Nippon Gear Co., Ltd. (JP:6356)
:6356
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Nippon Gear Co., Ltd.
(6356)
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Rating:78Outperform
Price Target:
¥1,899.00
▲(122.63% Upside)
Action:UpgradedDate:04/25/26
The score is driven primarily by strong financial performance (profitability, low leverage, and solid cash generation) and an attractive valuation based on a low P/E. Technicals remain supportive due to price strength versus moving averages, but a negative MACD tempers the outlook.
Positive Factors
Strong revenue growth
Reported revenue growth (~86%) indicates the company is expanding sales rapidly, reflecting durable demand or successful share gains in its industrial/mobility end markets. Sustained top-line growth supports scale benefits, strengthens supplier/customer ties, and underpins reinvestment capacity.
Negative Factors
Suboptimal return on equity
A high equity base combined with modest ROE implies capital is not producing commensurate shareholder returns. Over the medium term this points to potential inefficiencies in capital allocation or under-levered balance sheet usage, limiting long-term shareholder value creation unless addressed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Reported revenue growth (~86%) indicates the company is expanding sales rapidly, reflecting durable demand or successful share gains in its industrial/mobility end markets. Sustained top-line growth supports scale benefits, strengthens supplier/customer ties, and underpins reinvestment capacity.
Read all positive factors
Nippon Gear Co., Ltd. (6356) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥22.58B
Dividend Yield0.92%
Average Volume (3M)116.20K
Price to Earnings (P/E)6.7
Beta (1Y)0.33
Revenue Growth0.86%
EPS Growth0.73%
CountryJP
Employees393
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)32.00
Shares Outstanding14,280,000
10 Day Avg. Volume161,780
30 Day Avg. Volume116,203
Financial Highlights & Ratios
PEG Ratio6.22
Price to Book (P/B)0.55
Price to Sales (P/S)0.72
P/FCF Ratio8.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Nippon Gear makes money primarily through the sale of manufactured products to business customers (typically OEMs and industrial users) and associated engineering/support services tied to those products. Key revenue streams generally include: (1) ...
Nippon Gear Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
75
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.20B | 9.56B | 9.62B | 7.52B | 7.57B | 7.72B |
| Gross Profit | 4.23B | 4.27B | 4.43B | 3.14B | 2.27B | 2.23B |
| EBITDA | 2.10B | 2.52B | 2.37B | 1.20B | 683.82M | 707.07M |
| Net Income | 1.31B | 1.55B | 1.54B | 685.13M | 295.83M | 312.53M |
Balance Sheet | ||||||
| Total Assets | 14.10B | 15.42B | 14.85B | 12.91B | 11.37B | 11.34B |
| Cash, Cash Equivalents and Short-Term Investments | 4.64B | 4.50B | 4.48B | 4.30B | 3.53B | 2.95B |
| Total Debt | 402.97M | 109.80M | 366.46M | 511.92M | 658.37M | 726.48M |
| Total Liabilities | 3.52B | 2.86B | 3.76B | 3.47B | 2.57B | 2.79B |
| Stockholders Equity | 10.58B | 12.56B | 11.10B | 9.44B | 8.79B | 8.55B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 795.46M | 421.68M | 977.46M | 706.17M | 590.73M |
| Operating Cash Flow | 0.00 | 1.29B | 748.94M | 1.27B | 803.87M | 721.47M |
| Investing Cash Flow | 0.00 | -884.92M | -331.61M | -297.71M | -100.26M | -169.18M |
| Financing Cash Flow | 0.00 | -384.31M | -245.05M | -201.18M | -125.11M | -274.49M |
Nippon Gear Co., Ltd. Technical Analysis
Positive
853.00
Price Trends
1337.69
Negative
1109.47
Positive
898.03
Positive
Market Momentum
-37.91
Positive
49.01
Neutral
64.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6356, the sentiment is Positive. The current price of 853 is below the 20-day moving average (MA) of 1332.86, below the 50-day MA of 1337.69, and below the 200-day MA of 898.03, indicating a neutral trend. The MACD of -37.91 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6356.
Nippon Gear Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥22.58B | 6.66 | ― | 0.92% | 0.86% | 0.73% | |
75 Outperform | ¥223.13B | 14.77 | 7.50% | 5.39% | -1.82% | 23.07% | |
74 Outperform | ¥161.73B | 13.70 | ― | 4.47% | 1.96% | 0.79% | |
71 Outperform | ¥281.57B | -8.32 | ― | 1.93% | -1.60% | -71.42% | |
71 Outperform | ¥68.67B | 3.21 | ― | 3.66% | -1.11% | 162.30% | |
66 Neutral | ¥608.97B | 15.03 | 3.35% | 3.18% | 2.15% | -6.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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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.