Nippon Tungsten Co., Ltd. (6998) AI Stock Analysis

• Market Cap: ¥6.97B
• Dividend Yield: 3.57%
• Average Volume (3M): 12.05K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.47
• Revenue Growth: 4.95%
• EPS Growth: 24.62%
• Country: JP
• Employees: 515
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 37.41
• Shares Outstanding: 5,155,520
• 10 Day Avg. Volume: 19,080
• 30 Day Avg. Volume: 12,046
• PEG Ratio: 0.31
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 61.85
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,599.00 ▲(7.24% Upside)

Nippon Tungsten Co., Ltd. scores well due to its strong financial performance and attractive valuation. The technical indicators support a positive outlook, with the stock trading above key moving averages. The absence of earnings call and corporate events data does not impact the overall positive assessment.

Nippon Tungsten Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Tungsten Co., Ltd. provides rare metal and fine ceramic products primarily composed of tungsten based on powder metallurgical technology. Its products include tungsten wire and rod, tungsten ribbon and SC molybdenum; resistance welding electrodes, TD/TCP/Starter contacts, silicon nitride, and roll press machine that are used in automobile manufacturing; and heavy alloys. The company's products also consist of discharge tungsten wire, electric discharge machining electrodes for use in electric machines and tools; cemented carbides and ceramic materials for use in wear resistant and shock resistant tools; NT die cutters and fine ceramic cutting tools; seal rings and sleeves, and corrosion resistant sliding materials; and porous ceramics for transferring workpieces. In addition, it is also engaged in real estate leasing and management; renewable energy power generation business; and sale of electricity. Nippon Tungsten Co., Ltd. was founded in 1931 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Nippon Tungsten generates revenue primarily through the sale of tungsten products, including powders and alloys, which are utilized in various industrial applications. The company benefits from a diversified revenue model, with key streams coming from sales to the electronics industry for components and materials, as well as the automotive sector where tungsten is used in manufacturing cutting tools and other high-durability parts. Significant partnerships with major manufacturers in these sectors enhance its market reach and stability. Additionally, Nippon Tungsten invests in research and development to innovate and improve product offerings, which can lead to increased sales and expanded market share.

Nippon Tungsten Co., Ltd. Financial Statement Overview

Summary

Nippon Tungsten Co., Ltd. demonstrates solid financial performance with strong revenue and profit growth, effective cost management, and prudent leverage. While ROE and free cash flow to net income ratio have room for improvement, the overall financial health is robust, supporting future growth.

Income Statement

Nippon Tungsten Co., Ltd. has shown a consistent improvement in its revenue with a growth rate of 8.09% from 2024 to 2025. The gross profit margin is strong at 23.63% for 2025, indicating effective cost management. The net profit margin has also increased to 5.45%, reflecting enhanced profitability. EBIT and EBITDA margins have improved, demonstrating operational efficiency. Overall, the company exhibits strong revenue and profit growth trends.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.20, indicating prudent leverage management. The equity ratio stands at 71.23%, showcasing a strong equity base relative to total assets. Return on equity is decent at 5.38%, reflecting reasonable profitability relative to shareholder's equity. The balance sheet shows stability, although further improvement in ROE would be beneficial.

Cash Flow

Operating cash flow has significantly increased, and the free cash flow has turned positive at 95 million yen in 2025, indicating improved cash generation. The operating cash flow to net income ratio of 1.51 implies strong cash generation relative to net earnings. Although the free cash flow to net income ratio is low at 0.14, the positive trend in cash flow metrics indicates improving financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.35B	12.39B	11.46B	12.64B	12.04B	9.89B
Gross Profit	2.96B	2.93B	2.56B	3.05B	3.01B	2.20B
EBITDA	1.46B	1.61B	1.23B	1.57B	1.83B	753.00M
Net Income	670.00M	676.00M	527.00M	767.00M	870.00M	-62.00M
Balance Sheet
Total Assets	17.76B	17.63B	17.14B	16.81B	16.45B	14.99B
Cash, Cash Equivalents and Short-Term Investments	3.59B	3.31B	3.50B	4.53B	3.93B	2.48B
Total Debt	2.48B	2.48B	2.50B	2.52B	2.48B	2.50B
Total Liabilities	5.20B	5.07B	5.03B	5.56B	5.71B	4.99B
Stockholders Equity	12.56B	12.56B	12.11B	11.25B	10.73B	10.01B
Cash Flow
Free Cash Flow	0.00	95.00M	-830.00M	951.00M	1.60B	718.00M
Operating Cash Flow	0.00	1.02B	289.00M	1.17B	1.91B	1.34B
Investing Cash Flow	0.00	-942.00M	-1.07B	-238.00M	-252.00M	-513.00M
Financing Cash Flow	0.00	-261.00M	-302.00M	-341.00M	-246.00M	-552.00M

Nippon Tungsten Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1491.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6998, the sentiment is Positive. The current price of 1491 is above the 20-day moving average (MA) of 1370.18, above the 50-day MA of 1341.83, and above the 200-day MA of 1223.99, indicating a bullish trend. The MACD of 17.40 indicates Negative momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6998.

Nippon Tungsten Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5922	81 Outperform	¥17.94B	9.90	―	2.88%	2.75%	-9.49%
6998	78 Outperform	¥6.97B	10.12	―	3.57%	4.95%	24.62%
6497	76 Outperform	¥8.11B	9.92	―	2.88%	9.38%	95.55%
3440	75 Outperform	¥5.68B	6.80	―	4.15%	30.19%	-15.29%
6138	72 Outperform	¥3.09B	8.19	―	2.34%	8.06%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.69B	12.24	―	2.73%	-17.16%	-47.34%

Nippon Tungsten Co., Ltd. Corporate Events

Nippon Tungsten Reports Q1 2025 Financial Results

Nippon Tungsten Co., Ltd. reported its financial results for the three months ended June 30, 2025, showing a slight decline in net sales by 1.5% compared to the previous year. Despite this, the company achieved a 14.2% increase in operating profit, indicating improved operational efficiency. The company’s financial position remains stable with a capital adequacy ratio of 70.7%, and there are no significant changes in its consolidation scope or accounting policies. The dividend forecast remains unchanged, reflecting stability in shareholder returns.