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

• Market Cap: ¥6.51B
• Dividend Yield: N/A
• Average Volume (3M): 36.83K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 1.19
• Revenue Growth: -7.98%
• EPS Growth: -52.68%
• Country: JP
• Employees: 145
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -4.06
• Shares Outstanding: 11,020,900
• 10 Day Avg. Volume: 54,750
• 30 Day Avg. Volume: 36,830
• PEG Ratio: 0.92
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 49.98
• 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: 54 Neutral
• Price Target: ¥616.00 ▲(109.52% Upside)

The score is held back primarily by unstable fundamentals (volatile profitability and high leverage) and an expensive valuation (high P/E). These risks are partially offset by strong technical momentum, with price well above key moving averages and a positive MACD.

Positive Factors

Improving cash flow

Recent improvement in free cash flow provides ongoing flexibility to fund operations, service debt, and invest in maintenance or selective growth initiatives. If sustained, stronger cash conversion reduces refinancing risk and supports execution despite volatile reported earnings.

Stable shareholders' equity

Relatively stable stockholders' equity gives a durable capital buffer against operational downturns, supporting creditor confidence and enabling borrowing when needed. This structural equity base can help the firm navigate cyclical demand in industrial machinery markets.

Reasonable equity ratio

Maintaining a reasonable equity ratio reduces the likelihood of covenant breaches and preserves capacity to raise incremental debt for capital expenditures. Over time this helps sustain operations and supports strategic investments compared with highly undercapitalized peers.

Negative Factors

High leverage

High debt relative to equity increases fixed obligations and amplifies downside risk if revenue weakens. Elevated leverage constrains strategic flexibility, raises refinancing and interest expense risk, and can force cost-cutting or asset sales during prolonged downturns.

Volatile revenue & profitability

Significant volatility in revenue and earnings complicates long-term planning, weakens margins predictability, and undermines the company's ability to build consistent scale advantages. Persistent swings increase execution risk and impair investor confidence.

Recent losses & margin decline

Recent losses and falling gross margins indicate structural pressure on unit economics or pricing power. Continued margin compression erodes cash generation, deepens balance sheet stress, and limits funds available for R&D, maintenance, and growth capital expenditures.

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

Company Description

Nakamura Choukou Co., Ltd. (6166) is a Japanese company specializing in the manufacturing and distribution of precision measuring instruments and equipment, primarily serving sectors such as manufacturing, construction, and quality control. The company's core products include various types of measuring tools, gauges, and inspection devices that are essential for ensuring accuracy and quality in industrial processes.

How the Company Makes Money

Nakamura Choukou Co., Ltd. generates revenue through the sale of its precision measuring instruments and related services. The primary revenue stream comes from direct sales to manufacturers and construction firms that require high-quality measuring equipment for their operations. In addition to product sales, the company may also offer maintenance and calibration services, which provide a recurring revenue model. Strategic partnerships with industry players and distributors enhance its market reach and contribute to its earnings, allowing the company to tap into various sectors that demand precision tools.

Nakamura Choukou Co., Ltd. Financial Statement Overview

Summary

Overall financial performance is weak-to-middling: volatile revenue/profitability with recent negative net income (Income Statement 45) and elevated leverage risk from high debt relative to equity (Balance Sheet 50). Cash flow shows some recent improvement but remains inconsistent and not well-aligned with reported profitability (Cash Flow 55).

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.51B	2.64B	2.41B	3.32B	4.04B	3.81B
Gross Profit	662.63M	678.97M	386.42M	999.04M	1.26B	1.21B
EBITDA	486.54M	242.44M	760.27M	31.60M	-41.20M	194.61M
Net Income	198.74M	-32.79M	144.17M	-124.47M	-257.12M	7.52M
Balance Sheet
Total Assets	5.30B	5.36B	6.00B	4.69B	5.87B	6.02B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.31B	1.50B	2.00B	2.93B	3.03B
Total Debt	2.90B	2.92B	3.18B	2.50B	2.78B	3.13B
Total Liabilities	4.25B	4.54B	5.15B	3.97B	5.03B	5.51B
Stockholders Equity	1.05B	819.76M	854.90M	714.97M	840.03M	515.31M
Cash Flow
Free Cash Flow	0.00	73.88M	-1.13B	-561.70M	-345.30M	248.34M
Operating Cash Flow	0.00	123.40M	642.00M	-81.99M	175.23M	530.80M
Investing Cash Flow	0.00	-45.24M	-1.77B	-470.68M	-520.07M	161.53M
Financing Cash Flow	0.00	-263.40M	609.54M	-378.40M	228.49M	-1.47B

Nakamura Choukou Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 294.00
• 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 294 is below the 20-day moving average (MA) of 468.90, below the 50-day MA of 344.64, and below the 200-day MA of 319.59, indicating a bullish trend. The MACD of 88.64 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 24.84 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	79 Outperform	¥4.64B	10.94	―	1.19%	-6.39%	-3.86%
6334	68 Neutral	¥4.76B	14.74	―	1.22%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.15B	-8.26	―	1.81%	-3.20%	-226.19%
6166	54 Neutral	¥6.51B	34.58	―	―	-7.98%	-52.68%
3444	51 Neutral	¥10.28B	19.38	―	1.56%	11.20%	―
6218	47 Neutral	¥3.42B	-2.16	―	1.93%	-14.00%	-216.77%