Nachi-Fujikoshi Corp. (6474) AI Stock Analysis

• Market Cap: ¥71.35B
• Dividend Yield: 3.33%
• Average Volume (3M): 34.93K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.85
• Revenue Growth: -8.38%
• EPS Growth: -3.11%
• Country: JP
• Employees: 6,943
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 62.87
• Shares Outstanding: 24,919,344
• 10 Day Avg. Volume: 33,170
• 30 Day Avg. Volume: 34,930
• PEG Ratio: 0.33
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.42
• 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

• Rating: 69 Neutral
• Price Target: ¥3,351.00 ▲(11.70%Upside)

The overall score reflects a solid financial foundation with good cash management, but challenges in profitability and leverage management. Valuation is appealing due to a reasonable P/E ratio and strong dividend yield. Technical indicators suggest moderate bearish momentum, impacting the score.

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 through the manufacturing and sale of a broad array of industrial products. The company's key revenue streams include cutting tools, which are used extensively in the automotive and aerospace industries; machine tools, which are vital for precision manufacturing processes; and robotics, where the company provides solutions for automation and production efficiency. Additionally, hydraulic equipment and bearings contribute significantly to its earnings, serving various sectors including construction, automotive, and energy. Nachi-Fujikoshi's global operations and strategic partnerships enhance its market presence and enable it to leverage economies of scale, thus boosting profitability.

Nachi-Fujikoshi Corp. Financial Statement Overview

Summary

Nachi-Fujikoshi Corp. demonstrates stable financial performance with consistent revenue and cash flow generation. Strengths in cash management and operational efficiency are noted, but challenges exist in maintaining consistent profitability and managing leverage.

Income Statement

The company shows a stable gross profit margin of around 20-23% and a net profit margin that fluctuates between 1% to 4% over the years. The revenue has shown some growth in recent years, although there was a decline in 2023. The EBIT and EBITDA margins indicate moderate operational efficiency, with EBITDA margins in the range of 12% to 13%. While there is growth potential, the margins suggest room for improvement in cost management.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating a balanced approach to leveraging, though it increased in recent years. Return on Equity (ROE) has fluctuated, pointing to varying profitability against shareholder equity. The equity ratio suggests a stable financial structure, with equity forming a significant portion of total assets. The company appears financially stable but should monitor its increasing debt levels.

Cash Flow

Cash flow analysis shows a strong operating cash flow, indicating adequate cash generation capability. There is a significant improvement in free cash flow in 2024 compared to previous years, suggesting better capital management. The operating cash flow to net income ratio is healthy, indicating efficient conversion of income into cash. However, previous periods show negative free cash flow, pointing to potential past challenges in managing capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
244.72B	239.89B	265.46B	258.10B	229.12B	201.06B
	Gross Profit
50.27B	50.26B	55.84B	60.39B	52.26B	40.13B
	EBIT
5.70B	6.64B	11.87B	17.02B	14.72B	6.85B
	EBITDA
26.74B	26.16B	31.91B	35.41B	31.66B	23.95B
	Net Income Common Stockholders
2.95B	3.35B	6.47B	12.24B	9.99B	2.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.48B	34.26B	34.62B	36.04B	41.77B	40.12B
	Total Assets
346.61B	334.76B	370.32B	357.46B	319.31B	293.06B
	Total Debt
99.89B	94.36B	114.16B	102.60B	91.94B	104.98B
	Net Debt
66.41B	60.09B	79.54B	66.56B	50.17B	64.86B
	Total Liabilities
179.73B	170.09B	200.81B	201.09B	181.10B	168.80B
	Stockholders Equity
160.61B	158.83B	162.72B	148.90B	130.10B	116.89B
Cash Flow		Free Cash Flow
1.60B	18.64B	-5.65B	-9.80B	18.56B	5.32B
	Operating Cash Flow
5.56B	31.46B	12.03B	11.21B	33.08B	19.26B
	Investing Cash Flow
-4.75B	-7.63B	-17.77B	-20.83B	-14.17B	-14.00B
	Financing Cash Flow
-1.20B	-24.36B	3.13B	2.11B	-18.61B	13.86B

Nachi-Fujikoshi Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3000.00
• 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:6474, the sentiment is Negative. The current price of 3000 is below the 20-day moving average (MA) of 3048.00, below the 50-day MA of 3011.92, and below the 200-day MA of 3132.70, indicating a bearish trend. The MACD of -11.54 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥85.87B	7.93		3.49%	27.98%	104.69%
6136	76 Outperform	$158.80B	11.54	7.26%	3.37%	4.25%	-6.41%
6474	69 Neutral	¥71.35B	15.65	2.66%	3.33%	-8.38%	-3.11%
9962	68 Neutral	$544.38B	14.48	10.34%	2.15%	9.34%	32.19%
6141	67 Neutral	$430.48B	26.42	8.94%	0.02%	-4.91%	-16.52%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
6472	45 Neutral	€111.59B	30.58	-9.65%	5.34%	-1.28%	-325.67%

Nachi-Fujikoshi Corp. Corporate Events

Nachi-Fujikoshi Corp. Reports Strong Profit Growth Amid Slight Sales Decline

Nachi-Fujikoshi Corp. reported a notable increase in profits for the three months ending February 28, 2025, despite a slight decline in net sales compared to the previous year. The company’s operating profit surged by 81.5%, and profit attributable to owners of the parent increased by 302%, reflecting improved operational efficiency. The financial forecast for the year ending November 30, 2025, indicates a modest growth in net sales and significant increases in operating and ordinary profits, suggesting a positive outlook for the company’s financial health.