Nabtesco (6268) AI Stock Analysis

• Market Cap: $521.47B
• Dividend Yield: 2.13%
• Average Volume (3M): 914.82K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 0.97
• Revenue Growth: -2.23%
• EPS Growth: 130.96%
• Country: JP
• Employees: 8,227
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 41.77
• Shares Outstanding: 118,064,700
• 10 Day Avg. Volume: 1,274,130
• 30 Day Avg. Volume: 914,823
• PEG Ratio: -1.43
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 252.55
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 13.48
• 1Y Price Target: $4,158.34
• Price Target Upside: -6.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥4,712.00 ▲(5.70% Upside)

Nabtesco's overall stock score reflects a stable financial foundation with strong technical indicators. However, high valuation and cash flow challenges weigh on the score. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Conservative Balance Sheet

Nabtesco's low debt-to-equity (0.22) and strong equity ratio provide durable financial flexibility. Conservative leverage supports capital spending, R&D and selective M&A, and helps absorb cyclical downturns in industrial end-markets without stressing liquidity over months.

Stable Gross Margins

A stable TTM gross margin near 27% indicates sustained cost or pricing advantages in precision components. That margin durability supports ongoing investment in engineering and manufacturing capabilities, helping preserve profitability even if revenue fluctuates.

Exposure to Structural End-Markets

Nabtesco's core sales into robotics, transport and aerospace tie it to long-term secular trends—automation, fleet upgrades, and aerospace sustainment. Multi-year OEM supply relationships and recurring maintenance demand support steadier, structural revenue streams over time.

Negative Factors

Declining Revenue and Compressed Net Margin

A 7.06% TTM revenue decline paired with a slim net margin (3.69%) signals possible structural demand weakness or competitive margin pressure. Persistent top-line erosion and low net profitability reduce internal funding for innovation and heighten sensitivity to cost inflation.

Weak Cash Conversion

Negative free cash flow growth and an operating cash flow to net income ratio of 0.28 show earnings aren't fully converting to cash. Chronic weak cash conversion constrains capex, working capital flexibility, dividends and strategic investments over the medium term.

Modest Return on Capital

ROE of ~4.67% and low EBIT/EBITDA margins indicate limited returns on shareholder capital. Persistently modest returns can hamper value creation, restrict reinvestment potential, and leave the company more vulnerable to better-capitalized or more efficient competitors.

Nabtesco Business Overview & Revenue Model

Company Description

Nabtesco Corporation manufactures and sells equipment in the industrial, daily life, and environmental fields in Japan and internationally. It operates through Component Solutions, Transport Solutions, and Accessibility Solutions segments. The company offers precision reduction gears for industrial robots' joints; hydraulic equipment, such as traveling unit for crawlers, control valve for mini excavators, and swing unit for hydraulic excavators; railroad vehicle equipment, such as railroad vehicle brake systems, door operating units, test equipment, brake shoes, seat turning equipment, and snow removal devices; and aircraft equipment comprising flight control actuation systems and high voltage electric power distribution units. It also provides air dryers and wedge brake chambers for commercial vehicles, and hydraulic clutch master cylinders for passenger vehicles; engine remote control systems for vessels; automatic doors and platform doors for buildings; automatic filters/sealers for retort pouch foods; and intelligent prosthetic knee joints, electric wheelchairs, stair lift with a wheelchair, and rollator with a speed control system. Nabtesco Corporation was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nabtesco generates revenue through the sale of its precision machinery and control systems across various industries. Key revenue streams include the manufacturing and sale of reduction gears and actuators for robotics and industrial applications, as well as equipment for rail and automotive sectors. The company also benefits from long-term service contracts and maintenance agreements, providing ongoing revenue beyond initial product sales. Strategic partnerships with major players in the aerospace and defense sectors further bolster its revenue, as these collaborations often involve large-scale projects and specialized solutions tailored to client needs. Additionally, the company’s focus on innovation and technology development positions it to capture emerging market opportunities, particularly in automation and advanced transportation systems.

Nabtesco Financial Statement Overview

Summary

Nabtesco's financial performance is stable but shows areas for improvement. The income statement indicates consistent gross profit margins but declining net profit margins and revenue. The balance sheet is strong with low leverage, but cash flow analysis reveals challenges in generating cash, highlighting the need for improved operational efficiency.

Income Statement

Nabtesco's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is stable at around 27%, indicating consistent profitability from core operations. However, the net profit margin has decreased to 3.69%, reflecting challenges in controlling costs or pricing power. Revenue has declined by 7.06% in the TTM, suggesting potential market or operational issues. The EBIT and EBITDA margins are relatively low, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.22, indicating conservative leverage. The return on equity (ROE) is modest at 4.67%, suggesting moderate profitability relative to shareholder equity. The equity ratio is strong, highlighting a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow growth rate is negative, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is low at 0.28, suggesting that net income is not fully translating into cash flow. However, the free cash flow to net income ratio is healthier at 0.55, indicating some ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	312.74B	323.38B	333.63B	308.69B	299.80B	279.36B
Gross Profit	89.89B	87.13B	82.66B	76.68B	82.04B	73.19B
EBITDA	38.23B	31.26B	37.53B	27.66B	112.16B	46.59B
Net Income	15.97B	10.12B	14.55B	9.46B	64.82B	20.50B
Balance Sheet
Total Assets	450.27B	445.54B	422.06B	459.29B	481.72B	351.72B
Cash, Cash Equivalents and Short-Term Investments	69.55B	75.17B	77.83B	124.41B	112.77B	64.67B
Total Debt	60.36B	45.84B	32.43B	31.35B	27.32B	48.37B
Total Liabilities	165.03B	158.27B	146.17B	196.06B	226.72B	140.08B
Stockholders Equity	268.55B	270.09B	260.47B	248.70B	239.91B	198.03B
Cash Flow
Free Cash Flow	18.31B	1.75B	-14.42B	-3.65B	27.04B	15.51B
Operating Cash Flow	32.45B	26.65B	11.18B	7.72B	36.34B	34.20B
Investing Cash Flow	-18.73B	-28.73B	-46.30B	13.23B	67.15B	-10.71B
Financing Cash Flow	-6.01B	-4.14B	-13.48B	-13.46B	-57.96B	-17.50B

Nabtesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6268, the sentiment is Positive. The current price of 4458 is above the 20-day moving average (MA) of 4113.95, above the 50-day MA of 3865.12, and above the 200-day MA of 3126.02, indicating a bullish trend. The MACD of 118.04 indicates Negative momentum. The RSI at 70.63 is Negative, neither overbought nor oversold. The STOCH value of 79.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6268.

Nabtesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6134	69 Neutral	$370.35B	23.32	6.46%	2.22%	12.95%	46.98%
6268	65 Neutral	$521.47B	32.93	5.25%	2.13%	-2.23%	130.96%
6324	64 Neutral	¥332.11B	71.21	5.62%	0.56%	6.22%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6135	61 Neutral	¥281.81B	15.21	6.63%	0.91%	9.03%	10.76%
5631	59 Neutral	¥661.92B	29.46	11.66%	1.03%	10.11%	41.98%
6302	59 Neutral	¥648.41B	181.68	0.59%	2.95%	-2.67%	-85.21%

Nabtesco Corporate Events

Nabtesco Finalizes Split of Hydraulic Business and Sale of Majority Stake to Comer Industries

Nabtesco Corporation has completed the previously announced simplified absorption-type company split of its Hydraulic Equipment Business into a newly established wholly owned subsidiary, Comtesco Corporation, and has transferred 70% of Comtesco’s issued shares to Italian group Comer Industries S.p.A. The transaction, finalized with the business split on December 31, 2025 and the share transfer closing on January 1, 2026, marks a significant reorganization of Nabtesco’s hydraulic operations, though the company expects only a minor impact on its current fiscal year results and has pledged to disclose any further material developments.

The most recent analyst rating on (JP:6268) stock is a Hold with a Yen4104.00 price target. To see the full list of analyst forecasts on Nabtesco stock, see the JP:6268 Stock Forecast page.

Nabtesco Adjusts Share Transfer Timeline Amid Strategic Restructuring

Nabtesco Corporation announced a change in the closing date for the share transfer of its Hydraulic Equipment Business to Comer Industries S.p.A., now scheduled for January 2026 due to delays in obtaining necessary permits. This adjustment is part of a broader strategic move involving a simplified absorption-type company split and the creation of a new entity, Comtesco Corporation, to streamline operations and enhance market competitiveness.

The most recent analyst rating on (JP:6268) stock is a Hold with a Yen4104.00 price target. To see the full list of analyst forecasts on Nabtesco stock, see the JP:6268 Stock Forecast page.

Nabtesco Announces Cancellation of Treasury Shares

Nabtesco Corporation has announced the cancellation of 2,999,400 treasury shares, representing 2.48% of its outstanding shares, following a resolution by its Board of Directors. This move, scheduled for December 10, 2025, is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:6268) stock is a Hold with a Yen3438.00 price target. To see the full list of analyst forecasts on Nabtesco stock, see the JP:6268 Stock Forecast page.

Nabtesco Announces New Management Structure for 2026

Nabtesco Corporation has announced a reorganization of its management structure and changes in officer appointments effective January 1, 2026. This strategic move is aimed at strengthening its leadership and enhancing operational efficiency across its diverse business segments, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (JP:6268) stock is a Hold with a Yen3438.00 price target. To see the full list of analyst forecasts on Nabtesco stock, see the JP:6268 Stock Forecast page.

Nabtesco Announces Leadership Changes to Drive Sustainable Growth

Nabtesco Corporation has announced a strategic change in its leadership, with Hiroshi Usui set to become the new Representative Director and Managing Executive Officer. This decision, aimed at strengthening the company’s management structure for sustainable growth and enhanced corporate value, reflects Nabtesco’s commitment to adapting its leadership to meet future challenges and opportunities.

The most recent analyst rating on (JP:6268) stock is a Hold with a Yen3438.00 price target. To see the full list of analyst forecasts on Nabtesco stock, see the JP:6268 Stock Forecast page.

Nabtesco Completes Strategic Share Buyback

Nabtesco Corporation has completed the acquisition of its own shares, purchasing a total of 2,999,400 common shares at a cost of JPY 9,999,816,100. This move, executed through open market purchases on the Tokyo Stock Exchange, was part of a strategic decision resolved by the Board of Directors to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6268) stock is a Buy with a Yen3452.00 price target. To see the full list of analyst forecasts on Nabtesco stock, see the JP:6268 Stock Forecast page.