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

• Market Cap: ¥3.48B
• Dividend Yield: 1.65%
• Average Volume (3M): 293.00
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.42
• Revenue Growth: -19.88%
• EPS Growth: -203.82%
• Country: JP
• Employees: 282
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): -349.60
• Shares Outstanding: 842,520
• 10 Day Avg. Volume: 250
• 30 Day Avg. Volume: 293
• PEG Ratio: 0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,326.00
• Price Target Upside: 2.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥4,246.00 ▲(0.38%Upside)

The company's financial performance is the most significant factor, with a strong balance sheet offsetting some of the challenges in revenue and profitability. Technical analysis suggests a neutral to slightly bearish outlook, while valuation concerns arise due to negative earnings. The absence of earnings call insights and notable corporate events means these factors did not influence the score.

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

Company Description

NKK SWITCHES CO., LTD. is a leading manufacturer in the electronic components sector, specializing in the design, development, and distribution of innovative switch solutions. The company offers a wide array of switches, including toggle, rocker, pushbutton, and rotary switches, catering to various industries such as automotive, telecommunications, industrial controls, and medical equipment. With a strong focus on quality and customization, NKK SWITCHES aims to provide reliable and durable switch products that meet the diverse needs of its global clientele.

How the Company Makes Money

NKK SWITCHES CO., LTD. generates revenue primarily through the sale of its diverse range of switch products to various industries. The company serves a broad client base, including manufacturers in the automotive, telecommunications, industrial, and medical sectors, offering both standard and custom-designed switches to meet specific client requirements. Additionally, NKK SWITCHES may engage in strategic partnerships and collaborations with other companies to expand its product offerings and market reach. The company's commitment to innovation and quality assurance plays a key role in maintaining its competitive edge and sustaining its financial growth.

NKK SWITCHES CO., LTD. Financial Statement Overview

Summary

NKK SWITCHES CO., LTD. faces financial challenges with declining revenue and profitability affecting its income statement, scoring a low 40.0. However, the company's balance sheet is strong with a score of 75.0, showing low leverage and high equity, which provides a cushion against operational pressures. Cash flow generation scores a moderate 60.0, remaining positive but inconsistent, suggesting a need for improved earnings stability.

Income Statement

The income statement reflects a challenging financial period for NKK SWITCHES CO., LTD. with declining revenue and profitability. Revenue growth has been negative for the last two fiscal years, with a significant drop in 2025. Gross profit margin remains positive but has declined, indicating pressure on the cost structure. Net profit margin turned negative in 2025, raising concerns about the company's ability to generate profits. The negative EBIT and EBITDA margins in 2025 further highlight operational challenges.

Balance Sheet

The balance sheet remains robust with a high equity ratio, indicating strong capitalization and low reliance on debt. The debt-to-equity ratio is minimal, reflecting a conservative financial structure. However, ROE has turned negative due to the recent net losses, which is a concern. Overall, the company's balance sheet shows stability and financial health, albeit impacted by recent earnings performance.

Cash Flow

Cash flow analysis shows positive operating cash flow, which is a positive indicator of liquidity. However, free cash flow showed significant improvement in 2025 but has been inconsistent in previous years, posing potential risks to cash generation sustainability. The operating cash flow to net income ratio is high, indicating operational efficiency in cash generation relative to net income. Despite challenges, cash flow management appears resilient.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.80B	7.56B	9.44B	10.33B	8.94B	6.83B
Gross Profit	3.21B	3.00B	3.83B	4.16B	3.79B	2.73B
EBITDA	138.04M	234.96M	989.06M	1.43B	949.83M	420.66M
Net Income	-57.64M	-404.09M	389.26M	826.27M	581.12M	62.21M
Balance Sheet
Total Assets	15.34B	14.97B	15.54B	15.35B	14.07B	12.82B
Cash, Cash Equivalents and Short-Term Investments	5.13B	4.69B	4.84B	5.39B	5.42B	5.39B
Total Debt	0.00	254.35M	305.49M	123.34M	156.04M	167.30M
Total Liabilities	2.12B	2.27B	2.26B	3.03B	2.85B	2.32B
Stockholders Equity	13.21B	12.70B	13.27B	12.32B	11.22B	10.49B
Cash Flow
Free Cash Flow	0.00	218.94M	-935.50M	104.97M	-31.15M	459.07M
Operating Cash Flow	0.00	651.46M	425.28M	614.11M	190.18M	584.25M
Investing Cash Flow	0.00	-642.30M	-1.06B	-606.08M	-192.21M	-188.50M
Financing Cash Flow	0.00	-145.78M	-143.83M	-166.70M	-137.15M	-110.28M

NKK SWITCHES CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4230.00
• 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:6943, the sentiment is Negative. The current price of 4230 is below the 20-day moving average (MA) of 4255.50, below the 50-day MA of 4242.10, and below the 200-day MA of 4319.03, indicating a bearish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 48.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6943.

NKK SWITCHES CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6763	81 Outperform	¥22.35B	11.09		2.98%	10.29%	50.74%
6894	79 Outperform	¥2.57B	7.21		3.17%	-4.81%	8.87%
6668	73 Outperform	¥11.32B	6.71		1.59%	20.12%	17.45%
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
6654	70 Neutral	¥5.80B	27.45		2.96%	2.75%	-22.26%
6943	51 Neutral	¥3.48B	23.10		1.65%	-19.88%	-203.82%