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

• Market Cap: ¥347.58B
• Dividend Yield: 0.74%
• Average Volume (3M): 548.38K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.10
• Revenue Growth: 4.53%
• EPS Growth: 31.50%
• Country: JP
• Employees: 17,739
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 86.13
• Shares Outstanding: 231,066,150
• 10 Day Avg. Volume: 570,970
• 30 Day Avg. Volume: 548,376
• PEG Ratio: -0.52
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -307.77
• 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: ¥1,806.00
• Price Target Upside: 11.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• 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. 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 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

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	797.32B	801.70B	766.93B	693.25B	586.90B	572.64B
Gross Profit	112.94B	113.06B	89.42B	80.84B	73.80B	55.16B
EBITDA	91.44B	89.33B	63.32B	57.38B	49.66B	37.96B
Net Income	48.07B	48.17B	39.19B	21.54B	32.00B	9.40B
Balance Sheet
Total Assets	706.09B	696.34B	690.29B	606.04B	588.09B	560.77B
Cash, Cash Equivalents and Short-Term Investments	108.84B	97.23B	103.22B	72.95B	92.13B	79.33B
Total Debt	70.01B	71.82B	51.09B	51.29B	52.78B	72.29B
Total Liabilities	290.35B	273.16B	269.72B	240.18B	249.25B	260.80B
Stockholders Equity	400.70B	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: 1616.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5991	77 Outperform	¥347.58B	7.22		0.74%	4.53%	31.50%
Sector *	66 Neutral	€8.41B	15.83	8.46%	3.09%	4.03%	-26.96%
JTEKF		$2.64B	31.40	1.72%	3.96%	―	―
TDBOF		$2.56B	22.30	3.66%	0.03%	―	―
TGOSF		$2.55B	10.72	6.71%	3.75%	―	―
7988	74 Outperform	¥322.54B	7.51		2.33%	-5.01%	153.39%

NHK Spring Co., Ltd. Corporate Events

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

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

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

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

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

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.