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NS Tool Co., Ltd. (JP:6157)
:6157
Japanese Market

NS Tool Co., Ltd. (6157) AI Stock Analysis

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JP:6157

NS Tool Co., Ltd.

(6157)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥982.00
▲(11.59% Upside)
The score is driven primarily by strong financial performance, led by an exceptionally conservative, debt-free balance sheet and consistently healthy profitability. Technicals are supportive but not strong (mixed momentum signals), while valuation is fair with a solid dividend yield and a mid-range P/E.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet reduces financial risk and enhances financial flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.
Employee Incentive Alignment
Implementing a restricted stock compensation plan aligns employee interests with company performance, potentially enhancing productivity and retention, which supports long-term growth.
Strong Cash Generation
Consistent cash generation exceeding net income indicates strong earnings quality, providing the company with the ability to reinvest in operations and return value to shareholders.
Negative Factors
Revenue Volatility
Uneven revenue trends reflect potential challenges in maintaining consistent sales growth, which can impact long-term strategic planning and market positioning.
Margin Compression
Recent margin compression suggests increased cost pressures or pricing challenges, which could affect profitability and competitive positioning over time.
Industry Challenges
Facing industry-specific challenges and cost pressures can hinder growth prospects and necessitate strategic adjustments to maintain competitive advantage.

NS Tool Co., Ltd. (6157) vs. iShares MSCI Japan ETF (EWJ)

NS Tool Co., Ltd. Business Overview & Revenue Model

Company DescriptionNS Tool Co., Ltd. manufactures and sells cutting tools in Japan. The company offers cubic boron nitride, polycrystalline diamond, and micro drill end mills; end mills for aluminum and resin; tool wear and flat drills; long neck end mill series for copper electrode; and thread mill. It provides solid carbide end mills for hi-tech industries. The company was formerly known as Nisshin Kogu Seisakusho Co., Ltd. and changed its name to NS Tool Co., Ltd. in 1991. NS Tool Co., Ltd. was founded in 1954 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyNS Tool Co., Ltd. generates revenue through the design, production, and sale of specialized cutting tools. The company's key revenue streams include direct sales to manufacturers in industries like electronics and automotive, which demand high-precision tools for their machining processes. Additionally, NS Tool may engage in strategic partnerships with distributors and other industrial entities to expand its market reach and enhance its distribution network. The company's ability to innovate and provide tailored solutions to meet the specific needs of its clients significantly contributes to its earnings.

NS Tool Co., Ltd. Financial Statement Overview

Summary
NS Tool Co., Ltd. is in a robust financial position, marked by strong profitability, a debt-free balance sheet, and generally positive cash flow trends. While recent revenue growth has slowed, the company maintains high margins and strong equity. The primary area of concern is the fluctuation in operating cash flow, which requires monitoring to ensure continued financial health.
Income Statement
NS Tool Co., Ltd. demonstrates strong profitability with a consistent gross profit margin averaging around 53%. The company maintains solid net profit margins, reflecting efficient cost management. Although there is a slight decline in revenue growth recently, the overall revenue trajectory remains positive over the last few years. EBIT and EBITDA margins are robust, indicating effective operational management.
Balance Sheet
The balance sheet of NS Tool Co., Ltd. is exceptionally strong, with zero debt, which eliminates leverage risk. The company boasts a high equity ratio of over 90%, showcasing financial stability and resilience. Additionally, the return on equity is impressive, driven by consistent profitability and efficient equity utilization.
Cash Flow
Cash flow management is solid, with positive free cash flow in most periods. However, there are fluctuations in operating cash flow, which is currently at zero in the latest TTM period. This could pose short-term liquidity challenges if not addressed promptly, despite overall positive cash flow trends historically.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.42B9.43B9.04B9.66B9.52B8.10B
Gross Profit5.04B4.98B4.94B5.12B4.89B4.14B
EBITDA2.31B2.42B2.50B2.78B2.80B2.22B
Net Income1.31B1.26B1.32B1.48B1.52B1.21B
Balance Sheet
Total Assets19.55B19.95B19.24B18.86B17.87B16.94B
Cash, Cash Equivalents and Short-Term Investments9.45B9.87B8.89B8.50B8.54B7.67B
Total Debt0.000.000.000.000.000.00
Total Liabilities1.27B1.53B1.51B1.66B1.71B1.61B
Stockholders Equity18.28B18.42B17.73B17.20B16.17B15.33B
Cash Flow
Free Cash Flow0.001.90B1.27B927.80M1.60B2.06B
Operating Cash Flow0.002.01B1.83B1.61B2.26B2.53B
Investing Cash Flow0.00-392.61M-575.25M-1.14B-348.86M-187.25M
Financing Cash Flow0.00-684.30M-883.88M-560.86M-763.17M-438.38M

NS Tool Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price880.00
Price Trends
50DMA
854.62
Positive
100DMA
820.36
Positive
200DMA
763.20
Positive
Market Momentum
MACD
4.97
Positive
RSI
52.80
Neutral
STOCH
40.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6157, the sentiment is Positive. The current price of 880 is above the 20-day moving average (MA) of 877.55, above the 50-day MA of 854.62, and above the 200-day MA of 763.20, indicating a neutral trend. The MACD of 4.97 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6157.

