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

• Market Cap: ¥63.79B
• Dividend Yield: 2.82%
• Average Volume (3M): 167.09K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.20
• Revenue Growth: 8.75%
• EPS Growth: 177.16%
• Country: JP
• Employees: 2,472
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 18.15
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥975.00 ▲(19.34% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by mixed financial performance (stable balance sheet but inconsistent profitability and cash flow), supported by strong technical uptrend signals. Valuation is reasonable with a moderate P/E and a mid-single-digit dividend yield, but overextended momentum indicators temper the outlook.

Positive Factors

Product & Market Exposure

Nippon Thompson’s core portfolio of linear guides, needle roller bearings and engineered motion modules is embedded in capital equipment for semiconductors, factory automation and robotics. That product stickiness and diversified industrial end-market exposure support recurring design‑wins and aftermarket revenue over the medium term, giving durable demand potential despite cyclical swings.

Balance Sheet Health

A strong equity base and conservative leverage give the company financial flexibility to fund capex, mold tooling, and selective M&A or R&D without excessive refinancing risk. This stability supports investment in quality control and delivery capability—critical for maintaining design‑in status with OEMs and servicing aftermarket needs over multiple cycles.

Revenue Growth & EBITDA

Mid‑teens top‑line growth alongside sustained positive EBITDA shows the business can scale sales while preserving core operating profitability. That combination indicates durable commercial traction for both standardized and engineered products, enabling reinvestment in product development and capacity that supports continued market share gains over the next several quarters.

Negative Factors

Volatile Cash Flow

Inconsistent operating and free cash flow reduces predictability for capex and working capital needs, forcing greater reliance on external financing or reserve buffers. Over 2–6 months this volatility can constrain investment in production capacity or R&D, and makes the company more vulnerable to timing mismatches in cyclical order flows.

Inconsistent Profitability

Variable gross and net margins and recent declines in revenue undermine margin sustainability. This inconsistency signals exposure to pricing pressure, mix shifts, or input cost changes that can erode returns. Over the medium term, it complicates planning for margin improvement and limits steady free cash generation.

Cyclicality of End Markets

High exposure to industrial capex cycles—notably machine tools and semiconductor equipment—means demand can swing materially with macro and sector investment cycles. Even with strong products, this structural cyclicality drives order volatility, inventory and capacity mismatches, and uneven revenue recognition across quarters.

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 primarily makes money by manufacturing and selling precision motion components and related products to business customers (B2B), with revenue largely tied to industrial capital expenditure and production activity. Key revenue streams include: (1) Linear motion rolling guides (e.g., linear guides/rail systems and carriages): sold as standardized products and as application-specific variants; these are used to support high-precision, low-friction linear movement in machine tools, automation equipment, and semiconductor manufacturing tools. (2) Needle roller bearings and related bearing products: sold to OEMs and distributors for incorporation into motors, gearboxes, industrial equipment, and other rotating/linear mechanisms. (3) Related motion components, modules, and engineered solutions: revenue from packaged/assembled units or customized designs where customers require specific dimensions, load ratings, sealing, lubrication, or integration into their machines; this can increase average selling price versus purely catalog items. The company monetizes through unit sales (volume-driven) and value-added engineered specifications (margin-driven), selling via direct sales to large OEMs and through distributors for broader industrial coverage. Recurring demand also arises from aftermarket replacement and maintenance cycles for bearings and linear motion components once installed in equipment, although the proportion of revenue attributable to aftermarket versus OEM sales is null. Significant factors influencing earnings include customer industry mix (notably exposure to machine tools and semiconductor/electronics manufacturing equipment), global manufacturing demand, and the company’s ability to maintain precision quality, reliability, and delivery performance that allow its components to be designed into customers’ equipment platforms.

Nippon Thompson Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement shows fluctuating revenue/profitability but still positive EBIT/EBITDA; balance sheet is relatively strong with a healthy equity base and reasonable leverage; cash flow is volatile with inconsistent operating and free cash flow conversion.

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 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	56.32B	54.38B	55.05B	68.26B	62.28B	44.34B
Gross Profit	17.56B	17.12B	18.00B	24.48B	19.34B	11.65B
EBITDA	5.09B	4.83B	6.49B	12.88B	9.78B	3.27B
Net Income	1.65B	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	42.68B	43.10B	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	-6.79B	4.21B	8.47B	2.71B
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: Negative
• Last Price: 817.00
• 50DMA: Negative
• 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 Negative. The current price of 817 is below the 20-day moving average (MA) of 970.15, below the 50-day MA of 962.24, and above the 200-day MA of 729.24, indicating a neutral trend. The MACD of -19.70 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 68.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9962	75 Outperform	¥745.59B	18.30	9.10%	1.63%	6.28%	2.62%
6877	74 Outperform	¥85.08B	7.58	―	3.85%	9.38%	8.88%
6136	72 Outperform	¥235.48B	13.29	7.86%	2.55%	0.57%	4.54%
6480	67 Neutral	¥63.79B	11.27	―	2.82%	8.75%	177.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥111.43B	17.03	2.64%	2.30%	-4.11%	46.76%
6472	52 Neutral	¥198.74B	85.52	-4.83%	3.08%	-3.18%	-531.48%

Nippon Thompson Co., Ltd. Corporate Events

Nippon Thompson Swings to Solid Profit and Lifts Dividend on Strong Nine-Month Results

Nippon Thompson Co., Ltd. reported a strong rebound in performance for the nine months ended December 31, 2025, with net sales rising 13.3% year on year to ¥45.6 billion and operating profit surging 242.2% to ¥2.36 billion. Ordinary profit climbed 137.3% to ¥3.14 billion and profit attributable to owners of parent swung from a loss to ¥2.97 billion, lifting basic earnings per share to ¥42.77 and pushing comprehensive income up more than fourfold.

The company’s financial position also improved, with total assets edging up to ¥121.8 billion and the equity ratio strengthening to 66.2%, while net assets per share increased to ¥1,155.89. Reflecting this recovery, Nippon Thompson maintained its full-year forecast, projecting double-digit sales growth to ¥60.5 billion, sharp profit gains, and raising annual dividends from ¥19.00 to a planned ¥28.00 per share, signaling growing returns to shareholders alongside enhanced capital efficiency.

The most recent analyst rating on (JP:6480) stock is a Buy with a Yen1074.00 price target. To see the full list of analyst forecasts on Nippon Thompson Co., Ltd. stock, see the JP:6480 Stock Forecast page.