Nitto Kohki Co., Ltd. (6151) AI Stock Analysis

• Market Cap: ¥34.30B
• Dividend Yield: 2.13%
• Average Volume (3M): 10.91K
• Price to Earnings (P/E): 66.8
• Beta (1Y): 0.67
• Revenue Growth: 1.13%
• EPS Growth: -66.14%
• Country: JP
• Employees: 1,014
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.67
• Shares Outstanding: 19,154,495
• 10 Day Avg. Volume: 10,020
• 30 Day Avg. Volume: 10,913
• PEG Ratio: -1.11
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -16.54
• 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: 59 Neutral
• Price Target: ¥1,829.00 ▼(-0.65% Downside)

The overall stock score of 59 reflects a stable financial position with strong equity support but highlights concerns over inconsistent revenue growth and profitability challenges. Technical indicators suggest weak momentum, and the high P/E ratio indicates potential overvaluation. The dividend yield provides some income potential, but strategic improvements are needed to enhance operational efficiency and profitability.

Positive Factors

Strong Equity Base

A strong equity base provides a solid foundation for the company, allowing it to withstand market uncertainties and invest in future growth opportunities without relying heavily on debt.

Global Market Presence

A global market presence allows Nitto Kohki to diversify its revenue streams and reduce dependency on any single market, enhancing its resilience against regional economic fluctuations.

Innovation and R&D Focus

Commitment to R&D ensures that Nitto Kohki can continuously innovate, meeting market demands and maintaining a competitive edge in the industrial equipment sector.

Negative Factors

Declining Free Cash Flow

Declining free cash flow could limit the company's ability to invest in growth initiatives and respond to market opportunities, potentially impacting long-term expansion and competitiveness.

Inconsistent Revenue Growth

Inconsistent revenue growth suggests potential market or operational challenges, which could hinder the company's ability to plan and execute long-term strategic initiatives effectively.

Declining Net Profit Margin

A declining net profit margin indicates pressures on profitability, which may necessitate operational improvements to sustain financial health and shareholder returns over the long term.

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

Company Description

Nitto Kohki Co., Ltd. develops, manufactures, and sells connecting fluid couplings, labor-saving machine tools, and linear motor driven free piston pumps and other pumps for various applications. It offers power and machine tools for boring, cutting, grinding, and scaling of steel materials; electric screwdrivers for assembling electronic devices, such as PCs, smartphones, printers, and automotive components; and blowers. In addition, the company provides pumps and compressors for various fields, including medical, research, food, and electronic manufacturing industries; and door closers for medical facilities, offices, and transportation equipment. It operates in Japan, the Americas, Europe, East Asia, Southeast Asia, and Asia and Oceania. Nitto Kohki Co., Ltd. was founded in 1956 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nitto Kohki generates revenue primarily through the sale of its precision tools and automation products. The company has a robust revenue model that includes direct sales to manufacturers and distributors, as well as partnerships with companies that integrate its products into their systems. Key revenue streams include the sale of air tools, which are utilized in various manufacturing processes, and pneumatic components, which are essential for automation solutions. Additionally, Nitto Kohki benefits from its global presence, enabling it to tap into international markets, and its focus on research and development helps in creating innovative products that meet market demands, further driving revenue growth.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.15B	27.26B	27.07B	28.09B	25.28B	22.53B
Gross Profit	11.96B	12.14B	12.32B	12.88B	11.79B	10.57B
EBITDA	2.92B	3.67B	4.00B	5.22B	4.45B	3.78B
Net Income	547.00M	1.35B	1.84B	2.49B	1.86B	1.55B
Balance Sheet
Total Assets	65.62B	66.61B	65.48B	66.83B	64.33B	61.72B
Cash, Cash Equivalents and Short-Term Investments	13.67B	20.30B	25.16B	31.82B	31.80B	31.20B
Total Debt	1.63B	1.59B	1.63B	1.75B	1.74B	1.16B
Total Liabilities	8.49B	8.42B	7.89B	8.87B	8.61B	7.22B
Stockholders Equity	57.12B	58.17B	57.58B	57.96B	55.72B	54.49B
Cash Flow
Free Cash Flow	-1.54B	-2.08B	-3.61B	1.24B	1.73B	2.11B
Operating Cash Flow	554.00M	2.71B	2.31B	2.30B	2.95B	3.76B
Investing Cash Flow	-2.53B	-6.85B	-333.00M	4.65B	3.64B	-6.12B
Financing Cash Flow	-423.50M	-1.39B	-3.74B	-1.50B	-1.15B	-1.64B

Nitto Kohki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1841.00
• 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:6151, the sentiment is Positive. The current price of 1841 is above the 20-day moving average (MA) of 1782.45, above the 50-day MA of 1721.78, and above the 200-day MA of 1758.19, indicating a bullish trend. The MACD of 34.18 indicates Negative momentum. The RSI at 64.66 is Neutral, neither overbought nor oversold. The STOCH value of 49.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6151.

