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

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Inaba Denkisangyo Co., Ltd.

(TSE/TYO:9934)

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Rating:83Outperform

Price Target:JPY 3,101.00▲(16.51% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong financial quality—especially the exceptionally low-leverage balance sheet, improving profitability, and solid recent free cash flow. Technicals are supportive with a clear uptrend, though overbought momentum readings raise near-term risk. Valuation is favorable with a reasonable P/E and a moderate dividend yield.

Positive Factors

Steady revenue and earnings growthSteady revenue expansion alongside improving net income indicates continued business traction across the company’s distribution activities. This combination can strengthen operating scale, support reinvestment, and provide a durable foundation for earnings growth over the next several quarters.

Negative Factors

Working-capital-driven cash flow volatilityThe sharp historical weakness in cash conversion shows that reported profits do not always translate smoothly into cash. Working-capital swings could therefore reduce funding flexibility in some periods, making cash-based performance less predictable than the recent results suggest.

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

Market Cap: JPY 300.27B
Dividend Yield: 3.38%
Average Volume (3M): 239.49K
Price to Earnings (P/E): 11.1
Beta (1Y): 0.85
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

Strong overall fundamentals: steady revenue growth through 2026 with improving profitability (net margin up to ~5.6%, EBIT margin ~7.1%). Balance sheet is exceptionally conservative with extremely low leverage and rising equity, supporting resilience and improving ROE (~11.9%). Cash flow is solid in recent years with healthy free-cash-flow conversion, but historical volatility (notably 2023) highlights working-capital sensitivity.

Income Statement

84Very Positive

Balance Sheet

93Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	417.02B	417.02B	384.01B	345.37B	316.95B	289.07B
Gross Profit	72.61B	72.61B	65.09B	57.05B	52.32B	48.16B
EBITDA	34.55B	34.94B	28.39B	24.93B	22.93B	19.34B
Net Income	23.42B	23.42B	18.78B	15.62B	15.43B	12.27B
Balance Sheet
Total Assets	313.32B	313.32B	278.98B	262.81B	245.65B	235.42B
Cash, Cash Equivalents and Short-Term Investments	86.30B	86.30B	77.06B	69.50B	67.88B	77.57B
Total Debt	247.00M	247.00M	259.00M	430.00M	414.00M	392.00M
Total Liabilities	115.94B	115.94B	105.96B	100.54B	94.42B	94.17B
Stockholders Equity	197.38B	197.38B	173.02B	162.27B	151.23B	141.25B
Cash Flow
Free Cash Flow	0	22.09B	22.21B	13.68B	1.31B	10.06B
Operating Cash Flow	0	26.91B	23.28B	15.10B	2.70B	11.05B
Investing Cash Flow	0	-6.60B	-10.46B	-577.00M	-15.45B	-5.27B
Financing Cash Flow	0	-10.27B	-8.37B	-7.04B	-6.04B	-6.27B

Inaba Denkisangyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2661.50

Price Trends

50DMA3009.94Negative

100DMA2902.14Negative

200DMA2770.01Negative

Market Momentum

MACD-118.94Positive

RSI31.23Neutral

STOCH17.51Positive

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 2661.50 is below the 20-day moving average (MA) of 2929.68, below the 50-day MA of 3009.94, and below the 200-day MA of 2770.01, indicating a bearish trend. The MACD of -118.94 indicates Positive momentum. The RSI at 31.23 is Neutral, neither overbought nor oversold. The STOCH value of 17.51 is Positive, 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9934	83Outperform	JPY 299.66B	11.07	―	3.38%	14.55%	29.76%
JP:5819	76Outperform	JPY 11.05B	9.69	―	4.27%	-0.88%	-1.47%
JP:6804	65Neutral	JPY 110.65B	5.92	12.49%	5.10%	40.52%	147.61%
JP:5803	62Neutral	JPY 5.42T	18.83	45.63%	1.30%	36.67%	108.62%
JP:5805	62Neutral	JPY 314.49B	14.43	22.67%	12.68%	23.90%	74.63%
JP:5801	56Neutral	JPY 1.55T	14.04	28.07%	0.69%	15.50%	237.49%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9934 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9934	Inaba Denkisangyo Co., Ltd.	2661.50	382.04	16.76%
JP:5801	Furukawa Electric Co	2373.00	1298.51	120.85%
JP:6804	Hosiden Corp	2196.00	-205.70	-8.56%
JP:5803	Fujikura Ltd	3121.00	-300.44	-8.78%
JP:5805	SWCC Showa Holdings Co., Ltd.	2153.00	7.06	0.33%
JP:5819	Canare Electric Co., Ltd.	1661.00	-183.75	-9.96%

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

Inaba Denkisangyo Co., Ltd. AI Stock Analysis