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NKK SWITCHES CO., LTD. (JP:6943)
:6943
Japanese Market

NKK SWITCHES CO., LTD. (6943) AI Stock Analysis

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JP:6943

NKK SWITCHES CO., LTD.

(6943)

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Neutral 51 (OpenAI - 5.2)
Rating:51Neutral
Price Target:
¥4,935.00
▲(7.28% Upside)
Action:ReiteratedDate:08/05/25
The overall stock score for NKK SWITCHES CO., LTD. is primarily impacted by financial performance challenges, particularly in profitability and revenue growth. The technical analysis indicates neutral momentum, and the valuation is concerning due to a negative P/E ratio. The robust balance sheet provides some stability, but the company needs to address earnings issues to improve its outlook.
Positive Factors
Balance sheet strength
A high equity ratio and minimal debt provide long-term financial flexibility and resilience through industry cycles. Low leverage reduces refinancing risk, supports investment in product development or working capital, and gives management time to address operational issues without solvency pressure.
Negative Factors
Declining profitability
Sustained declines in revenue and a negative net margin point to structural pressure on pricing, mix or costs. Persistent losses erode retained earnings, weaken investor confidence, and can constrain reinvestment capacity, making operational turnaround and margin recovery essential for long-term health.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A high equity ratio and minimal debt provide long-term financial flexibility and resilience through industry cycles. Low leverage reduces refinancing risk, supports investment in product development or working capital, and gives management time to address operational issues without solvency pressure.
Read all positive factors

NKK SWITCHES CO., LTD. (6943) vs. iShares MSCI Japan ETF (EWJ)

NKK SWITCHES CO., LTD. Business Overview & Revenue Model

Company Description
NKK Switches Co., Ltd. engages in the development, manufacture, and sale of various switches for industrial equipment in Japan, Asia, Europe, and America. It offers toggle, rocker, pushbutton, illuminated pushbutton, multi-function pushbutton, eme...
How the Company Makes Money
NKK SWITCHES makes money primarily by manufacturing and selling electromechanical switching and interface products to equipment makers and distributors. Revenue is generated from (1) product sales of switches (e.g., pushbutton, toggle, rocker, sli...

NKK SWITCHES CO., LTD. Financial Statement Overview

Summary
NKK SWITCHES CO., LTD. faces financial challenges with declining revenue and profitability affecting its income statement. However, the company's balance sheet is strong with low leverage and high equity, providing a cushion against operational pressures. Cash flow generation remains positive but inconsistent, suggesting a need for improved earnings stability.
Income Statement
40
Negative
Balance Sheet
75
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue7.40B7.56B9.44B10.33B8.94B6.83B
Gross Profit2.86B2.76B3.66B4.05B3.66B2.55B
EBITDA7.13M79.94M692.30M1.23B1.08B361.52M
Net Income-444.11M-404.09M389.26M826.28M581.11M62.21M
Balance Sheet
Total Assets14.68B14.97B15.54B15.35B14.07B12.82B
Cash, Cash Equivalents and Short-Term Investments4.39B4.69B4.84B5.39B5.42B5.39B
Total Debt438.45M254.35M305.49M123.34M156.04M167.30M
Total Liabilities2.23B2.27B2.26B3.03B2.85B2.32B
Stockholders Equity12.45B12.70B13.27B12.32B11.22B10.49B
Cash Flow
Free Cash Flow0.00218.94M-700.27M117.60M-25.44M479.23M
Operating Cash Flow0.00651.46M425.28M614.11M190.18M584.25M
Investing Cash Flow0.00-642.30M-1.06B-606.08M-192.21M-188.50M
Financing Cash Flow0.00-145.78M-143.83M-166.70M-137.15M-110.28M

NKK SWITCHES CO., LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4600.00
Price Trends
50DMA
4872.20
Positive
100DMA
4701.95
Positive
200DMA
4533.13
Positive
Market Momentum
MACD
-0.75
Positive
RSI
48.21
Neutral
STOCH
58.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6943, the sentiment is Positive. The current price of 4600 is below the 20-day moving average (MA) of 4973.50, below the 50-day MA of 4872.20, and above the 200-day MA of 4533.13, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6943.

NKK SWITCHES CO., LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
¥28.05B6.423.12%6.60%0.27%
75
Outperform
¥12.84B14.513.02%3.43%3.75%
72
Outperform
¥54.92B12.370.91%5.28%18.38%
72
Outperform
¥134.26B3.868.07%2.64%79.29%35.48%
70
Outperform
¥9.90B8.622.23%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
51
Neutral
¥4.04B7.181.79%-10.43%-368.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6943
NKK SWITCHES CO., LTD.
4,910.00
398.72
8.84%
JP:6804
Hosiden
2,672.00
648.28
32.03%
JP:5819
Canare Electric Co., Ltd.
1,903.00
367.66
23.95%
JP:6637
Terasaki Electric Co., Ltd.
4,215.00
1,859.12
78.91%
JP:6643
Togami Electric Mfg.Co., Ltd.
5,940.00
2,575.53
76.55%
JP:6748
Seiwa Electric Mfg. Co., Ltd.
753.00
229.56
43.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025