NHK Spring Co., Ltd. (5991) AI Stock Analysis

• Market Cap: ¥488.41B
• Dividend Yield: 2.62%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.01
• Revenue Growth: 1.06%
• EPS Growth: -5.99%
• Country: JP
• Employees: 17,739
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 24.34
• Shares Outstanding: 231,066,150
• 10 Day Avg. Volume: 1,303,700
• 30 Day Avg. Volume: 1,251,866
• PEG Ratio: 0.24
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 25.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,780.00 ▲(10.21% Upside)

NHK Spring Co., Ltd. shows strong financial performance with significant improvements in revenue and profitability, which is the most significant factor driving the score. The technical analysis indicates potential short-term weakness, while the valuation suggests the stock is fairly valued with a reasonable dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for NHK Spring's products, strengthening its market position and supporting future expansion.

Cash Flow Improvement

Improved cash flow management enhances NHK Spring's financial flexibility, enabling reinvestment in growth opportunities and reducing financial risk.

Operational Efficiency

Enhanced operational efficiency through cost management boosts profitability, allowing NHK Spring to maintain competitive pricing and invest in innovation.

Negative Factors

Earnings Volatility

Negative EPS growth indicates earnings volatility, which can undermine investor confidence and affect NHK Spring's ability to fund future projects.

Cash Flow Volatility

Volatile cash flow can challenge NHK Spring's ability to consistently fund operations and investments, potentially impacting long-term growth.

Automotive Industry Dependence

Heavy reliance on the automotive sector exposes NHK Spring to industry-specific risks, such as economic downturns or shifts in consumer preferences.

NHK Spring Co., Ltd. Business Overview & Revenue Model

Company Description

NHK Spring Co., Ltd. provides automobile, data communications, and industry and lifestyle products in Japan and internationally. The company operates through four segments: Automotive Suspension Springs; Automotive Seating; Precision Springs and Components; and Industrial Machinery and Equipment, and Others. It offers automotive suspension springs, such as coil springs, stabilizers and torsion bars, stabilinkers, stabilizers links, and leaf springs, as well as power train products, and braking and exhaust systems, including valve springs; disc, wire, and wave springs for gearboxes; injector springs; and various thin plate and disc springs, and wire spring products. The company also provides sports, suspension, fatigue reduction, and one motor power seats; polyurethane foams; screws and bolts; control cables; door sunshades; tonneau covers; mechanical seating components; trim parts and others. In addition, it offers motorcycle related chain tensioners; and motor cores, spring grid array, ceramic springs, and metal substrate products. Further, the company provides HDD-related products, such as suspensions, top covers, disk clamps, base plates/dummy heads; data communications and semiconductor device related products, including test sockets, probe cards, wire springs/precision fabricated products, lock hinges, bonded metal products, aluminum cooling plates, and shower heads; electric related products; microcontactor solutions, probe cards, probe cards, and test sockets. Additionally, it offers industry and life style products include plant, spring mechanism, chemical, multi-story parking system, security, electronic components department, railway, maritime, and sports related products, and products related to various tests and design services. The company was incorporated in 1936 and is headquartered in Yokohama, Japan.

How the Company Makes Money

NHK Spring generates revenue through the sale of various spring products and components primarily to the automotive industry, which constitutes a significant portion of its business. The company has established key partnerships with major automakers, allowing it to secure long-term contracts and stable demand for its products. Additionally, NHK Spring diversifies its revenue streams by offering precision springs and other industrial components for non-automotive applications. The company's focus on research and development enables it to innovate and improve product offerings, which helps maintain competitive pricing and attract new customers. Furthermore, operational efficiency and cost management play crucial roles in enhancing profitability.

NHK Spring Co., Ltd. Financial Statement Overview

Summary

NHK Spring Co., Ltd. presents a strong financial profile with significant improvements in revenue, profitability, and cash flow generation. The balance sheet reflects stability and prudent financial management, although some historical cash flow volatility suggests the need for cautious cash management.

