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Nitto Kohki Co., Ltd. (JP:6151)
:6151
Japanese Market
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Nitto Kohki Co., Ltd. (6151) AI Stock Analysis

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JP:6151

Nitto Kohki Co., Ltd.

(6151)

Rating:61Neutral
Price Target:
¥1,967.00
▲(7.37% Upside)
Nitto Kohki Co., Ltd. has a stable financial position with strong equity support and low debt levels, which is a significant strength. However, the high P/E ratio suggests potential overvaluation, and the technical indicators show mixed signals with limited upward momentum. The company's cash flow challenges and inconsistent revenue growth also weigh on the overall score.

Nitto Kohki Co., Ltd. (6151) vs. iShares MSCI Japan ETF (EWJ)

Nitto Kohki Co., Ltd. Business Overview & Revenue Model

Company DescriptionNitto Kohki Co., Ltd. is a Japanese company specializing in the manufacturing and distribution of high-quality industrial and construction tools. The company operates in sectors such as manufacturing, construction, and engineering, providing a range of products including pneumatic tools, magnetic base drills, and quick release couplings. Nitto Kohki is known for its innovative approach to product development, ensuring reliability and efficiency in its offerings, which are utilized across various industries globally.
How the Company Makes MoneyNitto Kohki Co., Ltd. generates revenue primarily through the sale of its industrial and construction tools. The company's key revenue streams include the manufacturing and distribution of pneumatic tools, which are used widely in construction and manufacturing settings, as well as magnetic base drills that cater to specific engineering and construction needs. Additionally, Nitto Kohki earns income from its line of quick release couplings, which are essential components in many industrial applications. The company also benefits from strategic partnerships and distribution agreements that expand its market reach internationally, contributing significantly to its earnings.

Nitto Kohki Co., Ltd. Financial Statement Overview

Summary
Nitto Kohki Co., Ltd. demonstrates a stable financial position with strong equity support and low debt levels, providing a robust buffer against market uncertainties. However, challenges in maintaining consistent revenue growth and improving profitability margins need addressing. The company's ability to generate cash flow has been under pressure, which warrants strategic focus on enhancing operational efficiency and profitability.
Income Statement
70
Positive
The income statement reveals mixed performance. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin has declined over recent years, reflecting pressures on profitability. Revenue growth is inconsistent, with fluctuations in annual revenues, highlighting potential market or operational challenges. EBIT and EBITDA margins are satisfactory, yet they have shown a downtrend from previous levels, suggesting a need for operational improvements.
Balance Sheet
75
Positive
The balance sheet indicates financial stability with a strong equity base, as evidenced by a high equity ratio. The debt-to-equity ratio is low, suggesting prudent leverage management. However, the return on equity has been decreasing, which might be a concern for investors looking for strong returns on capital. Overall, the company's balance sheet reflects a conservative financial structure with ample equity to support operations.
Cash Flow
65
Positive
Cash flow analysis shows declining free cash flow, which could constrain future investments and growth. The operating cash flow to net income ratio is positive, indicating good cash conversion efficiency. However, the free cash flow to net income ratio is negative in the latest period, highlighting operational cash flow challenges. Despite these issues, the company maintains a solid liquidity position with substantial cash reserves.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.26B27.26B27.07B28.09B25.28B22.53B
Gross Profit12.14B12.14B12.60B12.88B11.79B10.57B
EBITDA3.61B3.67B4.00B5.22B4.45B3.78B
Net Income1.43B1.35B2.05B2.63B1.93B1.55B
Balance Sheet
Total Assets66.61B66.61B65.48B66.83B64.33B61.72B
Cash, Cash Equivalents and Short-Term Investments20.30B20.30B25.16B31.82B31.80B31.20B
Total Debt1.59B1.59B1.63B1.75B1.74B1.16B
Total Liabilities8.42B8.42B7.89B8.87B8.61B7.22B
Stockholders Equity58.17B58.17B57.58B57.96B55.72B54.49B
Cash Flow
Free Cash Flow-3.08B-2.08B-3.61B1.24B1.73B2.11B
Operating Cash Flow1.11B2.71B2.31B2.30B2.95B3.76B
Investing Cash Flow-5.07B-6.85B-333.00M4.65B3.64B-6.12B
Financing Cash Flow-847.00M-1.39B-3.74B-1.50B-1.15B-1.64B

Nitto Kohki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1832.00
Price Trends
50DMA
1836.84
Negative
100DMA
1793.07
Positive
200DMA
2025.79
Negative
Market Momentum
MACD
-15.74
Positive
RSI
51.42
Neutral
STOCH
49.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6151, the sentiment is Neutral. The current price of 1832 is below the 20-day moving average (MA) of 1835.45, below the 50-day MA of 1836.84, and below the 200-day MA of 2025.79, indicating a bearish trend. The MACD of -15.74 indicates Positive momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6151.

