Nakakita Seisakusho Co., Ltd. (6496) AI Stock Analysis

• Market Cap: ¥20.36B
• Dividend Yield: 1.84%
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.13
• Revenue Growth: 34.70%
• EPS Growth: -8.44%
• Country: JP
• Employees: 378
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 126.19
• Shares Outstanding: 3,832,800
• 10 Day Avg. Volume: 13,550
• 30 Day Avg. Volume: 22,546
• PEG Ratio: 0.11
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -3.85
• 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: 76 Outperform
• Price Target: ¥6,543.00 ▲(14.79% Upside)

The overall stock score of 76 reflects strong technical momentum and a solid valuation, balanced by financial performance that is robust but challenged by cash flow issues. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates a positive trajectory, showcasing the company's ability to capture market demand and expand its market presence.

Balance Sheet Health

Low leverage enhances financial stability and provides flexibility for future investments or to weather economic downturns.

Product Innovation

Continuous R&D investments ensure the company remains competitive by meeting evolving industrial demands, driving long-term growth.

Negative Factors

Cash Flow Challenges

Cash flow issues could strain liquidity, limiting the company's ability to invest in growth opportunities or manage unexpected expenses.

Decline in EBIT Margin

A declining EBIT margin may indicate rising costs or inefficiencies, potentially impacting profitability if not addressed.

EPS Growth Decline

A decline in EPS growth can signal challenges in maintaining profitability, potentially affecting investor confidence and future capital raising.

Nakakita Seisakusho Co., Ltd. Business Overview & Revenue Model

Company Description

Nakakita Seisakusho Co., Ltd. designs, produces, and sells automatic control valves, butterfly valves, and remote control systems. Its control/shut-off valves include self operated type regulating, auxiliary power operated type control, remotely operated, cylinder, and safety valves, as well as pneumatic operated automatic controllers, pneumatic operated actuators, and nuclear power plant valves; and butterfly valves comprise manually operated, remote-control, and cryogenic type butterfly valves. The company also engages in the installation of pressure reducing and desuperheater other automatic control valves, and equipment. In addition, it offers valve remote control systems for cargo and ballast line and level gauging systems; and various systems for ship engines, such as fuel oil heating, fresh water cooling, and lubricating oil cooling systems; and automatic control values for use in gas turbine power plants. The company's products are also used in power plants, steel works, desalination plants, etc. Nakakita Seisakusho Co., Ltd. was founded in 1930 and is headquartered in Daito, Japan.

How the Company Makes Money

Nakakita Seisakusho generates revenue primarily through the sale of its precision machinery and equipment. The company's revenue model is built on direct sales to manufacturers in various sectors, including automotive and aerospace, where high-quality precision tools and automated systems are in demand. Key revenue streams include one-time equipment sales, ongoing maintenance services, and potentially custom solutions tailored to specific client needs. Additionally, strategic partnerships with major manufacturers and suppliers in the industry enhance its market reach and contribute to stable earnings. Factors such as technological advancements, increasing demand for automation in manufacturing, and a focus on quality control further bolster the company's revenue potential.

Nakakita Seisakusho Co., Ltd. Financial Statement Overview

Summary

Nakakita Seisakusho Co., Ltd. demonstrates robust revenue growth and profitability, supported by a strong balance sheet with low leverage. However, cash flow challenges pose a risk to liquidity, necessitating attention to operational cash generation. Overall, the company is financially sound but should focus on improving cash flow management.

Income Statement

Nakakita Seisakusho Co., Ltd. has shown strong revenue growth of 15.82% in the latest year, indicating a positive trajectory. The gross profit margin of 17.36% and net profit margin of 7.28% reflect solid profitability. However, the slight decline in EBIT margin to 10.23% suggests some operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The return on equity of 6.80% shows efficient use of equity, though there is room for improvement. The equity ratio of 69.84% underscores a strong equity base.

Cash Flow

The cash flow statement reveals challenges, with negative operating cash flow and free cash flow, leading to a concerning free cash flow growth rate. The free cash flow to net income ratio of 1.34 indicates reliance on non-operational cash flows, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.66B	23.77B	18.61B	15.78B	17.16B	17.56B
Gross Profit	3.23B	4.13B	3.41B	2.94B	2.59B	2.78B
EBITDA	2.13B	2.71B	1.68B	1.36B	1.04B	1.21B
Net Income	1.54B	1.73B	1.02B	806.41M	556.52M	673.75M
Balance Sheet
Total Assets	36.45B	36.45B	31.74B	29.04B	27.85B	27.21B
Cash, Cash Equivalents and Short-Term Investments	5.49B	5.49B	6.72B	7.13B	8.46B	10.21B
Total Debt	3.08B	3.08B	1.62B	1.76B	1.20B	1.20B
Total Liabilities	11.00B	11.00B	6.95B	5.74B	5.39B	5.11B
Stockholders Equity	25.46B	25.46B	24.79B	23.30B	22.46B	22.10B
Cash Flow
Free Cash Flow	0.00	-3.39B	501.89M	-1.98B	113.03M	1.67B
Operating Cash Flow	0.00	-2.52B	811.48M	1.63B	609.82M	1.84B
Investing Cash Flow	0.00	2.18B	-1.11B	-876.10M	194.55M	-1.02B
Financing Cash Flow	0.00	1.02B	-507.44M	313.69M	-357.33M	-502.06M

Nakakita Seisakusho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5700.00
• 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:6496, the sentiment is Positive. The current price of 5700 is below the 20-day moving average (MA) of 5786.35, below the 50-day MA of 5727.17, and above the 200-day MA of 4495.96, indicating a neutral trend. The MACD of -26.51 indicates Positive momentum. The RSI at 47.58 is Neutral, neither overbought nor oversold. The STOCH value of 20.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6496.

Nakakita Seisakusho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6496	76 Outperform	¥20.36B	14.66	―	1.84%	34.70%	-8.44%
6498	72 Outperform	¥148.27B	12.82	10.44%	2.81%	2.74%	7.86%
6486	69 Neutral	¥137.50B	18.31	―	3.93%	1.70%	18.50%
6490	67 Neutral	¥105.57B	12.27	―	2.71%	-2.46%	-10.72%
6492	65 Neutral	¥13.23B	12.65	―	0.77%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	50 Neutral	¥5.81B	97.12	―	1.65%	3.96%	―