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Inaba Denkisangyo Co., Ltd. (9934) AI Stock Analysis

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JP:9934

Inaba Denkisangyo Co., Ltd.

(TSE/TYO:9934)

Select Model
Rating:70Outperform
Price Target:JPY 2,879.00â–²(10.01% Upside)
Action:reiterated
Date:08/17/26

Inaba Denkisangyo earns a solid score driven primarily by its strong financial fundamentals: a virtually debt-free balance sheet, consistent revenue and earnings growth, and improving profitability metrics. The attractive valuation at 12.8x P/E with a 2.4% dividend yield adds appeal for value-oriented investors. The main offsetting factors are overbought technical conditions (RSI near 80, elevated Stochastic) suggesting near-term pullback risk, inherently thin margins typical of the distribution industry, and historical cash flow volatility. The low beta of 0.69 underscores the stock's defensive character. Overall, this is a financially sound, moderately growing company trading at a reasonable valuation, though short-term technical caution is warranted.

Positive Factors
Revenue and Earnings GrowthSteady revenue expansion alongside improving net income indicates that the company is growing its operating base while converting sales into greater earnings. This supports durable reinvestment capacity and suggests business momentum can remain relevant across the next several quarters.
Negative Factors
Cash Flow VolatilityThe sharp historical deterioration in cash conversion shows that reported profits can translate unevenly into cash when working-capital movements change. Such volatility may complicate investment planning and reduce the reliability of internally funded spending during weaker operating periods.

Inaba Denkisangyo Co., Ltd. (9934) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:9934+16.82%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 293.87B
Dividend Yield
3.44%
Average Volume (3M)
241.25K
Price to Earnings (P/E)
10.8
Beta (1Y)
0.82
Revenue Growth
14.55%
EPS Growth
29.76%
Country
Japan
Employees
2,230
Sector
General
Sector Strength
55
Industry
Industrial - Distribution

Inaba Denkisangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Inaba Denki Sangyo Co., Ltd. is a Japanese firm that specializes in delivering a comprehensive range of electrical equipment, materials, and industrial solutions, including its own proprietary product lines. Its extensive product portfolio caters to...

Inaba Denkisangyo Co., Ltd. Financial Statement Overview

Summary

Inaba Denkisangyo shows consistent revenue growth (~7% CAGR) with sales reaching ¥384B in FY2025 and projected at ¥417B in FY2026. Net income has nearly doubled over five years, and margins are gradually expanding (net margin projected at 5.6% in FY2026). The virtually debt-free balance sheet (debt-to-equity <0.003) is a standout strength, providing exceptional financial stability and ROE improving toward ~12%. However, margins remain thin for a distribution business, and cash flow volatility — particularly the sharp FY2023 dip in operating cash flow to ¥2.7B — tempers the score. The strong FY2025 free cash flow recovery to ¥22.2B is encouraging.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

68Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue417.02B417.02B384.01B345.37B316.95B289.07B
Gross Profit72.61B72.61B65.09B57.05B52.32B48.16B
EBITDA34.55B34.94B28.39B24.93B22.93B19.34B
Net Income23.42B23.42B18.78B15.62B15.43B12.27B
Balance Sheet
Total Assets313.32B313.32B278.98B262.81B245.65B235.42B
Cash, Cash Equivalents and Short-Term Investments86.30B86.30B77.06B69.50B67.88B77.57B
Total Debt247.00M247.00M259.00M430.00M414.00M392.00M
Total Liabilities115.94B115.94B105.96B100.54B94.42B94.17B
Stockholders Equity197.38B197.38B173.02B162.27B151.23B141.25B
Cash Flow
Free Cash Flow022.09B22.21B13.68B1.31B10.06B
Operating Cash Flow026.91B23.28B15.10B2.70B11.05B
Investing Cash Flow0-6.60B-10.46B-577.00M-15.45B-5.27B
Financing Cash Flow0-10.27B-8.37B-7.04B-6.04B-6.27B

Inaba Denkisangyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2617.00

Price Trends

50DMA2995.43Negative
100DMA2900.94Negative
200DMA2770.59Negative

Market Momentum

MACD-121.35Positive
RSI29.29Positive
STOCH25.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9934, the sentiment is Negative. The current price of 2617.00 is below the 20-day moving average (MA) of 2880.47, below the 50-day MA of 2995.43, and below the 200-day MA of 2770.59, indicating a bearish trend. The MACD of -121.35 indicates Positive momentum. The RSI at 29.29 is Positive, neither overbought nor oversold. The STOCH value of 25.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9934.

Inaba Denkisangyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9934 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5819JP:581976OutperformJPY 11.39B9.63―4.24%-0.88%-1.47%
JP:5805JP:580571OutperformJPY 317.01B11.1721.44%8.07%23.90%74.63%
JP:9934JP:993470OutperformJPY 301.76B10.83―3.44%14.55%29.76%
JP:6804JP:680467NeutralJPY 110.85B5.9812.49%5.05%25.40%46.48%
JP:5803JP:580362NeutralJPY 5.27T17.8045.63%1.40%36.67%108.62%
JP:5801JP:580156NeutralJPY 1.61T12.8928.07%0.75%15.50%237.49%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%200%400%JP:9934JP:5801JP:6804JP:5803JP:5805JP:5819Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9934 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9934Inaba Denkisangyo Co., Ltd.2617.00338.0214.83%
JP:5801Furukawa Electric Co 2167.501144.51111.88%
JP:6804Hosiden Corp2217.00-192.37-7.98%
JP:5803Fujikura Ltd2906.00-372.50-11.36%
JP:5805SWCC Showa Holdings Co., Ltd.1995.50-160.24-7.43%
JP:5819Canare Electric Co., Ltd.1673.00-109.23-6.13%

Inaba Denkisangyo Co., Ltd. Corporate Events

Inaba Denki Sangyo Lifts Full-Year Forecast on Strong Demand and Stable Supply

Oct 30, 2026

Inaba Denki Sangyo has revised upward its consolidated forecast for the fiscal year ending March 31, 2027, citing stronger-than-expected demand across all segments during the interim period. The company now projects net sales of ¥470 billion, operati...

Inaba Denki Sangyo to Acquire Fujikura Shoji and Strengthen Electronics Business

Aug 31, 2026

Inaba Denki Sangyo Co., Ltd., a wholesaler of electrical equipment materials and industrial machinery and a manufacturer of air conditioning components, is prioritizing growth in its Industrial Automation segment focused on control equipment and elec...

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