Nihon Kohden Corporation (6849) AI Stock Analysis

• Market Cap: ¥285.97B
• Dividend Yield: 1.92%
• Average Volume (3M): 516.53K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.76
• 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: -4.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,997.00 ▲(18.66% Upside)

Nihon Kohden Corporation's overall stock score is driven primarily by its strong financial performance, particularly in revenue growth and balance sheet stability. However, technical indicators suggest potential bearish momentum, which could pose short-term risks. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield, making the stock attractive for long-term investors.

Positive Factors

Revenue Growth

Reported 67.3% TTM revenue growth indicates durable market expansion and material product adoption. Sustained top-line increases enlarge the installed base, which in turn strengthens recurring consumables and service revenues, supporting long-term unit economics and scale advantages.

High Gross Margin

A 53.06% gross profit margin reflects structural pricing power and efficient product cost design in core medical devices. High gross margins create a lasting buffer to absorb component inflation, fund R&D and service networks, and sustain profitability through industry cycles.

Low Leverage & Strong Equity Base

A low D/E of 0.15 and 70.5% equity ratio provide durable financial flexibility. This conservative capital structure enables the company to fund capex, service commitments, or strategic investments without stressing liquidity, improving resilience to downturns and supporting long-term strategy execution.

Negative Factors

Weak Free Cash Flow Trend

Negative FCF growth of -7.88% TTM signals weakening cash conversion from operations relative to prior periods. If this trend persists it constrains durable priorities—R&D, service network expansion, maintenance of installed base, dividends or bolt-on M&A—despite solid earnings.

Below-Average Net Margin

A net margin of 5.88% is modest given the high gross margin, suggesting operating and non-operating pressures compress returns. Lower net profitability reduces the long-term capacity to self-fund growth initiatives, limits reinvestment rates, and weakens the cushion against pricing or cost shocks.

Exposure to Hospital Capex Cycles

Dependence on capital-equipment sales and hospital budget cycles creates structurally lumpy revenue and order timing. Even with recurring consumables, this cyclicality can cause multi-quarter volatility in revenue and capital deployment, complicating long-term planning and resource allocation.

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

Nihon Kohden Corporation demonstrates strong revenue growth and efficient cost management, as reflected in its income statement. The balance sheet is robust with low leverage and a strong equity position, ensuring financial stability. However, the cash flow statement reveals some concerns with declining free cash flow, which needs monitoring. Overall, the company is in a solid financial position with opportunities for improvement in profitability and cash flow management.

Income Statement

Nihon Kohden Corporation shows a strong gross profit margin of 53.06% TTM, indicating efficient cost management. The net profit margin is moderate at 5.88% TTM, slightly below the industry average, suggesting room for improvement in profitability. Revenue growth is robust at 67.3% TTM, reflecting significant expansion. EBIT and EBITDA margins are healthy at 9.60% and 11.48% TTM, respectively, demonstrating solid operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.15 TTM, indicating prudent financial leverage. Return on equity is moderate at 7.59% TTM, suggesting effective use of equity to generate profits. The equity ratio stands at 70.50% TTM, highlighting a strong equity base and financial stability.

Cash Flow

Operating cash flow to net income ratio is 1.05 TTM, indicating good cash conversion. However, free cash flow growth is negative at -7.88% TTM, which could be a concern if it persists. The free cash flow to net income ratio is 0.67 TTM, showing that a significant portion of earnings is converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	230.76B	225.42B	221.99B	206.60B	205.13B	199.73B
Gross Profit	122.05B	114.30B	111.35B	105.93B	109.09B	102.23B
EBITDA	26.36B	25.91B	33.25B	28.52B	37.76B	31.64B
Net Income	18.16B	14.10B	17.03B	17.11B	23.43B	18.24B
Balance Sheet
Total Assets	246.58B	257.24B	233.23B	216.73B	210.20B	193.03B
Cash, Cash Equivalents and Short-Term Investments	49.84B	43.43B	50.43B	44.46B	60.92B	44.61B
Total Debt	25.67B	26.08B	654.00M	441.00M	359.00M	404.00M
Total Liabilities	72.77B	75.94B	52.15B	49.13B	53.82B	54.05B
Stockholders Equity	173.81B	179.55B	181.08B	167.60B	156.38B	138.98B
Cash Flow
Free Cash Flow	13.40B	8.16B	10.82B	-10.77B	22.77B	10.56B
Operating Cash Flow	19.14B	15.29B	15.61B	-2.51B	25.70B	13.95B
Investing Cash Flow	-23.77B	-25.14B	-5.21B	-7.65B	-4.30B	-2.95B
Financing Cash Flow	4.41B	2.55B	-6.97B	-7.49B	-7.30B	-3.01B

Nihon Kohden Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1683.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6849, the sentiment is Neutral. The current price of 1683 is below the 20-day moving average (MA) of 1769.58, above the 50-day MA of 1679.31, and below the 200-day MA of 1691.94, indicating a neutral trend. The MACD of 11.56 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 4.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥10.24B	12.56	―	3.52%	4.97%	-10.07%
6678	78 Outperform	¥18.97B	15.65	―	3.02%	-4.36%	-14.92%
6823	69 Neutral	¥33.77B	11.33	―	2.93%	6.72%	20.01%
6849	68 Neutral	¥285.97B	15.45	―	1.92%	4.31%	96.31%
6523	68 Neutral	¥137.37B	23.49	4.32%	3.73%	0.04%	―
4549	66 Neutral	¥78.86B	20.58	―	2.31%	4.36%	79.43%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nihon Kohden Corporation Corporate Events

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.