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

• Market Cap: ¥59.11B
• Dividend Yield: 2.82%
• Average Volume (3M): 167.09K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.08
• Revenue Growth: 8.75%
• EPS Growth: 177.16%
• Country: JP
• Employees: 2,472
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 14.36
• Shares Outstanding: 73,501,430
• 10 Day Avg. Volume: 150,410
• 30 Day Avg. Volume: 167,093
• PEG Ratio: -0.55
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 10.26
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥852.00 ▲(2.65% Upside)

Nippon Thompson's stock score is driven primarily by strong technical indicators and a stable valuation. The financial performance shows mixed results, with strengths in operational efficiency but challenges in cash flow management. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Market Position

Nippon Thompson's specialization in precision machinery and linear motion products positions it strongly in sectors like automation and robotics, which are experiencing long-term growth. This focus allows the company to maintain a competitive edge in providing essential components for advanced manufacturing processes.

Revenue Growth

The company's revenue growth is supported by increasing demand for automation solutions across various industries. This trend is likely to continue as more sectors adopt automation, providing a stable foundation for future revenue expansion.

Partnerships

Nippon Thompson's strategic partnerships with major industrial players not only expand its market reach but also facilitate collaborative innovation. These alliances are crucial for sustaining long-term growth and staying competitive in the evolving industrial landscape.

Negative Factors

Cash Flow Management

The inconsistency in cash flow management indicates potential challenges in converting revenue into cash, which can affect the company's ability to invest in growth opportunities and manage financial obligations effectively over the long term.

Profit Margin Variability

The variability in profit margins suggests challenges in maintaining consistent profitability. This could impact the company's ability to sustain operational efficiency and invest in future growth, posing a risk to long-term financial stability.

Debt Levels

While the Debt-to-Equity Ratio is reasonable, the presence of leverage indicates potential risks if revenue growth does not keep pace with debt servicing requirements. This could constrain financial flexibility in the long term.

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

Company Description

Nippon Thompson Co., Ltd. develops, manufactures, and sells needle roller bearings, linear motion rolling guides, precision positioning tables, and machine components under the IKO brand in Japan and internationally. The company's needle roller bearings comprise radial type and combined type needle roller bearings, and thrust bearings, as well as cam followers, roller followers, crossed roller bearings, and spherical bushings for applications in automobiles, motorcycles, printing machines, industrial robots, and construction machinery. Its linear motion rolling guides include linear way/ linear roller way, crossed roller way, linear slide unit, linear ball spine, linear bushing, stroke rotary bushing, and roller way and flat roller cage products; and precision positioning table series of products comprise ball screw drives, linear motor drives, timing belt drive type, and controllers for use in semiconductor and flat panel display manufacturing equipment, and other precision equipment. The company was formerly known as Daiichi-Kogyo Co., Ltd. and changed its name to Nippon Thompson Co., Ltd. in 1963. Nippon Thompson Co., Ltd. was founded in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Thompson generates revenue primarily through the sale of its precision machinery components, which are essential for automation and manufacturing processes. The company's key revenue streams include direct sales of linear motion products, custom solutions tailored to specific client needs, and ongoing support and maintenance services. Nippon Thompson has established significant partnerships with major industrial players, which not only enhances its market reach but also enables collaborative development of innovative products. The company also benefits from a growing demand for automation solutions across various sectors, driving increased sales and contributing to its overall earnings.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.32B	54.38B	55.05B	68.26B	62.28B	44.34B
Gross Profit	17.93B	17.12B	18.00B	24.48B	19.34B	11.65B
EBITDA	4.73B	5.90B	8.48B	14.01B	9.78B	4.08B
Net Income	2.01B	978.00M	2.67B	7.47B	4.13B	215.00M
Balance Sheet
Total Assets	120.52B	120.67B	119.19B	114.35B	107.08B	100.95B
Cash, Cash Equivalents and Short-Term Investments	24.17B	24.43B	19.77B	18.85B	18.00B	15.49B
Total Debt	31.96B	34.90B	32.71B	22.12B	23.86B	29.22B
Total Liabilities	44.20B	45.03B	43.02B	42.69B	43.11B	41.52B
Stockholders Equity	76.32B	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: 830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 830 is above the 20-day moving average (MA) of 759.70, above the 50-day MA of 715.62, and above the 200-day MA of 589.41, indicating a bullish trend. The MACD of 26.46 indicates Negative momentum. The RSI at 72.17 is Negative, neither overbought nor oversold. The STOCH value of 94.33 is Negative, 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	76 Outperform	¥26.08B	12.50	―	2.76%	7.69%	-0.40%
6474	74 Outperform	¥103.58B	23.44	2.64%	2.30%	-4.11%	46.76%
6480	71 Outperform	¥59.11B	20.90	―	2.82%	8.75%	177.16%
6157	70 Outperform	¥22.61B	18.21	―	3.31%	0.97%	-10.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	63 Neutral	¥5.53B	65.96	―	2.05%	-6.69%	-80.28%
6464	51 Neutral	¥14.53B	-14.57	―	6.98%	-11.46%	43.93%

Nippon Thompson Co., Ltd. Corporate Events

Nippon Thompson Revises Financial Forecasts and Dividends Amid Strong Sales

Nippon Thompson Co., Ltd. has revised its full-year financial forecasts for the fiscal year ending March 31, 2026, due to better-than-expected sales, particularly in the Americas and China, and a weaker yen. Despite challenges such as rising resource prices and geopolitical risks, the company expects continued demand for electronics-related equipment. Consequently, the company has increased its interim and year-end dividend forecasts, reflecting a commitment to shareholder returns and aligning with its Medium-Term Management Plan 2026.

Nippon Thompson Co., Ltd. Reports Strong Financial Growth and Increased Dividend Forecast

Nippon Thompson Co., Ltd. reported a significant improvement in its consolidated financial results for the six months ended September 30, 2025, with net sales increasing by 13.3% year-on-year and operating profit surging by 101.3%. The company also announced an increase in its annual dividend forecast, reflecting its strong financial performance and positive outlook for the fiscal year ending March 31, 2026. These results indicate a robust recovery and growth trajectory, enhancing its market position and providing positive implications for its stakeholders.

Nippon Thompson Announces Treasury Share Disposal to Boost Employee Incentives

Nippon Thompson Co., Ltd. has announced a decision to dispose of 774,200 treasury shares through a third-party allotment to The Master Trust Bank of Japan, Ltd. This move is part of reintroducing the Employee Stock Ownership Plan Trust, aimed at enhancing employee benefit programs and aligning employee interests with company performance. The disposal is expected to have a minimal impact on the secondary market due to its structured approach, and it signifies the company’s strategy to improve corporate value over the medium to long term.

Nippon Thompson Revives Employee Stock Ownership Plan to Boost Corporate Value

Nippon Thompson Co., Ltd. has announced the reintroduction of its Employee Stock Ownership Plan Trust (ESOP Trust) to enhance employee benefit programs and align employee interests with the company’s performance and share value. This move aims to improve corporate value over the medium to long term by incentivizing employees through stock ownership, thereby fostering a stronger connection between employee contributions and company success.