NSK Ltd. (6471) AI Stock Analysis

• Market Cap: ¥390.43B
• Dividend Yield: 4.26%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.86
• Revenue Growth: -1.15%
• EPS Growth: -13.31%
• Country: JP
• Employees: 24,057
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.22
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 1,831,530
• 30 Day Avg. Volume: 2,058,270
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥732.33
• Price Target Upside: -8.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ¥857.00 ▲(7.30% Upside)

NSK Ltd. receives a solid score driven by strong technical indicators and robust cash flow management. However, the high P/E ratio suggests potential overvaluation, and the company faces challenges in revenue growth and profitability. The attractive dividend yield provides some compensation for these risks.

NSK Ltd. Business Overview & Revenue Model

Company Description

NSK Ltd., together with its subsidiaries, manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts worldwide. Its products include ball bearings; roller bearings; bearing units; super precision bearings; bearings for steel industry, mining and construction, papermaking machines, and pumps and compressors; and bearings for special environments, including sanitary, corrosive, vacuum, clean, high-temperature, non-magnetic requirement, and dust-contaminated environments. The company also provides automotive products, which comprise chassis products, such as electric power steerings, steering column and intermediate shafts, and hub unit bearings; power train products comprising engine parts and electrical accessories; and drive train products consisting of automatic and manual transmission, products for motorcycles and all-terrain vehicles, half toroidal CVT POWERTOROS units, and differential gear and propeller shafts. In addition, it offers precision machine components, including ball screws, linear guides, monocarriers, XY tables, and spindles; and accessories, including ball screw support bearings, air bearings, and clean grease, as well as support units for heavy and light loads, machine tools, and small equipment. Further, the company provides megatorque motors; maintenance and repair services; design, development, sales, and maintenance services for computer systems and networks; and sells industrial machinery bearings and automotive components. It serves agriculture, automotive, cement, food processing machinery, industrial motor, gearbox, injection molding machine, machine tool, medical device, mining and construction, motorcycle, office equipment, palm oil, papermaking machinery, pump and compressor, railway, semiconductor, steel, sugar, and wind turbine industries. NSK Ltd. was founded in 1914 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NSK Ltd. generates revenue primarily through the sale of its bearings and automotive components. The company's bearings are utilized in various industrial applications, including automotive, aerospace, and energy sectors, providing a steady revenue stream from industrial clients. Automotive components, particularly electric power steering systems, contribute significantly to the company’s earnings, capitalizing on the automotive industry's shift towards more efficient and lightweight components. NSK also benefits from strategic partnerships and collaborations with other global manufacturers, allowing them to expand their market reach and enhance product innovation. Revenue is further supplemented by their service offerings, which include maintenance and on-site engineering support, ensuring optimal performance of their products.

NSK Ltd. Financial Statement Overview

Summary

NSK Ltd. demonstrates a stable financial position with strengths in cash flow management and a solid balance sheet. However, challenges remain in revenue growth and profitability, as reflected in the income statement. The company needs to focus on enhancing its profit margins and reversing the declining revenue trend to improve its overall financial health.

Income Statement

NSK Ltd. shows a mixed performance in its income statement. The gross profit margin is stable at around 21.7%, indicating consistent cost management. However, the net profit margin is low at 1.3%, reflecting challenges in converting revenue into profit. The revenue growth rate is negative, suggesting declining sales, which is a concern. EBIT and EBITDA margins are modest, showing some operational efficiency but room for improvement.

Balance Sheet

The balance sheet of NSK Ltd. is relatively strong with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity is modest at 1.6%, suggesting limited profitability from shareholders' investments. The equity ratio is healthy, showing a solid capital structure. Overall, the balance sheet reflects stability but highlights the need for improved profitability.

