NTN (6472) AI Stock Analysis

• Market Cap: ¥189.22B
• Dividend Yield: 3.08%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -3.18%
• EPS Growth: -531.48%
• Country: JP
• Employees: 22,305
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 3.61
• Shares Outstanding: 532,463,500
• 10 Day Avg. Volume: 3,624,000
• 30 Day Avg. Volume: 3,592,136
• PEG Ratio: 0.02
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 5.82
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥373.00 ▲(4.36% Upside)

The stock's overall score is primarily influenced by its strong technical indicators, suggesting bullish momentum. However, financial performance issues, particularly profitability challenges and high leverage, weigh down the score. The valuation is also a concern due to a negative P/E ratio, though the dividend yield offers some compensation.

Positive Factors

Cash Generation Ability

Positive cash generation from operations suggests that NTN can sustain its business activities and invest in growth, even amidst profitability challenges.

Stable Equity Base

A stable equity base provides a foundation for financial stability, enabling NTN to manage its assets effectively and support long-term strategic initiatives.

Market Presence and Innovation

Continuous investment in R&D enhances NTN's competitive position, allowing it to offer innovative solutions and capture a larger market share over time.

Negative Factors

Profitability Challenges

Negative net income and declining margins indicate operational inefficiencies, which could hinder NTN's ability to reinvest in growth and maintain competitive advantages.

High Leverage

High leverage can strain NTN's financial flexibility, increasing risk and potentially limiting its ability to respond to market changes or invest in new opportunities.

Declining Free Cash Flow Growth

A decline in free cash flow growth suggests reduced capacity for reinvestment and financial maneuverability, impacting NTN's long-term growth prospects.

NTN Business Overview & Revenue Model

Company Description

NTN Corporation (6472) is a leading manufacturer of bearings and related components, primarily serving the automotive, industrial machinery, and aerospace sectors. The company specializes in high-quality products such as roller bearings, ball bearings, and customized solutions designed to enhance performance and durability in a wide range of applications. With a presence in various global markets, NTN is committed to innovation and sustainability in its manufacturing processes.

How the Company Makes Money

NTN generates revenue through the sale of its bearings and related products to various industries, including automotive, industrial machinery, and aerospace. The company operates on a B2B model, supplying its products to manufacturers and service providers who incorporate NTN’s components into their own products. Key revenue streams include direct sales, long-term contracts with major clients, and aftermarket services. NTN also benefits from strategic partnerships with automotive and industrial companies, which enhance its distribution capabilities and help secure consistent orders. Additionally, NTN invests in research and development to innovate new products and improve existing ones, thereby expanding its market share and driving sales growth.

NTN Financial Statement Overview

Summary

NTN faces significant financial challenges with declining revenues, negative profitability, and high leverage. The income statement shows declining revenue and negative net income, while the balance sheet reveals high debt levels. However, there is positive momentum in cash flow generation, which slightly offsets the negative aspects.

Income Statement

The company's income statement shows a challenging period with declining revenue and negative net income in the TTM. The gross profit margin is relatively stable, but the net profit margin is negative, indicating losses. Revenue growth has been negative recently, reflecting a downturn in sales. The EBIT and EBITDA margins are low, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity is negative in the TTM, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is moderate, suggesting a balanced asset structure, but the high debt levels are concerning.

Cash Flow

Cash flow analysis shows a strong free cash flow growth in the TTM, which is a positive sign. The operating cash flow to net income ratio is low, indicating that cash generation from operations is not sufficient to cover net losses. However, the free cash flow to net income ratio is positive, suggesting some ability to generate cash despite losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	813.90B	825.59B	836.28B	773.96B	642.02B	562.85B
Gross Profit	142.82B	148.24B	145.28B	125.91B	105.95B	85.18B
EBITDA	41.55B	42.97B	67.09B	59.41B	44.94B	37.73B
Net Income	-18.57B	-23.80B	10.57B	10.37B	7.34B	-11.64B
Balance Sheet
Total Assets	862.91B	856.42B	910.25B	869.83B	855.48B	836.56B
Cash, Cash Equivalents and Short-Term Investments	138.83B	131.52B	130.03B	111.66B	128.64B	154.97B
Total Debt	354.54B	353.99B	362.06B	371.29B	394.03B	422.80B
Total Liabilities	606.38B	607.72B	629.43B	632.40B	639.06B	652.81B
Stockholders Equity	240.34B	232.89B	264.33B	220.66B	197.85B	170.53B
Cash Flow
Free Cash Flow	31.77B	22.09B	38.05B	10.49B	-12.91B	6.85B
Operating Cash Flow	59.15B	45.62B	65.10B	34.22B	8.96B	36.47B
Investing Cash Flow	-27.98B	-25.96B	-24.97B	-13.86B	2.51B	-17.94B
Financing Cash Flow	-34.99B	-18.71B	-30.21B	-33.26B	-41.30B	54.67B

NTN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 357.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6472, the sentiment is Positive. The current price of 357.4 is below the 20-day moving average (MA) of 368.58, below the 50-day MA of 359.20, and above the 200-day MA of 283.11, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 16.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6472.

NTN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6101	79 Outperform	¥136.42B	10.38	―	2.33%	25.95%	66.92%
6136	79 Outperform	¥212.14B	14.49	7.86%	2.55%	0.57%	4.54%
6278	76 Outperform	¥148.23B	23.25	―	1.17%	29.51%	48.81%
6474	74 Outperform	¥103.58B	23.44	2.64%	2.30%	-4.11%	46.76%
6480	71 Outperform	¥59.11B	20.90	―	2.82%	8.75%	177.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6472	57 Neutral	¥189.22B	-10.27	-7.84%	3.08%	-3.18%	-531.48%

NTN Corporate Events

NTN Corporation Issues 2nd Series of Subordinated Bonds

NTN Corporation announced the issuance of its 2nd series of subordinated bonds as part of its ongoing business structure transformation. The new hybrid bonds will replace the 1st series, supporting the company’s financial stability and strategic initiatives without diluting existing shares, and are expected to be partly recognized as equity by rating agencies.

NTN Corporation Reports Mixed Financial Results for H1 2025

NTN Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a slight decline in net sales by 2.8% compared to the previous year. However, the company experienced significant growth in operating income and ordinary income, with increases of 29.3% and 150.5%, respectively. Despite these improvements, the company forecasts a net loss for the full fiscal year ending March 31, 2026. The financial results indicate a mixed performance, with strong operational gains but challenges in maintaining net profitability, impacting stakeholders’ expectations.