NTN (6472) AI Stock Analysis

• Market Cap: €112.12B
• Dividend Yield: 5.21%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.14
• Revenue Growth: -1.28%
• EPS Growth: -325.67%
• Country: JP
• Employees: 22,305
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): -29.34
• Shares Outstanding: 532,463,500
• 10 Day Avg. Volume: 2,694,690
• 30 Day Avg. Volume: 2,584,600
• PEG Ratio: 0.42
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.05
• 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: €250.16
• Price Target Upside: 16.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: ¥210.00 ▼(-2.55%Downside)

The overall stock score is primarily impacted by the company's mixed financial performance and bearish technical indicators. Profitability issues and high leverage are significant risks, while negative technical trends suggest ongoing market challenges. The valuation does not provide a favorable outlook, as reflected by a negative P/E ratio.

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

The company exhibits a mixed financial performance. Revenue growth and cash flow resilience are positive aspects. However, profitability challenges and high leverage are significant concerns, with negative net profit margin and return on equity impacting the financial stability.

Income Statement

The company shows a mixed income statement performance. Gross profit margin has slightly improved, and there is a positive trend in revenue growth over the years, although recent growth has slowed. However, the net profit margin is negative for the latest period, indicating profitability challenges. The EBIT and EBITDA margins are relatively low, reflecting operational inefficiencies and high costs impacting earnings.

Balance Sheet

The balance sheet reveals a stable but cautious financial position. The debt-to-equity ratio is relatively high, suggesting significant leverage. While stockholders' equity has grown, the equity ratio remains moderate, indicating a balanced asset structure. Return on equity is negative in the latest period, highlighting profitability issues affecting shareholder returns.

Cash Flow

Cash flow analysis shows resilience in operational cash generation with a positive operating cash flow to net income ratio. The free cash flow has improved over the years, supporting liquidity. However, the free cash flow growth rate is volatile, and high capital expenditures could impact future cash availability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
825.59B	836.28B	773.96B	642.02B	562.85B
	Gross Profit
148.24B	145.28B	125.91B	105.95B	85.18B
	EBIT
22.96B	28.15B	17.14B	6.88B	-3.14B
	EBITDA
42.97B	70.17B	59.41B	44.94B	37.73B
	Net Income Common Stockholders
-23.80B	10.57B	10.37B	7.34B	-11.64B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
131.52B	130.03B	111.66B	128.64B	154.97B
	Total Assets
856.42B	910.25B	869.83B	855.48B	836.56B
	Total Debt
353.99B	362.06B	371.29B	394.03B	422.80B
	Net Debt
226.28B	232.03B	259.63B	265.39B	267.83B
	Total Liabilities
607.72B	629.43B	632.40B	639.06B	652.81B
	Stockholders Equity
232.89B	264.33B	220.66B	197.85B	170.53B
Cash Flow		Free Cash Flow
22.09B	38.05B	10.49B	-12.91B	6.85B
	Operating Cash Flow
45.62B	65.10B	34.22B	8.96B	36.47B
	Investing Cash Flow
-25.96B	-24.97B	-13.86B	2.51B	-17.94B
	Financing Cash Flow
-18.71B	-30.21B	-33.26B	-41.30B	54.67B

NTN Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 215.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 215.5 is below the 20-day moving average (MA) of 215.84, below the 50-day MA of 216.78, and below the 200-day MA of 237.41, indicating a bearish trend. The MACD of -2.21 indicates Positive momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 33.72 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 *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
6472	45 Neutral	€112.12B	30.58	-9.65%	5.21%	-1.28%	-325.67%
OSGCF		$1.09B	12.20	7.26%	0.02%	―	―
8UM		€433.84M	15.33	2.66%	3.45%	―	―
6101	79 Outperform	¥87.65B	8.09		3.42%	27.98%	104.69%
6278	69 Neutral	¥79.21B	13.95		1.96%	28.68%	71.70%
6480	65 Neutral	¥37.32B	37.12		3.61%	-1.21%	-62.46%

NTN Corporate Events

NTN Corporation Corrects Financial Results for FY 2025

NTN Corporation announced a correction to its previously released unaudited consolidated financial results for the fiscal year ended March 31, 2025. The company identified errors in the summary information and has since corrected these inaccuracies. This correction could impact stakeholders’ understanding of NTN’s financial health and forecasts for the upcoming fiscal year.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen250.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

NTN Corporation Proposes Legal Reserve Reduction for Dividend Flexibility

NTN Corporation has announced a proposal to reduce its Legal retained reserve by transferring the amount to Retained earnings brought forward. This move is intended to enhance the flexibility of its dividend policy. The transaction will not affect the company’s net assets or business performance, indicating a strategic financial adjustment without operational impact.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen250.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

NTN Corporation Reports Significant Financial Losses Amid Restructuring

NTN Corporation reported significant non-operating expenses and extraordinary losses for the fiscal year ending March 31, 2025, leading to discrepancies between forecasted and actual earnings. The company faced impairment losses due to restructuring and reduced profitability across various regions, impacting its financial performance and resulting in a lower profit attributable to owners than anticipated.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen250.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

NTN Corporation Faces Financial Challenges in FY 2025

NTN Corporation reported a challenging fiscal year ending March 31, 2025, with a decline in net sales by 1.3% and a significant decrease in operating and ordinary income by 18.4% and 47.6% respectively. The company also faced a substantial net loss attributable to owners of the parent, amounting to 23,801 million yen. Despite these setbacks, NTN increased its annual dividend per share from 10.00 yen to 11.00 yen, indicating a commitment to shareholder returns. The financial results reflect a tough economic environment and operational challenges, impacting NTN’s market positioning and financial stability.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen250.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

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.