Nikki Co., Ltd. (6042) AI Stock Analysis

• Market Cap: ¥8.52B
• Dividend Yield: 3.05%
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.29
• Revenue Growth: -15.99%
• EPS Growth: -73.61%
• Country: JP
• Employees: 506
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 87.08
• Shares Outstanding: 2,000,000
• 10 Day Avg. Volume: 1,200
• 30 Day Avg. Volume: 2,053
• PEG Ratio: -0.11
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -6.78
• 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: 69 Neutral
• Price Target: ¥4,960.00 ▲(33.15% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

Overall score is driven by mixed financial performance—especially weak free cash flow and volatile profitability—offset by strong technical momentum and a reasonable valuation with a moderate dividend yield.

Positive Factors

Stable Gross Margin

A relatively stable gross profit margin indicates consistent product-level economics and some pricing power or cost control in production. Over 2-6 months this supports margin sustainability, enabling reinvestment in R&D and product quality even if net margins fluctuate.

Improving Equity Ratio

An improving equity ratio and a stable equity base strengthen the company’s capitalization and financial cushion. This durable improvement enhances capacity to fund operations, weather shocks, and pursue strategic investments without immediate reliance on external financing.

Diversified Distribution & R&D

A multi-channel distribution network plus stated R&D focus provides durable revenue diversification and easier new-product rollouts. This structural reach into retail and e-commerce supports sustained market access and scale for innovations over the medium term.

Negative Factors

Negative Free Cash Flow

Sustained negative free cash flow weakens the firm’s ability to self-fund capex, R&D, dividends, and working capital. Over a multi-month horizon this raises financing risk, may force external funding, and constrains strategic flexibility despite underlying revenue sources.

Volatile Net Profit Margin

Significant volatility and a recent net margin decline reduce predictability of earnings and return metrics. For multi-month planning, this complicates capital allocation, weakens investor visibility into sustainable profitability, and can impair long-term strategic decisions.

Rising Leverage

An increasing debt-to-equity ratio raises financial leverage and interest-service obligations. Combined with weak free cash flow, higher leverage meaningfully increases solvency and refinancing risk, limiting headroom for investments or volatility absorption over the medium term.

Nikki Co., Ltd. Business Overview & Revenue Model

Company Description

Nikki Co., Ltd. researches, designs, develops, and sells carburetors and fuel equipment in Japan and internationally. The company offers electric motors; fuel cell stack related products, including regulators for hydrogen, gaseous injectors, valves of fuel cell bypass, and safety valves for hydrogen; clean energy products, such as regulators for hydrogen, gaseous injectors, regulators for ammonia, and electric throttle body products; Fuel supply system for engine and parts that comprise CNG systems, engine electronic control units, sensors, and motor driving devices; and gaseous fuel engine equipment, that includes CNG/LPG-MPI fuel rail assembly, LPG-MPI fuel rail assembly, CNG/LPG-SPI fuel rail assembly, CNG/LNG regulators, LPG-vaporizers, and CNG/LPG fuel filters. It also provides industrial engine components and gaseous fueled general purpose engine components comprising throttle body for general purpose engines, general purpose carburetors, general purpose carburetors, GHP-zero governors, GHP -mixers, and general purpose FI engine fuel pump modules; and electronic control equipment that comprise electronic control unit for CNG engines. The company was formerly known as Nippon Carburetor Co., Ltd. and changed its name to Nikki Co., Ltd. in 2001. Nikki Co., Ltd. was incorporated in 1932 and is headquartered in Atsugi, Japan.

How the Company Makes Money

Nikki Co., Ltd. generates revenue through multiple channels, primarily by selling its products directly to consumers and through retail partnerships. The company leverages a robust distribution network that includes both physical stores and e-commerce platforms, allowing it to reach a wide customer base. Key revenue streams include the sale of home appliances, personal care items, and accessories. Additionally, Nikki Co., Ltd. often collaborates with other brands and retailers for co-marketing initiatives, which further enhances its market presence and profitability. Seasonal promotions and loyalty programs also play a significant role in driving sales and customer retention.

