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

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JP:6306

Nikko Co., Ltd.

(6306)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥1,019.00
▲(28.82% 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 & margin expansion
Sustained top-line expansion with re-acceleration into 2026 and materially higher gross margins indicates stronger product demand and pricing power. Over several quarters this enhances operating leverage and the company’s ability to fund investment and margin-accretive initiatives without structural dependency on external financing.
Negative Factors
Inconsistent cash generation
Volatile free cash flow over multiple years undermines the company's internal funding capacity for capex, dividends and growth. Persistent timing and working-capital swings increase the probability of needing external financing during down cycles, limiting strategic optionality and raising long-term execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margin expansion
Sustained top-line expansion with re-acceleration into 2026 and materially higher gross margins indicates stronger product demand and pricing power. Over several quarters this enhances operating leverage and the company’s ability to fund investment and margin-accretive initiatives without structural dependency on external financing.
Read all positive factors

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

Nikko Co., Ltd. Business Overview & Revenue Model

Company Description
Nikko Co., Ltd. operates in the Asian market as a key manufacturer and supplier of equipment for asphalt mixing and concrete batching. Their asphalt plant solutions are comprehensive, featuring main processing units, aggregate delivery systems, co...

Nikko Co., Ltd. Financial Statement Overview

Summary
Income statement and balance sheet are solid (revenue growth and improved margins into 2026; low-to-moderate leverage with improving debt metrics), but cash flow is a clear weak spot with volatile operating cash flow and inconsistent free cash flow that often trails earnings.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue47.61B49.37B49.16B44.10B39.66B38.85B
Gross Profit13.73B15.20B13.54B11.70B9.95B10.24B
EBITDA3.45B4.40B3.94B2.99B2.02B2.81B
Net Income1.61B2.54B2.01B1.31B1.02B1.65B
Balance Sheet
Total Assets63.12B64.44B63.73B62.23B52.13B52.08B
Cash, Cash Equivalents and Short-Term Investments14.69B11.48B14.04B15.55B10.32B12.44B
Total Debt10.19B8.00B10.28B10.72B5.78B3.82B
Total Liabilities29.25B27.03B29.16B29.14B20.52B20.03B
Stockholders Equity33.83B37.40B34.55B33.03B31.64B32.00B
Cash Flow
Free Cash Flow0.00588.00M76.00M2.01B-3.82B527.00M
Operating Cash Flow0.002.59B2.99B4.33B-1.64B2.22B
Investing Cash Flow0.00-1.43B-2.81B-2.33B-1.23B-2.17B
Financing Cash Flow0.00-3.78B-1.75B3.19B710.00M-282.00M

Nikko Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price791.00
Price Trends
50DMA
845.44
Positive
100DMA
826.67
Positive
200DMA
795.35
Positive
Market Momentum
MACD
22.38
Negative
RSI
66.53
Neutral
STOCH
78.59
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 880.50, below the 50-day MA of 845.44, and below the 200-day MA of 795.35, indicating a bullish trend. The MACD of 22.38 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 78.59 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥340.00B11.822.99%5.65%11.14%
74
Outperform
¥87.80B13.464.79%0.52%20.98%
70
Outperform
¥3.03T13.837.55%2.22%5.51%12.24%
68
Neutral
¥35.17B13.974.26%0.43%25.93%
68
Neutral
¥12.42B9.123.58%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥39.59B14.691.56%11.98%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6306
Nikko Co., Ltd.
920.00
228.42
33.03%
JP:6326
Kubota
2,660.50
1,064.58
66.71%
JP:6310
Iseki & Co., Ltd.
1,751.00
547.96
45.55%
JP:6316
Maruyama Mfg.Co., Inc.
2,728.00
789.50
40.73%
JP:6345
Aichi Corporation
1,360.00
55.89
4.29%
JP:6432
Takeuchi Mfg.Co., Ltd.
7,130.00
2,636.99
58.69%

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.Date of analysis: May 18, 2026