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

• Market Cap: ¥42.15B
• Dividend Yield: 3.15%
• Average Volume (3M): 109.97K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.06
• Revenue Growth: -1.21%
• EPS Growth: -62.52%
• Country: JP
• Employees: 2,472
• Sector: Industrials
• Sector Strength: 93
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 14.05
• Shares Outstanding: 73,501,430
• 10 Day Avg. Volume: 136,280
• 30 Day Avg. Volume: 109,970
• PEG Ratio: 0.30
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥543.00
• Price Target Upside: -10.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• 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. Business Overview & Revenue Model

Company Description

Nippon 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 Money

Nippon 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

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

Nippon Thompson Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 604.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5957	77 Outperform	¥22.75B	11.43		3.18%	7.59%	12.32%
Sector *	71 Outperform	¥269.20B	13.89	8.47%	2.88%	6.35%	13.11%
6157	70 Outperform	¥19.47B	15.04		3.85%	3.18%	2.22%
6474	69 Neutral	¥77.06B	16.77	2.79%	3.09%	-4.76%	78.57%
6480	65 Neutral	¥42.15B	41.92		3.15%	-1.21%	-62.52%
7726	58 Neutral	¥5.30B	30.70		2.16%	-6.59%	-65.39%
6464	52 Neutral	¥14.61B	17.68		6.94%	-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.