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

• Market Cap: ¥26.53B
• Dividend Yield: 4.61%
• Average Volume (3M): 47.58K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.54
• Revenue Growth: 11.49%
• EPS Growth: 52.75%
• Country: JP
• Employees: 1,117
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 22.50
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 62,550
• 30 Day Avg. Volume: 47,576
• PEG Ratio: 17.42
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥758.00 ▲(9.86%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. Business Overview & Revenue Model

Company Description

Nikko 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 Money

Nikko 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
49.55B	44.10B	39.66B	38.85B	37.87B	35.15B
	Gross Profit
13.93B	12.11B	10.32B	10.50B	10.19B	9.64B
	EBIT
2.80B	1.97B	1.03B	2.05B	2.30B	2.05B
	EBITDA
3.54B	2.99B	2.02B	2.81B	2.98B	2.67B
	Net Income Common Stockholders
1.86B	1.31B	1.02B	1.65B	2.08B	1.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.55B	15.55B	10.32B	12.44B	12.49B	12.62B
	Total Assets
62.23B	62.23B	52.13B	52.08B	48.70B	45.68B
	Total Debt
10.72B	10.72B	5.76B	3.81B	2.49B	1.79B
	Net Debt
-4.79B	-4.83B	-4.56B	-8.62B	-10.00B	-10.84B
	Total Liabilities
29.14B	29.14B	20.52B	20.03B	17.25B	15.39B
	Stockholders Equity
33.03B	33.03B	31.64B	32.00B	31.43B	30.27B
Cash Flow		Free Cash Flow
0.00	2.01B	-3.82B	527.00M	370.00M	2.42B
	Operating Cash Flow
0.00	4.33B	-1.64B	2.22B	2.78B	3.81B
	Investing Cash Flow
0.00	-2.33B	-1.23B	-2.17B	-1.87B	-609.00M
	Financing Cash Flow
0.00	3.19B	710.00M	-282.00M	-1.13B	-868.00M

Nikko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 690.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 690 is above the 20-day moving average (MA) of 681.70, above the 50-day MA of 673.96, and above the 200-day MA of 681.06, indicating a bullish trend. The MACD of 3.74 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 81.16 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	73 Outperform	¥26.53B	13.27		4.61%	11.49%	52.75%
6358	72 Outperform	¥17.11B	11.69		5.23%	-15.65%	-41.34%
6294	70 Outperform	¥15.00B	10.21		3.95%	-1.89%	-21.96%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
6289	64 Neutral	¥39.93B	25.65		3.03%	-13.72%	13.42%
6310	57 Neutral	¥32.83B	―		2.07%	1.56%	-720.36%
6390	51 Neutral	¥15.44B	―		5.31%	-7.94%	-242.37%

Nikko Co., Ltd. Corporate Events

Nikko Co., Ltd. Announces Leadership Change

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.