NSK Ltd. (6471) AI Stock Analysis

• Market Cap: ¥392.73B
• Dividend Yield: 3.51%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.85
• Revenue Growth: 1.43%
• EPS Growth: 83.34%
• Country: JP
• Employees: 24,057
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 16.84
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 1,961,770
• 30 Day Avg. Volume: 2,020,343
• PEG Ratio: 1.12
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 9.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥988.00 ▲(1.78% Upside)

NSK Ltd. scores a 70, driven primarily by strong technical indicators suggesting bullish momentum, despite potential overbought conditions. Financial performance is stable but challenged by low profitability and declining revenue. The valuation indicates a potential overvaluation, balanced by a decent dividend yield.

Positive Factors

Cash Flow Management

The strong growth in free cash flow indicates efficient cash generation, providing financial flexibility for investments and debt management.

Balance Sheet Health

A low debt-to-equity ratio suggests prudent financial leverage, enhancing the company's ability to withstand economic fluctuations.

Global Market Position

Diverse operations across multiple sectors provide a stable revenue base and reduce dependency on any single market, supporting long-term growth.

Negative Factors

Declining Revenue

Declining sales indicate potential challenges in market demand or competition, which may impact long-term profitability and growth.

Low Profit Margins

Low profit margins suggest inefficiencies or high costs, which can hinder the company's ability to invest in growth and innovation.

Profitability Challenges

Limited profitability from shareholders' investments indicates that the company may struggle to deliver strong returns, affecting investor confidence.

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 core products, which include bearings, automotive components, and precision machinery. The company operates in two main segments: the Automotive Business, which supplies bearings and other components to automotive manufacturers, and the Industrial Business, which serves various markets with its bearing products and precision machinery. Key revenue streams include long-term contracts with major automotive manufacturers and partnerships with industrial clients. Additionally, NSK invests in research and development to create advanced products that meet evolving customer needs, which helps drive sales. The company's global presence and strategic alliances further enhance its market reach and profitability.

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: 970.70
• 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:6471, the sentiment is Positive. The current price of 970.7 is above the 20-day moving average (MA) of 919.67, above the 50-day MA of 843.87, and above the 200-day MA of 708.14, indicating a bullish trend. The MACD of 33.38 indicates Negative momentum. The RSI at 78.51 is Negative, neither overbought nor oversold. The STOCH value of 92.64 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6463	80 Outperform	¥81.59B	9.50	―	3.94%	-4.47%	29.68%
7988	79 Outperform	¥425.23B	9.05	―	1.63%	-5.16%	200.96%
7242	77 Outperform	€224.92B	7.80	12.15%	2.86%	3.95%	136.86%
5991	74 Outperform	¥488.41B	12.23	―	2.60%	1.06%	-5.99%
6471	70 Outperform	¥392.73B	21.83	―	3.51%	1.43%	83.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6473	59 Neutral	$514.27B	26.74	2.51%	3.24%	0.44%	-11.36%

NSK Ltd. Corporate Events

NSK Ltd. Proposes Withdrawal from UK Production Sites Amid Structural Reforms

NSK Ltd. has announced a proposal to withdraw production from its Peterlee sites in the UK as part of its ongoing structural reforms in Europe. This decision is driven by persistent profitability challenges in the region, and the company plans to engage in consultations with stakeholders, potentially affecting around 350 employees. The impact on business performance is yet to be determined, with further assessments to be communicated in due course.

NSK Ltd. Reports Strong Financial Growth and Strategic Acquisition

NSK Ltd. reported significant financial growth for the six months ending September 30, 2025, with a 3.7% increase in sales and a substantial rise in net income by 351.8% compared to the previous year. The company also completed the acquisition of NSK Steering & Control Inc., enhancing its market position in the steering systems sector.

NSK Ltd. Exceeds Forecasts and Revises Full-Year Outlook

NSK Ltd. reported significant differences between its forecasted and actual consolidated business results for the six months ended September 30, 2025, with actual figures surpassing expectations due to higher automotive production and favorable economic conditions in China. The company revised its full-year forecast for the fiscal year ending March 31, 2026, reflecting continued robust performance, the consolidation of NSK Steering & Control Co., Ltd., and the impact of a weaker yen, despite challenges in Europe and China.