Revenue Growth TrendSustained revenue growth and improving operating margins signal durable demand and better cost control across product lines. Over 2–6 months this underpins stronger cash generation, pricing power in B2B contracts, and the ability to reinvest in R&D and capacity to capture further industrial and automotive demand.

Free Cash Flow StrengthConsistent operating cash flow conversion and impressive free cash flow growth provide financial flexibility to fund capex, support long-term contracts, and reduce leverage. Durable FCF positions the company to invest in precision manufacturing, sustain innovation, and weather industry cyclicality without relying on external financing.

Conservative Balance SheetLow leverage and a high equity ratio reduce refinancing and liquidity risk, giving management scope to pursue strategic investments or absorb demand shocks. Over the medium term this stability supports credit access, funds for targeted M&A or capex, and resilience through automotive/industrial cycles.

Bears Say

Return On Equity WeaknessA noted shortfall in ROE implies capital is not yet generating strong shareholder returns, limiting long-term attractiveness to equity investors. Improving asset efficiency or pricing, or reallocating capital toward higher-return projects, is needed to convert strong balance-sheet and cash flow positions into better equity returns.

Cyclicality Of End MarketsHeavy exposure to automotive and industrial machinery markets creates structural revenue volatility tied to investment cycles and OEM demand. Over a multi-month horizon, downturns in vehicle production or industrial capex can depress orders and utilization, stressing margins despite solid underlying operations.

Limited Income Return To ShareholdersA sub-1% dividend yield provides little cash return to income-focused investors and narrows the shareholder base seeking yield. Coupled with modest ROE, this raises questions about the balance between retained earnings and shareholder distributions, potentially pressuring management to justify capital allocation decisions.

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 ¥1020.00 in the past 12 months.

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

Nippon Gear Co., Ltd.’s market cap is ¥12.60B.

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 91 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.