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Nippon Gear Co., Ltd. (JP:6356)
:6356
Japanese Market
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Nippon Gear Co., Ltd. (6356) Price & Analysis

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6356 Stock Chart & Stats

¥853.00
-¥12.00(-2.29%)
At close: 4:00 PM EST
¥853.00
-¥12.00(-2.29%)

Bulls Say, Bears Say

Bulls Say
Margin ExpansionSustained, material margin expansion indicates durable improvements in pricing, mix, and cost control. Higher operating margins bolster earnings resilience through cycles, support cash generation and ROE (improved to ~12% in 2026), and give management more room to invest or return capital over the medium term.
Very Conservative Balance SheetExtremely low leverage materially reduces refinancing and solvency risk, preserving strategic optionality. This financial flexibility supports capex, R&D, or selective M&A without needing market financing, and provides a durable buffer against industry cyclicality in auto and industrial end-markets.
Improved Cash GenerationStronger operating cash flow and consistently positive free cash flow enhance the company's ability to self-fund investments, dividends, and debt reduction. The 2026 cash-strengthening is a durable signal of improved cash-cycle management and strengthens financial flexibility over the coming months.
Bears Say
Choppy Revenue GrowthTop-line volatility points to exposure to cyclical auto and industrial demand and creates forecasting difficulty. Even with margin gains, inconsistent revenue trends can cap long-term earnings visibility, complicate capacity planning, and make it harder to sustain investment-backed growth without external demand stabilization.
Uneven Cash ConversionInconsistent conversion of earnings into cash reduces predictability of funds available for dividends, capex, or deleveraging. Periodic weak conversion raises the risk that reported profitability may not translate to free cash flow in weaker cycles, making financial planning and capital allocation more challenging.
Conservative Capital Structure Limits UpsideMaintaining near-zero debt lowers risk but can constrain return-enhancing leverage in growth phases. This structural capital allocation choice may limit ROE expansion and the pace of scalable investment compared with peers that use modest, strategic leverage to amplify returns during sustained demand increases.

6356 FAQ

What was Nippon Gear Co., Ltd.’s price range in the past 12 months?
Nippon Gear Co., Ltd. lowest stock price was ¥520.00 and its highest was ¥2287.00 in the past 12 months.
    What is Nippon Gear Co., Ltd.’s market cap?
    Nippon Gear Co., Ltd.’s market cap is ¥21.73B.
      When is Nippon Gear Co., Ltd.’s upcoming earnings report date?
      Nippon Gear Co., Ltd.’s upcoming earnings report date is Aug 05, 2026 which is in 46 days.
        How were Nippon Gear Co., Ltd.’s earnings last quarter?
        Nippon Gear Co., Ltd. released its earnings results on May 13, 2026. The company reported ¥52.01 earnings per share for the quarter, beating the consensus estimate of N/A by ¥52.01.
          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 ¥4.961 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 ¥52.01 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -7.879%.
                  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. specializes in the development, manufacturing, and distribution of industrial mechanical components, serving both domestic and international markets. Its extensive product portfolio includes valve actuators, widely utilized across diverse applications such as petroleum, nuclear power, electricity generation facilities, and water/sewage pipelines. The company also supplies screw jacks, which are employed for various functions including lifting, lowering, inclining, pulling, opening/closing, adjusting, and securing. Gear drives constitute another core offering, finding application in power plants, chemical processing units, wastewater treatment facilities, and numerous other industrial settings. Additionally, it produces gears tailored for the automotive, railway, and various industrial machinery sectors. Beyond its mechanical hardware, Nippon Gear Co., Ltd. offers communication, control, and detection solutions, encompassing control equipment, advanced control systems, sensor control technologies, and condition monitoring systems. The firm further provides services such as the construction and installation of machine instruments, as well as the design, supervision, operation, and installation of electrical works. Established in 1938, the company maintains its headquarters in Fujisawa, Japan.

                    Nippon Gear Co., Ltd. (6356) Earnings & Revenues

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