Nihon Kohden Corporation (6849) AI Stock Analysis

• Market Cap: ¥278.46B
• Dividend Yield: 1.92%
• Average Volume (3M): 516.53K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.75
• Revenue Growth: 4.31%
• EPS Growth: 96.31%
• Country: JP
• Employees: 5,891
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 11.57
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 82.68
• Revenue Forecast (FY): ¥235.02B

• Rating: 65 Neutral
• Price Target: ¥1,778.00 ▲(5.64% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily supported by solid revenue growth and a strong, low-leverage balance sheet. It is held back by weaker cash-flow consistency and margin compression, along with bearish technical signals (below major moving averages and negative MACD). Valuation is fair-to-slightly expensive (P/E ~22.8) with only a modest dividend yield (~1.94%).

Positive Factors

Conservative balance sheet / low leverage

Low leverage (debt-to-equity ~0.15) and a sizable equity base provide durable financial flexibility. This resilience supports capital expenditure, R&D and service network investments, reduces refinancing risk in downturns, and preserves optionality for strategic moves over months to years.

Consistent revenue growth and installed base

Sustained TTM revenue growth (~8.7%) reflects steady demand for core monitoring, diagnostic and emergency equipment. A large installed base drives recurring consumables, maintenance and software revenue, supporting predictable aftermarket streams and durable top-line momentum across hospital capital cycles.

Strong product-level profitability

High gross margin (~52%) and positive operating margin (~8.4%) indicate product-level pricing power and cost-efficiency. These margins underpin reinvestment capacity for R&D, manufacturing and service capabilities, helping sustain competitive differentiation and long-term profitability.

Negative Factors

Net margin compression

Net margin contraction to ~5.4% suggests rising costs or adverse product mix that erode earnings quality. If structural, this limits retained earnings available for reinvestment, constrains dividend or buyback capacity, and reduces the margin buffer against pricing pressure in healthcare procurement.

Inconsistent free cash flow generation

FCF conversion (~61% of net income) and sharply negative TTM FCF growth point to working-capital or investment volatility. Inconsistent cash generation undermines funding predictability for capex, service rollout or M&A, potentially forcing higher borrowing or delaying strategic investments.

Step-up in debt versus earlier years

Although absolute leverage remains low, the recent step-up in debt from near-zero levels reduces the company's historical financial flexibility. Continued increases could constrain strategic bidding, raise financing costs, and leave less room to absorb revenue shocks over the medium term.

Nihon Kohden Corporation Business Overview & Revenue Model

Company Description

Nihon Kohden Corporation engages in research and development, production, sale, repair, and maintenance of medical electronic equipment in Japan, Americas, Europe, rest of Asia, and internationally. The company offers physiological measuring equipment, including electroencephalographs, electrocardiographs, evoked potential and electromyogram measuring instruments, and polygraphs for cath labs, as well as diagnostic information systems and related consumables, such as recording papers, electrodes and catheters, and maintenance services. It also provides patient monitors systems comprising central monitors, bedside monitors, wireless monitors, remote access software, and other equipment; and clinical information systems and related consumables, such as electrodes and sensors. In addition, the company offers treatment equipment, which include defibrillators, automated external defibrillators (AED), ventilators, pacemakers, anesthesia machines, cochlear implants, and related consumables and services, which include AED pads and batteries; and other medical equipment, including hematology and clinical chemistry analyzers, ultrasound diagnostic equipment, and equipment for research and others, as well as consumables, including test reagents, and installation and maintenance services. Additionally, it engages in insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Tokyo, Japan.

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

Revenue growth is solid (TTM +8.7%) and the balance sheet is conservatively positioned with low leverage (debt-to-equity ~0.15) and reasonable ROE (~10%). Offsetting this, profitability has softened versus prior years (net margin ~5.4% with compression) and cash-flow quality is uneven, with weaker free-cash-flow conversion (~61% of net income) and sharply negative TTM FCF growth.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew a solid 8.7%, indicating good demand momentum. Profitability remains healthy with ~52% gross margin and ~8.4% operating margin, but net margin is modest at ~5.4% and has compressed versus prior annual periods (FY2024–FY2022), suggesting higher costs and/or mix pressure. Overall, growth is improving, but earnings power is not yet back to earlier peak levels.

Balance Sheet

The balance sheet is conservatively positioned with low leverage (debt-to-equity ~0.15 in TTM, still manageable) and a sizable equity base. Returns are reasonable (TTM return on equity ~10%), supporting the view that capital is being used effectively. A notable watch item is the step-up in debt versus earlier years when leverage was near-zero, reducing flexibility modestly even though overall balance sheet risk remains contained.

