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Nikko Co., Ltd. (JP:6306)
:6306
Japanese Market

Nikko Co., Ltd. (6306) AI Stock Analysis

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JP

Nikko Co., Ltd.

(6306)

Rating:73Outperform
Price Target:
¥758.00
▲(11.63%Upside)
Nikko Co., Ltd. scores well due to its strong financial performance, characterized by significant revenue and profit growth, and solid valuation metrics. Technical analysis shows neutral trends, slightly limiting the stock's upside potential. The lack of recent earnings call insights and corporate events limits additional evaluation.

Nikko Co., Ltd. (6306) vs. iShares MSCI Japan ETF (EWJ)

Nikko Co., Ltd. Business Overview & Revenue Model

Company DescriptionNikko Co., Ltd. (6306) is a Japanese company that specializes in the manufacturing and distribution of industrial machinery and equipment. The company primarily focuses on providing high-quality products and services to industries such as construction, mining, and material handling. Nikko Co., Ltd. is known for its advanced technology and innovation in developing machinery that meets the demands of various heavy industries.
How the Company Makes MoneyNikko Co., Ltd. generates revenue through the sale of its industrial machinery and equipment. The company earns money by manufacturing and selling products such as asphalt plants, concrete batching plants, and other specialized machinery used in construction and industrial operations. Additionally, Nikko Co., Ltd. offers maintenance and after-sales services, which provide a steady stream of income from existing customers. Partnerships with global distributors and industry players also play a crucial role in the company's revenue model, allowing it to reach a broader market and enhance its sales potential.

Nikko Co., Ltd. Financial Statement Overview

Summary
Nikko Co., Ltd. demonstrates solid financial footing with consistent revenue growth and profitability. The strong equity position and balanced leverage reflect financial stability, though cash flow volatility requires attention.
Income Statement
78
Positive
Nikko Co., Ltd. shows strong revenue growth with a TTM revenue increase from the previous year, indicating robust business performance. The company maintains healthy gross and net profit margins, demonstrating effective cost management and profitability. However, a slight decline in EBIT margin suggests potential operational challenges.
Balance Sheet
82
Very Positive
The company exhibits a strong equity position with a high equity ratio, underscoring financial stability. The debt-to-equity ratio is moderate, indicating balanced leverage, and a solid RoE reflects efficient use of equity to generate profits. There is no significant financial risk from liabilities.
Cash Flow
65
Positive
Although free cash flow has shown volatility, recent periods indicate a positive trend. The operating cash flow to net income ratio suggests stable cash-generating capabilities, yet the absence of specific cash flow metrics in the TTM raises concerns about current cash flow consistency.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
49.55B44.10B39.66B38.85B37.87B35.15B
Gross Profit
13.93B12.11B10.32B10.50B10.19B9.64B
EBIT
2.80B1.97B1.03B2.05B2.30B2.05B
EBITDA
3.54B2.99B2.02B2.81B2.98B2.67B
Net Income Common Stockholders
1.86B1.31B1.02B1.65B2.08B1.59B
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.55B15.55B10.32B12.44B12.49B12.62B
Total Assets
62.23B62.23B52.13B52.08B48.70B45.68B
Total Debt
10.72B10.72B5.76B3.81B2.49B1.79B
Net Debt
-4.79B-4.83B-4.56B-8.62B-10.00B-10.84B
Total Liabilities
29.14B29.14B20.52B20.03B17.25B15.39B
Stockholders Equity
33.03B33.03B31.64B32.00B31.43B30.27B
Cash FlowFree Cash Flow
0.002.01B-3.82B527.00M370.00M2.42B
Operating Cash Flow
0.004.33B-1.64B2.22B2.78B3.81B
Investing Cash Flow
0.00-2.33B-1.23B-2.17B-1.87B-609.00M
Financing Cash Flow
0.003.19B710.00M-282.00M-1.13B-868.00M

Nikko Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price679.00
Price Trends
50DMA
674.63
Positive
100DMA
680.46
Negative
200DMA
680.58
Negative
Market Momentum
MACD
0.81
Positive
RSI
50.87
Neutral
STOCH
53.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6306, the sentiment is Positive. The current price of 679 is below the 20-day moving average (MA) of 680.25, above the 50-day MA of 674.63, and below the 200-day MA of 680.58, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 53.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6306.

Nikko Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥25.96B12.99
4.71%11.49%52.75%
72
Outperform
¥17.15B11.72
5.22%-15.65%-41.34%
70
Outperform
¥15.15B10.31
3.91%-1.89%-21.96%
65
Neutral
$4.45B12.155.28%248.12%4.08%-12.23%
65
Neutral
¥38.86B24.96
3.11%-13.72%13.42%
54
Neutral
¥28.60B
2.37%1.56%-720.36%
51
Neutral
¥15.58B
5.26%-7.94%-242.37%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6306
Nikko Co., Ltd.
678.00
-20.46
-2.93%
JP:6289
Giken Ltd.
1,428.00
-393.16
-21.59%
JP:6294
Okada Aiyon Corporation
1,876.00
-513.17
-21.48%
JP:6310
Iseki & Co., Ltd.
1,240.00
254.63
25.84%
JP:6358
Sakai Heavy Industries, Ltd.
1,955.00
-868.20
-30.75%
JP:6390
KATO WORKS CO., LTD.
1,331.00
117.07
9.64%

Nikko Co., Ltd. Corporate Events

Nikko Co., Ltd. Announces Leadership Change
Feb 13, 2025

Nikko Co., Ltd. has announced a change in its leadership with the appointment of Tomomi Nakayama as the new Representative Director and President, effective April 1, 2025. This strategic move aims to strengthen the management base and promote the development of the Group, signaling a potential shift in the company’s operational focus and future growth strategies.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.