NSK Ltd. (6471) AI Stock Analysis

• Market Cap: ¥658.22B
• Dividend Yield: 3.52%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 32.5
• Beta (1Y): 0.99
• Revenue Growth: 1.43%
• EPS Growth: 83.34%
• Country: JP
• Employees: 24,057
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 8.63
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 39.7
• Revenue Forecast (FY): ¥901.80B

• Rating: 68 Neutral
• Price Target: ¥1,479.00 ▲(51.57% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by improving financial performance—especially strong and growing free cash flow and lower leverage—alongside a strong uptrend in the stock’s technical setup. These positives are partially offset by thin profitability/low ROE and a relatively high P/E multiple versus the support from a moderate dividend yield.

Positive Factors

Diversified, mission-critical product portfolio

NSK's core bearings and precision/mechatronics lines serve multiple end markets (auto, industrial, machine tools, semicon). Critical, engineered components create stickiness with OEMs and aftermarket repeat demand, supporting stable revenue foundations across cycles.

Strong free cash flow generation

High and growing FCF (124B, +27.5%) and FCF at ~78% of net income indicate durable cash conversion. This funds capex, dividends, and debt reduction, improving resilience and optionality through industry cycles and enabling strategic investments without reliance on external financing.

Improving leverage and balance sheet

Falling leverage (D/E ~0.33) strengthens financial flexibility, lowers interest burden, and increases capacity to absorb downturns or fund growth. A sizable equity base plus reduced debt makes capital structure more durable against cyclical stress and supports strategic spending.

Negative Factors

Thin operating and net margins

Low margins and modest ROE signal limited pricing power or cost pressures versus peers. Even with solid cash generation, persistently thin profitability constrains capacity to fund higher-return investments, limits retained earnings growth, and leaves less buffer in downturns.

Earnings and revenue cyclicality

Historic swings (FY2023 revenue decline, FY2021 weak profit) show end-market sensitivity—especially automotive and industrial capital spending. This structural cyclicality makes multi-year planning harder and can intermittently erode margins, cash flow and returns despite recent improvement.

Concentration on OEM high-volume contracts

Heavy reliance on large OEM contracts concentrates customer and procurement risk. OEM bargaining power and cycle-linked order variability can pressure pricing and margins over time, reducing long-term revenue visibility and making growth dependent on winning/retaining big contracts.

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

Fundamentals are improving: TTM revenue growth is solid (+5.8%), leverage has declined (debt-to-equity ~0.33 TTM), and cash generation is strong (FCF ~124B, +27.5% growth; ~78% of net income). The key limiter is profitability—EBIT margin (~4.34%) and net margin (~2.36%) remain thin and ROE is modest (~2.75%), with some historical cyclicality.

Income Statement

TTM (Trailing-Twelve-Months) revenue growth is solid (+5.8%), and profitability has improved versus the most recent annual period (net margin ~2.36% TTM vs ~1.34% in FY2025). However, margins remain thin for the sector (EBIT margin ~4.34% and net margin ~2.36% TTM), and results have been somewhat cyclical over the last few years, including a notable revenue decline in FY2023 and a very weak profit year in FY2021.

Balance Sheet

Leverage looks reasonable and improving, with debt-to-equity down to ~0.33 in TTM (Trailing-Twelve-Months) from ~0.51–0.64 in prior annual periods, supported by a sizable equity base. That said, returns remain modest (return on equity ~2.75% TTM), indicating the company is not currently generating strong profitability from its capital structure despite lower leverage.

Cash Flow

Cash generation is a clear strength in TTM (Trailing-Twelve-Months), with operating cash flow of ~159B and free cash flow of ~124B, and strong free cash flow growth (+27.5%). Cash conversion is also healthy (free cash flow is ~78% of net income TTM), but cash flow has been more volatile historically, including negative free cash flow in FY2022 and weaker conversion in earlier years.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	858.21B	796.67B	788.87B	776.76B	865.17B	747.56B
Gross Profit	184.02B	172.78B	165.25B	175.72B	169.73B	126.24B
EBITDA	90.32B	84.11B	80.77B	101.32B	84.43B	58.95B
Net Income	20.26B	10.65B	8.50B	18.41B	16.59B	355.00M
Balance Sheet
Total Assets	1.30T	1.22T	1.30T	1.23T	1.23T	1.17T
Cash, Cash Equivalents and Short-Term Investments	154.36B	201.04B	195.66B	161.70B	139.16B	178.21B
Total Debt	226.56B	329.03B	342.61B	360.81B	327.21B	355.57B
Total Liabilities	603.61B	550.35B	620.12B	598.53B	597.09B	594.07B
Stockholders Equity	679.57B	651.46B	659.98B	616.21B	617.80B	554.38B
Cash Flow
Free Cash Flow	123.85B	31.82B	41.12B	12.41B	-13.33B	20.05B
Operating Cash Flow	158.83B	82.18B	99.82B	64.16B	22.73B	53.84B
Investing Cash Flow	-143.29B	-58.75B	-90.81B	-48.78B	-19.97B	-51.10B
Financing Cash Flow	-8.21B	-33.74B	-24.78B	4.42B	-48.22B	29.99B

