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

• Market Cap: ¥49.24B
• Dividend Yield: 3.36%
• Average Volume (3M): 167.09K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.07
• 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: 70 Outperform
• Price Target: ¥748.00 ▲(7.78% Upside)

Nippon Thompson's stock score is driven by solid technical analysis and a reasonable valuation, despite mixed financial performance. The upward price trend and positive technical indicators are significant strengths. The company's financial performance shows operational efficiency but also highlights areas of concern, such as cash flow management. The absence of earnings call data and corporate events does not impact the score.

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: 694.00
• 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 694 is above the 20-day moving average (MA) of 678.30, above the 50-day MA of 668.01, and above the 200-day MA of 551.60, indicating a bullish trend. The MACD of 5.00 indicates Negative momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.21 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	79 Outperform	¥25.23B	12.05	―	2.74%	8.60%	9.08%
6474	74 Outperform	€95.02B	21.51	2.64%	2.54%	-4.11%	46.76%
6480	70 Outperform	¥49.24B	23.91	―	3.36%	8.75%	177.16%
6157	70 Outperform	¥20.47B	16.48	―	3.92%	0.97%	-10.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	54 Neutral	¥5.26B	-26.48	―	2.11%	-7.53%	-136.56%
6464	52 Neutral	¥15.91B	-8.81	―	6.27%	-11.60%	-255.37%