Nikkiso Co., Ltd. (6376) AI Stock Analysis

• Market Cap: €92.61B
• Dividend Yield: 2.12%
• Average Volume (3M): 185.66K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.93
• Revenue Growth: 1.48%
• EPS Growth: 58.59%
• Country: JP
• Employees: 8,337
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.73
• Shares Outstanding: 69,175,670
• 10 Day Avg. Volume: 215,040
• 30 Day Avg. Volume: 185,656
• PEG Ratio: -0.65
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -5.11
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,780.00 ▲(16.04% Upside)

Nikkiso Co., Ltd. benefits from a strong valuation and positive technical indicators, suggesting potential for price appreciation. However, financial performance shows mixed results with challenges in revenue growth and profitability, which slightly dampens the overall score.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates robust cash generation ability, providing financial flexibility for investments and debt management.

Operational Efficiency

Improved operational efficiency reflects better cost management and resource utilization, enhancing long-term profitability potential.

Balance Sheet Health

A moderate debt-to-equity ratio suggests a strong balance sheet, providing stability and capacity for future growth investments.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth.

Profit Margin Pressure

Decreasing net profit margins suggest difficulties in converting sales into profit, potentially affecting future earnings and shareholder returns.

Liquidity Concerns

Limited conversion of earnings to free cash flow may constrain liquidity, impacting the company's ability to fund operations and investments.

Nikkiso Co., Ltd. Business Overview & Revenue Model

Company Description

Nikkiso Co., Ltd. engages in industrial, aerospace, precision equipment, deep ultraviolet-LEDs, and medical businesses worldwide. The company operates through Industrial Business and Medical Business segments. Its Industrial Business segment engages in manufacturing, sales, and maintenance of specialty industrial pumps, including non-leakage pumps; precision metering pumps; cryogenic pumps for pumping liquefied natural gas; industrial water conditioning systems for thermal and nuclear power plants, system products that combine water conditioning systems with automation and/or other functions, and warm laminating systems; other electronic component manufacturing equipment; and manufacturing and sales of carbon fiber reinforced plastic products for various civilian aircraft, and deep ultraviolet LEDs and related products. The company's Medical Business segment is involved in the manufacturing, sales, and maintenance of products and medical supplies for hemodialysis, peritoneal dialysis, and continuous renal replacement therapy, including dialysis systems, dialyzers, blood tubing lines, and powder-type dialysate; blood glucose controllers; air purification devices; ozone-water hand-washing systems; and microwave surgical instrument. The company was formerly known as Nippon Kikai Keiso Kaisha Ltd. and changed its name to Nikkiso Co., Ltd. in November 1968. Nikkiso Co., Ltd. was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nikkiso generates revenue through the sale of its advanced pumping systems and components, which are utilized in a variety of high-demand applications across its target sectors. Key revenue streams include the sale of cryogenic pumps and systems to the aerospace and industrial markets, as well as medical equipment and consumables for healthcare facilities. Additionally, the company engages in service contracts and maintenance for its products, providing ongoing support to its customers. Strategic partnerships with major players in the aerospace and medical fields further enhance Nikkiso's market reach and contribute to its financial performance.

Nikkiso Co., Ltd. Financial Statement Overview

Summary

Nikkiso Co., Ltd. demonstrates a stable financial position with operational improvements in EBIT and EBITDA margins. However, challenges exist in revenue growth and profitability, with a negative revenue growth rate and a decrease in net profit margin. The balance sheet is robust with manageable leverage, and the cash flow statement shows positive trends in free cash flow growth.

Income Statement

Nikkiso Co., Ltd. shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 27.86%, indicating decent profitability. However, the net profit margin has decreased to 3.46%, reflecting challenges in converting revenue into profit. The revenue growth rate is negative at -1.13%, suggesting a decline in sales compared to the previous period. The EBIT and EBITDA margins have improved to 5.11% and 10.28% respectively, showing better operational efficiency.

Balance Sheet

The balance sheet of Nikkiso Co., Ltd. indicates moderate financial health. The debt-to-equity ratio is 0.75, which is reasonable and shows a balanced approach to leveraging. The return on equity (ROE) is 5.43%, which is modest and suggests room for improvement in generating returns for shareholders. The equity ratio stands at 45.37%, indicating a solid equity base relative to total assets.

