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

• Market Cap: ¥32.19B
• Dividend Yield: 2.17%
• Average Volume (3M): 10.91K
• Price to Earnings (P/E): 58.7
• Beta (1Y): 0.67
• Revenue Growth: 1.69%
• EPS Growth: -67.19%
• Country: JP
• Employees: 1,014
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -15.05
• 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: ¥1,799.00
• Price Target Upside: 4.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥1,799.00 ▲(4.59% Upside)

The overall stock score of 57 reflects a stable financial position with strong equity support and low debt levels. However, the stock faces challenges with weak technical indicators and a high P/E ratio, suggesting potential overvaluation. The lack of earnings call data and corporate events further limits the assessment.

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 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

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: Neutral
• Last Price: 1720.00
• 50DMA: Negative
• 100DMA: Negative
• 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 1720 is below the 20-day moving average (MA) of 1758.92, below the 50-day MA of 1792.11, and below the 200-day MA of 1892.96, indicating a neutral trend. The MACD of -11.42 indicates Negative momentum. The RSI at 51.62 is Neutral, neither overbought nor oversold. The STOCH value of 42.53 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	¥32.20B	12.97	―	3.94%	4.62%	39.04%
6223	76 Outperform	¥33.62B	9.71	―	4.27%	1.33%	15.33%
6145	74 Outperform	¥41.57B	21.30	―	2.00%	14.09%	-18.06%
6240	74 Outperform	¥54.27B	31.34	―	1.93%	9.94%	52.90%
6247	71 Outperform	¥36.14B	9.31	―	3.85%	20.08%	67.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6151	57 Neutral	¥32.19B	58.72	―	2.17%	1.69%	-67.19%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Reports First Quarter FY2025 Financial Results Amid Industry Challenges

Nitto Kohki Co., Ltd. reported a slight decline in net sales for the first quarter of FY2025, attributed to U.S. tariff measures and uncertainties in the automotive industry. The company’s relocation of its plant led to a net loss due to decreased operating rates and extraordinary relocation expenses. While demand for semiconductor-related products increased, higher material costs impacted profits. The door closers segment saw growth, driven by strong performance in data centers and new customer acquisitions.

Nitto Kohki Reports Decline in Q1 2025 Financial Performance

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

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.