Nihon Kohden Corporation (6849) AI Stock Analysis

• Market Cap: ¥297.83B
• Dividend Yield: 1.97%
• 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: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,798.00 ▲(11.43% 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

Strong revenue growth indicates expanding market presence and effective sales strategies, supporting long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio ensures financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.

Gross Profit Margin

A high gross profit margin reflects efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

Free Cash Flow Decline

Declining free cash flow could limit the company's ability to fund operations and growth initiatives, potentially impacting future financial health.

Net Profit Margin

A below-average net profit margin suggests room for improvement in cost control and pricing strategies, which could affect long-term profitability.

Cash Conversion Concerns

A lower cash conversion ratio indicates that not all earnings are being effectively converted into cash, which may hinder liquidity and investment capacity.

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	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: Positive
• Last Price: 1613.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1613.5 is above the 20-day moving average (MA) of 1582.78, below the 50-day MA of 1681.89, and below the 200-day MA of 1744.76, indicating a neutral trend. The MACD of -14.92 indicates Negative momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 70.40 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
5187	78 Outperform	¥9.32B	11.43	―	3.60%	4.97%	-10.07%
6678	74 Outperform	¥16.44B	13.56	―	3.16%	-4.36%	-14.92%
6823	69 Neutral	¥31.34B	10.06	―	3.09%	6.72%	20.01%
6849	68 Neutral	¥297.83B	21.71	―	1.97%	4.31%	96.31%
6523	68 Neutral	€130.02B	11.43	4.32%	3.87%	0.04%	―
4549	66 Neutral	¥81.83B	21.20	―	2.28%	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 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.

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.

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.

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.