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

• Market Cap: ¥84.92B
• Dividend Yield: 2.44%
• Average Volume (3M): 202.00K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.90
• Revenue Growth: 6.71%
• EPS Growth: -37.02%
• Country: JP
• Employees: 8,337
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 34.18
• Shares Outstanding: 69,175,670
• 10 Day Avg. Volume: 224,420
• 30 Day Avg. Volume: 202,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,292.43
• Price Target Upside: -7.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,450.00 ▲(3.65% Upside)

Nikkiso Co., Ltd. scores well due to its robust financial performance and strong technical indicators. The company's attractive valuation further supports its investment appeal. While some concerns exist regarding rising debt and cash flow fluctuations, the overall financial health and positive market momentum provide a solid investment case.

Nikkiso Co., Ltd. Business Overview & Revenue Model

Company Description

Nikkiso Co., Ltd. is a diversified industrial company based in Japan, specializing in the manufacturing and distribution of a wide range of products and solutions primarily in the medical, industrial, and aerospace sectors. The company's core products and services include medical devices such as dialysis machines and related equipment, industrial pumps, cryogenic products, and aerospace components. Nikkiso is recognized for its technological innovation and commitment to delivering high-quality solutions that meet the diverse needs of its global clientele.

How the Company Makes Money

Nikkiso Co., Ltd. generates revenue through the sale and distribution of its diverse range of products and services across several key sectors. In the medical sector, the company earns money by selling dialysis machines and related medical equipment to healthcare providers and institutions. In the industrial sector, revenue is generated from the sale of specialized pumps and cryogenic equipment used in various industrial applications. The aerospace division contributes to the company's earnings through the production and supply of components to the aerospace industry. Additionally, Nikkiso's strategic partnerships and collaborations with other companies in these sectors enhance its market presence and contribute to its overall revenue growth. The company's ability to innovate and adapt its products to meet the changing demands of its markets plays a crucial role in maintaining and expanding its revenue streams.

Nikkiso Co., Ltd. Financial Statement Overview

Summary

Nikkiso Co., Ltd. exhibits strong revenue growth and profitability, backed by a solid balance sheet and consistent cash flow generation. The stable gross profit margin and manageable debt levels enhance its financial profile. However, rising debt and historical cash flow fluctuations present potential risks.

Income Statement

Nikkiso Co., Ltd. shows a stable financial performance with a strong gross profit margin of 27.9% TTM, reflecting effective cost management. The net profit margin stands at 3.5% TTM, indicating moderate profitability. Revenue growth has been consistent, with a notable increase of 10.3% from 2023 to 2024. EBIT and EBITDA margins are healthy at 3.5% and 10.3% TTM, respectively, signifying solid operational efficiency.

Balance Sheet

The company's balance sheet is robust with a manageable debt-to-equity ratio of 0.75 TTM, indicating a balanced capital structure. The equity ratio is strong at 43.9% TTM, showcasing a healthy level of equity financing. However, there is a slight concern with the rising debt levels, which could impact future leverage.

Cash Flow

Nikkiso Co., Ltd. demonstrates a strong cash flow position with a free cash flow growth rate of 165.7% TTM, driven by effective capital expenditure management. The operating cash flow to net income ratio of 1.98 TTM highlights a solid cash generation capability. However, historical fluctuations in free cash flow due to varying capital expenditures present a potential risk.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	213.38B	192.63B	177.11B	167.76B	158.54B
Gross Profit	58.00B	50.96B	45.64B	51.15B	52.10B
EBITDA	17.60B	22.85B	7.24B	13.09B	18.92B
Net Income	7.96B	9.07B	13.64B	374.00M	6.56B
Balance Sheet
Total Assets	325.56B	296.23B	286.60B	298.96B	272.89B
Cash, Cash Equivalents and Short-Term Investments	36.71B	32.30B	48.80B	29.36B	29.06B
Total Debt	107.21B	81.05B	89.34B	147.46B	132.27B
Total Liabilities	183.56B	169.94B	170.84B	204.76B	184.72B
Stockholders Equity	140.07B	124.43B	114.23B	92.20B	86.32B
Cash Flow
Free Cash Flow	-12.60B	4.81B	658.00M	-8.63B	-644.00M
Operating Cash Flow	-6.57B	14.24B	8.38B	3.59B	12.48B
Investing Cash Flow	-4.99B	-9.22B	76.76B	-14.56B	-12.53B
Financing Cash Flow	13.36B	-14.55B	-68.68B	9.45B	8.52B

Nikkiso Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1399.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1399 is above the 20-day moving average (MA) of 1326.80, above the 50-day MA of 1252.72, and above the 200-day MA of 1118.52, indicating a bullish trend. The MACD of 35.07 indicates Negative momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 96.21 is Negative, 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
6490	77 Outperform	¥90.44B	10.73		3.20%	-1.05%	-23.08%
6376	75 Outperform	¥84.92B	12.46	5.47%	2.44%	6.71%	-37.02%
6486	74 Outperform	¥125.76B	22.10		3.88%	>-0.01%	-26.82%
6455	74 Outperform	¥100.40B	10.36		2.64%	17.37%	58.50%
6284	74 Outperform	¥99.39B	12.90		2.29%	17.01%	16.10%
6104	69 Neutral	¥85.49B	8.75	9.64%	3.55%	-6.82%	-40.90%
Sector *	58 Neutral	HK$13.20B	4.33	-2.94%	5.81%	2.95%	-48.20%

Nikkiso Co., Ltd. Corporate Events

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.

Nikkiso Co., Ltd. Appeals Tokyo District Court’s Tax Reassessment Ruling

Nikkiso Co., Ltd. has announced its decision to appeal to the Tokyo High Court following the Tokyo District Court’s dismissal of its claims against a tax reassessment under the Controlled Foreign Company (CFC) tax regime. This reassessment, which pertains to the 2018 business income of its parent company and subsidiaries, resulted in a corporate income tax charge of approximately JPY 1.7 billion. The company’s appeal underscores its disagreement with the ruling and its commitment to reassert its position, potentially impacting its financial standing and stakeholder interests.

Nikkiso Co., Ltd. Reports Q1 2025 Financial Results

Nikkiso Co., Ltd. reported its consolidated financial results for the first quarter of 2025, showing a slight increase in revenue by 0.1% compared to the previous year. Despite a significant rise in operating profit by 127.5%, the company faced a decrease in profit before tax and profit for the period, indicating challenges in maintaining profitability. The company also announced changes in its subsidiaries, excluding six companies from its consolidation, which may impact its future operations and market strategy.

Nikkiso Co., Ltd. Cancels Bankruptcy Proceedings for UV Craftory and Restructures Business

Nikkiso Co., Ltd. has announced the cancellation of bankruptcy proceedings for its subsidiary, UV Craftory Co., Ltd., following the dismissal of a special appeal by the Supreme Court. The company is withdrawing from the UV-LED business and undergoing business restructuring, with minimal expected impact on its financial results for the fiscal year ending December 31, 2025.