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Nippon Thompson Co., Ltd. (JP:6480)
:6480
Japanese Market
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Nippon Thompson Co., Ltd. (6480) AI Stock Analysis

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JP:6480

Nippon Thompson Co., Ltd.

(6480)

Rating:65Neutral
Price Target:
¥604.00
▲(0.00%Upside)
The overall stock score for Nippon Thompson reflects a blend of strong technical indicators and a robust balance sheet, countered by relatively high valuation and inconsistent financial performance. The stock's bullish technical patterns are a significant strength, while the high P/E ratio and fluctuating financial metrics indicate potential risks. The absence of recent earnings call insights or major corporate events leaves the analysis reliant on existing financial and market data.

Nippon Thompson Co., Ltd. (6480) vs. iShares MSCI Japan ETF (EWJ)

Nippon Thompson Co., Ltd. Business Overview & Revenue Model

Company DescriptionNippon Thompson Co., Ltd. (6480) is a Japanese company specializing in the manufacture and sale of needle roller bearings, linear motion products, and mechatronic products. The company serves various sectors including automotive, industrial machinery, and electronics, providing high-quality components that enhance the performance of machinery and equipment.
How the Company Makes MoneyNippon Thompson Co., Ltd. generates revenue primarily through the sale of its precision-engineered products, including needle roller bearings, linear motion products, and mechatronic solutions. The company's key revenue streams include direct sales to automotive manufacturers, industrial machinery producers, and electronics companies that require high-performance components. Additionally, Nippon Thompson may engage in partnerships and collaborations that facilitate the distribution and integration of its products into various industrial applications. The company's earnings are significantly influenced by the demand in the automotive and industrial sectors, as well as technological advancements that drive the need for efficient motion control solutions.

Nippon Thompson Co., Ltd. Financial Statement Overview

Summary
Nippon Thompson's financial health presents a mixed scenario. The income statement reflects fluctuating revenue and profitability, while the balance sheet remains strong with reasonable leverage and equity ratios. Cash flow management appears to be a challenge, with inconsistent free cash flow and operating cash flow trends. While the company shows operational efficiency, the variability in financial performance points to potential risks that need addressing for sustained growth.
Income Statement
65
Positive
Nippon Thompson has experienced fluctuating revenue and profit margins over the past few years. The Gross Profit Margin and Net Profit Margin have shown inconsistency, with the latest period indicating a decrease in revenue and profitability. However, the company has maintained positive EBITDA margins, which is a positive sign of operational efficiency. Despite recent downturns, the company's ability to generate EBIT and EBITDA remains a strength.
Balance Sheet
72
Positive
The balance sheet is relatively stable with a strong equity base, demonstrated by a healthy Equity Ratio. The Debt-to-Equity Ratio is reasonable, indicating a careful approach to leveraging. Return on Equity has been volatile but remains positive, suggesting that the company is still able to generate returns on its equity investments. Overall, the balance sheet suggests financial stability with some leverage for growth.
Cash Flow
60
Neutral
Cash flow statements reveal challenges in maintaining consistent operating cash flow, although recent periods have shown improvement. The Free Cash Flow has been positive in some years, indicating the ability to generate cash post-capital expenditures. However, the volatility in Free Cash Flow and Operating Cash Flow to Net Income ratios suggests potential issues in cash management and profitability conversion.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue54.38B55.05B68.26B62.28B44.34B
Gross Profit17.12B18.00B24.48B19.34B11.65B
EBITDA5.90B8.48B12.88B9.78B3.27B
Net Income978.00M2.67B7.47B4.13B215.00M
Balance Sheet
Total Assets120.67B119.19B114.35B107.08B100.95B
Cash, Cash Equivalents and Short-Term Investments24.43B19.77B18.85B18.00B15.49B
Total Debt34.90B32.71B22.12B23.86B29.22B
Total Liabilities45.03B43.02B42.69B43.11B41.52B
Stockholders Equity75.63B76.16B71.66B63.97B59.42B
Cash Flow
Free Cash Flow3.27B-7.50B4.06B8.29B2.55B
Operating Cash Flow6.45B-2.49B6.40B10.27B5.66B
Investing Cash Flow-3.44B-5.30B-2.70B-2.10B-3.01B
Financing Cash Flow912.00M7.57B-3.35B-6.44B-412.00M

