NTN (6472) AI Stock Analysis

• Market Cap: ¥251.48B
• Dividend Yield: 3.08%
• Average Volume (3M): 3.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -3.18%
• EPS Growth: -531.48%
• Country: JP
• Employees: 22,305
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.07
• Shares Outstanding: 597,533,000
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -3.86
• Revenue Forecast (FY): ¥813.30B

• Rating: 52 Neutral
• Price Target: ¥386.00 ▲(5.01% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is held back primarily by weakening profitability and contracting TTM revenue, plus still-elevated leverage. These risks are partially offset by positive operating/free cash flow and a moderately constructive technical setup (price above key moving averages with positive MACD), while valuation is mixed due to a negative P/E despite a ~2.9% dividend yield.

Positive Factors

Product Portfolio Diversification

NTN's diversified product mix across bearings, driveline components and precision products provides exposure to multiple end markets (automotive OEMs, industrial machinery, aftermarket). This reduces reliance on any single cycle and supports steadier revenue streams and cross-selling over the medium term.

Positive Operating & Free Cash Flow

Sustained positive operating and free cash flow gives NTN practical financial flexibility to fund working capital, capex, and servicing debt without relying solely on earnings. Cash generation supports resilience through cyclical downturns and funds strategic investments or shareholder returns over the next several quarters.

Moderating Leverage with Equity Cushion

Although leverage remains notable, improvement versus prior years and a sizable equity base provide a buffer that supports operations and potential investment. The moderating leverage trend reduces refinancing pressure and helps preserve strategic optionality over the medium term if profitability rebounds.

Negative Factors

Revenue Contraction

A persistent decline in revenue erodes operating leverage and indicates weaker end-market demand or share loss. Over a 2–6 month horizon this trend can compress margins, reduce bargaining power with customers, and limit the ability to scale fixed-costs, making recovery of profitability harder.

Thin Operating Margins

Very thin EBIT margins leave limited room to absorb input cost inflation, pricing pressure, or volume declines. With narrow operating profitability, any adverse cost or demand shock can push the company back into deeper losses, constraining reinvestment and longer-term margin recovery prospects.

Elevated Leverage & Negative Returns

Elevated leverage combined with negative ROE signals that capital deployment is not currently generating returns, increasing financial risk. This limits capacity for large strategic moves, raises refinancing sensitivity, and could necessitate prioritizing deleveraging over growth until profitability stabilizes.

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 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

Financials are mixed. Income statement quality is weak (revenue down ~6% TTM and net margin at -1.5% with very thin EBIT margin ~0.7%), and leverage remains meaningful (TTM debt-to-equity ~1.24x) alongside negative ROE. Offsetting this, cash flow is a relative support with positive TTM operating cash flow (~¥59B) and free cash flow (~¥28B), though FCF is down materially in TTM.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined 6% and profitability weakened: net margin is negative (-1.5%) despite a steady gross margin (~17.9%). Operating profitability remains thin (EBIT margin ~0.7%), suggesting limited pricing power and/or cost pressure. The company was profitable in FY2023–FY2024, but the shift to losses in FY2025 and TTM indicates a deteriorating earnings trajectory and higher volatility than desirable.

Balance Sheet

Leverage is meaningful, with TTM debt-to-equity around 1.24x (improved versus prior years that were higher), but still elevated for a manufacturing business. Equity is sizable (TTM ~¥277B) and supports the capital structure, yet returns are currently negative (TTM return on equity is below zero), reflecting the recent net losses. Overall balance sheet risk looks moderating, but profitability needs to recover to make leverage more comfortable.

