Revenue Growth TrendSustained, material top-line growth indicates durable demand for Nippon Gear’s motion and drive products among OEMs and industrial customers. Over a 2–6 month horizon this momentum supports higher capacity utilization, stronger OEM relationships and predictable revenue streams that underpin medium-term planning and reinvestment.

Robust Operating MarginsConsistently healthy gross and improving net margins, plus strong EBIT/EBITDA performance, point to durable operational efficiency in manufacturing and cost control. This margin profile supports resilience to input cost variability and provides a sustainable buffer for reinvestment, R&D and long-term competitiveness.

Strong Cash Generation & FCF GrowthHigh operating cash conversion and notable free cash flow growth show the company converts earnings into liquidity reliably. That durable cash generation strengthens capacity to fund capex, service obligations, support aftermarket development and finance selective growth initiatives without relying heavily on external funding.

Bears Say

Subpar Return On EquityA high equity ratio and conservative leverage have produced a lower ROE than desirable, signaling less efficient use of shareholder capital. Over months this can limit shareholder returns and suggest opportunities to improve asset deployment, margin leverage or capital structure to enhance long-term investor outcomes.

OEM/end-market Cyclicality RiskDependence on OEM contracts and customer production volumes exposes revenue and utilization to auto and industrial cycle swings. This structural customer concentration and end-market cyclicality can create earnings variability and underutilized capacity risk across a 2–6 month horizon if OEM demand weakens.

Limited Scale (headcount)A relatively small workforce suggests limited scale versus larger global component suppliers. Over the medium term this can constrain R&D throughput, production scaling, supplier leverage and the ability to absorb supply-chain shocks, potentially hindering competitive positioning and margin expansion.

6356 FAQ

What was Nippon Gear Co., Ltd.’s price range in the past 12 months?

Nippon Gear Co., Ltd. lowest stock price was ¥378.00 and its highest was ¥1919.00 in the past 12 months.

What is Nippon Gear Co., Ltd.’s market cap?

Nippon Gear Co., Ltd.’s market cap is ¥25.97B.

When is Nippon Gear Co., Ltd.’s upcoming earnings report date?

Nippon Gear Co., Ltd.’s upcoming earnings report date is May 18, 2026 which is in 70 days.

How were Nippon Gear Co., Ltd.’s earnings last quarter?

Nippon Gear Co., Ltd. released its earnings results on Jan 29, 2026. The company reported ¥32 earnings per share for the quarter, beating the consensus estimate of N/A by ¥32.

Is Nippon Gear Co., Ltd. overvalued?

According to Wall Street analysts Nippon Gear Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nippon Gear Co., Ltd. pay dividends?

Nippon Gear Co., Ltd. pays a Semiannually dividend of ¥4 which represents an annual dividend yield of 0.92%. See more information on Nippon Gear Co., Ltd. dividends here

What is Nippon Gear Co., Ltd.’s EPS estimate?

Nippon Gear Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nippon Gear Co., Ltd. have?

Nippon Gear Co., Ltd. has 14,280,000 shares outstanding.

What happened to Nippon Gear Co., Ltd.’s price movement after its last earnings report?

Nippon Gear Co., Ltd. reported an EPS of ¥32 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -8.04%.

Which hedge fund is a major shareholder of Nippon Gear Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6356

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Nippon Gear Co., Ltd.

Nippon Gear Co., Ltd. designs, produces, and sells valve actuators, screw jacks, gear drives, and gears in Japan and internationally. The company offers valve actuators for a range of applications in petroleum, nuclear, generating plants, and water/sewer pipelines; jacks for use in lifting/lowering, inclines, pulling, opening/closing, adjustment, and holding; gear drives for power plant, chemical plant, waste water treatment plant, and other applications; and gears for automotive, railroad, industrial machine, and other industries. It also provides equipment for communication, control, and detection, including control equipment and control systems, sensor control, and condition monitoring systems. In addition, the company constructs and installs machine instruments; and designs, supervises, operates, and installs electric works. Nippon Gear Co., Ltd. was founded in 1938 and is headquartered in Fujisawa, Japan.