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

• Market Cap: ¥607.72B
• Dividend Yield: 2.6%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.00
• Revenue Growth: 1.06%
• EPS Growth: -5.99%
• Country: JP
• Employees: 17,739
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• 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: ¥3,360.00 ▲(33.47% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

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

Sustained Revenue Growth

Consistent top-line expansion over multiple years implies durable OEM wins and broader product adoption. Growing revenue supports scale benefits, higher capacity utilization and stronger negotiating leverage with suppliers, reinforcing long-term resilience of core manufacturing operations.

Improving Profitability and Margins

Sustained margin expansion indicates effective cost controls, pricing power and operational improvements across product lines. Stronger operating profitability enhances free cash generation and provides a structural buffer against commodity swings and OEM pricing pressure over multiple cycles.

Cash Flow Recovery & Balance Sheet Health

Return to positive free cash flow combined with a robust equity ratio and prudent Debt-to-Equity improves financial flexibility. This supports longer-term investments in tooling, R&D and working-capital needs, and strengthens the company's ability to withstand automotive demand downturns.

Negative Factors

OEM / Automotive Cyclicality

Heavy dependence on vehicle OEM production cycles and platform timing creates structural demand volatility risk. Shifts in automaker production, model mix or platform transitions can materially affect volumes and margins for months to years, complicating long-term capacity and investment planning.

Historical Free Cash Flow Volatility

Prior FCF swings indicate sensitivity to working capital, cyclical volumes and cost variances. Even with recent recovery, this reduces predictability of internally generated funds for capex, dividends or buybacks and raises execution risk during industry downturns.

EPS Contraction

Negative EPS growth despite revenue gains points to past margin dilution, exceptional items or capital structure effects that erode per-share earnings. Persistent EPS weakness would undermine earnings quality and could constrain sustainable shareholder returns over the medium term.

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. demonstrates strong financial performance with significant improvements in revenue, profitability, and cash flow generation. The balance sheet reflects stability and prudent financial management, although 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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Neutral
• Last Price: 2517.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2517.5 is below the 20-day moving average (MA) of 3024.87, below the 50-day MA of 2786.45, and above the 200-day MA of 2222.92, indicating a neutral trend. The MACD of 60.70 indicates Positive momentum. The RSI at 55.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7242	78 Outperform	¥258.35B	7.94	12.15%	2.87%	3.95%	136.86%
5991	74 Outperform	¥607.72B	14.07	―	2.60%	1.06%	-5.99%
7220	71 Outperform	¥202.90B	106.69	―	1.93%	-3.23%	24.93%
3116	66 Neutral	¥561.47B	33.50	4.51%	3.42%	2.10%	-50.33%
5992	64 Neutral	¥89.45B	8.10	―	1.61%	6.81%	6.68%
6473	63 Neutral	¥675.98B	27.40	2.51%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

NHK Spring Co., Ltd. Corporate Events

NHK Spring Posts Higher Profits, Keeps Forecasts and Dividend Plan Intact

NHK Spring reported consolidated net sales of ¥596.4 billion for the nine months ended December 31, 2025, with operating profit of ¥31.4 billion and profit attributable to owners of parent of ¥25.2 billion, marking significant year-on-year profit growth despite a mid‑teens decline in sales. Earnings per share rose to ¥124.11, while total assets increased to ¥731.0 billion and shareholders’ equity reached ¥426.3 billion, strengthening the balance sheet.

The company kept its full‑year earnings and dividend forecasts unchanged, projecting ¥800.0 billion in net sales and ¥53.0 billion in operating profit, with a planned annual dividend of ¥69 per share, including a ¥39 year‑end payment. NHK Spring also expanded its consolidation scope by adding NHK Automotive Components India Private Limited, underscoring its strategic push in overseas automotive markets and signaling continued commitment to shareholder returns despite operating headwinds.

The board maintained a stable dividend policy following the prior year’s combined ordinary and extraordinary payouts, indicating confidence in cash flow generation. While management flagged that actual results could differ from current forecasts, the absence of revisions to guidance suggests that NHK Spring sees its current trajectory as broadly intact amid evolving global demand for automotive components.

The most recent analyst rating on (JP:5991) stock is a Buy with a Yen3445.00 price target. To see the full list of analyst forecasts on NHK Spring Co., Ltd. stock, see the JP:5991 Stock Forecast page.