Cash Flow

Cash generation is a relative strength: TTM operating cash flow (~¥59B) and free cash flow (~¥28B) are positive, providing flexibility despite accounting losses. However, free cash flow growth is negative (down materially in TTM) and cash conversion remains modest, indicating the cash profile is improving from weaker periods but still not consistently strong. Continued positive free cash flow is supportive, but durability needs to be proven through the cycle.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	813.41B	825.59B	836.28B	773.96B	642.02B	562.85B
Gross Profit	145.45B	148.24B	145.28B	125.91B	105.95B	85.18B
EBITDA	45.97B	42.97B	67.09B	59.41B	44.94B	37.73B
Net Income	-11.83B	-23.80B	10.57B	10.37B	7.34B	-11.64B
Balance Sheet
Total Assets	887.59B	856.42B	910.25B	869.83B	855.48B	836.56B
Cash, Cash Equivalents and Short-Term Investments	144.46B	131.52B	130.03B	111.66B	128.64B	154.97B
Total Debt	343.35B	353.99B	362.06B	371.29B	394.03B	422.80B
Total Liabilities	593.46B	607.72B	629.43B	632.40B	639.06B	652.81B
Stockholders Equity	276.63B	232.89B	264.33B	220.66B	197.85B	170.53B
Cash Flow
Free Cash Flow	27.82B	22.09B	38.05B	10.49B	-12.91B	6.85B
Operating Cash Flow	59.40B	45.62B	65.10B	34.22B	8.96B	36.47B
Investing Cash Flow	-32.79B	-25.96B	-24.97B	-13.86B	2.51B	-17.94B
Financing Cash Flow	-16.70B	-18.71B	-30.21B	-33.26B	-41.30B	54.67B

NTN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 367.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 367.6 is below the 20-day moving average (MA) of 404.36, below the 50-day MA of 383.49, and above the 200-day MA of 318.62, indicating a bullish trend. The MACD of 9.36 indicates Positive momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 is Neutral, 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
9962	75 Outperform	¥842.20B	27.41	9.10%	1.63%	6.28%	2.62%
5851	72 Outperform	¥95.38B	8.73	4.34%	3.36%	3.80%	-15.46%
6136	72 Outperform	¥270.99B	17.00	7.86%	2.55%	0.57%	4.54%
6480	67 Neutral	¥76.21B	18.92	―	2.82%	8.75%	177.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥127.72B	23.00	2.64%	2.30%	-4.11%	46.76%
6472	52 Neutral	¥251.48B	-18.85	-7.84%	3.08%	-3.18%	-531.48%

NTN Corporate Events

NTN Maintains FY2025 Outlook as Profit Rises on Cost Cuts and Structural Reform

NTN Corporation reported consolidated net sales of ¥603.3 billion for the first three quarters of FY2025, down ¥12.2 billion year on year, while operating income rose ¥5.1 billion to ¥19.3 billion, maintaining an operating margin of 3.2%. In the bearings and other products segment, higher demand in industrial machinery and the aftermarket lifted sales to ¥251.8 billion, but operating income fell to ¥6.7 billion as declining automotive demand in Japan and adverse scale effects, including inventory valuation, outweighed selling price improvements and variable cost reductions. The CVJ/axle business saw sales decline to ¥351.5 billion amid weaker demand in the Americas, Europe and China and ongoing semiconductor shortages, yet operating income improved to ¥12.6 billion thanks to cost reductions and the successful pass-through of U.S. tariffs into selling prices. NTN kept its full-year FY2025 forecast unchanged at ¥805.0 billion in net sales and ¥26.0 billion in operating income, and reported continued progress on structural reforms, which are contributing to profit improvements and are expected to deliver further benefits versus FY2023.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen389.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

NTN Swings Back to Profit but Keeps Full-Year Net Loss Outlook

NTN reported consolidated net sales of ¥603.3 billion for the nine months ended 31 December 2025, a 2.0% year-on-year decline, but significantly improved profitability with operating income up 35.8% to ¥19.3 billion, ordinary income more than doubling to ¥14.0 billion, and profit attributable to owners of parent swinging to ¥3.7 billion from a loss a year earlier. The company’s financial position also strengthened, with total assets rising to ¥887.6 billion, equity ratio improving to 31.2% from 27.2%, and comprehensive income turning positive, while it maintained its dividend policy at an annual ¥11 per share and kept its full-year forecast unchanged, projecting a modest decline in sales but higher operating and ordinary income, albeit still expecting a net loss for the full fiscal year due in part to share issuance and other factors.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen389.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

NTN Corporation Completes Bond Conversion to Strengthen Equity

NTN Corporation has announced the completion of the conversion of its Zero Coupon Convertible Bonds due in 2025 into common shares. This strategic financial move is expected to enhance the company’s equity base, potentially strengthening its market position and providing greater flexibility for future investments and operations.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen373.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.

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.

The most recent analyst rating on (JP:6472) stock is a Hold with a Yen373.00 price target. To see the full list of analyst forecasts on NTN stock, see the JP:6472 Stock Forecast page.