Nachi-Fujikoshi Corp. (6474) AI Stock Analysis

• Market Cap: ¥116.42B
• Dividend Yield: 2.3%
• Average Volume (3M): 67.70K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.93
• Revenue Growth: -4.11%
• EPS Growth: 46.76%
• Country: JP
• Employees: 6,943
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 72.19
• Shares Outstanding: 24,919,344
• 10 Day Avg. Volume: 110,090
• 30 Day Avg. Volume: 67,700
• PEG Ratio: 0.27
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 9.19
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥5,470.00 ▲(25.75% Upside)

The score is driven primarily by improving but still uneven financial performance (margin compression and inconsistent cash conversion despite 2025 recovery and lower leverage). Technicals are supportive with strong uptrend signals, but momentum is overbought. Valuation is average, with a relatively higher P/E only partly offset by a modest dividend yield.

Positive Factors

Diversified industrial product portfolio

Nachi's broad product mix across robots, consumable cutting tools, machine tools and components supports multiple end-markets and recurring aftermarket revenue. This diversification reduces single-market reliance, enabling steadier demand capture and cross-selling over medium term.

Improving leverage and balance-sheet de-risking

Material reduction in debt-to-equity to ~0.51 and steady equity growth lowers financial risk and increases strategic flexibility. A stronger balance sheet supports investment in R&D, automation projects and withstands manufacturing cyclicality over the next several quarters.

Return to positive free cash flow and earnings recovery

Free cash flow turning positive in 2024–2025 and improved profitability demonstrate operational recovery and cash generation capacity. Sustained FCF, if maintained, enhances ability to fund capex, service debt and support aftermarket/service growth over coming quarters.

Negative Factors

Volatile, cyclical revenue pattern

Revenue swings tied to capital expenditure cycles in automotive and industrial markets create forecasting and capacity planning challenges. Persistent cyclicality raises risk of uneven utilization, margin pressure and lumpy investment needs across the 2–6 month horizon.

Margin compression and weak profitability

Declining gross margins and a low ~2% net margin indicate sustained pricing, cost or mix pressures versus prior stronger years. Persistently compressed margins limit reinvestment, restrain returns on capital and reduce ability to absorb cyclical downturns over the medium term.

Inconsistent cash conversion and weaker cash realization

FCF being ~50% of net income and operating cash relative to debt weakening versus 2024 shows uneven cash conversion. Weak cash realization constrains internal funding for capex, dividends or acquisitions and heightens refinancing risk if cyclical sales dip.

Nachi-Fujikoshi Corp. Business Overview & Revenue Model

Company Description

Nachi-Fujikoshi Corp. operates as a machinery manufacturer in Japan, rest of Asia, China, the Americas, and Europe. The company provides cutting tools, including drills, taps, end mills, gear cutters, broaches, and cut-off and re-grinding tools; and machine tools, such as broaching machines, precision roll forming machines, grinding machines, machining cells, and power finishers, as well as skiving machining center for gears. It also offers robots for spot and arc welding, handling, palletizing, heavy duty, cleanroom, and option, as well as controllers and support services; and radial ball, radial roller, thrust ball, and thrust roller bearings, as well as bearing units and plummer block housings. In addition, the company provides hydraulic equipment comprising valves, pumps, motors, units, and rotary center joints; special steels consisting of high speed tool and alloy tool steels, bearing and martensitic stainless steels, cermet, and micron hard products; and industrial furnaces, including vacuum carburizing furnace, and vacuum degreasing machine and system, as well as coating equipment and services. Further, it offers forming tools, cutting saws, machining systems, and automotive hydraulics. Additionally, the company provides engineering services for regrinding and recoating of tools, robots, machining equipment, heat treatment equipment, bearings, hydraulic equipment, and special steels. It serves customers in the automotive, machinery and retail, energy, and infrastructure markets. Nachi-Fujikoshi Corp. was incorporated in 1928 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nachi-Fujikoshi Corp. generates revenue primarily through the sale of its machine tools, cutting tools, and robotic systems. The company has a diversified revenue model with key revenue streams coming from its core products, including precision machining equipment and industrial robots that serve multiple sectors like automotive and aerospace. Additionally, the company provides maintenance services and aftermarket support, which contribute to recurring revenue. Strategic partnerships with various industries bolster its market presence and allow for innovation, while global expansion efforts facilitate access to emerging markets, enhancing overall earnings. The company's focus on research and development leads to continuous product improvement and diversification, further solidifying its revenue base.

