tiprankstipranks
Trending News
More News >
NHK Spring Co., Ltd. (JP:5991)
:5991
Japanese Market

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

Compare
1 Followers

Top Page

JP

NHK Spring Co., Ltd.

(5991)

Rating:77Outperform
Price Target:
¥1,816.00
▲(12.34%Upside)
NHK Spring Co., Ltd. is rated positively due to its strong financial performance and attractive valuation. While technical indicators suggest a stable market position, the stock's low dividend yield may be a concern for some investors. Historical cash flow volatility also suggests the need for prudent cash management.

NHK Spring Co., Ltd. (5991) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionNHK 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 MoneyNHK Spring Co., Ltd. generates revenue through the sale of its automotive components, including suspension springs and seating systems, to major automobile manufacturers globally. The company also earns income from its precision spring products, which are used in various industrial applications. Another significant revenue stream comes from its production of hard disk drive components, which are supplied to electronics manufacturers. The company's earnings are further supported by strategic partnerships and long-term contracts with key players in the automotive and electronics industries, ensuring consistent demand for its products.

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, but historical cash flow volatility suggests a need for cautious cash management.
Income Statement
88
Very Positive
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
75
Positive
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
82
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue797.32B801.70B766.93B693.25B586.90B572.64B
Gross Profit112.94B113.06B89.42B80.84B73.80B55.16B
EBITDA91.44B89.33B63.32B57.38B49.66B37.96B
Net Income48.07B48.17B39.19B21.54B32.00B9.40B
Balance Sheet
Total Assets706.09B696.34B690.29B606.04B588.09B560.77B
Cash, Cash Equivalents and Short-Term Investments108.84B97.23B103.22B72.95B92.13B79.33B
Total Debt70.01B71.82B51.09B51.29B52.78B72.29B
Total Liabilities290.35B273.16B269.72B240.18B249.25B260.80B
Stockholders Equity400.70B407.68B405.02B349.22B322.61B283.99B
Cash Flow
Free Cash Flow0.0013.55B32.79B-13.34B10.34B2.72B
Operating Cash Flow0.0055.71B66.71B13.66B34.51B29.64B
Investing Cash Flow0.00-47.78B-10.35B-41.76B4.99B-24.11B
Financing Cash Flow0.00-23.63B-21.00B-11.55B-27.66B2.79B

NHK Spring Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1616.50
Price Trends
50DMA
1594.18
Positive
100DMA
1597.98
Positive
200DMA
1714.62
Negative
Market Momentum
MACD
4.80
Negative
RSI
57.60
Neutral
STOCH
85.14
Negative
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 1616.5 is above the 20-day moving average (MA) of 1591.75, above the 50-day MA of 1594.18, and below the 200-day MA of 1714.62, indicating a neutral trend. The MACD of 4.80 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 85.14 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥347.58B7.22
0.74%4.53%31.50%
66
Neutral
€8.41B15.838.46%3.09%4.03%-26.96%
$2.64B31.401.72%3.96%
$2.56B22.303.66%0.03%
$2.55B10.726.71%3.75%
74
Outperform
¥322.54B7.51
2.33%-5.01%153.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5991
NHK Spring Co., Ltd.
1,622.00
-34.64
-2.09%
JTEKF
JTEKT
8.34
1.57
23.19%
TDBOF
Toyota Boshoku
13.68
0.75
5.80%
TGOSF
Toyoda Gosei Co
20.36
3.29
19.27%
JP:7988
Nifco Inc.
3,471.00
-412.81
-10.63%

NHK Spring Co., Ltd. Corporate Events

NHK Spring Co., Ltd. Revises Stock-Based Compensation Plan
May 26, 2025

NHK Spring Co., Ltd. has announced a partial revision to its stock-based compensation plan, introducing the Board Benefit Trust-Restricted Stock (BBT-RS) to better align director compensation with company performance and shareholder value. This revision aims to motivate directors to improve medium- to long-term business performance by sharing both the benefits and risks associated with the company’s share price, thereby optimizing the balance of compensation items.

The most recent analyst rating on (JP:5991) stock is a Buy with a Yen2200.00 price target. To see the full list of analyst forecasts on NHK Spring Co., Ltd. stock, see the JP:5991 Stock Forecast page.

NHK Spring Co., Ltd. Reports Financial Results and Dividend Increase Amid Challenges
May 14, 2025

NHK Spring Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decrease in comprehensive income compared to the previous year. Despite the decline, the company announced an increase in cash dividends per share, reflecting a commitment to returning value to shareholders. The forecast for the next fiscal year anticipates a decrease in net sales and profits, indicating potential challenges ahead. The company also noted changes in accounting policies due to revisions in standards, which could impact future financial reporting.

The most recent analyst rating on (JP:5991) stock is a Buy with a Yen2200.00 price target. To see the full list of analyst forecasts on NHK Spring Co., Ltd. stock, see the JP:5991 Stock Forecast page.

NHK Spring Reports Strong Financial Results and Increased Dividend
May 14, 2025

NHK Spring Co., Ltd. announced a significant improvement in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company attributed this growth to a recovery in demand for its disk drive suspension business and strong sales of semiconductor process components, alongside favorable foreign exchange rates. Additionally, the company resolved to distribute a surplus, increasing its dividend per share to 39 yen, reflecting a commitment to shareholder returns amid record-high profits.

The most recent analyst rating on (JP:5991) stock is a Buy with a Yen2200.00 price target. To see the full list of analyst forecasts on NHK Spring Co., Ltd. stock, see the JP:5991 Stock Forecast page.

NHK Spring Opposes Shareholder Proposal on External Directors
May 8, 2025

NHK Spring’s Board of Directors has opposed a shareholder proposal concerning the amendment of the Articles of Incorporation related to the composition of external directors. The company has a Nomination and Compensation Committee with a majority of independent external directors to ensure transparency in director nominations and remuneration decisions. NHK Spring aims to achieve a consolidated ROE of 10% or higher and has been increasing dividends and repurchasing shares to enhance corporate value over the medium to long term.

NHK Spring Completes Share Repurchase to Enhance Shareholder Value
Apr 14, 2025

NHK Spring Co., Ltd. has completed the repurchase of its own shares, acquiring 1,350,600 shares for approximately 1.98 billion yen. This move, part of a broader strategy approved in December 2024, aims to enhance shareholder value and optimize capital structure, reflecting the company’s commitment to strategic financial management.

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: Jul 09, 2025