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

• Market Cap: ¥35.09B
• Dividend Yield: 2.13%
• Average Volume (3M): 10.91K
• Price to Earnings (P/E): 68.4
• Beta (1Y): 0.69
• 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: ¥1,986.00 ▲(7.88% Upside)

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 balance sheet

A high equity base and low leverage provide a durable financial buffer that reduces refinancing and solvency risk during industry downturns. This strength supports steady investment in product development, aftermarket support, and selective capex without forcing asset sales or aggressive cost cuts.

Diversified industrial product mix

A broad product portfolio across couplers, tools, pumps and machinery spreads revenue across OEM supply, direct industrial customers and aftermarket parts/service. This reduces single-market exposure, supports recurring aftermarket sales, and aligns with ongoing industrial maintenance and automation demand.

Robust gross margins

Sustained gross margin strength suggests the company retains pricing power or efficient production processes, providing a margin cushion against input cost swings. This supports long-term profitability potential if SG&A and operating efficiencies are improved to restore net margins.

Negative Factors

Inconsistent revenue growth

Irregular top-line performance undermines revenue predictability and makes capacity planning, R&D prioritization, and dealer relationships harder to manage. Over several quarters this elevates execution risk and can delay economies of scale needed to sustainably expand margins.

Declining free cash flow

Persistent declines in free cash flow constrain the firm's ability to fund capex, aftermarket investments, or shareholder returns without tapping reserves. Even with solid cash balances today, ongoing negative FCF reduces strategic flexibility and raises reliance on operational fixes or external funding.

Deteriorating profitability metrics

A sharp drop in EPS and falling ROE signal weakening returns on invested capital, hurting long-term shareholder value creation. Unless operational efficiency or higher-margin revenue mix is restored, capital allocation decisions will be constrained and investor confidence in sustainable earnings may erode.

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: Positive
• 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 below the 20-day moving average (MA) of 1878.50, above the 50-day MA of 1775.40, and above the 200-day MA of 1767.58, indicating a neutral trend. The MACD of 29.44 indicates Positive momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 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	¥35.65B	10.62	―	4.12%	-4.79%	2.72%
6144	75 Outperform	¥39.16B	11.18	―	3.00%	12.75%	96.71%
6145	72 Outperform	¥42.33B	15.51	―	2.09%	20.20%	37.72%
6247	72 Outperform	¥41.98B	10.01	―	3.32%	18.47%	64.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥41.40B	23.69	―	2.53%	6.56%	23.98%
6151	59 Neutral	¥35.09B	68.37	―	2.13%	1.13%	-66.14%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Subsidiary Wins Government Subsidy for Smart Factory Integration in Disaster-Affected Area

Nitto Kohki announced that its consolidated subsidiary TOHOKU NITTO KOHKI will receive a government subsidy of up to ¥2.37 billion from Japan’s Ministry of Economy, Trade and Industry to support a major factory integration and modernization project in an area affected by the tsunami and nuclear disaster. The funding will help consolidate two aging plants into a new smart factory, including land acquisition, plant construction and installation of in-house production equipment, with the aim of boosting productivity, stabilizing supply, creating local employment, improving workplace safety and environment, and reinforcing its role as a core domestic manufacturing hub; the subsidy will be booked as extraordinary income in the third quarter of the fiscal year ending March 2026, and the company is still reviewing its full-year earnings forecast.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen2006.00 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 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.