Nachi-Fujikoshi Corp. (6474) AI Stock Analysis

• Market Cap: ¥111.43B
• Dividend Yield: 2.3%
• Average Volume (3M): 67.70K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.95
• 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): 298.85
• Revenue Forecast (FY): ¥246.50B

• Rating: 62 Neutral
• Price Target: ¥4,966.00 ▲(14.16% Upside)
• Action: Downgraded Date: 01/16/26
• Date: Action: Downgraded 01/16/26

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 mix

Nachi-Fujikoshi's wide portfolio across robots, tooling, machine tools, bearings and hydraulics creates multiple revenue channels and aftermarket service streams. This diversification smooths cyclicality over time, supports repeat parts/service revenue, and strengthens long-term customer relationships in manufacturing sectors.

Improving balance sheet leverage

Lower leverage and rising equity materially reduce financial risk and increase strategic flexibility. A de-risked balance sheet improves capacity for targeted capex, M&A or cyclical cushioning, giving management optionality to invest in automation products or return capital while withstanding industry downturns.

Return to positive free cash flow

Resumption of positive free cash flow after prior negative years enhances financial durability. Positive FCF supports reinvestment in R&D and automation offerings, funds maintenance of aftermarket service networks, and allows further debt reduction or shareholder distributions over the medium term.

Negative Factors

Cyclical, volatile revenue

Revenue volatility driven by capital expenditure cycles in automotive and manufacturing undermines predictability of earnings and planning. Lumpy order flows make capacity utilization, staffing, and investment timing challenging, constraining sustained margin improvement and steady cash generation.

Margin compression

Sustained lower gross and net margins signal pressure from pricing, cost structure, or product mix shifts. Compressed margins limit the firm's ability to fund R&D, aftermarket expansion, or pay down debt, and make earnings more sensitive to demand swings and input-cost inflation over the medium term.

Weak cash conversion and low returns

FCF materially below reported profits indicates weak cash realization and working-capital sensitivity, constraining reinvestment and reducing financial resilience. Coupled with modest returns on shareholder capital (~3% in 2025), this suggests limited efficiency in converting profits into durable shareholder value.

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 makes money primarily by manufacturing and selling industrial products and systems to business customers. Key revenue streams include: (1) Industrial robots and robot systems—sales of robots, integrated automation cells/lines, and associated engineering and implementation work; recurring revenue can include maintenance, spare parts, and after-sales service where offered. (2) Cutting tools—sales of drills, end mills, hobs, broaches, and other tooling consumed in metalworking; revenue is driven by ongoing replenishment demand and customer requirements for specific tool specifications. (3) Machine tools and related equipment—sales of machine tools and specialized production equipment; earnings are typically project- or order-based, tied to capital expenditure cycles in manufacturing. (4) Bearings and functional components—sales of bearings and precision components used in machinery and automotive applications; revenue depends on production volumes and long-term supply relationships with manufacturers. (5) Hydraulics—sales of hydraulic pumps, valves, and power units used in industrial equipment. Across these businesses, earnings are supported by a mix of one-time product/system sales and follow-on aftermarket demand (e.g., replacement parts, consumables, repairs, and service). Specific details on the company’s significant partnerships or the exact revenue split by segment are null.

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	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	235.90B	239.89B	265.46B	258.10B	229.12B
Gross Profit	51.90B	48.84B	55.84B	60.39B	52.26B
EBITDA	27.43B	25.23B	31.35B	35.41B	31.66B
Net Income	5.25B	3.35B	6.47B	12.24B	9.99B
Balance Sheet
Total Assets	331.30B	334.76B	370.32B	357.46B	319.31B
Cash, Cash Equivalents and Short-Term Investments	32.20B	34.26B	34.62B	36.04B	41.77B
Total Debt	86.32B	94.36B	114.16B	102.60B	91.94B
Total Liabilities	157.04B	170.09B	200.80B	201.09B	181.10B
Stockholders Equity	170.60B	158.83B	162.72B	148.91B	130.10B
Cash Flow
Free Cash Flow	9.72B	19.94B	-4.36B	-8.56B	19.27B
Operating Cash Flow	17.94B	31.46B	12.03B	11.21B	33.08B
Investing Cash Flow	-5.29B	-7.63B	-17.77B	-20.83B	-14.17B
Financing Cash Flow	-15.91B	-24.36B	3.13B	2.11B	-18.61B