Nachi-Fujikoshi Corp. Financial Statement Overview

Summary

Financials show a recovery in 2025 with improved operating and net profitability and a return to positive free cash flow, but results remain cyclical: revenue has been volatile, margins have compressed versus 2021–2022, and cash conversion is inconsistent (FCF only about half of net income in 2025).

Income Statement

Revenue has been volatile, including a decline in 2024 followed by a sharp rebound in 2025, suggesting an uneven demand cycle. Profitability has also compressed versus earlier years: gross margin has trended down from the 2021–2022 range to the low-20% area, and net margin is currently low (about 2% in 2025) versus mid-single digits in stronger years. Offsetting this, 2025 shows a clear earnings recovery from 2024 with higher operating and net profitability, indicating improving operating leverage, but overall consistency remains a key weakness.

Balance Sheet

Leverage looks moderate and improving: debt relative to equity has come down meaningfully from 2020–2023 levels to roughly 0.51 in 2025, and equity has steadily grown over time. Total assets are broadly stable, while the company appears to be de-risking the balance sheet through lower debt. The main weakness is returns on shareholder capital remain modest (around 3% in 2025), well below the stronger 2021–2022 period, implying profitability is not yet fully supporting the balance sheet strength.

Cash Flow

Cash generation is mixed. Free cash flow turned positive again in 2024–2025 after being negative in 2022–2023, which is a constructive shift and supports flexibility. However, cash-flow conversion is uneven: operating cash flow as a share of total debt is relatively low in 2025 versus 2024, and free cash flow is only about half of net income in 2025, indicating weaker cash realization than profits suggest. Overall, the direction is improving, but volatility remains a risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	234.66B	235.90B	239.89B	265.46B	258.10B	229.12B
Gross Profit	50.92B	51.90B	50.26B	55.84B	60.39B	52.26B
EBITDA	26.24B	27.89B	26.16B	31.91B	36.66B	32.34B
Net Income	4.21B	5.25B	3.35B	6.47B	12.24B	9.99B
Balance Sheet
Total Assets	324.74B	331.30B	334.76B	370.32B	357.46B	319.31B
Cash, Cash Equivalents and Short-Term Investments	28.87B	32.20B	34.26B	34.62B	36.04B	41.77B
Total Debt	87.40B	86.32B	94.36B	114.16B	102.60B	91.94B
Total Liabilities	158.78B	157.04B	170.09B	200.81B	201.09B	181.10B
Stockholders Equity	161.26B	170.60B	158.83B	162.72B	148.90B	130.10B
Cash Flow
Free Cash Flow	0.00	9.72B	18.64B	-5.65B	-9.80B	18.56B
Operating Cash Flow	0.00	17.94B	31.46B	12.03B	11.21B	33.08B
Investing Cash Flow	0.00	-5.29B	-7.63B	-17.77B	-20.83B	-14.17B
Financing Cash Flow	0.00	-15.91B	-24.36B	3.13B	2.11B	-18.61B

Nachi-Fujikoshi Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4350.00
• 50DMA: Positive
• 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:6474, the sentiment is Positive. The current price of 4350 is below the 20-day moving average (MA) of 4925.50, below the 50-day MA of 4481.16, and above the 200-day MA of 3593.34, indicating a neutral trend. The MACD of 139.35 indicates Positive momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 14.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6474.

