tiprankstipranks
Nippon Gear Co., Ltd. (JP:6356)
:6356
Japanese Market
Want to see JP:6356 full AI Analyst Report?

Nippon Gear Co., Ltd. (6356) AI Stock Analysis

0 Followers

Top Page

JP:6356

Nippon Gear Co., Ltd.

(6356)

Select Model
Select Model
Select Model
Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
¥1,607.00
▲(88.39% Upside)
Action:Reiterated
Date:05/18/26
The score is primarily supported by strong financial performance—material profitability improvement and exceptionally low leverage—along with an attractive low P/E valuation. This is tempered by a mixed near-term technical picture (below short-term averages with neutral momentum) and a low dividend yield.
Positive Factors
Conservative Balance Sheet
Near-zero leverage provides durable financial flexibility and resilience across cycles. Minimal debt lowers solvency risk, supports continued capex or targeted M&A without refinancing stress, and preserves optionality to sustain operations during industry downturns.
Negative Factors
Choppy Revenue Growth
Intermittent top-line declines undermine predictability of earnings and investments. Volatile revenue complicates capacity planning, pushes management to prioritize short-term margin fixes, and raises the risk that high margins may compress again if volumes fall materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Near-zero leverage provides durable financial flexibility and resilience across cycles. Minimal debt lowers solvency risk, supports continued capex or targeted M&A without refinancing stress, and preserves optionality to sustain operations during industry downturns.
Read all positive factors

Nippon Gear Co., Ltd. (6356) vs. iShares MSCI Japan ETF (EWJ)

Nippon Gear Co., Ltd. Business Overview & Revenue Model

Company Description
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 wate...
How the Company Makes Money
null...

Nippon Gear Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals driven by substantial margin expansion (net margin ~4% to ~18%; EBIT margin ~6% to ~25%) and a very conservative balance sheet with near-zero leverage (debt-to-equity ~0.5%). Free cash flow is generally positive with a sharp improvement in 2026, but revenue growth and cash-conversion have been uneven at times.
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.20B9.88B9.56B9.62B7.52B7.57B
Gross Profit4.23B4.81B4.27B4.43B3.14B2.27B
EBITDA2.10B2.70B2.52B2.37B1.20B683.82M
Net Income1.31B1.75B1.55B1.54B685.13M295.83M
Balance Sheet
Total Assets14.10B17.20B15.42B14.85B12.91B11.37B
Cash, Cash Equivalents and Short-Term Investments4.64B6.13B4.50B4.48B4.30B3.53B
Total Debt402.97M72.17M109.80M366.46M511.92M658.37M
Total Liabilities3.52B2.72B2.86B3.76B3.47B2.57B
Stockholders Equity10.58B14.48B12.56B11.10B9.44B8.79B
Cash Flow
Free Cash Flow0.001.81B795.46M421.68M977.46M706.17M
Operating Cash Flow0.002.42B1.29B748.94M1.27B803.87M
Investing Cash Flow0.00-641.92M-884.92M-331.61M-297.71M-100.26M
Financing Cash Flow0.00-151.79M-384.31M-245.05M-201.18M-125.11M

Nippon Gear Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price853.00
Price Trends
50DMA
1491.90
Negative
100DMA
1231.29
Positive
200DMA
990.87
Positive
Market Momentum
MACD
-2.04
Positive
RSI
44.68
Neutral
STOCH
10.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6356, the sentiment is Neutral. The current price of 853 is below the 20-day moving average (MA) of 1463.20, below the 50-day MA of 1491.90, and below the 200-day MA of 990.87, indicating a neutral trend. The MACD of -2.04 indicates Positive momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 10.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6356.

Nippon Gear Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥19.29B10.670.92%3.43%12.96%
78
Outperform
¥162.22B8.334.47%1.64%19.87%
75
Outperform
¥215.83B19.507.50%5.39%-1.82%23.07%
66
Neutral
¥610.09B-13.883.35%3.18%2.15%-6.81%
64
Neutral
¥64.64B6.233.66%-0.95%66.40%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
¥339.59B135.951.93%<0.01%-83.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6356
Nippon Gear Co., Ltd.
1,502.00
1,004.15
201.70%
JP:6473
JTEKT
1,931.00
846.24
78.01%
JP:7278
Exedy Corporation
5,890.00
1,796.99
43.90%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
5,550.00
2,807.27
102.35%
JP:7231
Topy Industries, Limited
2,770.00
634.59
29.72%
JP:7296
F.C.C.Co., Ltd.
3,335.00
664.76
24.90%
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