Nachi-Fujikoshi Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4350.00
• 50DMA: Negative
• 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:6474, the sentiment is Positive. The current price of 4350 is below the 20-day moving average (MA) of 5027.50, below the 50-day MA of 5022.80, and above the 200-day MA of 3940.92, indicating a neutral trend. The MACD of -71.35 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 39.18 is Neutral, 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	83 Outperform	¥162.86B	7.03	―	2.33%	25.95%	66.92%
6278	76 Outperform	¥256.03B	24.11	―	1.17%	29.51%	48.81%
6136	72 Outperform	¥235.48B	13.29	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	¥111.43B	17.03	2.64%	2.30%	-4.11%	46.76%
6141	57 Neutral	¥355.05B	15.50	11.46%	3.77%	-9.34%	164.21%
6472	52 Neutral	¥198.74B	85.52	-4.83%	3.08%	-3.18%	-531.48%

Nachi-Fujikoshi Corp. Corporate Events

Nachi-Fujikoshi to Dispose of Treasury Shares for Director Stock Compensation Plan

Nachi-Fujikoshi Corp. has approved the disposal of 26,500 treasury shares as part of a continued share-based remuneration plan for its directors, excluding audit and outside members, with Sumitomo Mitsui Trust Bank serving as trustee and Custody Bank of Japan as re-trustee. The transaction, valued at ¥139.92 million based on the recent market closing price, represents about 0.11% share dilution, and the company expects the plan to more tightly link director compensation to share performance, supporting medium- to long-term corporate value with minimal impact on the secondary market.

The disposal forms part of an extended trust structure running through April 2029, under which eligible directors will receive shares according to predefined grant rules. By basing the disposal value on the latest Tokyo Stock Exchange closing price and limiting voting rights on shares held in trust, Nachi-Fujikoshi aims to ensure transparency, objectivity, and governance discipline while reinforcing alignment between management and shareholders.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen5676.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Extends Share-Based Remuneration Plan and Funds New Share Acquisition

Nachi-Fujikoshi Corp. has decided to continue its share-based remuneration plan for directors, excluding Audit & Supervisory Committee members and outside directors, reinforcing equity-linked incentives for its leadership. The company will extend the existing trust-based structure, under which voting rights for shares held in trust are not exercised, and has scheduled the trust to run through April 30, 2029.

As part of this continuation, the company will entrust additional cash to the trust so the trustee can acquire 26,500 shares of common stock through disposal of treasury shares on March 12, 2026, at a total value of ¥139.92 million. This move is aimed at securing sufficient shares to grant under the plan, aligning directors’ compensation more closely with shareholder interests and potentially supporting longer-term corporate governance and performance goals.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen5676.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

NACHI-FUJIKOSHI Wins Shareholder Backing to Renew Takeover Defense Measures

NACHI-FUJIKOSHI CORP. has secured shareholder approval at its 143rd Annual General Meeting to continue its countermeasures against large-scale purchases of the company’s shares, effectively renewing its takeover defense framework with some partial changes. The decision signals management’s intent to deter hostile or unsolicited acquisition attempts and maintain stability in the company’s governance structure, which may reassure existing shareholders while potentially shaping how future strategic investors approach building significant stakes in the firm.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen5676.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Seeks Shareholder Approval to Extend and Refine Takeover Defense Measures

Nachi-Fujikoshi’s board has resolved to seek shareholder approval to continue its long-standing takeover defense measures against large-scale purchases of the company’s shares beyond the current expiry at the close of the 143rd Annual General Meeting of Shareholders on February 25, 2026. The proposed renewed measures largely maintain the existing framework but introduce partial revisions, including a change to the definition of what constitutes a large-scale share purchase, clarification that the Independent Committee may require prior confirmation of shareholder intent before recommending the implementation of countermeasures, and other formal wording updates—steps that reinforce the company’s stance on protecting corporate and shareholder value while emphasizing governance and shareholder oversight in any potential acquisition attempts.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen5676.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi Elevates Robot Division Chief to President in Strategy Shift Toward Robotics

Nachi-Fujikoshi Corp. has announced a major management reshuffle that will see Naritoshi Nakamura, currently Corporate Officer and General Manager of the Robot Division, promoted to Representative Director and President following shareholder approval on February 25, 2026. The move, which also includes the appointment of several new directors with robotics and bearings expertise and the transition of current President Tsutomu Kurosawa and Representative Director Hideaki Hara to special advisor roles, is aimed at accelerating growth centered on the company’s robotics business and strengthening its medium- to long-term corporate value and competitiveness.

The most recent analyst rating on (JP:6474) stock is a Buy with a Yen5676.00 price target. To see the full list of analyst forecasts on Nachi-Fujikoshi Corp. stock, see the JP:6474 Stock Forecast page.

Nachi-Fujikoshi 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.