NFK Holdings Co.,Ltd (6494) AI Stock Analysis

• Market Cap: ¥6.14B
• Dividend Yield: N/A
• Average Volume (3M): 632.92K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 0.45
• Revenue Growth: 9.59%
• EPS Growth: 54.63%
• Country: JP
• Employees: 85
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.11
• Shares Outstanding: 48,744,625
• 10 Day Avg. Volume: 922,580
• 30 Day Avg. Volume: 632,923
• PEG Ratio: -0.39
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.73
• P/FCF Ratio: -541.96
• 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: 62 Neutral
• Price Target: ¥147.00 ▲(38.68% Upside)

The score is primarily driven by mixed financial performance—balance sheet strength is a clear positive, but recent revenue weakness and deteriorating cash flow/negative free cash flow temper confidence. Technicals add a modestly supportive but not strong backdrop, while the high P/E reduces the overall attractiveness on valuation.

Positive Factors

Balance Sheet Strength

A high equity ratio and low leverage provide durable financial resilience. This balance-sheet strength supports capital spending, absorbs cyclical downturns in industrial end markets, and preserves borrowing capacity for strategic investments or partnership financing over the next several quarters.

Diversified, Contracted Revenue

Multiple revenue streams and long-term contracts with automotive and aerospace clients create predictable cash flows and lower revenue volatility. Strategic partnerships and recurring contract work support customer stickiness, easing revenue visibility and planning for 2–6 month horizons and beyond.

Stable Operational Margins

Consistent EBIT/EBITDA margins indicate disciplined cost control and operational processes. Stable operating profitability helps the company absorb top-line softness without proportionate earnings deterioration, supporting medium-term free-cash-generation potential when revenue stabilizes.

Negative Factors

Recent Revenue Decline

A recent top-line decline signals demand challenges or customer spend variability. Persisting revenue weakness can erode scale economics, constrain R&D or capex funding, and pressure margins and growth initiatives, making medium-term recovery and earnings stability more uncertain.

Deteriorating Cash Flow / Negative FCF

A sharp drop in operating cash flow and a negative free cash flow year reduce liquidity for reinvestment and increase reliance on external financing. This weakens the firm's ability to fund capex, R&D, or cushion downturns, raising medium-term funding and strategic flexibility risks.

Profitability Volatility / Declining ROE

Falling ROE and net-income volatility indicate weakened returns on shareholder capital and inconsistent profit conversion. Over time this can limit reinvestment potential, dampen investor confidence, and constrain the company’s ability to finance growth internally without dilutive or costly external capital.

NFK Holdings Co.,Ltd Business Overview & Revenue Model

Company Description

NFK Holdings Co., Ltd (6494) is a diversified holding company primarily involved in the manufacturing and distribution of high-quality fabricated metal products and components. The company operates in various sectors, including automotive, aerospace, and industrial machinery, providing innovative solutions that meet the demands of its global clientele. NFK Holdings is known for its commitment to sustainability and technological advancement, offering products that enhance efficiency and reduce environmental impact.

How the Company Makes Money

NFK Holdings generates revenue through multiple streams, including the sale of fabricated metal products, custom manufacturing services, and value-added solutions for various industries. The company typically enters long-term contracts with major clients, especially in the automotive and aerospace sectors, ensuring a steady flow of income. Additionally, NFK Holdings benefits from strategic partnerships with key industry players, allowing for collaborative projects that enhance its product offerings and market reach. The company also invests in research and development to innovate and improve its product lines, which helps to attract new customers and retain existing ones, thus contributing positively to its overall earnings.

NFK Holdings Co.,Ltd Financial Statement Overview

Summary

Mixed fundamentals: a strong balance sheet (high equity ratio, low leverage) supports stability, but income statement trends show recent revenue decline and profitability volatility. Cash flow is a key risk with a sharp recent operating cash flow drop and negative free cash flow in the last year.

Income Statement

NFK Holdings Co.,Ltd has shown fluctuating revenue with a decline in the recent year. Gross Profit Margin is relatively stable, but Net Profit Margin indicates volatility due to varying net income levels. The EBIT and EBITDA margins are consistent, reflecting steady operational efficiency, but the recent decline in revenue growth is a concern.

Balance Sheet

The company has a strong equity position with a high Equity Ratio, indicating financial stability. The Debt-to-Equity Ratio is low, showing prudent leverage management. However, the Return on Equity has decreased recently, suggesting challenges in income generation from equity.

Cash Flow

Operating Cash Flow has been positive, with a substantial drop in the most recent period. Free Cash Flow is negative in the last year, raising concerns about liquidity and investment capacity. The Operating Cash Flow to Net Income Ratio has been inconsistent, indicating fluctuations in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.96B	2.08B	2.13B	2.16B	1.95B	2.31B
Gross Profit	571.11M	588.99M	582.57M	613.19M	558.99M	627.35M
EBITDA	136.84M	162.15M	156.66M	191.28M	136.87M	220.36M
Net Income	93.73M	105.63M	790.90M	122.66M	127.87M	201.75M
Balance Sheet
Total Assets	5.58B	5.74B	5.64B	5.40B	4.58B	4.71B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.58B	2.65B	1.39B	1.42B	2.25B
Total Debt	49.51M	42.94M	44.66M	248.00M	255.00M	248.00M
Total Liabilities	469.61M	585.51M	601.12M	1.05B	879.65M	1.15B
Stockholders Equity	5.11B	5.16B	5.04B	4.35B	3.70B	3.56B
Cash Flow
Free Cash Flow	0.00	-6.67M	288.99M	-19.30M	203.35M	326.13M
Operating Cash Flow	0.00	4.34M	483.59M	-3.57M	300.55M	435.34M
Investing Cash Flow	0.00	-66.42M	976.71M	-25.09M	-1.13B	-48.01M
Financing Cash Flow	0.00	-2.79M	-203.34M	-7.00M	7.00M	602.30M

NFK Holdings Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 106.00
• 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:6494, the sentiment is Neutral. The current price of 106 is below the 20-day moving average (MA) of 134.05, below the 50-day MA of 136.74, and below the 200-day MA of 108.25, indicating a neutral trend. The MACD of -2.25 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6494.

NFK Holdings Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6490	79 Outperform	¥152.50B	17.73	―	2.50%	-2.46%	-10.72%
6486	70 Outperform	¥152.04B	20.25	―	3.88%	1.70%	18.50%
6496	69 Neutral	¥23.50B	14.72	―	1.82%	34.70%	-8.44%
6492	65 Neutral	¥11.64B	11.13	―	0.72%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6494	62 Neutral	¥6.14B	39.47	―	―	9.59%	54.63%
6495	53 Neutral	¥8.06B	134.84	―	1.65%	3.96%	―