Nihon Kohden Corporation (6849) AI Stock Analysis

• Market Cap: ¥297.83B
• Dividend Yield: 1.89%
• Average Volume (3M): 516.53K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.78
• Revenue Growth: 4.31%
• EPS Growth: 96.31%
• Country: JP
• Employees: 5,891
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 26.90
• Shares Outstanding: 170,961,960
• 10 Day Avg. Volume: 572,580
• 30 Day Avg. Volume: 516,533
• PEG Ratio: -1.46
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 40.78
• 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: ¥1,610.00
• Price Target Upside: 2.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥1,679.00 ▲(7.39% Upside)

Nihon Kohden Corporation's strong financial performance is a significant positive factor, supported by solid revenue growth and a robust balance sheet. However, the technical analysis indicates bearish momentum, which negatively impacts the stock's short-term outlook. The valuation is reasonable but not compelling enough to offset the technical weaknesses.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a positive trajectory, reflecting the company's ability to expand its market reach and product adoption over time.

Balance Sheet Health

A low debt-to-equity ratio signifies prudent financial management and low leverage risk, ensuring long-term financial stability and flexibility.

Cash Flow Generation

The significant growth in free cash flow highlights enhanced cash generation capabilities, supporting future investments and operational resilience.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin suggests potential challenges in maintaining profitability, which could impact long-term earnings growth if not addressed.

Earnings Growth

Negative EPS growth indicates challenges in increasing profitability, which could hinder the company's ability to enhance shareholder value over time.

Return on Equity

A slightly lower ROE suggests reduced efficiency in generating returns from equity, potentially impacting investor confidence and capital attraction.

Nihon Kohden Corporation Business Overview & Revenue Model

Company Description

Nihon Kohden Corporation (6849) is a leading Japanese manufacturer of medical electronic equipment, specializing in the development, production, and sales of a wide range of healthcare devices. The company operates primarily in the medical sector, providing advanced monitoring, diagnostic, and therapeutic equipment. Its core products include patient monitors, electrocardiographs, electroencephalographs, and a variety of laboratory systems, which are essential in hospitals and healthcare facilities worldwide.

How the Company Makes Money

Nihon Kohden generates revenue primarily through the sale of its medical equipment and related services. The company’s key revenue streams include product sales, which encompass patient monitoring systems, diagnostic devices, and laboratory instruments. Additionally, Nihon Kohden earns income from maintenance services and support for its equipment, ensuring ongoing revenue from existing installations. The company benefits from strategic partnerships with healthcare institutions and distributors, which help expand its market reach and enhance product visibility. Furthermore, continuous investment in research and development allows Nihon Kohden to innovate and introduce new technologies, enabling it to capture additional market share and maintain competitive advantages in the healthcare industry.

Nihon Kohden Corporation Financial Statement Overview

Summary

Nihon Kohden Corporation demonstrates strong financial health with consistent revenue growth and profitability. The company maintains a solid balance sheet with low leverage and a strong equity position. Cash flow generation is improving significantly, although there is potential for further efficiency gains.

Income Statement

Nihon Kohden Corporation shows a solid financial performance with a consistent revenue growth rate of 1.68% TTM, indicating a positive trajectory. The gross profit margin of 53.06% and net profit margin of 5.88% TTM reflect strong profitability, although the net profit margin has slightly decreased compared to the previous year. The EBIT and EBITDA margins are stable at 9.60% and 11.48% TTM, respectively, showcasing efficient operations. However, the slight decline in net income suggests potential areas for improvement.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.15 TTM, indicating prudent financial management and low leverage risk. The return on equity (ROE) is 7.59% TTM, which, while slightly lower than previous years, still reflects a reasonable return on shareholders' investments. The equity ratio of 71.17% TTM highlights a strong capital structure with significant equity backing.

