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

• Market Cap: ¥40.43B
• Dividend Yield: 2.09%
• Average Volume (3M): 69.99K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.78
• Revenue Growth: 20.20%
• EPS Growth: 37.72%
• Country: JP
• Employees: 993
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 53.36
• 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): 180.5
• Revenue Forecast (FY): ¥40.50B

• Rating: 72 Outperform
• Price Target: ¥2,756.00 ▲(13.70% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Sustained top-line growth over multiple years indicates expanding demand for Nittoku's wire/cable and factory-automation equipment, supporting scale economies and long-term customer relationships. Durable revenue expansion underpins reinvestment capacity and market share gains if margins are stabilized.

Strong Balance Sheet

A conservative capital structure and high equity ratio give Nittoku financial flexibility to fund capex, absorb industry cyclicality, or pursue selective M&A without relying heavily on external debt. This reduces solvency risk and supports multi‑year strategic investments.

After-sales & Services

A business model combining equipment sales with engineering, installation and aftermarket service creates recurring revenue, higher lifetime customer value and switching costs. This structural mix can smooth cyclicality in capital spending and support margin recovery over time.

Negative Factors

Margin Compression

Material declines in gross and net margins suggest rising input or operational costs, or weaker pricing power. If persistent, margin erosion will reduce cash available for reinvestment or shareholder returns and could impair the durability of recent revenue gains.

Negative Free Cash Flow

A shift to negative free cash flow driven by higher capex reduces internally available funds for growth or debt reduction. Over several quarters, persistent negative FCF could force external financing or delay strategic projects, weakening long-term financial flexibility.

Declining Return on Equity

A marked drop in ROE indicates management is generating lower returns on shareholders' capital, reflecting weaker profitability or asset efficiency. Sustained ROE deterioration undermines shareholder value and may necessitate operational or strategic corrective actions.

Nittoku Co., Ltd. Business Overview & Revenue Model

Company Description

Nittoku Co., Ltd. manufactures and sells automatic winding machines and related parts in Japan and internationally. The company offers coil winding machines in various coil types, including relay, solenoid, ignition, transformer, injector, pick up, reactor, PM stepping, bobbinless coil, sensor coil, induction heating coil, armature, power inductor, speaker/receiver, brushless inner and outer motor, chip inductor coil, and others. It also provides factory automation systems, IC cards, and contactless smart cards and parts. The company was formerly known as Nittoku Engineering Co., Ltd. and changed its name to Nittoku Co., Ltd. in August 2019. Nittoku Co., Ltd. was founded in 1972 and is headquartered in Saitama, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.29B	33.27B	30.80B	29.46B	28.12B	22.05B
Gross Profit	9.10B	7.65B	9.64B	7.71B	6.60B	5.30B
EBITDA	3.34B	2.39B	5.10B	3.96B	3.90B	2.06B
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	14.97B	15.34B	13.86B	13.73B	11.91B
Total Debt	7.53B	8.03B	1.98B	0.00	0.00	0.00
Total Liabilities	25.55B	23.81B	17.01B	11.65B	13.42B	10.53B
Stockholders Equity	36.34B	36.39B	39.42B	35.72B	33.65B	31.49B
Cash Flow
Free Cash Flow	0.00	-759.00M	-140.00M	1.02B	2.32B	2.01B
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	-673.44M
Financing Cash Flow	0.00	-329.00M	1.20B	-848.00M	-848.00M	-696.86M

Nittoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2424.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6145, the sentiment is Negative. The current price of 2424 is below the 20-day moving average (MA) of 2469.55, below the 50-day MA of 2449.30, and above the 200-day MA of 2233.98, indicating a neutral trend. The MACD of -46.87 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6145.

Nittoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6517	78 Outperform	¥72.32B	9.50	―	2.63%	-6.00%	-13.74%
6381	75 Outperform	¥65.23B	13.24	―	3.95%	-1.67%	-4.39%
6118	74 Outperform	¥60.50B	24.26	―	2.54%	2.00%	39.80%
6145	72 Outperform	¥40.43B	11.36	―	2.09%	20.20%	37.72%
6363	70 Outperform	¥69.96B	4.09	―	3.09%	6.35%	-34.20%
6143	69 Neutral	¥69.40B	10.78	7.00%	3.02%	15.78%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%