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

Nippon Thompson Co., Ltd. (6480) AI Stock Analysis

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JP

Nippon Thompson Co., Ltd.

(6480)

Rating:65Neutral
Price Target:
¥543.00
▼(-0.55%Downside)
Nippon Thompson's stock score is driven by its stable financial foundation, despite mixed financial performance and cash flow challenges. Technical analysis indicates strong market momentum, which offsets valuation concerns due to a high P/E ratio. The absence of earnings call and corporate events data had no impact on the score.

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

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

Company DescriptionNippon Thompson Co., Ltd., also known as IKO International, is a leading Japanese manufacturer specializing in the production of linear motion products, needle roller bearings, and precision positioning tables. Founded in 1950, the company serves diverse sectors including industrial machinery, automotive, and electronics, providing essential components that enhance the performance and reliability of equipment and devices.
How the Company Makes MoneyNippon Thompson Co., Ltd. generates revenue through the manufacturing and sale of its specialized products, including linear motion guides, needle roller bearings, and positioning stages. These products are essential components used in various industries, such as automotive, industrial machinery, and electronics, contributing to the efficiency and precision of equipment. The company benefits from strong demand in these sectors driven by trends like automation and miniaturization. Additionally, Nippon Thompson collaborates with various partners and distributors globally, expanding its market reach and enhancing its sales channels, further contributing to its revenue streams.

Nippon Thompson Co., Ltd. Financial Statement Overview

Summary
Nippon Thompson demonstrates a mixed financial position with fluctuating revenue and profitability. The balance sheet is stable with reasonable leverage, but cash flow challenges persist, indicating potential risks in cash management and profitability conversion. Operational efficiency is a positive aspect, yet variability in financial performance needs attention.
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue53.20B54.38B55.05B68.26B62.28B44.34B
Gross Profit16.26B17.12B18.00B24.48B19.34B11.65B
EBITDA5.24B5.90B8.48B12.88B9.78B3.27B
Net Income415.00M978.00M2.67B7.47B4.13B215.00M
Balance Sheet
Total Assets121.63B120.67B119.19B114.35B107.08B100.95B
Cash, Cash Equivalents and Short-Term Investments21.72B24.43B19.77B18.85B18.00B15.49B
Total Debt33.65B34.90B32.71B22.12B23.86B29.22B
Total Liabilities45.35B45.03B43.02B42.69B43.11B41.52B
Stockholders Equity76.28B75.63B76.16B71.66B63.97B59.42B
Cash Flow
Free Cash Flow0.003.27B-7.50B4.06B8.29B2.55B
Operating Cash Flow0.006.45B-2.49B6.40B10.27B5.66B
Investing Cash Flow0.00-3.44B-5.30B-2.70B-2.10B-3.01B
Financing Cash Flow0.00912.00M7.57B-3.35B-6.44B-412.00M

Nippon Thompson Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price546.00
Price Trends
50DMA
513.80
Positive
100DMA
498.07
Positive
200DMA
488.96
Positive
Market Momentum
MACD
6.94
Positive
RSI
57.87
Neutral
STOCH
79.35
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 546 is above the 20-day moving average (MA) of 532.60, above the 50-day MA of 513.80, and above the 200-day MA of 488.96, indicating a bullish trend. The MACD of 6.94 indicates Positive momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.35 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
¥20.90B10.50
3.53%7.59%12.32%
74
Outperform
€73.37B16.102.66%3.24%-8.38%-3.11%
71
Outperform
¥254.55B13.008.49%3.09%6.31%12.77%
70
Outperform
¥17.87B14.10
4.19%3.18%2.22%
65
Neutral
¥38.53B38.32
3.50%-1.21%-62.52%
56
Neutral
¥5.24B30.37
2.18%-6.59%-65.39%
45
Neutral
¥13.96B17.68
5.80%-7.91%46.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6480
Nippon Thompson Co., Ltd.
543.00
-56.93
-9.49%
JP:5957
Nitto Seiko Co., Ltd.
574.00
-21.87
-3.67%
JP:6157
NS Tool Co., Ltd.
755.00
-183.19
-19.53%
JP:6464
Tsubaki Nakashima Co., Ltd
345.00
-472.38
-57.79%
JP:7726
Kuroda Precision Industries Ltd.
918.00
-742.96
-44.73%
JP:6474
Nachi-Fujikoshi Corp.
3,085.00
-192.37
-5.87%

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: May 27, 2025