Cash Flow

The cash flow statement reveals a positive trend with a significant free cash flow growth rate of 52.77% in the TTM. The operating cash flow to net income ratio is 0.20, indicating that operating cash flows are covering net income adequately. However, the free cash flow to net income ratio is 0.56, suggesting that a portion of earnings is not translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	211.02B	213.38B	192.63B	177.11B	167.76B	158.54B
Gross Profit	60.46B	58.00B	50.96B	45.64B	51.15B	52.10B
EBITDA	21.49B	17.60B	22.85B	43.50B	15.10B	18.92B
Net Income	6.93B	7.96B	9.07B	13.64B	221.00M	6.56B
Balance Sheet
Total Assets	313.29B	325.56B	296.23B	286.60B	298.96B	272.89B
Cash, Cash Equivalents and Short-Term Investments	38.13B	36.71B	32.30B	48.80B	29.36B	29.06B
Total Debt	101.74B	107.21B	81.05B	89.34B	147.46B	132.27B
Total Liabilities	169.50B	183.56B	169.94B	170.84B	204.76B	184.72B
Stockholders Equity	142.13B	140.07B	124.43B	114.23B	92.20B	86.32B
Cash Flow
Free Cash Flow	12.62B	-12.60B	4.81B	658.00M	-8.63B	-644.00M
Operating Cash Flow	19.05B	-6.57B	14.24B	8.38B	3.59B	12.48B
Investing Cash Flow	-124.00M	-4.99B	-9.22B	76.76B	-14.56B	-12.53B
Financing Cash Flow	-15.49B	13.36B	-14.55B	-68.68B	9.45B	8.52B

Nikkiso Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1534.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6376, the sentiment is Positive. The current price of 1534 is above the 20-day moving average (MA) of 1522.90, above the 50-day MA of 1506.36, and above the 200-day MA of 1321.55, indicating a bullish trend. The MACD of 13.11 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6376.

Nikkiso Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	€95.29B	9.75	5.02%	3.37%	-10.00%	-51.92%
6455	80 Outperform	¥112.20B	10.47	―	2.49%	12.64%	34.19%
6284	73 Outperform	¥100.68B	13.39	―	3.12%	18.70%	33.93%
6376	73 Outperform	€92.61B	14.49	8.17%	2.12%	1.48%	58.59%
6486	69 Neutral	¥136.61B	24.01	―	3.82%	1.70%	18.50%
6490	67 Neutral	¥121.53B	14.42	―	2.66%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nikkiso Co., Ltd. Corporate Events

Nikkiso Cancels New Factory Project in Japan Amid Cost Concerns

Nikkiso Co., Ltd. has decided to cancel its planned construction of a new medical factory in Miyazaki, Japan, originally intended to enhance the production of blood tubing lines. This decision comes after a comprehensive review revealed that increased construction costs and advancements in overseas production capabilities made the project economically unviable. The company assures that the cancellation will not impact its financial performance and emphasizes its commitment to maintaining a stable supply of high-quality products through its enhanced overseas production sites.

The most recent analyst rating on (JP:6376) stock is a Buy with a Yen1654.00 price target. To see the full list of analyst forecasts on Nikkiso Co., Ltd. stock, see the JP:6376 Stock Forecast page.

Nikkiso Co., Ltd. Reports Mixed Financial Results for First Half of 2025

Nikkiso Co., Ltd. reported its consolidated financial results for the first half of 2025, showing a slight decline in revenue by 2.3% compared to the previous year. Despite the revenue drop, the company achieved a significant increase in operating profit by 114.4%, indicating improved operational efficiency. The company also announced a dividend increase, reflecting confidence in its financial stability and future growth prospects.

The most recent analyst rating on (JP:6376) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Nikkiso Co., Ltd. stock, see the JP:6376 Stock Forecast page.

Nikkiso Co., Ltd. Reports Mixed Financial Results for First Half of 2025

Nikkiso Co., Ltd. reported a decrease in revenue for the first half of 2025, with a 2.3% decline compared to the previous year. Despite this, the company experienced a significant increase in operating profit by 114.4%, indicating improved operational efficiency. The company also announced an increase in dividends per share, reflecting confidence in future financial performance.

Nikkiso Co., Ltd. Addresses Inspection Lapse with Preventive Measures

Nikkiso Co., Ltd. has received an investigation report from a special committee regarding an incident where some pumps were shipped without undergoing required internal inspections. The company has acknowledged the findings and is committed to implementing measures to prevent recurrence. Despite the incident, the financial impact on the company’s 2025 results is expected to be negligible, with no changes to the financial forecasts. The company’s executives have taken responsibility by offering to return a portion of their compensation, and disciplinary actions will be taken against involved employees.

Nikkiso Co., Ltd. Announces Measures to Enhance Quality Assurance and Governance

Nikkiso Co., Ltd. has announced the establishment of recurrence prevention measures following an investigation by a special committee. The company plans to implement a series of organizational and procedural improvements aimed at restoring trust among stakeholders by the end of the year. These measures include restructuring the organizational framework, clarifying responsibilities for quality assurance, and enhancing business processes and quality management systems. The company emphasizes its commitment to promoting quality assurance awareness and strengthening governance to prevent future incidents.

Nikkiso Addresses Pump Inspection Oversight with Investigation Report

Nikkiso Co., Ltd. announced the receipt of an investigation report from a special committee regarding an incident where some pumps were shipped without undergoing a required pressure resistance test. The investigation, conducted by external experts, found that the incident will have a negligible impact on the company’s financial performance for the fiscal year ending December 31, 2025. The company is implementing measures to prevent recurrence and has taken steps to clarify responsibilities, including voluntary compensation returns by executives and disciplinary actions for involved employees.