NSK Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 975.80
• 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 975.8 is below the 20-day moving average (MA) of 1258.52, below the 50-day MA of 1125.65, and above the 200-day MA of 846.51, indicating a bullish trend. The MACD of 68.19 indicates Negative momentum. The RSI at 79.44 is Negative, neither overbought nor oversold. The STOCH value of 87.46 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	¥93.12B	10.90	―	3.85%	-4.47%	29.68%
7988	79 Outperform	¥485.56B	10.81	―	1.60%	-5.16%	200.96%
7242	78 Outperform	¥263.88B	7.88	12.15%	2.87%	3.95%	136.86%
5991	74 Outperform	¥610.56B	14.09	―	2.60%	1.06%	-5.99%
6471	68 Neutral	¥658.22B	32.50	―	3.52%	1.43%	83.34%
6473	63 Neutral	¥653.54B	26.18	2.51%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

NSK Ltd. Corporate Events

NSK Maintains Executive Lineup and Management Structure for FY2026

NSK Ltd. has announced its management structure and executive officer assignments for fiscal year 2026, effective April 1, 2026, confirming that there will be no new appointments, retirements, or changes in rank among its executive officers. President and CEO Akitoshi Ichii will continue as chief executive, while Keita Suzuki remains CFO and head of the Digital Transformation Division HQ with responsibility for all administrative divisions and oversight of Europe and the Americas; other key executives will retain leadership of the automotive, technology development, industrial machinery, manufacturing strategy, procurement, and quality assurance functions. The decision to maintain continuity in top management signals a stable strategic direction for NSK, suggesting the company aims to execute its existing business and transformation plans without disruption, which may reassure stakeholders looking for consistency in governance and operational leadership.

The most recent analyst rating on (JP:6471) stock is a Buy with a Yen1203.00 price target. To see the full list of analyst forecasts on NSK Ltd. stock, see the JP:6471 Stock Forecast page.

NSK Lifts Nine-Month Profits and Upgrades Outlook as Steering Unit Becomes Core Subsidiary

NSK reported strong unaudited consolidated results for the nine months ended 31 December 2025, with sales rising 10.3% year-on-year to ¥658.5 billion and operating income surging 75.2% to ¥27.4 billion, while net income attributable to owners of the parent jumped 244.5% to ¥13.5 billion, reflecting the absence of discontinued operations and improved profitability. The company maintained a solid financial position with total assets of ¥1.30 trillion and an equity ratio of 52.2%, kept its annual dividend forecast unchanged at ¥34 per share, upgraded its full-year earnings forecast for FY2025/26, and expanded the scope of consolidation by acquiring full control of NSK Steering & Control Inc. and its subsidiary NSK Steering Systems Co., Ltd., underscoring a strategic push in the steering systems business.

The most recent analyst rating on (JP:6471) stock is a Buy with a Yen1203.00 price target. To see the full list of analyst forecasts on NSK Ltd. stock, see the JP:6471 Stock Forecast page.

NSK Lifts Full-Year Profit and Sales Forecast on Weaker Yen and Solid Performance

NSK Ltd. has raised its consolidated business forecast for the fiscal year ending March 31, 2026, citing a weaker yen and reflecting stronger-than-expected performance through the first nine months of the period. The company now projects sales of ¥900 billion, up 1.7% from its previous forecast, with operating income revised up 23.3% to ¥37 billion, income before income taxes up 24.1% to ¥36 billion, and net income attributable to owners of the parent up 25% to ¥20 billion, implying basic earnings per share of ¥40.89. The revision, which assumes exchange rates of ¥150 to the US dollar, ¥180 to the euro, and ¥21 to the Chinese yuan for the final quarter, indicates improved profitability versus both the prior forecast and the previous fiscal year, while the company leaves its dividend plan unchanged, signaling confidence in its financial outlook and stability for shareholders.

The most recent analyst rating on (JP:6471) stock is a Buy with a Yen1203.00 price target. To see the full list of analyst forecasts on NSK Ltd. stock, see the JP:6471 Stock Forecast page.