Nakamura Choukou Co., Ltd. (6166) AI Stock Analysis

• Market Cap: ¥3.91B
• Dividend Yield: N/A
• Average Volume (3M): 50.09K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.10
• Revenue Growth: 9.44%
• EPS Growth: -122.75%
• Country: JP
• Employees: 145
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): -1.75
• Shares Outstanding: 11,020,900
• 10 Day Avg. Volume: 78,470
• 30 Day Avg. Volume: 50,090
• PEG Ratio: 1.04
• Price to Book (P/B): 4.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥300.00
• Price Target Upside: -15.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥387.00 ▲(9.01%Upside)

The stock's strong technical momentum is the most significant positive factor, suggesting potential short-term gains. However, financial instability and poor valuation metrics pose risks, particularly in the long term. Investors should be cautious of the high financial leverage and inconsistent profitability.

Nakamura Choukou Co., Ltd. Business Overview & Revenue Model

Company Description

Nakamura Choukou Co., Ltd. (6166) is a Japanese company primarily engaged in the manufacturing and sale of precision cutting tools and saw blades. The company specializes in producing high-quality industrial blades and tools that are used in a variety of sectors including automotive, aerospace, electronics, and construction. Their products are known for their precision, durability, and advanced technology, catering to both domestic and international markets.

How the Company Makes Money

Nakamura Choukou Co., Ltd. generates revenue through the sale of its precision cutting tools and saw blades. The company serves a diverse range of industries that require high-performance cutting solutions, such as automotive, electronics, and construction. Key revenue streams include direct sales to manufacturers, distribution through industrial suppliers, and partnerships with machine tool companies. The company also benefits from its focus on research and development, which allows it to innovate and offer customized solutions that meet the specific needs of its clients, thus enhancing its competitive edge in the global market.

Nakamura Choukou Co., Ltd. Financial Statement Overview

Summary

Nakamura Choukou Co., Ltd. faces challenges with inconsistent revenue and profitability, alongside high leverage. While there are signs of improved cash flow, the company's financial health remains at risk if these trends continue. Strategic improvements in operational efficiency and debt management are necessary to stabilize and enhance financial performance.

Income Statement

The company shows volatile performance with fluctuating revenue and profitability. Recent negative net income and declining gross profit margins indicate potential operational inefficiencies. The revenue growth rate fluctuated significantly, with a decline in the latest period. This instability raises concerns about the company's ability to maintain steady growth.

Balance Sheet

The balance sheet reflects high levels of debt relative to equity, which increases financial risk. The debt-to-equity ratio is a concern, although the company maintains a reasonable equity ratio. Stockholders' equity has been relatively stable, but the overall leverage could pose a risk if revenue and profitability do not improve.

Cash Flow

Cash flow analysis shows inconsistent free cash flow, with some improvement recently. The operating cash flow to net income ratio indicates that operational cash generation is not aligned with profitability. Past negative free cash flow periods highlight challenges, although recent positive cash flow is a good sign.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.64B	2.41B	3.32B	4.04B	3.81B
Gross Profit	678.97M	386.42M	999.04M	1.26B	1.21B
EBITDA	242.44M	760.27M	140.67M	-41.20M	194.61M
Net Income	-32.79M	144.17M	-124.47M	-257.12M	7.52M
Balance Sheet
Total Assets	5.36B	6.00B	4.69B	5.87B	6.02B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.50B	2.00B	2.93B	3.03B
Total Debt	2.92B	3.18B	2.50B	2.78B	3.13B
Total Liabilities	4.54B	5.15B	3.97B	5.03B	5.51B
Stockholders Equity	819.76M	854.90M	714.97M	840.03M	515.31M
Cash Flow
Free Cash Flow	73.88M	-1.13B	-561.70M	-345.30M	248.34M
Operating Cash Flow	117.40M	642.00M	-81.99M	175.23M	530.80M
Investing Cash Flow	-45.24M	-1.77B	-470.68M	-520.07M	161.53M
Financing Cash Flow	-257.40M	609.54M	-378.40M	228.49M	-1.47B

Nakamura Choukou Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 355.00
• 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:6166, the sentiment is Positive. The current price of 355 is above the 20-day moving average (MA) of 333.50, above the 50-day MA of 312.90, and above the 200-day MA of 350.65, indicating a bullish trend. The MACD of 11.30 indicates Negative momentum. The RSI at 61.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6166.

Nakamura Choukou Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	73 Outperform	¥3.31B	8.33		1.67%	-10.20%	-6.44%
6467	67 Neutral	¥3.29B	58.17		1.65%	2.46%	25.52%
Sector *	65 Neutral	$11.04B	15.74	4.60%	2.11%	3.27%	-26.87%
6166	60 Neutral	¥3.91B	5.87		―	9.44%	-122.75%
6334	55 Neutral	¥3.38B	27.47		1.35%	32.99%	-61.72%
6218	55 Neutral	¥2.72B	―		2.31%	-9.15%	-1123.11%
3444	48 Neutral	¥3.81B	88.47		3.17%	2.18%	22.90%