NF Holdings Corporation (6864) AI Stock Analysis

• Market Cap: ¥9.58B
• Dividend Yield: 2.85%
• Average Volume (3M): 97.94K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.86
• 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): 0.94
• 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: ¥1,400.00 ▲(25.11% 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

A high equity ratio and low leverage provide durable financial flexibility: supports capital expenditure, buffers operating volatility, and reduces refinancing risk. This structural strength allows the company to pursue strategic actions and withstand downturns over the next several months.

Stable Gross Margin

Relatively stable gross margins imply the company maintains control over direct costs and product economics. Persisting gross-margin stability limits downside to core profitability despite lower sales, supporting sustainable operating cash generation and strategic pricing over a medium-term horizon.

Improving Free Cash Flow Trend

Recent improvement in free cash flow, even if modest, signals progress in converting operations to cash and easing liquidity strain. If sustained, this trend reduces reliance on external financing and supports reinvestment or shareholder returns over the coming quarters.

Negative Factors

Declining Revenue Trend

A multiyear revenue decline erodes scale advantages, reduces bargaining power with suppliers and customers, and limits the ability to fund growth or offset fixed costs. Without a structural reversal, shrinking top-line undermines long-term margin and investment capacity.

Eroding Operating Margins

Declining EBIT/EBITDA margins indicate rising cost pressure or weaker pricing power, compressing profitability and reducing the firm's return on invested capital. Persistent margin erosion will constrain free cash flow and strategic flexibility over multiple quarters.

Volatile Operating Cash Flow

Inconsistent operating cash flow and weak profit-to-cash conversion increase financing uncertainty and limit predictable reinvestment or dividends. Volatility in cash generation raises execution risk for strategic initiatives and heightens vulnerability to external shocks.

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

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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	3.16B	2.96B	3.12B	3.54B	3.38B
EBITDA	983.41M	898.24M	703.43M	706.07M	1.19B	921.76M
Net Income	363.03M	450.65M	323.84M	457.08M	615.47M	444.21M
Balance Sheet
Total Assets	16.03B	17.35B	18.70B	18.90B	18.70B	18.86B
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	3.68B	4.76B	5.18B	5.28B	6.06B
Stockholders Equity	12.45B	12.56B	12.64B	12.40B	12.04B	11.54B
Cash Flow
Free Cash Flow	0.00	169.94M	189.88M	-210.28M	-939.00M	-604.77M
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: Positive
• RSI: Neutral
• 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 1371.55, below the 50-day MA of 1294.08, and below the 200-day MA of 1290.38, indicating a neutral trend. The MACD of 17.86 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 78.87 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	¥101.26B	15.13	―	3.23%	7.28%	4.16%
6817	70 Outperform	¥36.58B	10.46	―	4.53%	-2.57%	3.43%
6908	70 Outperform	¥80.38B	10.57	―	3.05%	10.79%	12.28%
6864	63 Neutral	¥9.58B	26.68	―	2.85%	10.27%	-106.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.23B	16.72	―	2.45%	15.66%	-69.17%
6844	58 Neutral	¥33.09B	2.72	―	1.95%	6.10%	―