NS Tool Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥23.33B12.493.89%1.33%29.73%
77
Outperform
¥21.79B17.553.31%0.97%-10.47%
76
Outperform
¥27.37B13.122.76%7.69%-0.40%
76
Outperform
¥156.00B24.471.17%29.51%48.81%
71
Outperform
¥62.09B21.952.82%8.75%177.16%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
51
Neutral
¥14.41B-14.456.98%-11.46%43.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6157
NS Tool Co., Ltd.
873.00
159.24
22.31%
JP:5945
Tenryu Saw Manufacturing Co., Ltd.
2,287.00
584.08
34.30%
JP:5957
Nitto Seiko Co., Ltd.
741.00
180.92
32.30%
JP:6278
Union Tool Co.
9,030.00
4,365.82
93.60%
JP:6464
Tsubaki Nakashima Co., Ltd
355.00
-92.00
-20.58%
JP:6480
Nippon Thompson Co., Ltd.
875.00
392.38
81.30%

NS Tool Co., Ltd. Corporate Events

NS Tool Completes Treasury Stock Disposal for Employee Compensation
Dec 1, 2025

NS Tool Co., Ltd. has completed the payment procedures for the disposal of treasury stock as restricted stock compensation, a decision made during a Board of Directors meeting on November 12, 2025. This disposal involved 11,500 common shares at a price of 836 yen per share, totaling 9,614,000 yen, and was distributed among 43 employees, including those from its subsidiaries. This move is likely aimed at enhancing employee retention and aligning their interests with company performance.

NS Tool Co., Ltd. Implements Restricted Stock Compensation Plan
Nov 12, 2025

NS Tool Co., Ltd. announced its decision to dispose of treasury stock as part of a restricted stock compensation plan aimed at incentivizing employees and aligning their interests with shareholders. The plan involves distributing 11,500 common shares to eligible employees, with restrictions on transfer until December 2028, to encourage long-term commitment and contribution to the company’s value.

NS Tool Co., Ltd. Reports Decline in Semi-Annual Financial Performance
Nov 12, 2025

NS Tool Co., Ltd. reported a decline in its financial performance for the six months ending September 2025, with net sales decreasing by 1.4% and operating profit dropping by 6.3% compared to the same period in the previous year. The company has revised its business forecast for the fiscal year ending March 2026, anticipating a further decline in net sales and profits, which may impact its market positioning and stakeholder expectations.

NS Tool Co., Ltd. Announces Strategic Share Buyback Program
Oct 31, 2025

NS Tool Co., Ltd. has announced a significant share buyback program, aiming to acquire up to 2.5 million shares or 10% of its total issued shares, with a maximum expenditure of 2 billion yen. This move is part of a broader strategy to improve capital efficiency and shareholder returns amid stagnant market growth and excess cash reserves, as the company shifts its listing from the Prime Market to the Standard Market to focus on long-term business issues.

NS Tool Co., Ltd. to Transition to Standard Market for Strategic Growth
Oct 31, 2025

NS Tool Co., Ltd. has announced its approval to change its listing from the Prime Market to the Standard Market on the Tokyo Stock Exchange. This strategic move is intended to better align with the company’s size and focus on long-term business issues, aiming to improve corporate value and governance. The change, effective November 7, 2025, reflects the company’s compliance with both Prime and Standard Market listing standards, ensuring a robust market position.

NS Tool Co., Ltd. Revises Financial Forecasts Amid Industry Challenges
Oct 31, 2025

NS Tool Co., Ltd. has revised its financial forecasts for the fiscal year ending March 2026, citing unexpected challenges in the automotive industry and rising manufacturing costs. The company anticipates lower-than-expected sales growth due to uncertainties in U.S. tariff policies and domestic demand, as well as potential declines in sales to China amidst government pressures. Despite these challenges, the company maintains its year-end dividend forecast.

NS Tool Co., Ltd. Announces Consistent Interim Dividend Payout
Oct 31, 2025

NS Tool Co., Ltd. announced an interim dividend of JPY 15.00 per share, consistent with previous forecasts and results, reflecting its commitment to stable profit returns. The decision underscores the company’s policy of balancing shareholder returns with business performance and future expansion needs.

NS Tool Co., Ltd. Reports Decline in Semi-Annual Financial Results
Oct 31, 2025

NS Tool Co., Ltd. reported a slight decline in its financial performance for the six months ending September 2025, with net sales decreasing by 1.4% and operating profit dropping by 6.3% compared to the previous year. Despite these declines, the company maintains a strong equity-to-asset ratio of 92.3%. The company has revised its business forecast for the fiscal year ending March 2026, anticipating further decreases in net sales and profits, which may impact 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: Dec 30, 2025