Cash Flow

Nihon Kohden Corporation's cash flow position is improving, with a remarkable free cash flow growth rate of 78.25% TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is 0.33 TTM, suggesting moderate cash flow efficiency. The free cash flow to net income ratio of 0.67 TTM shows a healthy conversion of earnings into cash, although there is room for further optimization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	229.22B	225.42B	221.99B	206.60B	205.13B	199.73B
Gross Profit	121.62B	114.30B	111.35B	105.93B	109.09B	102.23B
EBITDA	26.32B	25.91B	33.25B	28.52B	37.76B	31.64B
Net Income	13.47B	14.10B	17.03B	17.11B	23.43B	18.24B
Balance Sheet
Total Assets	247.07B	257.24B	233.23B	216.73B	210.20B	193.03B
Cash, Cash Equivalents and Short-Term Investments	44.51B	43.43B	50.43B	44.46B	60.92B	44.61B
Total Debt	26.03B	26.08B	654.00M	441.00M	359.00M	404.00M
Total Liabilities	69.54B	75.94B	52.15B	49.13B	53.82B	54.05B
Stockholders Equity	175.82B	179.55B	181.08B	167.60B	156.38B	138.98B
Cash Flow
Free Cash Flow	14.54B	8.16B	10.82B	-10.77B	22.77B	10.56B
Operating Cash Flow	21.74B	15.29B	15.61B	-2.51B	25.70B	13.95B
Investing Cash Flow	-25.18B	-25.14B	-5.21B	-7.65B	-4.30B	-2.95B
Financing Cash Flow	2.55B	2.55B	-6.97B	-7.49B	-7.30B	-3.01B

Nihon Kohden Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1563.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6849, the sentiment is Negative. The current price of 1563.5 is below the 20-day moving average (MA) of 1665.58, below the 50-day MA of 1711.07, and below the 200-day MA of 1785.07, indicating a bearish trend. The MACD of -54.25 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 26.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6849.

Nihon Kohden Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5187	78 Outperform	¥9.19B	11.26	―	3.66%	4.97%	-10.07%
6678	74 Outperform	¥16.51B	13.61	―	3.65%	-4.36%	-14.92%
6823	69 Neutral	¥31.17B	10.01	―	2.78%	6.72%	20.01%
4549	66 Neutral	¥77.24B	20.01	―	2.38%	4.36%	79.43%
6849	61 Neutral	¥297.83B	21.71	―	1.89%	4.31%	96.31%
6523	54 Neutral	€130.02B	11.43	4.32%	4.34%	0.04%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nihon Kohden Corporation Corporate Events

Nihon Kohden’s New Study on SpO2 Accuracy in Children: Market Implications

Nihon Kohden Corporation is spearheading a new clinical study titled ‘Evaluation of SpO2 Accuracy in Children With Various Skin Color’. The study aims to assess the accuracy of blood oxygen level measurements in children with different skin tones, addressing a significant gap in pediatric healthcare and ensuring equitable medical care across diverse populations.

Nihon Kohden’s Innovative Approach to Hemodynamic Measurement: A Game Changer?

The recent clinical study update from Nihon Kohden Corporation, titled ‘Comparison Study of EzCVP and CVP,’ aims to evaluate the effectiveness of a non-invasive method for measuring central venous pressure (CVP) against the traditional invasive approach. This study is significant as it could revolutionize how heart failure, specifically congestive heart failure, is monitored, potentially improving patient outcomes and reducing procedure-related risks.

Nihon Kohden’s Innovative Heart Failure Study: Market Implications and Progress

Study Overview: Nihon Kohden Corporation is conducting a pilot study titled Pilot Study for the Evaluation of EzCVP in Heart Failure Patients. The study aims to evaluate changes in non-invasive central venous pressure (CVP) in heart failure patients during their hospital stay and its relationship with readmission rates. This research is significant as it could lead to improved monitoring and management of heart failure, potentially reducing hospital readmissions.

Nihon Kohden Ends Abbott Partnership, Launches Employee Support Programs

Nihon Kohden Corporation has announced the termination of its distribution partnership with Abbott Medical Japan LLC, effective December 31, 2026, as part of its strategic business portfolio review. In response, the company is implementing two support programs: the Career Change Support Program for employees involved in the Abbott business, and the Next Career Support Program for employees seeking new career opportunities or early retirement. These initiatives are expected to result in extraordinary losses of approximately ¥2.4 billion in FY2025, but a reduction in SG&A expenses by around ¥2.3 billion in FY2026.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen1898.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Ends Abbott Partnership to Focus on In-House Growth

Nihon Kohden Corporation has announced the termination of its distribution partnership with Abbott Medical Japan LLC, effective December 31, 2026. This decision aligns with Nihon Kohden’s strategy to transform its business portfolio and focus on its own products, aiming for long-term growth in the domestic market. The transition will be phased to ensure minimal disruption to patients and medical institutions, with the impact on financial results expected to be minor.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen1898.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.