Nachi-Fujikoshi Corp. (6474) AI Stock Analysis

• Market Cap: ¥78.84B
• Dividend Yield: 3.09%
• Average Volume (3M): 49.50K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.86
• Revenue Growth: -4.76%
• EPS Growth: 78.57%
• Country: JP
• Employees: 6,943
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 19.95
• Shares Outstanding: 24,919,344
• 10 Day Avg. Volume: 39,050
• 30 Day Avg. Volume: 49,496
• PEG Ratio: 0.51
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.94
• 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: ¥3,370.67
• Price Target Upside: 4.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥3,536.00 ▲(9.30%Upside)

The overall stock score reflects a stable financial foundation and reasonable valuation, supported by positive cash flow management and dividend yield. Technical indicators suggest a neutral to slightly bullish momentum, though caution is advised given the Stochastic indicator. The lack of recent earnings call information and corporate events does not affect the score due to their exclusion.

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 sale of its diverse product lineup that includes cutting tools, machine tools, industrial robots, bearings, and hydraulic equipment. The company's revenue streams are primarily driven by the demand from automotive manufacturers, industrial machinery producers, and the aerospace sector. Additionally, Nachi-Fujikoshi benefits from significant partnerships and collaborations with major industrial players, allowing it to leverage its technological advancements and expand its market reach. The company's focus on research and development also plays a critical role in maintaining its competitive edge and profitability in the global market.

Nachi-Fujikoshi Corp. Financial Statement Overview

Summary

Nachi-Fujikoshi Corp. demonstrates stable financial performance with consistent revenue and strong cash flow generation. The company excels in cash management and operational efficiency, though there are challenges in profitability consistency and managing leverage. The financials show a solid foundation with growth potential if profitability and debt management improve.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.89B	265.46B	258.10B	229.12B	201.06B
Gross Profit	50.26B	55.84B	60.39B	52.26B	40.13B
EBITDA	26.16B	31.91B	35.41B	31.66B	23.95B
Net Income	3.35B	6.47B	12.24B	9.99B	2.46B
Balance Sheet
Total Assets	334.76B	370.32B	357.46B	319.31B	293.06B
Cash, Cash Equivalents and Short-Term Investments	34.26B	34.62B	36.04B	41.77B	40.12B
Total Debt	94.36B	114.16B	102.60B	91.94B	104.98B
Total Liabilities	170.09B	200.81B	201.09B	181.10B	168.80B
Stockholders Equity	158.83B	162.72B	148.90B	130.10B	116.89B
Cash Flow
Free Cash Flow	18.64B	-5.65B	-9.80B	18.56B	5.32B
Operating Cash Flow	31.46B	12.03B	11.21B	33.08B	19.26B
Investing Cash Flow	-7.63B	-17.77B	-20.83B	-14.17B	-14.00B
Financing Cash Flow	-24.36B	3.13B	2.11B	-18.61B	13.86B

Nachi-Fujikoshi Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3235.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3235 is above the 20-day moving average (MA) of 3184.00, above the 50-day MA of 3095.90, and above the 200-day MA of 3156.02, indicating a bullish trend. The MACD of 46.98 indicates Negative momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 80.63 is Negative, 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
6474	69 Neutral	¥78.84B	17.16	2.79%	3.09%	-4.76%	78.57%
Sector *	64 Neutral	$10.64B	16.52	6.24%	2.15%	3.01%	-28.89%
MRSKF	―	$3.28B	30.98	8.94%	0.02%	―	―
MSUXF	―	$4.23B	15.64	9.93%	2.05%	―	―
NTN	―	€795.48M	28.02	-9.65%	4.55%	―	―
OSGCF	―	$1.20B	14.30	7.41%	2.72%	―	―
6101	78 Outperform	¥97.67B	7.95		2.86%	28.13%	84.20%

Nachi-Fujikoshi Corp. Corporate Events

Nachi-Fujikoshi Corp. Announces Treasury Share Buyback

Nachi-Fujikoshi Corp. has announced a resolution to purchase up to 170,000 of its own treasury shares, representing 0.75% of its total issued shares, as part of a flexible capital policy to adapt to changes in the business environment. This strategic move, executed through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System, aims to strengthen the company’s financial positioning and potentially enhance shareholder value.

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

Nachi-Fujikoshi Corp. reported a significant improvement in its financial performance for the six months ending May 31, 2025, with a notable increase in operating and ordinary profits compared to the previous year. Despite a slight decline in net sales, the company’s profitability metrics showed strong growth, indicating effective cost management and operational efficiency. The company’s forecast for the full year anticipates continued growth in profits, reflecting a positive outlook for stakeholders and reinforcing its competitive position in the industry.