Cash Flow

Cash generation is positive in TTM, with operating cash flow of ~¥21.5B and free cash flow of ~¥13.2B, but conversion is only moderate (free cash flow about 61% of net income). Free cash flow growth is sharply negative in TTM, pointing to volatility likely driven by working-capital or investment swings. Compared with stronger cash years (e.g., FY2022), current cash-flow quality is less consistent.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	230.96B	225.42B	221.99B	206.60B	205.13B	199.73B
Gross Profit	119.81B	114.30B	111.35B	105.93B	109.09B	102.23B
EBITDA	24.23B	25.91B	33.25B	28.52B	37.76B	31.64B
Net Income	12.37B	14.10B	17.03B	17.11B	23.43B	18.24B
Balance Sheet
Total Assets	246.76B	257.24B	233.23B	216.73B	210.20B	193.03B
Cash, Cash Equivalents and Short-Term Investments	44.00B	43.43B	50.43B	44.46B	60.92B	44.61B
Total Debt	25.55B	26.08B	654.00M	441.00M	359.00M	404.00M
Total Liabilities	74.23B	75.94B	52.15B	49.13B	53.82B	54.05B
Stockholders Equity	172.53B	179.55B	181.08B	167.60B	156.38B	138.98B
Cash Flow
Free Cash Flow	13.18B	8.16B	10.82B	-10.77B	22.77B	10.56B
Operating Cash Flow	21.47B	15.29B	15.61B	-2.51B	25.70B	13.95B
Investing Cash Flow	-8.38B	-25.14B	-5.21B	-7.65B	-4.30B	-2.95B
Financing Cash Flow	-9.07B	2.55B	-6.97B	-7.49B	-7.30B	-3.01B

Nihon Kohden Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1683.00
• 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:6849, the sentiment is Positive. The current price of 1683 is below the 20-day moving average (MA) of 1705.10, below the 50-day MA of 1721.06, and below the 200-day MA of 1690.11, indicating a neutral trend. The MACD of -16.08 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 26.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6849.

Nihon Kohden Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6678	78 Outperform	¥21.68B	16.98	―	3.02%	-4.36%	-14.92%
5187	72 Outperform	¥11.13B	14.53	―	3.52%	4.97%	-10.07%
6823	69 Neutral	¥37.67B	12.64	―	2.93%	6.72%	20.01%
4549	68 Neutral	¥108.80B	28.39	―	2.31%	4.36%	79.43%
6849	65 Neutral	¥278.46B	21.99	―	1.92%	4.31%	96.31%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
6523	51 Neutral	¥133.95B	37.73	4.32%	3.73%	0.04%	―

Nihon Kohden Corporation Corporate Events

Nihon Kohden Extends Career Support Program and Books ¥2.4 Billion in Early Retirement Costs

Nihon Kohden has partially revised its previously announced Career Change Support Program and Next Career Support Program for employees, which target staff in Japan, including those engaged in its Abbott business and those meeting certain age and other requirements. The company has extended the application period for the Career Change Support Program to February 25, 2026, and postponed the retirement date for applicants to March 31, 2026, in order to secure sufficient time to transition operations related to its Abbott business. As of the end of December 2025, 147 employees had applied across both programs, and Nihon Kohden has recorded approximately 2.4 billion yen in extra early retirement payments as extraordinary losses in the third quarter of FY2025, already reflected in its consolidated earnings forecast, indicating a material but managed financial impact as it restructures its workforce.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen2015.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Cuts FY2025 Sales and Profit Outlook on Weaker Domestic Demand

Nihon Kohden revised its consolidated financial forecast for the fiscal year ending March 31, 2026, cutting expected net sales to ¥235 billion from ¥240 billion and operating income to ¥20 billion from ¥24 billion, while keeping income attributable to owners of parent unchanged at ¥12.5 billion. The downgrade is driven mainly by weaker-than-expected domestic demand, as universities and public hospitals postponed or restrained equipment purchases amid deteriorating business sentiment, and by softer AED sales due to distributor inventory adjustments, even as the company continues to push consumables, services, and medical IT systems. Overseas sales guidance in yen terms is unchanged but will be influenced by a weaker yen and cautious decision-making on patient monitor purchases in North America, as well as regulatory compliance requirements in Asia and other regions; ordinary income is now forecast at ¥22 billion, supported by foreign exchange gains, and the company is focusing on restraining SG&A growth and reforming its profit structure to mitigate the impact of lower sales and margins.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen2015.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Cuts FY2025 Forecast as Domestic Weakness and Costs Hit Profit

