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

• Market Cap: ¥24.89B
• Dividend Yield: 1.82%
• Average Volume (3M): 22.55K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.21
• 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: 69 Neutral
• Price Target: ¥7,424.00 ▲(29.34% Upside)

The score is driven primarily by strong financial health and profitability with very low leverage, tempered by negative operating/free cash flow. Technicals are supportive via trend and MACD but look overextended (high RSI/Stoch). Valuation appears reasonable with a modest dividend yield.

Positive Factors

Low Leverage / Strong Balance Sheet

Very low leverage and a high equity base reduce refinancing and solvency risk, enabling strategic investment in R&D, capex, or customer programs. Over a multi-month horizon this financial flexibility supports execution on automation projects and cushions industry cyclicality.

Sustained Revenue Growth and Profitability

Consistent double-digit revenue growth with positive gross and net margins indicates ongoing demand and operational viability. This trend supports reinvestment in products and customer programs, underpinning durable earnings power across industrial and automotive/aerospace end markets.

Diversified End Markets and Service Revenue

Exposure to multiple industrial sectors and a mix of one-time equipment sales plus maintenance/custom services reduces single-market cyclicality and creates recurring aftermarket revenue. Structurally, demand for automation in manufacturing supports a larger, durable addressable market.

Negative Factors

Negative Operating and Free Cash Flow

Reported negative operating and free cash flow indicate earnings are not converting into cash, risking liquidity and limiting self-funding of capex or service expansions. Persisting cash outflows could force external financing or constrain strategic investment over the medium term.

Reliance on Non‑operational Cash Sources

A FCF-to-net-income ratio above 1 driven by non-operational items raises quality-of-earnings concerns. If cash generation depends on one-offs, future operating cash could be volatile, undermining dividend sustainability, capex funding, and creditor confidence across quarters.

Pressure on Operating Margins

A falling EBIT margin suggests rising costs or pricing pressure that, if sustained, erodes operating profitability and return on capital. Over several months this can limit reinvestment capacity, weaken competitive positioning, and compress the buffer against cyclical demand swings.

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: 5740.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5740 is below the 20-day moving average (MA) of 5931.00, below the 50-day MA of 5937.79, and above the 200-day MA of 4694.85, indicating a bullish trend. The MACD of 220.02 indicates Negative momentum. The RSI at 78.85 is Negative, neither overbought nor oversold. The STOCH value of 94.02 is Negative, 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
6498	72 Outperform	¥159.56B	13.80	10.44%	2.77%	2.74%	7.86%
6486	69 Neutral	¥144.91B	19.30	―	3.88%	1.70%	18.50%
6496	69 Neutral	¥24.89B	15.59	―	1.82%	34.70%	-8.44%
6490	67 Neutral	¥124.84B	14.51	―	2.50%	-2.46%	-10.72%
6492	65 Neutral	¥13.66B	13.06	―	0.72%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	57 Neutral	¥8.21B	137.25	―	1.65%	3.96%	―