Nittoku Co., Ltd. (6145) AI Stock Analysis

• Market Cap: ¥41.97B
• Dividend Yield: 2.2%
• Average Volume (3M): 69.99K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.75
• Revenue Growth: 20.20%
• EPS Growth: 37.72%
• Country: JP
• Employees: 993
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 81.02
• Shares Outstanding: 18,098,925
• 10 Day Avg. Volume: 126,290
• 30 Day Avg. Volume: 69,986
• PEG Ratio: -0.56
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.12
• P/FCF Ratio: -49.23
• 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: 72 Outperform
• Price Target: ¥2,756.00 ▲(18.64% Upside)

Nittoku Co., Ltd. benefits from strong financial performance with robust revenue growth and a solid balance sheet. The technical analysis indicates strong bullish momentum, supporting a positive outlook. However, challenges in profitability and cash flow, along with a moderate valuation, temper the overall score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong market demand and effective sales strategies, supporting its long-term expansion and competitive positioning.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing Nittoku to invest in growth opportunities and weather economic fluctuations.

Industry Position

Nittoku's diversified presence across key industries ensures stable demand for its products and reduces dependency on any single market, enhancing resilience and growth potential.

Negative Factors

Profit Margin Decline

Declining profit margins suggest rising costs or pricing pressures, which may impact profitability and require strategic adjustments to maintain financial performance.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to fund new projects or reduce debt, potentially constraining growth and increasing financial risk if not addressed.

Earnings Conversion Challenges

Difficulty in converting earnings to cash flow may indicate inefficiencies or operational issues, impacting liquidity and the ability to invest in future growth initiatives.

Nittoku Co., Ltd. Business Overview & Revenue Model

Company Description

Nittoku Co., Ltd. (6145) is a Japanese company primarily engaged in the manufacturing and sale of precision machinery and components. Operating in sectors such as automotive, electronics, and industrial machinery, Nittoku specializes in producing high-quality mechanical parts, including gears, shafts, and various precision instruments. The company is known for its commitment to innovation and technology, ensuring that its products meet the evolving demands of its diverse clientele.

How the Company Makes Money

Nittoku Co., Ltd. generates revenue through the sale of its precision machinery and components to various industries, including automotive and electronics. The company has established a robust revenue model based on direct sales to manufacturers and OEMs (Original Equipment Manufacturers). Key revenue streams include the production and supply of custom precision parts, which are often integral to larger machinery and electronic devices. Additionally, Nittoku may engage in partnerships with technology firms and automotive companies to develop specialized components, which can lead to long-term contracts and recurring revenue. The company's focus on quality and technological advancement also enables it to command premium pricing for its products, further contributing to its profitability.

Nittoku Co., Ltd. Financial Statement Overview

Summary

Nittoku Co., Ltd. shows strong revenue growth and a solid balance sheet with low financial risk. However, declining profit margins and negative free cash flow pose challenges. The company may need to focus on cost management and improving cash flow conversion to sustain its growth trajectory.

Income Statement

Nittoku Co., Ltd. has shown a consistent increase in total revenue over the past few years, with a recent jump from ¥28.12 billion in 2022 to ¥33.27 billion in 2025, indicating robust revenue growth. However, the gross profit margin has decreased from 25.2% in 2024 to 24.1% in 2025, and the net profit margin has also decreased from 8.9% to 3.9%, suggesting challenges in maintaining profitability. The EBIT and EBITDA margins have also seen a decline, pointing to increased operational costs or inefficiencies.

Balance Sheet

The company's balance sheet is strong, with a healthy equity ratio of 60.2% in 2025. The debt-to-equity ratio remains low at 0.22, indicating a conservative leverage approach. The return on equity has decreased significantly, but the company's high stockholders' equity and low debt levels point to a stable financial position with minimal financial risk.

Cash Flow

The cash flow statement reveals concerns, particularly with the free cash flow turning negative in 2025, mainly due to increased capital expenditures. The operating cash flow to net income ratio has fallen, showing challenges in converting earnings into cash. While operating cash flow remains positive, the negative free cash flow could impact future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.29B	33.27B	30.80B	29.46B	28.12B	22.05B
Gross Profit	9.10B	8.01B	9.93B	7.96B	7.09B	5.30B
EBITDA	3.32B	3.04B	5.25B	3.96B	3.90B	2.40B
Net Income	1.90B	1.31B	2.74B	2.22B	2.31B	1.25B
Balance Sheet
Total Assets	62.13B	60.41B	56.78B	47.67B	47.34B	42.26B
Cash, Cash Equivalents and Short-Term Investments	14.01B	14.91B	15.33B	13.84B	13.73B	11.90B
Total Debt	7.53B	8.03B	1.98B	0.00	0.00	0.00
Total Liabilities	25.55B	23.81B	17.02B	11.65B	13.42B	10.53B
Stockholders Equity	36.34B	36.39B	39.42B	35.71B	33.65B	31.49B
Cash Flow
Free Cash Flow	0.00	-759.00M	-236.00M	996.00M	2.31B	1.94B
Operating Cash Flow	0.00	50.00M	525.00M	1.25B	2.69B	2.69B
Investing Cash Flow	0.00	154.00M	116.00M	-392.00M	-714.00M	-688.74M
Financing Cash Flow	0.00	-329.00M	1.20B	-848.00M	-848.00M	-681.56M

Nittoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2323.00
• 50DMA: Negative
• 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:6145, the sentiment is Positive. The current price of 2323 is above the 20-day moving average (MA) of 2281.00, below the 50-day MA of 2338.36, and above the 200-day MA of 2085.62, indicating a neutral trend. The MACD of -16.10 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 59.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6145.

Nittoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6137	81 Outperform	¥34.81B	12.42	―	2.73%	0.25%	-18.79%
6223	76 Outperform	¥34.50B	10.28	―	4.13%	-4.79%	2.72%
6144	75 Outperform	¥42.00B	12.77	―	2.95%	12.75%	96.71%
6145	72 Outperform	¥41.97B	15.38	―	2.20%	20.20%	37.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥29.61B	13.50	―	3.52%	-3.85%	-45.64%
6151	59 Neutral	¥32.24B	62.83	―	2.17%	1.13%	-66.14%