Nabtesco (6268) AI Stock Analysis

• Market Cap: ¥436.55B
• Dividend Yield: 2.12%
• Average Volume (3M): 914.82K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.94
• 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: 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥4,104.00 ▲(8.54% 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

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future investments or downturns.

Diverse Revenue Streams

Diverse revenue streams across multiple sectors reduce dependency on a single market, enhancing resilience against industry-specific downturns.

Innovation and Technology Development

Commitment to innovation ensures long-term competitiveness and ability to capitalize on trends in automation and advanced transportation systems.

Negative Factors

Declining Revenue

A decline in revenue suggests potential market or operational challenges, which could impact long-term growth if not addressed.

Net Profit Margin Decline

Decreasing net profit margins indicate rising costs or pricing pressures, which could erode profitability if persistent.

Cash Flow Challenges

Negative free cash flow growth suggests difficulties in generating cash post-capital expenditures, potentially limiting reinvestment capabilities.

Nabtesco Business Overview & Revenue Model

Company Description

Nabtesco Corporation (6268) is a Japanese company specializing in precision machinery and control systems, primarily serving sectors such as transportation, industrial machinery, and robotics. The company is known for its innovative products, including reduction gears for industrial robots, rail vehicle equipment, and automatic brakes for commercial vehicles. Nabtesco operates in multiple segments, including the Aerospace & Defense, Industrial, and Transportation sectors, offering a diverse range of solutions that enhance operational efficiency and safety.

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 demonstrates a stable financial position with consistent revenue growth and efficient cost management. The balance sheet is robust with low leverage, but profitability metrics like net profit margin and return on equity indicate potential areas for improvement. Cash flow generation has improved significantly, although the conversion of net income to free cash flow could be enhanced.

Income Statement

Nabtesco's income statement shows a solid performance with a consistent increase in revenue, as evidenced by the TTM revenue growth rate of 8.4%. The gross profit margin remains stable around 26.6%, indicating efficient cost management. However, the net profit margin is relatively low at 3.2%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting steady operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.21, indicating prudent financial leverage. The return on equity is modest at 4.1%, suggesting moderate profitability relative to shareholder equity. The equity ratio is healthy, reflecting a solid capital structure. However, the return on equity has decreased compared to previous years, indicating a potential area for improvement.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 89.25%, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is 0.24, showing a reasonable conversion of income to cash. However, the free cash flow to net income ratio is 0.35, suggesting that a substantial portion of net income is not translating into free cash flow, which could be a concern for liquidity.

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: 3781.00
• 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:6268, the sentiment is Positive. The current price of 3781 is above the 20-day moving average (MA) of 3674.05, above the 50-day MA of 3644.12, and above the 200-day MA of 2887.88, indicating a bullish trend. The MACD of 70.08 indicates Positive momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 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	77 Outperform	¥340.45B	21.38	6.46%	2.22%	12.95%	46.98%
6268	65 Neutral	¥436.55B	28.04	5.25%	2.12%	-2.23%	130.96%
6324	64 Neutral	¥336.44B	71.52	5.62%	0.56%	6.22%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6135	61 Neutral	¥263.91B	16.58	6.63%	0.92%	9.03%	10.76%
5631	59 Neutral	¥557.83B	25.30	11.66%	1.03%	10.11%	41.98%
6302	59 Neutral	¥510.35B	150.65	0.59%	2.96%	-2.67%	-85.21%

Nabtesco Corporate Events

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.

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.

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.

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.

Nabtesco Advances Share Buyback Strategy

Nabtesco Corporation announced the acquisition of 790,500 of its own shares, costing approximately JPY 2.91 billion, as part of a buyback initiative. This move is part of a broader plan approved by the Board of Directors to acquire up to 4 million shares, reflecting a strategic effort to enhance shareholder value and optimize capital structure.

Nabtesco Revises FY2025 Financial Forecast Amid Business Reclassification

Nabtesco Corporation announced a revision to its FY2025 consolidated financial forecast, reflecting a decrease in net sales and operating income due to the reclassification of its hydraulic equipment business as a discontinued operation. Despite these changes, the company maintains its dividend forecast, indicating stability in its ongoing operations.

Nabtesco Reports Strong Financial Growth Amid Strategic Reclassification

Nabtesco Corporation reported a significant increase in its financial performance for the first nine months of FY2025, with net sales rising by 10.5% and net income attributable to owners of the parent increasing by 103.3% compared to the previous year. The company has reclassified its hydraulic equipment business as a discontinued operation, impacting the presentation of its financial results. Despite this reclassification, Nabtesco has revised its full-year forecast, anticipating a 7.2% increase in net sales and a 60.7% rise in operating income, reflecting a strong operational performance and strategic adjustments.

Nabtesco Adjusts Timeline for Hydraulic Equipment Business Split

Nabtesco Corporation has announced a change in the effective date for its absorption-type company split and share transfer agreement with Comer Industries S.p.A., now scheduled for December 2025. This adjustment is due to delays in obtaining necessary permits and approvals, but the company expects minimal impact on its current fiscal year’s operating results.