Nippon Thompson Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price604.00
Price Trends
50DMA
532.76
Positive
100DMA
508.02
Positive
200DMA
495.23
Positive
Market Momentum
MACD
12.92
Negative
RSI
64.82
Neutral
STOCH
62.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6480, the sentiment is Positive. The current price of 604 is above the 20-day moving average (MA) of 552.05, above the 50-day MA of 532.76, and above the 200-day MA of 495.23, indicating a bullish trend. The MACD of 12.92 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 62.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6480.

Nippon Thompson Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥22.75B11.43
3.18%7.59%12.32%
71
Outperform
¥269.20B13.898.47%2.88%6.35%13.11%
70
Outperform
¥19.47B15.04
3.85%3.18%2.22%
69
Neutral
¥77.06B16.772.79%3.09%-4.76%78.57%
65
Neutral
¥42.15B41.92
3.15%-1.21%-62.52%
58
Neutral
¥5.30B30.70
2.16%-6.59%-65.39%
52
Neutral
¥14.61B17.68
6.94%-7.91%46.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6480
Nippon Thompson Co., Ltd.
604.00
31.03
5.42%
JP:5957
Nitto Seiko Co., Ltd.
613.00
21.97
3.72%
JP:6157
NS Tool Co., Ltd.
776.00
-113.11
-12.72%
JP:6464
Tsubaki Nakashima Co., Ltd
348.00
-420.44
-54.71%
JP:7726
Kuroda Precision Industries Ltd.
918.00
-684.17
-42.70%
JP:6474
Nachi-Fujikoshi Corp.
3,240.00
20.72
0.64%

Nippon Thompson Co., Ltd. Corporate Events

Nippon Thompson Co., Ltd. Updates Takeover Defense Strategy
Jun 27, 2025

Nippon Thompson Co., Ltd. has announced the approval of changes and the continuation of its countermeasures against large-scale acquisition actions of the company’s shares, known as takeover response policies. This decision, approved by shareholders at the 76th Ordinary General Meeting, aims to prevent inappropriate parties from influencing the company’s financial and business policies, thereby ensuring the enhancement of corporate value and protecting shareholder interests.

Nippon Thompson Proposes Governance Structure Overhaul
May 12, 2025

Nippon Thompson Co., Ltd. has announced a proposal to amend its Articles of Incorporation, transitioning to a company with an Audit and Supervisory Committee. This change aims to improve decision-making efficiency and strengthen corporate governance by involving committee members in the board’s voting process, potentially increasing corporate value.

Nippon Thompson Records Extraordinary Loss in Subsidiary Investments
May 12, 2025

Nippon Thompson Co., Ltd. announced an extraordinary loss of 1,787 million yen due to the valuation of investments in its subsidiaries, UBC Precision Bearing Co., Ltd. and UBC(Suzhou) Bearing Co., Ltd., for the fourth quarter of the fiscal year ending March 31, 2025. This loss is recorded in the company’s non-consolidated financial statements and does not affect the consolidated financial results, mitigating any immediate impact on overall financial health.

Nippon Thompson Co., Ltd. Reports Decline in FY2025 Results, Forecasts Recovery
May 12, 2025

Nippon Thompson Co., Ltd. reported a decline in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales decreasing by 1.2% and significant drops in operating and ordinary profits. Despite the downturn, the company forecasts a recovery in the fiscal year ending March 31, 2026, with expected increases in net sales and profit attributable to owners of the parent, indicating a potential positive shift in its financial performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025