NTN (6472) AI Stock Analysis

• Market Cap: €118.65B
• Dividend Yield: 4.97%
• Average Volume (3M): 3.23M
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.13
• Revenue Growth: 0.75%
• EPS Growth: -128.63%
• Country: JP
• Employees: 22,305
• Sector: Industrials
• Sector Strength: 82
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -11.55
• Shares Outstanding: 532,463,500
• 10 Day Avg. Volume: 2,204,540
• 30 Day Avg. Volume: 3,225,383
• PEG Ratio: 0.10
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.96
• 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: €250.41
• Price Target Upside: 13.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

NTN's overall stock score reflects a stable financial foundation with strengths in equity and cash flow management, but significant challenges in profitability and revenue growth. Technical analysis indicates a bearish trend, with the stock underperforming across major moving averages. Valuation highlights a high dividend yield, but the negative P/E ratio underscores profitability concerns. These factors contribute to a moderate overall score.

NTN Business Overview & Revenue Model

Company Description

NTN Corporation, together with its subsidiaries, manufactures and sells bearings, drive shafts, and precision equipment and other products in Japan, the Americas, Europe, other Asian countries, and internationally. The company offers rolling bearings, including radial and thrust ball, radial and thrust roller, special purpose, and linear motion bearings; plummer blocks; bearing units; plain bearings; constant velocity joints; automatic tensioners; clutches; electric motor and actuator; sensor related products; parts feeders; electric brake systems; condition monitoring systems; composite material products; and wind and hydro turbines. It also provides aftermarket parts and maintenance services. The company serves automobile and motorcycle, electric vehicle, rolling stock, wind power generator, construction and mining machinery, agricultural machinery, office supply, iron making machinery, machine tools, paper manufacturing machinery, food machinery, medical equipment, aerospace, precision equipment, robots, electrical machinery, variable speed reducer, vacuum and clean, and renewable energy products markets. NTN Corporation was founded in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

NTN Corporation generates revenue primarily through the manufacturing and sale of bearings and related components. The company's key revenue streams include supplying automotive manufacturers with bearings and constant velocity joints, which are critical for vehicle performance. Additionally, NTN serves industrial clients by providing precision equipment used in machinery and factory automation. Strategic partnerships with major automotive and industrial companies bolster NTN's market presence and contribute significantly to its earnings. The company's focus on innovation and quality ensures a strong demand for its products across various sectors.

NTN Financial Statement Overview

Summary

NTN demonstrates a stable financial structure with strengths in equity and cash flow management. However, profitability remains a concern with negative net income and pressured margins. The company's ability to maintain a solid balance sheet and generate operating cash flow is notable, but the need to improve profitability and revenue growth is evident for a more robust financial outlook.

Income Statement

NTN's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) period experienced a marginal revenue decline compared to the previous year, with a decrease from ¥836.29 billion to ¥831.26 billion. The gross profit margin stands at 17.68%, and the net profit margin is negative (-0.65%), indicating challenges in profitability. Although EBIT and EBITDA margins are 2.69% and 7.81%, respectively, they reflect an operational profitability that is modest but pressured by overall net losses.

Balance Sheet

NTN's balance sheet reveals a strong equity base with a debt-to-equity ratio of 1.43, indicating a balanced leverage. The return on equity (ROE) is negative at -2.10% due to net losses, which impacts shareholder returns. However, the equity ratio is healthy at 28.75%, suggesting a solid capital structure with adequate equity backing total assets.

Cash Flow

The cash flow analysis shows a stable cash generation capability. The operating cash flow to net income ratio is high at -5.93, highlighting strong cash earnings despite net losses. The free cash flow to net income ratio is -1.21, indicating that while free cash flow is positive, it is constrained by profitability challenges. There was a significant decline in free cash flow growth from the previous year, reflecting volatility in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
831.26B	836.28B	773.96B	642.02B	562.85B	651.50B
	Gross Profit
146.97B	152.13B	125.91B	105.95B	85.18B	102.10B
	EBIT
22.36B	28.15B	17.14B	6.88B	-3.14B	7.06B
	EBITDA
64.90B	67.08B	59.41B	44.94B	37.73B	44.36B
	Net Income Common Stockholders
-5.37B	10.57B	10.37B	7.34B	-11.64B	-43.99B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
131.21B	130.03B	111.66B	128.64B	154.97B	77.57B
	Total Assets
887.61B	910.25B	869.83B	855.48B	836.56B	757.82B
	Total Debt
366.27B	362.06B	371.29B	394.03B	422.80B	362.42B
	Net Debt
238.09B	232.03B	259.63B	265.39B	267.83B	284.85B
	Total Liabilities
616.04B	629.43B	632.40B	639.06B	652.81B	589.45B
	Stockholders Equity
255.22B	264.33B	220.66B	197.85B	170.53B	156.16B
Cash Flow		Free Cash Flow
6.51B	38.05B	10.49B	-12.91B	6.85B	-25.33B
	Operating Cash Flow
31.82B	65.10B	34.22B	8.96B	36.47B	43.75B
	Investing Cash Flow
-26.06B	-24.97B	-13.86B	2.51B	-17.94B	-61.81B
	Financing Cash Flow
-29.59B	-30.21B	-33.26B	-41.30B	54.67B	7.41B

NTN Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 221.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6472, the sentiment is Neutral. The current price of 221 is above the 20-day moving average (MA) of 213.47, below the 50-day MA of 228.87, and below the 200-day MA of 244.67, indicating a neutral trend. The MACD of -1.99 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 57.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6472.

NTN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
6472	57 Neutral	€118.65B	30.58	-2.10%	4.97%	0.75%	-128.63%
6471	52 Neutral	¥289.83B	39.80		5.41%	-3.42%	-35.09%

NTN Corporate Events

NTN Corporation Announces Executive Leadership Changes

NTN Corporation has announced a change in its executive leadership, effective April 1, 2025. Masaaki Yamamoto will assume the role of Representative Executive Officer, succeeding Hideaki Miyazawa. This leadership transition is part of a broader strategy to strengthen the company’s management team and align with its long-term goals. Additionally, the company has proposed new candidates for its Board of Directors, which will be voted on at the upcoming Annual General Meeting in June. These changes are expected to enhance the company’s strategic direction and operational efficiency.