NITTAN Corporation (6493) AI Stock Analysis

• Market Cap: ¥20.31B
• Dividend Yield: 2.02%
• Average Volume (3M): 188.62K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.08
• Revenue Growth: 0.29%
• EPS Growth: 1092.40%
• Country: JP
• Employees: 2,579
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 19.17
• Shares Outstanding: 28,978,860
• 10 Day Avg. Volume: 110,500
• 30 Day Avg. Volume: 188,620
• PEG Ratio: 2.69
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 6.49
• 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: 70 Outperform
• Price Target: ¥776.00 ▲(18.11% Upside)

The score is driven primarily by solid financial performance (revenue growth, prudent leverage, and strong operating cash generation), supported by an attractive valuation (P/E below 10). Technical signals are mixed, with near-term weakness versus the 20-day average offset by a still-positive longer-term trend, which tempers the overall rating.

Positive Factors

Consistent Revenue Growth

A steady 4% top-line increase indicates durable demand from automotive OEMs and stable order flow. Over 2–6 months this supports ongoing production volumes, predictable supplier relationships, and a reliable revenue base for reinvestment and margin recovery initiatives.

Prudent Balance Sheet

Low leverage and a strong equity ratio provide financial flexibility to fund capex, absorb cyclicality in auto demand, and maintain supplier commitments. This structural strength reduces refinancing risk and supports long-term investment without excessive debt strain.

Strong Operating Cash Generation

A high operating-CFO-to-net-income ratio shows efficient cash conversion from operations. This durable cash generation supports working capital, capex and modest shareholder returns, lowering reliance on external financing through business cycles.

Negative Factors

Modest Profitability

A ~1.2% net margin signals a thin profit pool and limited internal cushion for cost shocks or investment. Persistently low margins constrain free cash available for growth, limit capital allocation flexibility, and make returns sensitive to small revenue or cost changes.

Large Drop in Free Cash Flow

A severe FCF decline suggests rising capex, working capital strain, or one-off outflows that materially reduce cash available for dividends, debt paydown, or strategic investments. If structural, this weakens the firm's ability to self-fund future initiatives.

Pressure on Operating Margins

Eroding EBIT/EBITDA margins point to cost inflation, pricing pressure, or efficiency challenges. Sustained margin compression would reduce competitiveness, lower return on invested capital, and require either cost restructuring or higher pricing to restore profitability.

NITTAN Corporation Business Overview & Revenue Model

Company Description

NITTAN Corporation manufactures and distributes engine valves in Japan. The company offers engine valves for engines in automobiles, motorcycles and scooters, trucks, and buses; and engine valves for marine and general-purpose products for engine manufacturing customers, as well as for generators, tillers, mowers, etc. It also manufactures and sells precision forged gears and automatic transmission parts for automobiles, trucks, agricultural, construction, and industrial machinery. In addition, the company manufactures and sells valve lifters, roller rocker arms, and machine tools; and produces, processes, and sells chemical free vegetables. The company was formerly known as Nittan Valve Co., Ltd. and changed its name to NITTAN Corporation in April 2022. NITTAN Corporation was founded in 1948 and is headquartered in Hadano, Japan.

How the Company Makes Money

NITTAN Corporation generates revenue through the sale of its fire protection products, which include various models of smoke detectors, fire alarm control panels, and related accessories. The company's revenue model is based on direct sales to customers, as well as partnerships with distributors and contractors who integrate NITTAN’s products into larger fire safety systems. Additionally, NITTAN may benefit from service contracts and maintenance agreements for their installed systems, providing ongoing revenue. The company's strong reputation in the fire safety industry and compliance with international safety standards contribute to its competitive edge and customer trust, driving sales growth.

NITTAN Corporation Financial Statement Overview

Summary

Solid fundamentals supported by consistent revenue growth (+4.0% from 2024 to 2025) and strong operating cash generation (Operating Cash Flow to Net Income ratio of 6.8). Balance sheet leverage is prudent (Debt-to-Equity 0.41; Equity Ratio 43.6%), but profitability remains modest (Net Profit Margin 1.2%) and free cash flow fell materially (FCF growth -65.7%).

Income Statement

NITTAN Corporation has demonstrated consistent revenue growth, with a notable increase of 4.0% from 2024 to 2025. The Gross Profit Margin remains stable around 12.9%, and the Net Profit Margin improved slightly to 1.2% in 2025. However, EBIT and EBITDA margins have slightly decreased, indicating some pressure on operational efficiency. Overall, the company shows solid growth dynamics with room for improvement in profitability margins.

Balance Sheet

The company's balance sheet reflects a stable financial position with a decreasing Debt-to-Equity Ratio, currently at 0.41, indicating prudent leverage management. The Return on Equity has slightly improved to 2.2%, and the Equity Ratio stands strong at 43.6%. While the financial structure is robust, there is potential for enhancing returns on equity.

Cash Flow

NITTAN Corporation's cash flow performance is commendable, with a Free Cash Flow Growth Rate of -65.7% in 2025 due to reduced Free Cash Flow. However, the Operating Cash Flow to Net Income Ratio is favorable at 6.8, indicating strong cash generation relative to net income. Despite the drop in free cash flow, the company maintains a positive operating cash flow, which is crucial for ongoing operations and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.79B	51.45B	49.48B	41.88B	38.67B	34.71B
Gross Profit	7.63B	6.62B	6.62B	5.46B	5.83B	3.72B
EBITDA	7.20B	6.68B	7.06B	6.29B	6.77B	6.08B
Net Income	1.55B	630.21M	601.01M	391.87M	644.64M	670.38M
Balance Sheet
Total Assets	63.98B	66.61B	62.98B	56.91B	54.75B	54.13B
Cash, Cash Equivalents and Short-Term Investments	10.09B	9.27B	9.07B	6.83B	6.31B	6.00B
Total Debt	11.76B	12.01B	9.72B	10.31B	10.90B	12.70B
Total Liabilities	26.81B	28.57B	25.94B	23.93B	23.33B	24.50B
Stockholders Equity	28.71B	29.03B	28.47B	24.95B	23.93B	22.58B
Cash Flow
Free Cash Flow	0.00	1.24B	3.61B	2.25B	3.53B	1.23B
Operating Cash Flow	0.00	4.30B	6.96B	4.80B	6.88B	5.44B
Investing Cash Flow	0.00	-3.77B	-3.34B	-2.53B	-3.54B	-2.58B
Financing Cash Flow	0.00	-864.98M	-1.91B	-2.20B	-3.30B	-1.86B

NITTAN Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 657.00
• 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:6493, the sentiment is Neutral. The current price of 657 is below the 20-day moving average (MA) of 755.65, below the 50-day MA of 689.76, and above the 200-day MA of 506.23, indicating a neutral trend. The MACD of 21.49 indicates Positive momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6493.

NITTAN Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7228	81 Outperform	¥8.82B	7.58	―	3.19%	5.38%	5.29%
7235	78 Outperform	¥15.16B	7.99	―	4.02%	2.31%	10.68%
7254	76 Outperform	¥16.94B	7.99	―	1.67%	-4.44%	-17.38%
6493	70 Outperform	¥20.31B	8.98	―	2.02%	0.29%	1092.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥11.85B	34.51	―	2.23%	-4.06%	―
7256	51 Neutral	¥6.04B	-1.10	―	―	-9.54%	21.21%