality.

Positive Factors
Steady Revenue GrowthConsistent revenue expansion indicates continued demand and business traction across several reporting periods. Sustained top-line growth can support operating scale, provide a foundation for reinvestment, and help preserve the company’s competitive position over the next several quarters.
Negative Factors
Weak Cash ConversionRepeatedly weak or negative operating and free cash flow reduces the quality of reported earnings and can increase reliance on external funding. Unless cash conversion improves, the company may have less flexibility to fund investment, manage working-capital needs, or withstand operating setbacks.

Nihon Denkei Co., Ltd. (9908) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:9908+36.91%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 30.38B
Dividend Yield
4.04%
Average Volume (3M)
16.64K
Price to Earnings (P/E)
7.3
Beta (1Y)
0.77
Revenue Growth
12.28%
EPS Growth
59.71%
Country
Japan
Employees
1,214
Sector
General
Sector Strength
55
Industry
Rental & Leasing Services

Nihon Denkei Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Denkei Co.,Ltd. operates internationally, specializing in the electronic measurement sector. The company's core business involves the manufacturing, distribution, rental, and leasing of a wide array of electronic measuring instruments, system e...

Nihon Denkei Co., Ltd. Financial Statement Overview

Summary

Revenue growth and profitability are solid, with net income rising and margins stable. The balance sheet is strong with moderate leverage. However, operating cash flow has been negative in multiple years, raising concerns about cash conversion.

Income Statement

75Positive

Balance Sheet

80Positive

Cash Flow

25Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue138.83B133.15B121.24B108.54B104.78B91.86B
Gross Profit19.16B18.47B16.93B15.47B13.79B11.45B
EBITDA6.55B5.59B5.54B5.57B4.71B3.95B
Net Income4.17B3.65B2.97B2.95B2.91B2.25B
Balance Sheet
Total Assets75.82B78.82B74.16B66.06B64.11B56.64B
Cash, Cash Equivalents and Short-Term Investments6.51B8.19B10.26B7.90B8.43B8.17B
Total Debt22.09B18.22B15.22B12.51B14.63B11.95B
Total Liabilities41.98B45.38B43.46B37.86B38.11B32.85B
Stockholders Equity33.33B32.86B29.89B27.41B25.23B23.04B
Cash Flow
Free Cash Flow0-3.85B-32.90M3.13B-1.54B-1.07B
Operating Cash Flow0-3.62B251.24M3.60B-96.77M-539.21M
Investing Cash Flow0-119.65M309.92M-764.62M-1.24B-280.79M
Financing Cash Flow01.59B1.51B-3.54B1.45B1.47B

Nihon Denkei Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2654.00

Price Trends

50DMA2787.95Negative
100DMA2673.28Negative
200DMA2544.08Positive

Market Momentum

MACD-37.69Positive
RSI37.61Neutral
STOCH24.29Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9908, the sentiment is Negative. The current price of 2654.00 is below the 20-day moving average (MA) of 2764.05, below the 50-day MA of 2787.95, and above the 200-day MA of 2544.08, indicating a neutral trend. The MACD of -37.69 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 24.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9908.

Nihon Denkei Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9908 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9699JP:969985OutperformJPY 118.51B10.86―3.09%-1.83%-7.27%
JP:7081JP:708174OutperformJPY 14.25B7.35―2.83%4.07%6.81%
JP:9908JP:990871OutperformJPY 31.50B7.26―4.04%12.28%59.71%
JP:8596JP:859662NeutralJPY 33.43B7.75―4.15%16.61%17.27%
JP:5834JP:583458NeutralJPY 39.79B5.80―4.81%47.13%16.70%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%20%40%JP:9908JP:5834JP:7081JP:8596JP:9699JP:372ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9908 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9908Nihon Denkei Co., Ltd.2654.00699.2035.77%
JP:5834SBI Leasing Services Co.,Ltd.2470.0070.962.96%
JP:7081Koyou Rentia Co., Ltd.1269.00149.3313.34%
JP:8596Kyushu Leasing Service Co., Ltd.1459.00199.0015.79%
JP:9699NISHIO HOLDINGS CO. LTD.4245.008.770.21%
JP:372ARent Corporation6030.00571.7110.47%
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