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

• Market Cap: ¥34.28B
• Dividend Yield: 2.13%
• Average Volume (3M): 10.95K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.68
• Revenue Growth: 0.68%
• EPS Growth: -22.82%
• Country: JP
• Employees: 1,014
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): -5.55
• Shares Outstanding: 19,154,495
• 10 Day Avg. Volume: 7,470
• 30 Day Avg. Volume: 10,953
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥1,944.00
• Price Target Upside: 6.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,962.00 ▲(7.10%Upside)

The overall stock score of 65 reflects a balance of solid financial stability and technical indicators with pressures on profitability and cash flow generation. While the stock shows some positive momentum, the lack of strong directional technical indicators and moderate valuation metrics suggest a cautious outlook.

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

Company Description

Nitto 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 Money

Nitto 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 financial stability with strong equity support and low debt levels. However, declining profitability margins and inconsistent revenue growth pose ongoing challenges. Cash flow generation also faces pressures, highlighting the need for strategic improvements.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Nitto Kohki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1832.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 1832 is above the 20-day moving average (MA) of 1819.75, above the 50-day MA of 1796.46, and below the 200-day MA of 2128.04, indicating a neutral trend. The MACD of 11.09 indicates Negative momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6144	80 Outperform	¥29.15B	12.41		4.31%	4.40%	18.82%
6247	78 Outperform	¥39.36B	10.64		3.12%	12.21%	60.18%
6223	75 Outperform	¥33.09B	8.75		4.34%	―	―
6240	75 Outperform	¥46.29B	26.69		1.85%	11.54%	121.00%
6145	66 Neutral	¥36.53B	27.36		2.08%	8.00%	-50.92%
Sector *	65 Neutral	$11.14B	15.76	5.26%	2.01%	3.16%	-25.01%
6151	65 Neutral	¥34.28B	25.48		2.13%	0.68%	-22.82%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Reports Sales Growth Amid Profit Challenges

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

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

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

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

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

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.