Nikki Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: stable gross margin and a solid equity base, but profitability has been volatile with a notable recent net margin decline and inconsistent revenue. Cash flow is a key weakness, with negative free cash flow in recent years and uneven conversion of earnings into operating cash.

Income Statement

Nikki Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, but the net profit margin has seen significant fluctuations, with a notable decline in the latest year. Revenue growth has been inconsistent, with a decline in the most recent year. The EBIT and EBITDA margins indicate moderate profitability, but the declining trend in EBIT margin is a concern.

Balance Sheet

The balance sheet of Nikki Co., Ltd. presents a stable equity base with an improving equity ratio. However, the debt-to-equity ratio has increased, indicating higher leverage, which could pose risks if not managed properly. The return on equity has been volatile, reflecting the fluctuations in net income.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in recent years. The operating cash flow to net income ratio has been inconsistent, indicating potential issues in converting income into cash. The free cash flow to net income ratio also highlights difficulties in generating cash from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.79B	8.36B	9.36B	8.80B	8.84B	5.90B
Gross Profit	2.65B	2.71B	2.68B	2.75B	2.48B	1.54B
EBITDA	1.64B	1.90B	3.85B	1.78B	1.80B	857.83M
Net Income	756.64M	630.55M	2.19B	878.23M	923.48M	256.98M
Balance Sheet
Total Assets	23.21B	23.37B	23.06B	20.28B	17.84B	13.35B
Cash, Cash Equivalents and Short-Term Investments	3.83B	4.10B	4.18B	4.68B	3.26B	3.87B
Total Debt	7.91B	8.16B	7.30B	7.65B	5.93B	2.73B
Total Liabilities	10.25B	10.30B	10.67B	10.45B	8.69B	5.13B
Stockholders Equity	12.93B	13.03B	12.37B	9.81B	9.12B	8.19B
Cash Flow
Free Cash Flow	0.00	-698.87M	-2.68B	-2.44B	-1.84B	-314.26M
Operating Cash Flow	0.00	-441.34M	1.92B	801.51M	677.39M	496.40M
Investing Cash Flow	0.00	-295.23M	-2.45B	-2.67B	-2.47B	-650.14M
Financing Cash Flow	0.00	539.75M	-367.91M	3.19B	1.32B	-180.07M

Nikki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3725.00
• 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:6042, the sentiment is Positive. The current price of 3725 is below the 20-day moving average (MA) of 4417.50, below the 50-day MA of 4039.40, and above the 200-day MA of 3203.59, indicating a bullish trend. The MACD of 162.85 indicates Positive momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 24.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6042.

Nikki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5189	75 Outperform	¥6.38B	8.57	―	2.64%	2.28%	41.72%
7228	74 Outperform	¥9.07B	8.01	―	3.19%	5.38%	5.29%
6042	69 Neutral	¥8.52B	11.35	―	3.05%	-15.99%	-73.61%
6699	68 Neutral	¥6.01B	4.18	―	6.68%	1.95%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥8.74B	27.45	―	4.24%	-7.88%	-73.98%
7297	57 Neutral	¥6.44B	-14.70	―	3.44%	-7.72%	-311.30%

Nikki Co., Ltd. Corporate Events

Nikki Co., Ltd. Posts Profit Growth and Stronger Balance Sheet but Keeps Dividend at Zero

Nikki Co., Ltd. reported consolidated net sales of ¥6,604 million for the quarter ended December 2025, a 3.8% increase year on year, with operating profit up 16.6% to ¥735 million and ordinary profit up 16.4% to ¥846 million, signaling a solid earnings recovery from the prior year’s declines. Profit attributable to owners of parent rose 20.0% to ¥606 million, lifting basic earnings per share to ¥324.95, while total assets edged up to ¥23,790 million and the capital adequacy ratio improved to 56.8%, underscoring strengthened financial health; however, the company maintained a zero dividend per share for the second quarter, which may temper immediate returns for shareholders despite improved profitability.

The most recent analyst rating on (JP:6042) stock is a Hold with a Yen4043.00 price target. To see the full list of analyst forecasts on Nikki Co., Ltd. stock, see the JP:6042 Stock Forecast page.