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

• Market Cap: ¥10.97B
• Dividend Yield: 3.48%
• Average Volume (3M): 12.05K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.42
• Revenue Growth: 0.24%
• EPS Growth: 20.23%
• Country: JP
• Employees: 515
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 49.27
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,150.00 ▲(42.57% Upside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily driven by solid financial performance (revenue/profitability improvement and low leverage). This is balanced by technical conditions that look overbought despite strong momentum, while valuation appears reasonable with a supportive dividend yield.

Positive Factors

Low Leverage / Strong Equity Base

A debt-to-equity of 0.20 and a 71.23% equity ratio indicate durable financial resilience. This conservative capital structure reduces refinancing risk, supports capital spending for specialized manufacturing, and gives the firm flexibility to weather cyclical industrial demand shocks over the next several months.

Improving Cash Generation

Positive free cash flow and an operating-cash-flow-to-net-income ratio above 1 demonstrate stronger cash conversion. Improved cash generation enhances operational flexibility to fund maintenance capex, tooling investments, modest dividends, or strategic initiatives without relying on external financing.

Revenue and Margin Improvement

Consistent revenue growth with expanding gross and net margins signals improving operational efficiency and better product mix toward higher-value engineered components. Sustained margin improvement supports durable earnings power and competitive positioning in wear‑resistant and high-temp materials markets.

Negative Factors

Weak FCF Conversion

A low free-cash-flow-to-net-income ratio (0.14) means much of reported profit isn't converting to free cash. This limits the company’s ability to reinvest, accelerate product or capacity upgrades, or increase shareholder distributions without raising external capital, constraining long-term optionality.

Moderate Return on Equity

ROE of ~5.4% is modest for capital-intensive manufacturing and suggests limited efficiency in generating shareholder returns. Over months this can constrain accumulation of shareholder value relative to peers and imply slower equity growth unless operational productivity or pricing power materially improves.

Raw-material Price Exposure

Business reliance on tungsten and molybdenum exposes margins to commodity price volatility and supply disruptions. Persistent input-cost swings can compress profitability and require frequent price adjustments or absorption of costs, creating structural earnings volatility over the medium term.

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

Strong income statement trends (revenue growth of 8.09%, improving margins, and higher profitability) and a solid balance sheet (low debt-to-equity of 0.20 and high equity ratio of 71.23%). Cash flow is improving with positive free cash flow, but the low free cash flow to net income ratio (0.14) and moderate ROE (5.38%) temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	1.07B
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	2.50B	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: 1508.00
• 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:6998, the sentiment is Positive. The current price of 1508 is below the 20-day moving average (MA) of 2068.75, below the 50-day MA of 1849.14, and above the 200-day MA of 1449.98, indicating a bullish trend. The MACD of 82.22 indicates Positive momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 49.09 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
6497	80 Outperform	¥9.29B	9.73	―	2.92%	5.71%	169.04%
6138	77 Outperform	¥3.59B	5.93	―	2.66%	3.89%	―
5922	76 Outperform	¥23.75B	10.47	―	2.78%	2.63%	-3.96%
6998	71 Outperform	¥10.97B	15.68	―	3.48%	0.24%	20.23%
3440	65 Neutral	¥6.07B	8.12	―	4.35%	30.19%	-15.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥3.15B	12.41	―	2.66%	-17.16%	-47.34%

Nippon Tungsten Co., Ltd. Corporate Events

Nippon Tungsten Holds Earnings Steady on Flat Sales, Confirms Guidance and Dividend

For the nine months ended 31 December 2025, Nippon Tungsten reported essentially flat net sales of ¥9.26 billion, down 0.7% year on year, with operating profit falling 14% to ¥477 million and ordinary profit slipping 2.7% to ¥757 million, while profit attributable to owners of parent was unchanged at ¥543 million and earnings per share held broadly steady. Despite weaker profitability, the balance sheet remained robust, with total assets rising to ¥18.33 billion and an equity ratio of 71.6%, and the company reaffirmed its full‑year forecast of modest growth in sales and profit as well as its plan to maintain an annual dividend of ¥50 per share, signaling a stable shareholder return policy and confidence in its underlying business resilience.

The most recent analyst rating on (JP:6998) stock is a Buy with a Yen2492.00 price target. To see the full list of analyst forecasts on Nippon Tungsten Co., Ltd. stock, see the JP:6998 Stock Forecast page.