Nitto Kohki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6223	76 Outperform	¥34.30B	10.22	―	4.12%	-4.79%	2.72%
6144	75 Outperform	¥44.53B	13.54	―	3.00%	12.75%	96.71%
6145	72 Outperform	¥45.24B	16.57	―	2.09%	20.20%	37.72%
6247	72 Outperform	¥42.38B	10.11	―	3.32%	18.47%	64.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥42.31B	24.21	―	2.53%	6.56%	23.98%
6151	59 Neutral	¥34.30B	66.84	―	2.13%	1.13%	-66.14%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Restructures Executive Ranks to Sharpen R&D and Production Leadership

Nitto Kohki Co., Ltd. has announced a series of executive management changes, including the planned appointment of Senior Executive Officer and current Chief Engineering Officer Takashi Chiba as a Director and Chief R&D Officer following shareholder approval in June 2026, while Director and Chief Administration Officer Hiromi Noguchi will retire from the Board and continue as Managing Executive Officer. Effective April 1, 2026, the company will split the former Chief Engineering Officer role into two dedicated posts—Chief R&D Officer, assigned to Chiba, and a newly created Chief Production Officer role to be held by Managing Executive Officer Tetsuya Kuwabara—aimed at strengthening both research and development and production functions; additional officer reassignments, including a new executive officer role for Japan Sales, are intended to refine organizational responsibilities and enhance operational efficiency ahead of the FY2026 term.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Co., Ltd. Expands in AI Data Center Cooling Market Amid Ambitious Growth Plans

Nitto Kohki Co., Ltd. is experiencing strong demand for its couplings used in AI data center cooling applications, driven by the growth of generative AI. The company is also expanding its product variations to meet this demand and aims to increase sales of its sliding door closers internationally. The company is halfway through its Medium-Term Management Plan 2026, with revised revenue and profit targets. While the final year targets are ambitious, discussions on their feasibility are ongoing, with specific measures to be announced in the future.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Completes Strategic Share Distribution

Nitto Kohki Co., Ltd. has successfully completed an off-floor distribution of 596,700 shares at a price of 1,523 yen per share on the Tokyo Stock Exchange. This strategic move aims to improve the distribution and liquidity of its shares, thereby increasing the ratio of shares in circulation and potentially enhancing market confidence and shareholder value.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Announces Off-Floor Share Distribution to Boost Liquidity

Nitto Kohki Co., Ltd. has announced an off-floor distribution of 596,700 shares to improve the liquidity and distribution of its shares on the Tokyo Stock Exchange. This strategic move is expected to enhance the circulation ratio of shares, potentially impacting the company’s market presence and offering opportunities for stakeholders.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Reports Decline in Semi-Annual Financial Results

Nitto Kohki Co., Ltd. reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales decreasing by 2.4% and a significant drop in profit attributable to owners of the parent by 88.8% compared to the previous year. Despite the challenging financial performance, the company maintains a strong capital adequacy ratio of 88.0%, indicating a stable financial position, and has revised its earnings forecast for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Announces Off-Floor Share Distribution to Boost Liquidity

Nitto Kohki Co., Ltd. has announced an off-floor distribution of 596,700 shares to improve the liquidity and circulation ratio of its shares. This strategic move is set to take place on the Tokyo Stock Exchange and aims to enhance the company’s market presence, although it may be subject to changes due to market volatility.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Launches Employee Stock Incentive Plan to Boost Engagement

Nitto Kohki Co., Ltd. has announced a plan to dispose of its treasury shares as part of a Restricted Stock Incentive plan for its Employee Shareholding Association. This initiative aims to enhance employee welfare and motivation by allowing eligible employees to acquire company shares, thereby aligning their interests with those of the shareholders and promoting corporate value. The plan involves issuing restricted shares to employees based on their years of service, with the goal of fostering long-term commitment and engagement within the company.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1829.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Achieves Compliance with Tokyo Stock Exchange Prime Market Criteria

Nitto Kohki Co., Ltd. has announced that it now complies with all the continued listing criteria of the Tokyo Stock Exchange Prime Market as of September 30, 2025. This compliance was achieved by increasing the ratio of tradable shares above the required threshold, following strategic initiatives to encourage shareholders to reduce their holdings. The company plans to further enhance share liquidity and corporate value through its medium-term management plan and improved information disclosure.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1799.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.