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

• Market Cap: ¥7.34B
• Dividend Yield: 3.05%
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.27
• Revenue Growth: -15.99%
• EPS Growth: -73.61%
• Country: JP
• Employees: 506
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 116.15
• 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: 71 Outperform
• Price Target: ¥4,243.00 ▲(13.91% Upside)

Nikki Co., Ltd. scores well due to its strong technical indicators and attractive valuation, which suggest potential for price appreciation and income through dividends. However, mixed financial performance and cash flow challenges present risks that need to be addressed for sustainable growth.

Positive Factors

Stable Equity Position

A stable equity position with an improving equity ratio indicates a solid financial foundation, enhancing long-term stability and resilience against market fluctuations.

Competitive Edge through Innovation

Continuous innovation and technological advancements help Nikki Co., Ltd. sustain its competitive advantage, ensuring steady demand and market relevance over time.

Diverse Revenue Streams

Diverse revenue streams across utilities and industrial sectors reduce dependency on a single market, providing stability and potential for growth in various economic conditions.

Negative Factors

Increasing Leverage

Rising leverage can strain financial resources and limit strategic flexibility, posing risks if not managed effectively, especially in volatile markets.

Negative Revenue Growth

Declining revenue growth reflects challenges in market expansion and product adoption, potentially impacting long-term profitability and market position.

Cash Flow Challenges

Persistent cash flow issues hinder the company's ability to fund operations and investments, potentially affecting growth and financial health over time.

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

Nikki Co., Ltd. exhibits a mixed financial performance. While the company maintains a stable equity position, increasing leverage and inconsistent profitability metrics suggest potential financial risks. Cash flow challenges further underscore the need for improved cash management strategies.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 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 above the 20-day moving average (MA) of 3685.00, above the 50-day MA of 3362.60, and above the 200-day MA of 2915.23, indicating a bullish trend. The MACD of 152.81 indicates Negative momentum. The RSI at 69.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 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
7208	81 Outperform	¥5.48B	8.76	―	3.04%	-1.94%	-5.96%
6042	71 Outperform	¥7.34B	13.27	―	3.05%	-15.99%	-73.61%
6699	68 Neutral	¥4.94B	2.63	―	6.68%	1.95%	―
6776	64 Neutral	¥4.44B	4.34	―	1.95%	-11.25%	82.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6901	54 Neutral	¥5.61B	-22.60	―	2.46%	-9.28%	-219.81%
7214	49 Neutral	¥4.94B	-105.70	―	4.51%	0.61%	-453.99%