Nachi-Fujikoshi Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6101	79 Outperform	¥150.22B	10.00	―	2.33%	25.95%	66.92%
9962	77 Outperform	¥727.36B	22.22	9.10%	1.63%	6.28%	2.62%
6136	72 Outperform	¥242.00B	15.19	7.86%	2.55%	0.57%	4.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥116.42B	20.97	2.64%	2.30%	-4.11%	46.76%
6141	61 Neutral	¥385.67B	13.72	5.32%	3.77%	-9.34%	164.21%
6472	57 Neutral	¥219.61B	-10.53	-7.84%	3.08%	-3.18%	-531.48%

Nachi-Fujikoshi Corp. Corporate Events

Nachi-Fujikoshi Books Restructuring Losses but Offsets with Gains on Share Sales

Nachi-Fujikoshi Corp. has booked extraordinary losses totaling ¥3,118 million for the fiscal year ended November 30, 2025, largely tied to restructuring measures prompted by rapid changes in the automotive market, particularly electrification. These losses stem mainly from impairment charges and inventory write-downs associated with reorganizing overseas production bases, including factory relocations, production consolidation, and asset retirements, as well as special retirement allowances linked to workforce reductions at overseas plants as the company seeks to improve profitability and optimize personnel. Offsetting this, the group recorded extraordinary income of ¥3,128 million from the sale of 11 listed investment securities, part of a strategy to reduce cross-shareholdings and redeploy capital toward growth areas, a move that could enhance asset efficiency and financial flexibility; the company indicated it will disclose any further material impact on future business performance from additional restructuring costs or security sales once confirmed.

The most recent analyst rating on (JP:6474) stock is a Hold with a Yen4309.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Beats Profit Forecasts Despite Sales Shortfall on Weak Capital Investment

Nachi-Fujikoshi reported that its fiscal year ended November 30, 2025 produced lower net sales than forecast, as capital investment was postponed in the automotive sector and demand for industrial machinery weakened, pushing revenue 2.9% below guidance. Despite the sales shortfall, operating profit, ordinary profit and profit attributable to owners of parent all significantly exceeded earlier projections—up 13.6%, 26.8% and 31.3% respectively—driven by structural reforms such as factory relocations, production consolidation and reorganization of overseas bases, combined with a weaker-than-expected yen, underscoring the company’s improving profitability and operational efficiency in a soft demand environment.

The most recent analyst rating on (JP:6474) stock is a Hold with a Yen4309.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Lifts Profitability and Equity Ratio, Forecasts Further Earnings Growth for 2026

For the fiscal year ended 30 November 2025, Nachi-Fujikoshi reported net sales of ¥235.9 billion, down 1.7% year on year, but significantly improved profitability, with operating profit up 47.3% to ¥9.8 billion and profit attributable to owners of parent jumping 56.7% to ¥5.3 billion. Margins and financial health strengthened, as the operating profit margin rose to 4.1%, equity ratio improved to 51.5% from 47.4%, and net assets increased to ¥174.3 billion. Operating cash flow decreased but remained positive at ¥17.9 billion, while the company continued shareholder returns with an unchanged annual dividend of ¥100 per share despite the lower payout ratio, reflecting stronger earnings. For the fiscal year ending November 2026, the company forecasts moderate sales growth to ¥243.0 billion and further profit expansion, with operating profit projected to increase 23.8% and earnings per share to rise to ¥293.87, indicating management’s expectations of continued recovery in demand and improved operational efficiency.

The most recent analyst rating on (JP:6474) stock is a Hold with a Yen4309.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Completes Treasury Share Purchase

Nachi-Fujikoshi Corp. has completed the purchase of 558,200 treasury shares for a total value of 2,193,726,000 yen through the Tokyo Stock Exchange’s Off-Auction Own Shares Repurchase Trading System (ToSTNeT-3). This move is part of the company’s strategy to implement a flexible capital policy in response to changes in the business environment, as resolved by the Board of Directors.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen4567.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Corp. Announces Treasury Share Buyback

Nachi-Fujikoshi Corp. announced a resolution to purchase up to 560,000 of its own shares, equivalent to 2.48% of its total issued shares, through the Tokyo Stock Exchange’s ToSTNeT-3 system. This move is aimed at implementing a flexible capital policy in response to changes in the business environment, potentially impacting the company’s market positioning and shareholder value.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen4567.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.