Nikko Co., Ltd. (JP:6306)
:6306
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Nikko Co., Ltd.
(6306)
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Rating:68Neutral
Price Target:
¥918.00
▲(16.06% Upside)
Action:Reiterated
Date:05/18/26
The score is primarily supported by improving profitability and a conservatively positioned balance sheet, but is held back by inconsistent cash generation and weaker cash conversion. Technicals are constructive with the stock above key moving averages, while valuation is mixed due to a high P/E offset by a strong dividend yield.
Positive Factors
Revenue Growth
Sustained revenue growth and a re-acceleration in 2026 demonstrate durable market demand for Nikko's construction equipment. That top-line momentum supports better capacity utilization, scale economics and long-term investment in product development and service capabilities.
Negative Factors
Weak Cash Conversion
Volatile operating cash flow and inconsistent free cash flow (negative in 2023, very low in 2025, modest in 2026) mean reported earnings don't reliably translate to cash. Weak cash conversion constrains internally funded investment, dividends and reduces buffer vs. shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained revenue growth and a re-acceleration in 2026 demonstrate durable market demand for Nikko's construction equipment. That top-line momentum supports better capacity utilization, scale economics and long-term investment in product development and service capabilities.
Read all positive factors
Nikko Co., Ltd. (6306) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥31.46B
Dividend Yield4.26%
Average Volume (3M)74.70K
Price to Earnings (P/E)11.8
Beta (1Y)0.64
Revenue Growth0.43%
EPS Growth25.95%
CountryJP
Employees1,117
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)41.89
Shares Outstanding40,000,000
10 Day Avg. Volume52,610
30 Day Avg. Volume74,703
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)0.80
Price to Sales (P/S)0.61
P/FCF Ratio51.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nikko Co., Ltd. Business Overview & Revenue Model
Company Description
Nikko Co., Ltd. engages in the manufacture and sale of asphalt mixing and concrete batching plants in Asia. It offers asphalt mixing plants, including main units, aggregate supply units, combustion units, dust collectors, asphalt supply systems, a...
How the Company Makes Money
Nikko Co., Ltd. generates revenue primarily through the manufacture and sale of its industrial machinery and equipment. The company earns from its core product lines, including asphalt paving machines and concrete batching plants, by selling these...
Nikko Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.61B | 49.37B | 49.16B | 44.10B | 39.66B | 38.85B |
| Gross Profit | 13.73B | 15.20B | 13.54B | 11.70B | 9.95B | 10.24B |
| EBITDA | 3.45B | 4.40B | 3.94B | 2.99B | 2.02B | 2.81B |
| Net Income | 1.61B | 2.54B | 2.01B | 1.31B | 1.02B | 1.65B |
Balance Sheet | ||||||
| Total Assets | 63.12B | 64.44B | 63.73B | 62.23B | 52.13B | 52.08B |
| Cash, Cash Equivalents and Short-Term Investments | 14.69B | 11.48B | 14.04B | 15.55B | 10.32B | 12.44B |
| Total Debt | 10.19B | 8.00B | 10.28B | 10.72B | 5.78B | 3.82B |
| Total Liabilities | 29.25B | 27.03B | 29.16B | 29.14B | 20.52B | 20.03B |
| Stockholders Equity | 33.83B | 37.40B | 34.55B | 33.03B | 31.64B | 32.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 588.00M | 76.00M | 2.01B | -3.82B | 527.00M |
| Operating Cash Flow | 0.00 | 2.59B | 2.99B | 4.33B | -1.64B | 2.22B |
| Investing Cash Flow | 0.00 | -1.43B | -2.81B | -2.33B | -1.23B | -2.17B |
| Financing Cash Flow | 0.00 | -3.78B | -1.75B | 3.19B | 710.00M | -282.00M |
Nikko Co., Ltd. Technical Analysis
Positive
791.00
Price Trends
796.38
Positive
802.75
Positive
775.67
Positive
Market Momentum
8.35
Negative
65.54
Neutral
73.00
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 791 is below the 20-day moving average (MA) of 808.00, below the 50-day MA of 796.38, and above the 200-day MA of 775.67, indicating a bullish trend. The MACD of 8.35 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.00 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥319.97B | 18.05 | ― | 2.99% | 5.65% | 11.14% | |
74 Outperform | ¥85.15B | 6.79 | ― | 4.79% | 0.52% | 20.09% | |
70 Outperform | ¥3.03T | 9.53 | 7.55% | 2.22% | 5.51% | 12.24% | |
68 Neutral | ¥31.46B | 11.85 | ― | 4.26% | 0.43% | 25.95% | |
68 Neutral | ¥11.09B | 5.27 | ― | 3.58% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥43.05B | 5.84 | ― | 1.56% | 11.98% | ― |
* Industrials Sector Average
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Nikko Co., Ltd. Corporate Events
Nikko Co., Ltd. Posts Sharp Profit Surge on Cost Pass-Through and Higher Subsidiary Dividends
May 13, 2026
Nikko Co., Ltd. reported that for the fiscal year ended March 31, 2026, its non-consolidated net sales rose 1.6% year on year to 37,004 million yen, while operating profit surged 75.4% to 2,196 million yen as higher raw material and personnel cost...
Nikko Co. Lifts Profits, Ups Dividend and Projects Double-Digit Growth for FY 2027
May 13, 2026
Nikko Co., Ltd. reported consolidated net sales of ¥49.37 billion for the fiscal year ended March 31, 2026, up 0.4% year on year, while operating income rose 12.0% to ¥3.10 billion and net income attributable to owners of parent climbed ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.