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

• Market Cap: ¥17.63B
• Dividend Yield: 0.92%
• Average Volume (3M): 116.20K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.50
• Revenue Growth: -1.79%
• EPS Growth: -8.54%
• Country: JP
• Employees: 393
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 32.00
• Shares Outstanding: 14,280,000
• 10 Day Avg. Volume: 161,780
• 30 Day Avg. Volume: 116,203
• PEG Ratio: 6.22
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 8.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,421.00 ▲(66.59% Upside)
• Action: Downgraded Date: 04/04/26
• Date: Action: Downgraded 04/04/26

The score is driven primarily by strong underlying financial performance (growth, margins, cash generation, and conservative leverage). This is tempered by weak technical momentum (below key moving averages with negative MACD and subdued RSI), while valuation is supportive due to a low P/E but offset by a modest dividend yield.

Positive Factors

Sustained revenue growth

Nippon Gear has recorded a clear multi-year revenue expansion, including a notable increase from 2023 to 2024. Persistent top-line growth supports scale economies, expands product adoption with OEMs, and underpins durable margin improvement and reinvestment capacity over the medium term.

Negative Factors

Below‑par return on equity

Despite strong revenue and cash metrics, relatively weak ROE suggests capital is not being deployed as profitably as peers. Persistent low ROE can limit long‑term shareholder value unless management improves asset turnover, pricing power, or capital allocation.

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...

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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) ...

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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

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

• Technical Analysis Sentiment: Negative
• Last Price: 853.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6356, the sentiment is Negative. The current price of 853 is below the 20-day moving average (MA) of 1458.92, below the 50-day MA of 1292.79, and below the 200-day MA of 879.38, indicating a neutral trend. The MACD of -53.52 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 40.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6356.

Nippon Gear Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7296	74 Outperform	¥166.82B	13.70	―	4.47%	2.01%	25.09%
7231	71 Outperform	¥71.19B	3.21	―	3.66%	-6.79%	303.74%
7278	69 Neutral	¥204.14B	10.65	7.50%	5.39%	-2.26%	―
6356	68 Neutral	¥17.63B	6.66	―	0.92%	-1.79%	-8.54%
7220	68 Neutral	¥207.16B	-8.32	―	1.93%	-3.23%	24.93%
6473	63 Neutral	¥561.86B	15.03	3.35%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%