Cash Flow

NSK Ltd.'s cash flow statement reveals positive trends with a significant free cash flow growth rate of 46.3%, indicating improved cash generation. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion. The free cash flow to net income ratio is over 50%, reflecting good cash flow management. Overall, the cash flow position is robust, supporting financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	791.93B	796.67B	788.87B	776.76B	865.17B	747.56B
Gross Profit	171.80B	172.78B	165.25B	175.72B	169.73B	126.24B
EBITDA	74.12B	84.11B	80.77B	101.32B	84.43B	58.95B
Net Income	9.83B	10.65B	8.50B	18.41B	16.59B	355.00M
Balance Sheet
Total Assets	1.21T	1.22T	1.30T	1.23T	1.23T	1.17T
Cash, Cash Equivalents and Short-Term Investments	157.89B	201.04B	195.66B	161.70B	139.16B	178.21B
Total Debt	207.01B	329.03B	342.61B	360.81B	327.21B	355.57B
Total Liabilities	551.95B	550.35B	620.12B	598.53B	597.09B	594.07B
Stockholders Equity	643.51B	651.46B	659.98B	616.21B	617.80B	554.38B
Cash Flow
Free Cash Flow	64.47B	31.82B	41.12B	12.41B	-13.33B	20.05B
Operating Cash Flow	99.89B	82.18B	99.82B	64.16B	22.73B	53.84B
Investing Cash Flow	-63.98B	-58.75B	-90.81B	-48.78B	-19.97B	-51.10B
Financing Cash Flow	-26.94B	-33.74B	-24.78B	4.42B	-48.22B	29.99B

NSK Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 798.70
• 50DMA: Positive
• 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:6471, the sentiment is Positive. The current price of 798.7 is above the 20-day moving average (MA) of 784.76, above the 50-day MA of 746.44, and above the 200-day MA of 665.68, indicating a bullish trend. The MACD of 15.81 indicates Positive momentum. The RSI at 66.86 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6471.

NSK Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5991	77 Outperform	410.21B	10.13	11.81%	3.11%	3.38%	-3.92%
7242	77 Outperform	210.85B	8.87	10.18%	2.50%	-0.17%	72.81%
7988	74 Outperform	420.17B	9.42	16.28%	1.68%	-4.69%	171.87%
6463	73 Outperform	79.93B	9.58	5.44%	4.09%	-1.71%	0.39%
6471	70 Outperform	¥390.43B	39.94		4.26%	-1.15%	-13.31%
6473	69 Neutral	484.98B	52.26	1.84%	3.28%	-1.82%	-72.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

NSK Ltd. Corporate Events

NSK Ltd. Reports Decline in Q2 2025 Financial Results Amid Market Challenges

NSK Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with sales decreasing by 2.4% and net income dropping by 39.9% compared to the previous year. The company attributes part of this decline to the absence of discontinued operations from its former Indian subsidiary, Rane NSK Steering Systems, which was sold in 2024. Despite the current downturn, NSK maintains its dividend forecast for the year ending March 31, 2026, indicating a stable outlook for shareholders.

The most recent analyst rating on (JP:6471) stock is a Sell with a Yen550.00 price target. To see the full list of analyst forecasts on NSK Ltd. stock, see the JP:6471 Stock Forecast page.

NSK Ltd. Announces Increased Dividend Payout for Fiscal Year 2025

NSK Ltd. announced a dividend payout of 17.00 JPY per share for the fiscal year ended March 31, 2025, as part of its Mid-Term Management Plan 2026, which emphasizes stable shareholder returns. The total annual dividend amounts to 34.00 JPY per share, reflecting an increase from the previous year, and is aligned with the company’s financial strategy and market conditions.

The most recent analyst rating on (JP:6471) stock is a Sell with a Yen650.00 price target. To see the full list of analyst forecasts on NSK Ltd. stock, see the JP:6471 Stock Forecast page.

NSK Ltd. Acquires Full Control of NSK Steering & Control, Inc.

NSK Ltd. has announced its decision to acquire shares of NSK Steering & Control, Inc., transitioning it from an equity-method affiliate to a consolidated subsidiary. This strategic move aims to enhance NSK’s agility in the rapidly evolving automotive parts industry by exploring alliances with strategic partners and strengthening its corporate structure.

NSK Ltd. Reports Modest Sales Growth and Increased Dividends for FY2025

NSK Ltd. reported its consolidated financial results for the year ended March 31, 2025, showing a slight increase in sales by 1% compared to the previous year. Despite a decrease in income before taxes by 4.2%, the company saw a significant rise in net income attributable to owners of the parent by 25.2%. The company’s financial position remains stable with a total equity ratio of 53.4%. The company also announced a dividend increase, reflecting confidence in its financial health and commitment to returning value to shareholders.

NSK Ltd. Exceeds Fiscal Year 2025 Forecasts with Strong Performance

NSK Ltd. reported better-than-expected consolidated business results for the fiscal year ended March 31, 2025, surpassing their previous forecasts. The improved performance was attributed to higher vehicle production, a weaker yen, and effective cost management, leading to increased sales and income figures.