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NSK Ltd. (JP:6471)
:6471
Japanese Market
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NSK Ltd. (6471) AI Stock Analysis

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JP:6471

NSK Ltd.

(6471)

Rating:71Outperform
Price Target:
¥792.00
▲(10.51%Upside)
NSK Ltd. achieves a solid overall stock score driven by strong technical indicators and stable financial performance. The stock's upward price momentum and robust cash flow management are key strengths. However, the high P/E ratio raises valuation concerns, partially mitigated by a strong dividend yield.

NSK Ltd. (6471) vs. iShares MSCI Japan ETF (EWJ)

NSK Ltd. Business Overview & Revenue Model

Company DescriptionNSK Ltd. is a global leader in the manufacturing of bearings, precision machinery and parts, and automotive components. Headquartered in Japan, the company operates across various sectors including automotive, industrial machinery, and infrastructure. NSK's core products include a wide range of bearings, linear motion products, automotive components such as electric power steering systems, and precision machinery, serving industries that demand high-performance solutions.
How the Company Makes MoneyNSK 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. shows stable financial health with consistent profitability, efficient cost management, and strong equity backing. There is a positive trend in cash flow, although revenue growth remains modest.
Income Statement
75
Positive
NSK Ltd. shows a stable gross profit margin over the years, with a TTM gross profit margin of 21.68%. The net profit margin has improved from 1.14% in 2021 to 1.34% in 2025, indicating improved cost management. Revenue growth has been modest, with a slight increase in 2025. The EBIT and EBITDA margins have shown consistent strength, reflecting efficient operations. Overall, the company demonstrates stable profitability with slight growth potential.
Balance Sheet
70
Positive
The debt-to-equity ratio has improved over the years, standing at 0.31 in 2025, reflecting a manageable debt level. ROE has shown positive growth, reaching 1.63% in 2025, indicating increasing returns for shareholders. The equity ratio remains strong at 53.42%, showcasing a solid equity base. Overall, the balance sheet is stable, with a strong equity position and manageable leverage.
Cash Flow
68
Positive
NSK Ltd. has demonstrated a positive free cash flow trend, with a significant improvement in free cash flow growth from negative in 2022 to positive in 2025. The operating cash flow to net income ratio is robust, indicating strong cash generation from operations. The free cash flow to net income ratio has improved, showcasing enhanced cash efficiency. The cash flow statement reflects solid cash management and operational efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue796.67B788.87B938.10B865.17B747.56B
Gross Profit172.78B175.72B191.06B169.73B126.24B
EBITDA79.22B80.77B93.68B81.33B57.37B
Net Income10.65B8.50B18.41B16.59B355.00M
Balance Sheet
Total Assets1.22T1.30T1.23T1.23T1.17T
Cash, Cash Equivalents and Short-Term Investments138.25B195.66B161.70B139.16B178.21B
Total Debt203.47B342.61B360.81B327.21B352.62B
Total Liabilities550.35B620.12B598.53B597.09B594.07B
Stockholders Equity651.46B659.98B616.21B617.80B554.38B
Cash Flow
Free Cash Flow44.05B41.12B12.41B-13.33B20.05B
Operating Cash Flow82.18B99.82B64.16B22.73B53.84B
Investing Cash Flow-58.75B-90.81B-48.78B-19.97B-51.10B
Financing Cash Flow-33.74B-24.78B4.42B-48.22B29.99B

NSK Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price716.70
Price Trends
50DMA
671.75
Positive
100DMA
648.34
Positive
200DMA
650.52
Positive
Market Momentum
MACD
14.76
Negative
RSI
62.63
Neutral
STOCH
88.13
Negative
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 716.7 is above the 20-day moving average (MA) of 702.92, above the 50-day MA of 671.75, and above the 200-day MA of 650.52, indicating a bullish trend. The MACD of 14.76 indicates Negative momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 88.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6471.

NSK Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥166.87B11.816.70%3.16%-1.01%0.48%
77
Outperform
¥373.81B7.74
2.07%4.53%31.50%
74
Outperform
¥357.93B8.00
2.01%-4.69%171.87%
73
Outperform
¥70.84B8.22
4.73%-0.69%8.45%
71
Outperform
¥330.82B35.65
4.74%-1.15%-13.31%
69
Neutral
$415.21B44.541.24%3.82%-1.82%-72.16%
57
Neutral
HK$24.69B3.68-2.14%6.03%-0.25%-65.84%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6471
NSK Ltd.
716.70
68.52
10.57%
JP:5991
NHK Spring Co., Ltd.
1,738.50
570.22
48.81%
JP:6463
TPR Co., Ltd.
2,167.00
308.01
16.57%
JP:7988
Nifco Inc.
3,813.00
916.81
31.66%
JP:7242
KYB Corporation
3,320.00
1,252.75
60.60%
JP:6473
JTEKT
1,304.50
496.91
61.53%

NSK Ltd. Corporate Events

NSK Ltd. Reports Decline in Q2 2025 Financial Results Amid Market Challenges
Jul 31, 2025

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
May 23, 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.
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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.

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.Date of analysis: Jul 24, 2025