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

• Market Cap: ¥8.65B
• Dividend Yield: N/A
• Average Volume (3M): 36.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -7.98%
• EPS Growth: -52.68%
• Country: JP
• Employees: 145
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.58
• 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: 50 Neutral
• Price Target: ¥785.00 ▲(167.01% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by unstable financial performance and high leverage, alongside an expensive valuation (high P/E). Strong technical momentum supports the stock, but overbought signals increase near-term downside risk.

Positive Factors

Revenue Growth

Nearly 20% reported revenue growth indicates the company can expand top-line demand over time. Sustained mid-teens+ revenue growth provides a structural runway to improve operating leverage and recover margins if cost control and product mix remain stable.

Improving Cash Generation

Recent improvement in operating cash flow and movement toward positive free cash flow enhances liquidity and reduces near-term refinancing pressure. Durable cash generation, if maintained, supports capital expenditures, working capital and debt servicing over the next several quarters.

Stable Equity Base

A relatively stable equity base provides a capital buffer against cyclical swings and loss periods. This structural stability helps absorb shocks, maintain creditor confidence, and offers flexibility for gradual deleveraging or targeted reinvestment over the medium term.

Negative Factors

High Leverage

Elevated leverage increases financial vulnerability to revenue or margin shocks and raises refinancing risk. Persistent high debt limits strategic optionality, forces more cash to interest expense, and can constrain capex or R&D investments needed to sustain competitive position.

Volatile Profitability

Fluctuating revenue and a recent swing to negative net income undermine predictability of earnings and free cash flow. Declining gross margins suggest operational or pricing pressures that, if structural, will impede sustainable margin recovery and limit ability to deleverage.

Inconsistent Cash Flow Quality

Mismatch between reported profit and operating cash flow, plus historical negative free cash flow periods, signals uneven cash quality. Unreliable FCF raises the risk the company will need external funding in adverse conditions, pressuring long-term financial resilience.

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

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Nakamura Choukou Co., Ltd. Financial Statement Overview

Summary

Underlying fundamentals are mixed: volatile revenue/profitability with recent negative net income and declining gross margins, and elevated leverage (high debt vs. equity). Cash flow has improved recently, but historical inconsistency and weak alignment between operating cash flow and net income temper the outlook.

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	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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	5.37B	6.03B	4.70B	5.90B	6.05B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.31B	1.50B	2.00B	2.93B	3.03B
Total Debt	2.88B	2.92B	3.18B	2.50B	2.78B	3.13B
Total Liabilities	4.25B	4.55B	5.17B	3.99B	5.06B	5.53B
Stockholders Equity	1.05B	819.76M	854.90M	714.97M	840.04M	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: Neutral
• Last Price: 294.00
• 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:6166, the sentiment is Neutral. The current price of 294 is below the 20-day moving average (MA) of 806.55, below the 50-day MA of 687.72, and below the 200-day MA of 398.94, indicating a neutral trend. The MACD of 23.05 indicates Positive momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6402	79 Outperform	¥10.88B	6.38	―	2.15%	-0.94%	6.93%
6149	73 Outperform	¥11.65B	5.43	―	2.13%	8.09%	109.84%
6384	73 Outperform	¥11.52B	27.33	―	4.76%	41.13%	535.42%
6496	69 Neutral	¥27.39B	11.58	―	1.82%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	52 Neutral	¥12.39B	42.22	―	1.65%	3.96%	―
6166	50 Neutral	¥8.65B	-116.80	―	―	-7.98%	-52.68%