Income Statement

NHK Spring Co., Ltd. demonstrates strong revenue growth with a consistent increase in Total Revenue over the years, from 572.6 billion JPY in 2021 to 801.7 billion JPY in 2025. The Gross Profit Margin has improved significantly, suggesting effective cost management. The Net Profit Margin has also increased, reflecting enhanced profitability. EBIT and EBITDA margins have strengthened, indicating operational efficiency.

Balance Sheet

The balance sheet shows a healthy financial position with a strong equity base. The Debt-to-Equity Ratio is reasonable, reflecting prudent leverage. The Return on Equity (ROE) has improved, indicating effective use of equity capital, while the Equity Ratio remains robust, underscoring financial stability.

Cash Flow

The company displays a positive trend in Free Cash Flow, recovering from negative figures in prior years to a positive 13.5 billion JPY in 2025, highlighting improved cash management. The Operating Cash Flow to Net Income ratio is favorable, indicating good cash conversion. However, fluctuations in Free Cash Flow in earlier years suggest some volatility in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	807.87B	801.70B	766.93B	693.25B	586.90B	572.64B
Gross Profit	112.80B	113.06B	89.42B	80.84B	73.80B	55.16B
EBITDA	63.26B	89.33B	85.68B	59.45B	78.76B	37.96B
Net Income	42.09B	48.17B	39.19B	21.54B	32.00B	9.40B
Balance Sheet
Total Assets	701.61B	696.34B	690.29B	606.04B	588.09B	560.77B
Cash, Cash Equivalents and Short-Term Investments	117.14B	97.23B	103.22B	72.95B	92.13B	79.33B
Total Debt	97.80B	72.43B	51.09B	51.29B	52.78B	72.29B
Total Liabilities	288.70B	273.16B	269.72B	240.18B	249.25B	260.80B
Stockholders Equity	397.64B	407.68B	405.02B	349.22B	322.61B	283.99B
Cash Flow
Free Cash Flow	0.00	13.55B	32.79B	-13.34B	10.34B	2.72B
Operating Cash Flow	0.00	55.71B	66.71B	13.66B	34.51B	29.64B
Investing Cash Flow	0.00	-47.78B	-10.35B	-41.76B	4.99B	-24.11B
Financing Cash Flow	0.00	-23.63B	-21.00B	-11.55B	-27.66B	2.79B

NHK Spring Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2522.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5991, the sentiment is Positive. The current price of 2522.5 is above the 20-day moving average (MA) of 2456.50, below the 50-day MA of 2586.36, and above the 200-day MA of 1889.38, indicating a neutral trend. The MACD of -6.04 indicates Negative momentum. The RSI at 49.11 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5991.

NHK Spring Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7988	79 Outperform	¥425.23B	9.05	―	1.63%	-5.16%	200.96%
5991	74 Outperform	¥488.41B	12.23	―	2.62%	1.06%	-5.99%
7282	74 Outperform	$465.82B	10.17	8.26%	2.87%	1.44%	-0.92%
6473	70 Outperform	$514.27B	26.74	2.51%	3.21%	0.44%	-11.36%
3116	62 Neutral	¥443.21B	21.47	4.51%	3.47%	2.10%	-50.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

NHK Spring Co., Ltd. Corporate Events

NHK Spring Reports First Half Financial Results and Strategic Expansion

NHK Spring Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending September 30, 2025, showing a notable decrease in comprehensive income by 45.7% compared to the previous year. Despite the decline, the company has expanded its consolidation scope by including NHK Automotive Components India Private Limited, indicating strategic growth in the automotive sector.

NHK Spring Co., Ltd. to Liquidate Chinese Subsidiaries Amid Market Changes

NHK Spring Co., Ltd. has announced the decision to dissolve and liquidate its subsidiaries NHK Seating (Hubei) Co., Ltd. and FNK China Co., Ltd. due to the slowdown in sales of Japanese-owned auto manufacturers in China. The liquidation is part of a strategic move to concentrate management resources, with minimal impact expected on the company’s current fiscal year results.