NAGAOKA INTERNATIONAL CORP (6239) AI Stock Analysis

• Market Cap: ¥10.49B
• Dividend Yield: 2.51%
• Average Volume (3M): 13.57K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.72
• Revenue Growth: -17.41%
• EPS Growth: -32.14%
• Country: JP
• Employees: 219
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): N/A
• Shares Outstanding: 7,078,400
• 10 Day Avg. Volume: 8,970
• 30 Day Avg. Volume: 13,570
• PEG Ratio: -0.59
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 23.60
• 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: 68 Neutral
• Price Target: ¥1,524.00 ▲(2.49% Upside)
• Action: Downgraded Date: 08/29/25
• Date: Action: Downgraded 08/29/25

The overall stock score is primarily driven by a strong financial foundation and attractive valuation metrics. Technical indicators suggest a neutral to slightly bearish trend, but the low stochastic value indicates potential for upward movement. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strong balance sheet

Low leverage and a strong equity ratio provide durable financial flexibility, reducing refinancing and default risk during industry cycles. Positive ROE indicates management can generate returns from equity, supporting long-term reinvestment, dividends, or opportunistic M&A without stressing liquidity.

Improved free cash flow

Rising free cash flow enhances capacity to fund capex, pay dividends, reduce debt, or invest in efficiency projects. Consistent FCF conversion versus net income strengthens resilience to revenue shocks and supports sustainable capital allocation over multiple quarters.

Operational margin resilience

Robust gross and operating margins signal durable cost structure and competitive operating efficiency. Even with top-line pressure, healthy EBIT/EBITDA margins preserve cash generation and give management room to defend profitability or invest in margin-enhancing initiatives.

Negative Factors

Falling revenue

A double-digit revenue decline erodes scale and can outpace cost adjustments, pressuring long-term profitability. Sustained top-line contraction suggests structural demand loss or competitive share decline, requiring strategic fixes (product, pricing, or market diversification) to restore growth.

Declining net profit margin

Worsening net margins signal difficulties converting sales into bottom-line profit despite healthy gross and operating margins. Persistent margin erosion can impair cash flow, limit reinvestment, and force cost cuts or asset sales, undermining long-term value creation.

Limited scale and liquidity

Small workforce and low trading volume reflect limited scale and market liquidity, constraining pricing power, geographic reach, and ability to absorb shocks. Limited scale can raise per-unit costs, slow strategic initiatives, and make large financing or M&A moves more difficult.

NAGAOKA INTERNATIONAL CORP Business Overview & Revenue Model

Company Description

NAGAOKA INTERNATIONAL CORP (6239) is a prominent player in the manufacturing sector, specializing in precision machinery and equipment. The company operates primarily in the engineering and manufacturing industries, focusing on the development and production of high-quality components for various applications. NAGAOKA's core products include precision tools, machinery parts, and specialized equipment designed to meet the demands of both domestic and international markets.

How the Company Makes Money

NAGAOKA INTERNATIONAL CORP generates revenue primarily through the sale of its precision machinery and components to various industries, including automotive, aerospace, and electronics. The company's revenue model is based on direct sales, where it supplies products to manufacturers and industrial clients. Key revenue streams include the sale of standard and custom-engineered products, maintenance services, and after-sales support. Additionally, NAGAOKA may engage in strategic partnerships with other firms to enhance its product offerings and expand its market reach, which can lead to increased sales and revenue growth. The company's ability to innovate and adapt to market needs further contributes to its financial success.

NAGAOKA INTERNATIONAL CORP Financial Statement Overview

Summary

The company demonstrates a stable financial position with strong operational efficiency and cash flow management. However, challenges are present in maintaining sales momentum and profitability due to declining revenue growth and net profit margin. The low leverage and strong equity base provide a solid foundation for future growth.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin has decreased over the last year, reflecting challenges in converting revenue into profit. The revenue growth rate is negative, suggesting a decline in sales compared to the previous year. Despite this, the EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a low debt-to-equity ratio, indicating financial stability and lower leverage risk. Return on equity is positive, showing effective use of equity to generate profits. The equity ratio is strong, suggesting a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting a reasonable conversion of income into cash. The free cash flow to net income ratio is strong, reflecting efficient cash management and the ability to generate cash relative to net income.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	8.92B	9.51B	8.15B	6.33B	6.26B
Gross Profit	3.67B	3.74B	2.88B	2.25B	2.05B
EBITDA	1.68B	1.86B	1.54B	989.71M	976.45M
Net Income	970.37M	1.15B	867.38M	795.03M	677.95M
Balance Sheet
Total Assets	10.08B	10.25B	8.89B	7.46B	6.53B
Cash, Cash Equivalents and Short-Term Investments	2.52B	2.54B	2.11B	2.12B	1.68B
Total Debt	231.11M	319.96M	1.19B	1.25B	796.92M
Total Liabilities	2.57B	3.25B	3.26B	2.49B	2.56B
Stockholders Equity	7.51B	7.00B	5.63B	4.97B	3.97B
Cash Flow
Free Cash Flow	401.17M	2.25B	333.90M	72.79M	1.61B
Operating Cash Flow	514.95M	2.30B	365.47M	152.27M	1.69B
Investing Cash Flow	-133.95M	-182.90M	-49.84M	-87.28M	-317.58M
Financing Cash Flow	-308.96M	-1.77B	-309.26M	206.19M	-792.59M

NAGAOKA INTERNATIONAL CORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1487.00
• 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:6239, the sentiment is Positive. The current price of 1487 is above the 20-day moving average (MA) of 1461.50, above the 50-day MA of 1470.50, and above the 200-day MA of 1433.16, indicating a bullish trend. The MACD of -9.11 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 35.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6239.

NAGAOKA INTERNATIONAL CORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8037	75 Outperform	¥97.92B	8.92	―	3.16%	3.28%	20.32%
8131	74 Outperform	¥129.70B	17.49	―	2.57%	7.46%	153.98%
5015	70 Outperform	¥23.00B	18.19	―	4.50%	13.76%	13.58%
6239	68 Neutral	¥10.49B	14.65	―	2.51%	-17.41%	-32.14%
8132	67 Neutral	¥74.74B	32.15	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥226.78B	12.70	―	3.45%	-4.87%	26.27%

NAGAOKA INTERNATIONAL CORP Corporate Events

Nagaoka International Posts Profit Slump but Targets Full-Year Rebound and Maintains Dividend

Nagaoka International Corporation reported a sharp deterioration in earnings for the six months ended December 31, 2025, with net sales down 15.7% year on year to ¥3.04 billion and operating profit plunging 75.0% to ¥123 million. Ordinary profit dropped 72.3% to ¥141 million and profit attributable to owners of parent declined 62.6% to ¥125 million, dragging earnings per share down to ¥18.02.

Despite weaker interim results, the company’s financial position remained solid, with an equity ratio improving to 81.9% as total assets stood at ¥9.27 billion and net assets at ¥7.59 billion. Management maintained its dividend stance with a forecast full-year payout of ¥35 per share and projected a recovery for the year ending June 30, 2026, targeting ¥10 billion in net sales and ¥1.1 billion in profit attributable to owners of parent, implying double-digit growth over the prior year.

The most recent analyst rating on (JP:6239) stock is a Hold with a Yen1608.00 price target. To see the full list of analyst forecasts on NAGAOKA INTERNATIONAL CORP stock, see the JP:6239 Stock Forecast page.