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

• Market Cap: ¥29.55B
• Dividend Yield: 4.42%
• Average Volume (3M): 58.29K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.53
• Revenue Growth: 4.63%
• EPS Growth: -1.01%
• Country: JP
• Employees: 1,117
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -1.59
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 55,610
• 30 Day Avg. Volume: 58,289
• PEG Ratio: 0.25
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 346.86
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥846.00 ▲(10.44% Upside)

Nikko Co., Ltd. exhibits strong financial health with robust revenue growth and profitability, supported by a solid balance sheet. The stock's valuation is reasonable, with an attractive dividend yield. However, technical indicators suggest potential short-term weakness, which tempers the overall score.

Nikko Co., Ltd. Business Overview & Revenue Model

Company Description

Nikko Co., Ltd. (6306) is a prominent Japanese company specializing in the manufacturing and sale of precision machinery and equipment for various industries, including automotive, aerospace, and electronics. The company focuses on developing innovative solutions in fields such as automation, robotics, and semiconductor production, delivering high-quality products that cater to the evolving demands of its customers. Nikko Co., Ltd. is committed to advancing technology and enhancing productivity through its diverse portfolio of machinery and engineering services.

How the Company Makes Money

Nikko Co., Ltd. generates revenue primarily through the sale of its precision machinery and equipment, which includes automation systems, robots, and semiconductor manufacturing tools. The company operates under a B2B (business-to-business) model, supplying products to major industries such as automotive and electronics manufacturers. Key revenue streams include direct sales of machinery, ongoing maintenance and service contracts, and aftermarket sales of parts and upgrades. Additionally, Nikko Co., Ltd. may engage in partnerships and collaborations with technology firms and industry leaders to co-develop advanced solutions, further enhancing its market presence and revenue potential. The company's focus on innovation and quality helps to maintain strong customer relationships, ensuring repeat business and long-term contracts, which are crucial for its financial stability.

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	47.61B	49.16B	44.10B	39.66B	38.85B	37.87B
Gross Profit	13.73B	13.99B	12.11B	10.32B	10.50B	10.19B
EBITDA	3.62B	4.46B	2.99B	2.02B	3.41B	2.98B
Net Income	1.61B	2.01B	1.31B	1.02B	1.65B	2.08B
Balance Sheet
Total Assets	63.12B	63.73B	62.23B	52.13B	52.08B	48.70B
Cash, Cash Equivalents and Short-Term Investments	14.69B	14.04B	15.55B	10.32B	12.44B	12.49B
Total Debt	10.19B	10.25B	10.72B	5.76B	3.81B	2.49B
Total Liabilities	29.25B	29.16B	29.14B	20.52B	20.03B	17.25B
Stockholders Equity	33.83B	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: 766.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 766 is below the 20-day moving average (MA) of 769.06, below the 50-day MA of 773.85, and above the 200-day MA of 703.15, indicating a neutral trend. The MACD of -1.68 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6306	73 Outperform	¥29.55B	18.28	―	4.42%	4.63%	-1.01%
6294	72 Outperform	¥16.30B	11.81	―	3.57%	-1.44%	-23.59%
6358	68 Neutral	¥18.20B	21.23	―	4.92%	-16.47%	-68.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6289	56 Neutral	¥43.12B	28.14	―	3.40%	-10.66%	-38.87%
6310	56 Neutral	¥54.13B	60.53	―	1.23%	5.63%	―
6390	49 Neutral	¥16.46B	―	―	4.94%	-1.28%	-287.74%

Nikko Co., Ltd. Corporate Events

Nikko Co., Ltd. Completes Treasury Share Disposal with Minor Adjustments

Nikko Co., Ltd. has completed the payment procedures for the disposal of treasury shares as stock compensation, initially resolved in August 2025. Due to partial forfeiture, the number of shares disposed of was slightly reduced, but this change does not affect the company’s financial forecasts for the fiscal year ending March 2026.

The most recent analyst rating on (JP:6306) stock is a Buy with a Yen866.00 price target. To see the full list of analyst forecasts on Nikko Co., Ltd. stock, see the JP:6306 Stock Forecast page.

Nikko Co., Ltd. Announces Treasury Shares Disposal for Employee Compensation

Nikko Co., Ltd. has announced the disposal of 15,500 treasury shares as stock compensation to employees who meet certain criteria, aiming to express gratitude and foster loyalty. This initiative is expected to align employees’ interests with shareholders, enhance corporate value, and boost motivation by offering shares with restrictions on transfer until December 2026.