Nihon Kohden reported consolidated results for the first nine months of FY2025 showing overall sales growth of 3.5% year on year, driven by double-digit overseas sales increases in North America, Europe, and Asia, while domestic sales fell 0.9% amid weaker capital spending by public hospitals and lower AED shipments due to distributor inventory adjustments. Operating income declined 16.5% as lower domestic revenue and higher SG&A from wage hikes and R&D weighed on profitability, and the company also booked ¥2.4 billion in extraordinary losses tied to early retirement payments, prompting a downward revision of full-year forecasts: sales were cut by ¥5 billion to ¥235 billion and operating income by ¥4 billion to ¥20 billion, with management now prioritizing higher-margin in-house products, consumables and services, and hospital IT system installations in the fourth quarter to protect a gross margin target of at least 52% and stabilize earnings.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen2015.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Cuts Profit Outlook but Lifts Dividend as FY2025 Q3 Earnings Weaken

Nihon Kohden reported weaker results for the first nine months of FY2025, with declines in operating income, ordinary income and profit attributable to owners of the parent compared with the same period a year earlier, and a drop in equity capital and equity ratio, reflecting a tougher earnings environment ahead of the usually strong fourth quarter. Despite the profit pressure, the company slightly raised its full-year dividend outlook to a total of ¥32 per share and maintained a modest full-year sales growth forecast while trimming its operating income outlook, signalling a commitment to shareholder returns and cautious confidence in underlying demand, aided by the consolidation of a new Indian technology subsidiary and ongoing portfolio adjustments.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen2015.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Reports January Status of Ongoing Share Buyback Program

Nihon Kohden has reported the status of its ongoing share buyback program authorized by its board in December 2025, confirming that no shares were repurchased during the period from January 1 to January 31, 2026, despite approval to acquire common shares via ToSTNeT-3 and market purchases on the Tokyo Stock Exchange. Under the broader buyback authorization running through March 31, 2026, the company is permitted to purchase up to 3.8 million shares or ¥5 billion, and as of January 31 it has cumulatively acquired 718,200 shares for approximately ¥1.1 billion, indicating that significant capacity remains for further repurchases, which could affect capital allocation, share liquidity and shareholder returns over the remainder of the program.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen2015.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden to Acquire Majority Stake in Medical IT Firm DOWELL

Nihon Kohden has agreed to acquire a 90.3% stake in DOWELL Co., Ltd., a Sapporo-based developer of medical information systems for physicians and nurses, making it a consolidated subsidiary, while DOWELL’s founder Yoshihiro Shindo will retain a 9.7% stake and continue in management. The deal, backed by a shareholders agreement that includes put and call options on Mr. Shindo’s remaining shares, is aimed at combining both companies’ IT and digital health strengths to develop next-generation perioperative and data-integration solutions, improve operational efficiency in medical practice, and support Nihon Kohden’s BEACON 2030 vision, with only a minor impact expected on near-term financial results.

The most recent analyst rating on (JP:6849) stock is a Buy with a Yen1814.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Reports Progress on Multi-Billion Yen Share Buyback Program

Nihon Kohden Corporation has disclosed the progress of its previously announced share buyback program, reporting that it repurchased 718,200 common shares for a total of 1,107,823,500 yen between December 4 and December 31, 2025, via ToSTNeT-3 transactions on the Tokyo Stock Exchange. This buyback is part of a broader board-approved program authorizing the acquisition of up to 3.8 million shares, or 2.33% of outstanding shares excluding treasury stock, for as much as 5 billion yen by March 31, 2026, signaling ongoing efforts to enhance capital efficiency and shareholder returns through active balance sheet management.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1798.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Acquires Own Shares to Boost Capital Efficiency

Nihon Kohden Corporation announced the acquisition of 718,200 of its own shares through the ToSTNeT-3 system on the Tokyo Stock Exchange, at a total cost of 1,107,823,500 yen. This move aims to improve capital efficiency and return profits to shareholders, with a broader plan to acquire up to 3,800,000 shares by March 31, 2026, as part of a strategy to enhance shareholder value.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1679.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden to Acquire Own Shares to Boost Capital Efficiency

Nihon Kohden Corporation announced its decision to acquire up to 3,800,000 of its own shares, representing 2.33% of its total issued shares, to improve capital efficiency and return profits to shareholders. This strategic move, involving a total acquisition cost of up to 5 billion yen, will be executed through ToSTNeT-3 and market purchases on the Tokyo Stock Exchange, potentially impacting the company’s stock value and shareholder returns.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1679.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.