Nitto Kohki Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥32.17B12.96
3.89%4.62%39.04%
76
Outperform
¥34.81B10.05
4.12%1.33%15.33%
74
Outperform
¥40.33B20.66
1.89%14.09%-18.06%
74
Outperform
¥47.84B27.62
1.75%9.94%52.90%
71
Outperform
¥37.86B9.75
3.23%20.08%67.61%
64
Neutral
$10.75B15.577.24%2.01%2.80%-14.32%
61
Neutral
¥33.50B61.11
2.13%1.69%-67.19%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6151
Nitto Kohki Co., Ltd.
1,832.00
-508.32
-21.72%
JP:6144
Seibu Electric & Machinery Co., Ltd.
2,160.00
371.53
20.77%
JP:6145
Nittoku Co., Ltd.
2,218.00
713.31
47.41%
JP:6223
Seibu Giken Co., Ltd.
1,701.00
187.77
12.41%
JP:6240
Yamashin-Filter Corp.
690.00
255.52
58.81%
JP:6247
Hisaka Works,Ltd.
1,392.00
347.51
33.27%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Reports Decline in Q1 2025 Financial Performance
Aug 5, 2025

Nitto Kohki Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 1.6% and operating profit dropping by 37.7% compared to the same period in the previous year. The company also experienced a significant decline in profit attributable to owners of the parent, resulting in a loss of 281 million yen. Despite these challenges, the company’s capital adequacy ratio remains strong at 87.0%, indicating a stable financial position. The financial forecast for the fiscal year ending March 31, 2026, shows a modest increase in net sales by 7.5%, although operating and ordinary profits are expected to decline significantly, reflecting ongoing challenges in the market.

Nitto Kohki Reports Sales Growth Amid Profit Challenges
Jun 27, 2025

Nitto Kohki Co., Ltd. reported an increase in sales for FY2024, driven by strong performance in Japan, the Americas, and Europe. However, operating profit decreased due to rising costs. Looking ahead to FY2025, the company anticipates a further decline in profit due to expenses related to a new plant, although sales are expected to rise. Efforts to improve profitability include cost reduction measures and price increases for certain products. The company is optimistic about a recovery in the semiconductor sector and expects increased contributions from its Couplings Business.

Nitto Kohki Outlines Strategy to Meet Tokyo Stock Exchange Listing Criteria
Jun 25, 2025

Nitto Kohki Co., Ltd. has announced a plan to address its non-compliance with the Tokyo Stock Exchange Prime Market’s continued listing criteria, specifically regarding the tradable share ratio. The company is implementing measures to increase the number of tradable shares and improve liquidity, including capital policies and shareholder engagement. Recent efforts suggest that Nitto Kohki may have already met the required tradable share ratio, but it will continue to monitor and adjust its strategies to ensure compliance.

Nitto Kohki Announces Key Executive and Departmental Changes
Jun 25, 2025

Nitto Kohki Co., Ltd. announced personnel changes among its executive officers and department heads, effective September 1, 2025. These changes include the appointment of Keisuke Yokota as the Managing Executive Officer and Chief Sales and Marketing Officer, and the reassignment of regional general managers to strengthen the company’s international business operations.

Nitto Kohki Completes Recurrence Prevention Measures to Strengthen Operations
Jun 24, 2025

Nitto Kohki Co., Ltd. has announced the completion of its recurrence prevention measures, which were formulated based on recommendations from a Special Investigation Committee. These measures include reviewing and improving cost accounting processes, limiting concurrent service roles, implementing job rotation, and enhancing inventory monitoring systems. The company aims to restore stakeholder trust by strengthening compliance and fostering a healthy organizational culture. The impact of these measures is expected to enhance the company’s internal controls and risk management, thereby improving its operational efficiency and industry positioning.

Nitto Kohki Asserts Independence from Controlling Shareholder
May 30, 2025

Nitto Kohki Co., Ltd. has clarified its relationship with its controlling shareholder, NIKKI Co., Ltd., which holds 38.88% of its voting rights. Despite this significant shareholding, Nitto Kohki maintains operational independence as NIKKI Co., Ltd. is involved in the real estate rental business and does not influence Nitto Kohki’s business activities. The company assures stakeholders of its management independence through the presence of outside directors and audit members, ensuring no interference from NIKKI Co., Ltd.

Nitto Kohki Reports Mixed Financial Results Amidst Challenging Market Conditions
May 15, 2025

Nitto Kohki Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.7% to ¥27,256 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with percentages dropping by 12.6%, 11.0%, and 26.9% respectively. The financial forecast for the fiscal year ending March 31, 2026, anticipates a 7.5% increase in net sales, although profits are expected to continue declining. This indicates a challenging financial environment for the company, impacting its market positioning and stakeholder expectations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025