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

• Market Cap: ¥31.00B
• Dividend Yield: 4.01%
• Average Volume (3M): 57.63K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.54
• Revenue Growth: 4.63%
• EPS Growth: -1.01%
• Country: JP
• Employees: 1,117
• Sector: Industrials
• Sector Strength: 79
• Industry: Agricultural - Machinery
• EPS (TTM): -1.59
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 61,380
• 30 Day Avg. Volume: 57,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥866.00
• Price Target Upside: 6.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥866.00 ▲(6.78% Upside)

Nikko Co., Ltd.'s strong financial performance, characterized by revenue growth and operational efficiency, is the primary driver of its score. Technical indicators suggest bullish momentum, although caution is warranted due to overbought signals. The valuation is reasonable, with a solid dividend yield supporting income investors.

Nikko Co., Ltd. Business Overview & Revenue Model

Company Description

Nikko Co., Ltd. (6306) is a Japan-based company primarily engaged in the manufacture and sale of industrial machinery. It operates in various sectors including construction machinery, industrial equipment, and environmental machinery. The company is known for its high-quality products which include asphalt mixing plants, concrete batching plants, and environmental recycling equipment, catering to both domestic and international markets.

How the Company Makes Money

Nikko Co., Ltd. generates revenue primarily through the sale of its industrial machinery products. The core revenue streams include the sale of asphalt and concrete batching plants, which are essential for construction projects. Additionally, the company offers environmental recycling equipment, contributing to its revenue by addressing the growing demand for sustainable and eco-friendly solutions. Nikko Co., Ltd. also benefits from after-sales services, including maintenance and parts supply, which provide a steady stream of income. The company may engage in strategic partnerships and collaborations to enhance its market presence and expand its product offerings, but specific details on such partnerships are unavailable.

Nikko Co., Ltd. Financial Statement Overview

Summary

Nikko Co., Ltd. demonstrates strong financial performance with consistent revenue and profit growth, robust operational efficiencies, and a stable financial structure with conservative leverage. While cash flows show potential for improvements due to fluctuations, overall financial health remains strong.

Income Statement

Nikko Co., Ltd. shows a robust growth trajectory with consistent revenue growth from JPY 35.15 billion in 2020 to JPY 49.16 billion in 2025. The gross profit margin remains strong, exceeding 28% in 2025, and the net profit margin improved to 4.1%, indicating effective cost management and rising profitability. EBIT and EBITDA margins also improved, pointing to operational efficiency. Despite some fluctuations, the company has consistently increased its revenue and profitability, reflecting strong market positioning and operational strength.

Balance Sheet

The balance sheet of Nikko Co., Ltd. is generally strong, with a debt-to-equity ratio of 0.3 in 2025, highlighting a conservative leverage strategy. The equity ratio stands at 54.2%, indicating a solid capital structure. However, the return on equity (ROE) is modest at 5.8%, suggesting room for improving shareholder returns. The company maintains a healthy cash position, with cash and short-term investments contributing significantly to total assets.

Cash Flow

The cash flow analysis reveals a volatile yet improving free cash flow, with a notable drop in 2023 but a recovery in 2025. The operating cash flow to net income ratio is 1.49 in 2025, reflecting strong cash earnings. However, the free cash flow to net income ratio is relatively low at 0.04, indicating that a large portion of earnings is reinvested or used for other financing activities. The company demonstrates an ability to generate cash, though fluctuations suggest potential areas for stability improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.16B	49.16B	44.10B	39.66B	38.85B	37.87B
Gross Profit	13.99B	13.99B	12.11B	10.32B	10.50B	10.19B
EBITDA	4.46B	4.46B	2.99B	2.02B	3.41B	2.98B
Net Income	2.01B	2.01B	1.31B	1.02B	1.65B	2.08B
Balance Sheet
Total Assets	63.73B	63.73B	62.23B	52.13B	52.08B	48.70B
Cash, Cash Equivalents and Short-Term Investments	14.04B	14.04B	15.55B	10.32B	12.44B	12.49B
Total Debt	10.25B	10.25B	10.72B	5.76B	3.81B	2.49B
Total Liabilities	29.16B	29.16B	29.14B	20.52B	20.03B	17.25B
Stockholders Equity	34.55B	34.55B	33.03B	31.64B	32.00B	31.43B
Cash Flow
Free Cash Flow	0.00	76.00M	2.01B	-3.82B	527.00M	370.00M
Operating Cash Flow	0.00	2.99B	4.33B	-1.64B	2.22B	2.78B
Investing Cash Flow	0.00	-2.81B	-2.33B	-1.23B	-2.17B	-1.87B
Financing Cash Flow	0.00	-1.75B	3.19B	710.00M	-282.00M	-1.13B

Nikko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 811.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 811 is above the 20-day moving average (MA) of 781.35, above the 50-day MA of 750.80, and above the 200-day MA of 700.98, indicating a bullish trend. The MACD of 13.42 indicates Negative momentum. The RSI at 75.78 is Negative, neither overbought nor oversold. The STOCH value of 96.96 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6306	78 Outperform	¥31.00B	19.36		4.01%	4.63%	-1.01%
6294	72 Outperform	¥16.48B	11.94		3.60%	-1.44%	-23.59%
6358	70 Outperform	¥18.40B	21.46		4.89%	-16.47%	-68.62%
Sector *	64 Neutral	$10.76B	15.86	7.74%	2.00%	2.63%	-15.75%
6289	62 Neutral	¥40.07B	58.45		3.02%	-17.98%	-76.38%
6310	57 Neutral	¥45.90B	51.32		1.48%	5.63%	―
6390	49 Neutral	¥16.22B	―		5.06%	-1.28%	-287.74%

Nikko Co., Ltd. Corporate Events

Nikko Co., Ltd. Completes Treasury Shares Disposal for Stock Compensation

Nikko Co., Ltd. has completed the payment procedures for the disposal of treasury shares as stock compensation, which was initially resolved in a Board of Directors meeting on June 25, 2025. This disposal involves 35,400 shares of common stock, with a total value of ¥25,204,800, distributed among company directors, an audit and supervisory board member, and executive officers, excluding outside directors and board members.

Nikko Co., Ltd. Announces Disposal of Treasury Shares for Stock Compensation

Nikko Co., Ltd. has resolved to dispose of 35,400 treasury shares as stock compensation with restrictions on transfer, aimed at incentivizing directors and officers to enhance corporate value. This move is part of a broader compensation system introduced in 2018, designed to align the interests of company officers with shareholders and ensure sustainable growth.