Nabtesco Corporation (JP:6268)
:6268
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Nabtesco
(6268)
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Rating:71Outperform
Price Target:
¥5,588.00
▲(31.61% Upside)
Action:UpgradedDate:02/18/26
The score is driven primarily by improving fundamentals (better margins and profitability with manageable leverage) and strong technical trend support (price above major moving averages with healthy momentum). These positives are tempered by a relatively expensive valuation (high P/E) and a modest dividend yield.
Positive Factors
Improving Profitability
In 2025 gross margin rose to ~30.5% and net margin to ~5.1%, reflecting better pricing mix and/or cost control. Sustained higher margins increase resilience to cyclical revenue swings, boost free cash flow potential, and improve the firm's ability to invest in product development and higher-value components over the medium term.
Negative Factors
Inconsistent Revenue Growth
Revenue volatility and a recent decline weaken the durability of earnings gains: if sales soften, improved margins may not fully offset top-line weakness. Dependence on industrial automation and OEM cycles makes revenue stickiness uncertain, limiting predictability of medium-term profit and cash-flow trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
In 2025 gross margin rose to ~30.5% and net margin to ~5.1%, reflecting better pricing mix and/or cost control. Sustained higher margins increase resilience to cyclical revenue swings, boost free cash flow potential, and improve the firm's ability to invest in product development and higher-value components over the medium term.
Read all positive factors
Nabtesco (6268) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥496.67B
Dividend Yield2.13%
Average Volume (3M)914.82K
Price to Earnings (P/E)28.5
Beta (1Y)1.17
Revenue Growth-2.23%
EPS Growth130.96%
CountryJP
Employees8,227
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)35.59
Shares Outstanding118,064,700
10 Day Avg. Volume1,274,130
30 Day Avg. Volume914,823
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)1.64
Price to Sales (P/S)1.45
P/FCF Ratio22.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,146.73Price Target Upside21.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)176.67
Revenue Forecast (FY)¥332.14B
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 com...
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,...
Nabtesco Earnings Call Summary
Earnings Call Date:Jul 31, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook. While there were strong performances in certain segments like Aircraft Equipment and steady forecasts for profit, challenges in Component Solutions and the Chinese market weighed heavily. The company's proactive cost-cutting measures and growth initiatives balance the negative impacts.Positive Updates
Steady Performance in Transport and Accessibility Solutions
The Transport Solutions and Accessibility Solutions segments performed well, offsetting declines in other areas. Accessibility Solutions saw growth and is expected to exceed JPY 100 billion in full-year sales.
Negative Updates
Decline in Component Solutions Sales
Sales in the Component Solutions segment, particularly precision reduction gears, declined due to sluggish robotic demand, leading to an overall sales decrease of 6.4% from the previous year's first half.
Read all updates
Q2-2024 Updates
Positive
Negative
Steady Performance in Transport and Accessibility Solutions
The Transport Solutions and Accessibility Solutions segments performed well, offsetting declines in other areas. Accessibility Solutions saw growth and is expected to exceed JPY 100 billion in full-year sales.
Read all positive updates
Company Guidance
During the Q2 2024 earnings call for Nabtesco Corporation (6268.T), Atsushi Habe provided detailed guidance on the company's financial performance and future outlook. The company reported first-half sales of JPY 152.5 billion, a 6.4% decline year-on-year, although it exceeded the April forecast by JPY 1 billion. The operating profit for the period was JPY 6.4 billion, down 26% from the previous year but JPY 1.4 billion above projections. These declines were primarily attributed to the Component Solutions segment, which suffered due to weak robotic demand, while the Transport and Accessibility Solutions segments showed robust performance. The full-year sales forecast remains at JPY 323.7 billion, with operating profit expected to reach JPY 13.5 billion, supported by cost-cutting measures. The company anticipates a recovery in precision reduction gear demand by the first half of 2025 and foresees growth opportunities in aircraft and marine vessel equipment. The company also discussed its strategy for achieving an operating profit margin of 10% by FY 2026 through Project 10, targeting a 0.4-point improvement in profitability for FY 2024.Nabtesco Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 307.91B | 323.38B | 333.63B | 308.69B | 299.80B |
| Gross Profit | 93.78B | 87.13B | 82.66B | 76.68B | 82.04B |
| EBITDA | 40.02B | 32.95B | 42.19B | 36.07B | 172.36B |
| Net Income | 15.70B | 10.12B | 14.55B | 9.46B | 64.82B |
Balance Sheet | |||||
| Total Assets | 463.99B | 445.54B | 422.06B | 459.29B | 481.72B |
| Cash, Cash Equivalents and Short-Term Investments | 73.34B | 74.48B | 77.83B | 124.41B | 112.77B |
| Total Debt | 59.80B | 45.84B | 32.43B | 31.35B | 27.32B |
| Total Liabilities | 175.16B | 158.27B | 146.17B | 196.06B | 226.72B |
| Stockholders Equity | 271.93B | 270.09B | 260.47B | 248.70B | 239.91B |
Cash Flow | |||||
| Free Cash Flow | 19.62B | 1.75B | -11.40B | -1.09B | 28.60B |
| Operating Cash Flow | 32.82B | 26.65B | 11.18B | 7.72B | 36.34B |
| Investing Cash Flow | -15.72B | -28.73B | -46.30B | 13.23B | 67.20B |
| Financing Cash Flow | -13.56B | -4.14B | -13.48B | -13.46B | -58.01B |
Nabtesco Technical Analysis
Neutral
4246.00
Price Trends
4444.02
Negative
4051.53
Positive
3553.25
Positive
Market Momentum
-75.61
Positive
44.36
Neutral
52.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6268, the sentiment is Neutral. The current price of 4246 is below the 20-day moving average (MA) of 4438.05, below the 50-day MA of 4444.02, and above the 200-day MA of 3553.25, indicating a neutral trend. The MACD of -75.61 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 52.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6268.
Nabtesco Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥290.17B | 14.76 | ― | 2.50% | 6.16% | 17.11% | |
73 Outperform | ¥272.54B | 14.24 | ― | 1.65% | 14.49% | -21.17% | |
71 Outperform | ¥496.67B | 28.49 | 5.25% | 2.13% | -2.23% | 130.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥391.31B | 197.68 | 5.94% | 0.56% | 6.22% | ― | |
55 Neutral | ¥538.04B | -6.48 | 1.88% | 6.16% | 1.98% | -48.28% | |
54 Neutral | ¥622.19B | 11.29 | 4.83% | 2.95% | -2.67% | -85.21% |
* Industrials Sector Average
JP:6268
Nabtesco
4,246.00
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Nabtesco Corporate Events
Nabtesco Lifts Profit in FY 2025 and Targets Further Earnings Growth in 2026
Feb 12, 2026
Nabtesco reported strong FY 2025 results, with consolidated net sales rising 9.8% to ¥307.9 billion and operating income jumping 60.3%, as profitability improved despite reclassifying its hydraulic equipment business as a discontinued operati...
Nabtesco Profit Surges Above FY2025 Forecasts Despite Slight Sales Shortfall
Feb 12, 2026
Nabtesco reported its non-consolidated results for fiscal 2025, showing net sales of ¥177.1 billion, slightly below its earlier forecast, but ordinary income and net income significantly outperformed projections. The upside in profitability w...
Nabtesco Finalizes Split of Hydraulic Business and Sale of Majority Stake to Comer Industries
Jan 4, 2026
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...
Nabtesco Adjusts Share Transfer Timeline Amid Strategic Restructuring
Dec 11, 2025
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.