NF Holdings Corporation (6864) AI Stock Analysis

• Market Cap: ¥10.41B
• Dividend Yield: 2.85%
• Average Volume (3M): 97.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 10.27%
• EPS Growth: -106.32%
• Country: JP
• Employees: 324
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 10.49
• Shares Outstanding: 7,070,000
• 10 Day Avg. Volume: 155,340
• 30 Day Avg. Volume: 97,943
• PEG Ratio: 0.49
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 50.51
• 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: 63 Neutral
• Price Target: ¥1,579.00 ▲(41.11% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by mixed financial performance—strong balance sheet strength offset by declining revenues, pressured margins, and volatile operating cash flow. Technicals are supportive (uptrend and positive MACD) but look overextended (high RSI/Stoch), while valuation is a key detractor due to the negative P/E despite a modest dividend yield.

Positive Factors

Balance sheet strength

Low leverage and a high equity ratio give NF Holdings durable financial flexibility: it can better withstand downturns, fund strategic investments or dividends from internal capital, and faces lower refinancing risk. This structural strength supports multi‑month resilience and optionality.

Stable gross profit margin

A consistent gross margin signals effective cost control in production or procurement. That durability in COGS management supports long‑term margin sustainability even if top line fluctuates, giving management time to address revenue and operating expense issues.

Recent free cash flow improvement

Improving free cash flow, even from a low base, indicates the company is beginning to generate more internal funding for capex, debt servicing or dividends. If sustained, this trend reduces reliance on external financing and bolsters strategic flexibility over the coming months.

Negative Factors

Declining revenue trend

A multi‑year revenue decline damages the growth runway and limits operating leverage. Persisting top‑line contraction reduces capacity to scale fixed costs, weakens bargaining power with suppliers/customers, and makes margin recovery and investment funding more difficult.

Volatile operating cash flow

Inconsistent operating cash flow undermines the firm’s ability to reliably fund operations, capital expenditures, and distributions. Poor earnings‑to‑cash conversion increases financing needs and raises execution risk for strategic initiatives over the medium term.

Eroding operating margins

Declining EBIT/EBITDA margins point to structural efficiency pressures—whether from pricing, rising input costs, or fixed cost absorption issues. Sustained margin erosion reduces free cash generation and constrains reinvestment or shareholder returns over multiple quarters.

NF Holdings Corporation Business Overview & Revenue Model

Company Description

NF Holdings Corporation provides measurement instruments, power supply and power control products, function modules, and customized products in Japan. Its measurement instruments include signal generators, LCR meters, impedance analyzers, AC voltmeters/noise meters, lock-in amplifiers/preamplifiers, filters, measurement systems, and frequency response analyzers; and power supply and power control products comprise AC power sources, power amplifiers, electronic loads, power test instruments, and low noise DC power supplies. The company's function modules include filters, amplifiers, oscillators, and phase detectors; and customized products comprise grid-connection testing systems, high-speed bipolar power amplifiers for testing vehicle electronic components, simulated regeneration power supplies, etc. Its products are used in various applications, such as automobiles, digital appliances, electronic devices, fuel cells, solar power, and other clean energy technologies; and nanotechnology, as well as in satellite, rocket, and other aerospace technologies. The company was founded in 1959 and is headquartered in Yokohama, Japan.

How the Company Makes Money

NF Holdings Corporation generates revenue through several key streams. Primarily, the company earns income from rental and lease agreements on its real estate holdings, which include both residential and commercial properties. In addition to real estate revenue, NF Holdings engages in capital markets activities, including investment management services, where it charges management fees and performance-based fees for managing third-party assets. The company may also realize profits from property sales and development projects. Partnerships with other real estate firms and financial institutions enhance its ability to leverage resources and access new investment opportunities, contributing to its overall earnings.

NF Holdings Corporation Financial Statement Overview

Summary

Financials are mixed: the balance sheet is a clear strength (high equity ratio, low leverage), but revenue has been declining and profitability margins (EBIT/EBITDA) have trended down. Operating cash flow has been volatile with weaker profit-to-cash conversion, limiting the overall score.

Income Statement

The company shows a declining revenue trend over the past few years, with a noticeable decrease in total revenue from 2020 to 2025. Gross profit margin remains relatively stable, indicating consistent cost management. However, the net profit margin has fluctuated, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also shown a downward trend, suggesting pressures on operational efficiency.

Balance Sheet

The balance sheet is strong with a high equity ratio, indicating a solid financial structure. The debt-to-equity ratio is low, suggesting low leverage and financial risk. Return on equity has been inconsistent, reflecting variability in profitability. Overall, the company maintains a stable financial position with significant equity backing.

Cash Flow

Cash flow from operations has been inconsistent, with periods of negative cash flow indicating volatility in cash generation. Free cash flow has improved recently but remains low compared to historical levels. The operating cash flow to net income ratio suggests challenges in converting profits into cash. Overall, cash flow management appears to be an area for improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.28B	9.08B	9.40B	9.64B	10.15B	10.65B
Gross Profit	3.30B	3.26B	3.06B	3.21B	3.63B	3.47B
EBITDA	993.91M	1.01B	814.20M	1.02B	1.41B	994.66M
Net Income	363.19M	450.65M	323.84M	457.08M	615.47M	444.21M
Balance Sheet
Total Assets	16.03B	17.32B	18.63B	18.83B	18.64B	18.83B
Cash, Cash Equivalents and Short-Term Investments	4.78B	5.45B	5.34B	5.53B	6.11B	7.48B
Total Debt	911.59M	1.42B	1.92B	2.03B	2.25B	2.58B
Total Liabilities	2.47B	3.65B	4.69B	5.11B	5.22B	6.02B
Stockholders Equity	12.45B	12.56B	12.64B	12.40B	12.04B	11.54B
Cash Flow
Free Cash Flow	0.00	169.94M	49.76M	-337.95M	-1.02B	-666.10M
Operating Cash Flow	0.00	340.99M	530.27M	279.42M	-594.86M	-411.82M
Investing Cash Flow	0.00	1.28B	-44.99M	-700.91M	-832.14M	-237.84M
Financing Cash Flow	0.00	-735.83M	-349.43M	-540.72M	-580.87M	1.04B

NF Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1119.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6864, the sentiment is Positive. The current price of 1119 is below the 20-day moving average (MA) of 1331.55, below the 50-day MA of 1228.50, and below the 200-day MA of 1288.97, indicating a bullish trend. The MACD of 59.06 indicates Negative momentum. The RSI at 77.03 is Negative, neither overbought nor oversold. The STOCH value of 71.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6864.

NF Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	79 Outperform	¥105.76B	19.22	―	3.23%	7.28%	4.16%
6859	75 Outperform	¥86.46B	15.40	―	3.12%	2.78%	-5.32%
6863	75 Outperform	¥15.69B	12.47	―	5.39%	6.45%	26.58%
6853	73 Outperform	¥21.82B	21.76	―	2.93%	-1.58%	12.24%
6864	63 Neutral	¥10.41B	-378.65	―	2.85%	10.27%	-106.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥10.54B	24.74	―	2.45%	15.66%	-69.17%