Nippon Gear Co., Ltd. (JP:6356)
:6356
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Nippon Gear Co., Ltd.
(6356)
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Rating:78Outperform
Price Target:
¥1,829.00
▲(114.42% 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
Margin Expansion
Sustained, 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.
Negative Factors
Choppy Revenue Growth
Top-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.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained, 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.
Read all positive factors
Nippon Gear Co., Ltd. (6356) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.73B
Dividend Yield0.92%
Average Volume (3M)116.20K
Price to Earnings (P/E)12.7
Beta (1Y)0.38
Revenue Growth3.43%
EPS Growth12.96%
CountryJP
Employees393
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)91.75
Shares Outstanding14,280,000
10 Day Avg. Volume161,780
30 Day Avg. Volume116,203
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)1.29
Price to Sales (P/S)1.89
P/FCF Ratio10.34
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. 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 a...
How the Company Makes Money
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Nippon Gear Co., Ltd. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.20B | 9.88B | 9.56B | 9.62B | 7.52B | 7.57B |
| Gross Profit | 4.23B | 4.81B | 4.27B | 4.43B | 3.14B | 2.27B |
| EBITDA | 2.10B | 2.70B | 2.52B | 2.37B | 1.20B | 683.82M |
| Net Income | 1.31B | 1.75B | 1.55B | 1.54B | 685.13M | 295.83M |
Balance Sheet | ||||||
| Total Assets | 14.10B | 17.20B | 15.42B | 14.85B | 12.91B | 11.37B |
| Cash, Cash Equivalents and Short-Term Investments | 4.64B | 6.13B | 4.50B | 4.48B | 4.30B | 3.53B |
| Total Debt | 402.97M | 72.17M | 109.80M | 366.46M | 511.92M | 658.37M |
| Total Liabilities | 3.52B | 2.72B | 2.86B | 3.76B | 3.47B | 2.57B |
| Stockholders Equity | 10.58B | 14.48B | 12.56B | 11.10B | 9.44B | 8.79B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.81B | 795.46M | 421.68M | 977.46M | 706.17M |
| Operating Cash Flow | 0.00 | 2.42B | 1.29B | 748.94M | 1.27B | 803.87M |
| Investing Cash Flow | 0.00 | -641.92M | -884.92M | -331.61M | -297.71M | -100.26M |
| Financing Cash Flow | 0.00 | -151.79M | -384.31M | -245.05M | -201.18M | -125.11M |
Nippon Gear Co., Ltd. Technical Analysis
Positive
853.00
Price Trends
1444.94
Positive
1351.62
Positive
1074.63
Positive
Market Momentum
-2.52
Positive
57.14
Neutral
44.49
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 1521.00, below the 50-day MA of 1444.94, and below the 200-day MA of 1074.63, indicating a bullish trend. The MACD of -2.52 indicates Positive momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 44.49 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 | ¥21.73B | 12.70 | ― | 0.92% | 3.43% | 12.96% | |
78 Outperform | ¥163.67B | 8.88 | ― | 4.47% | 1.64% | 19.87% | |
75 Outperform | ¥215.10B | 15.79 | 7.50% | 5.39% | -1.82% | 23.07% | |
66 Neutral | ¥660.54B | 55.73 | 3.35% | 3.18% | 2.15% | -6.81% | |
64 Neutral | ¥64.45B | 5.92 | ― | 3.66% | -0.95% | 66.40% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | ¥292.72B | 231.50 | ― | 1.93% | <0.01% | -83.75% |
* 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.