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

• Market Cap: ¥38.53B
• Dividend Yield: 3.5%
• Average Volume (3M): 101.55K
• Price to Earnings (P/E): 38.3
• Beta (1Y): 1.04
• Revenue Growth: -1.21%
• EPS Growth: -62.52%
• Country: JP
• Employees: 2,472
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 14.05
• Shares Outstanding: 73,501,430
• 10 Day Avg. Volume: 86,470
• 30 Day Avg. Volume: 101,550
• PEG Ratio: 0.07
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.18
• 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: 65 Neutral
• 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. Business Overview & Revenue Model

Company Description

Nippon 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 Money

Nippon 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.20B	54.38B	55.05B	68.26B	62.28B	44.34B
Gross Profit	16.26B	17.12B	18.00B	24.48B	19.34B	11.65B
EBITDA	5.24B	5.90B	8.48B	12.88B	9.78B	3.27B
Net Income	415.00M	978.00M	2.67B	7.47B	4.13B	215.00M
Balance Sheet
Total Assets	121.63B	120.67B	119.19B	114.35B	107.08B	100.95B
Cash, Cash Equivalents and Short-Term Investments	21.72B	24.43B	19.77B	18.85B	18.00B	15.49B
Total Debt	33.65B	34.90B	32.71B	22.12B	23.86B	29.22B
Total Liabilities	45.35B	45.03B	43.02B	42.69B	43.11B	41.52B
Stockholders Equity	76.28B	75.63B	76.16B	71.66B	63.97B	59.42B
Cash Flow
Free Cash Flow	0.00	3.27B	-7.50B	4.06B	8.29B	2.55B
Operating Cash Flow	0.00	6.45B	-2.49B	6.40B	10.27B	5.66B
Investing Cash Flow	0.00	-3.44B	-5.30B	-2.70B	-2.10B	-3.01B
Financing Cash Flow	0.00	912.00M	7.57B	-3.35B	-6.44B	-412.00M

Nippon Thompson Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 546.00
• 50DMA: Positive
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	77 Outperform	¥20.90B	10.50		3.53%	7.59%	12.32%
6474	74 Outperform	€73.37B	16.10	2.66%	3.24%	-8.38%	-3.11%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
6157	70 Outperform	¥17.87B	14.10		4.19%	3.18%	2.22%
6480	65 Neutral	¥38.53B	38.32		3.50%	-1.21%	-62.52%
7726	56 Neutral	¥5.24B	30.37		2.18%	-6.59%	-65.39%
6464	45 Neutral	¥13.96B	17.68		5.80%	-7.91%	46.90%

Nippon Thompson Co., Ltd. Corporate Events

Nippon Thompson Co., Ltd. Updates Takeover Defense Strategy

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

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

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

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.