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

• Market Cap: ¥6.82B
• Dividend Yield: 3.62%
• Average Volume (3M): 9.91K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.49
• 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: 9,330
• 30 Day Avg. Volume: 9,910
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,360.00
• Price Target Upside: -1.45% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,360.00 ▼(-1.45% Downside)

Nippon Tungsten Co., Ltd. scores well due to its robust financial performance and attractive valuation, suggesting strong growth potential and income generation. The technical outlook is also positive, further supporting the stock's potential. Absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and effective market penetration, supporting long-term business expansion.

Cash Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage and a high equity ratio provides stability and reduces financial risk, supporting sustainable long-term operations.

Negative Factors

Return on Equity

While the ROE is positive, it indicates room for improvement in generating returns for shareholders, which could impact investor confidence over time.

Free Cash Flow to Net Income Ratio

A low free cash flow to net income ratio suggests that not all earnings are translating into cash, potentially limiting reinvestment and dividend capabilities.

ROE Improvement Needed

Enhancing ROE is crucial for maximizing shareholder value and attracting investment, which is essential for long-term growth and competitiveness.

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

Company Description

Nippon Tungsten Co., Ltd. (6998) is a Japanese company specializing in the production and sale of tungsten and related products. The company operates primarily in the industrial materials sector, providing high-quality tungsten products such as tungsten powder, tungsten carbide, and various tungsten-based components. These products are used in a wide range of industries, including electronics, automotive, and machinery, where durability and high-temperature resistance are critical.

How the Company Makes Money

Nippon Tungsten Co., Ltd. generates revenue through the sale of its tungsten-based products. The company's key revenue streams include the production of tungsten powder and carbide, which are essential materials for manufacturing tools, electronics, and automotive parts. The company also benefits from its partnerships with industrial manufacturers, supplying them with specialized tungsten components that meet rigorous industry standards. By focusing on innovation and maintaining high production quality, Nippon Tungsten Co., Ltd. ensures a steady demand for its products in both domestic and international markets.

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	12.39B	12.39B	11.46B	12.64B	12.04B	9.89B
Gross Profit	2.93B	2.93B	2.56B	3.05B	3.01B	2.20B
EBITDA	1.45B	1.61B	1.23B	1.57B	1.83B	753.00M
Net Income	676.00M	676.00M	527.00M	767.00M	870.00M	-62.00M
Balance Sheet
Total Assets	17.63B	17.63B	17.14B	16.81B	16.45B	14.99B
Cash, Cash Equivalents and Short-Term Investments	3.31B	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	5.07B	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: 1380.00
• 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 1380 is above the 20-day moving average (MA) of 1354.15, above the 50-day MA of 1303.64, and above the 200-day MA of 1223.15, indicating a bullish trend. The MACD of 22.08 indicates Positive momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 28.86 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
6998	78 Outperform	¥6.82B	9.90		3.62%	4.95%	24.62%
5922	76 Outperform	¥17.32B	9.56		3.08%	2.75%	-9.49%
3440	75 Outperform	¥6.63B	5.53		3.56%	37.40%	146.86%
6138	72 Outperform	¥3.28B	8.69		2.26%	8.06%	―
6150	72 Outperform	¥2.75B	9.50		2.67%	-10.50%	-31.23%
6497	66 Neutral	¥8.11B	9.92		2.92%	9.38%	95.55%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%

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.

Nippon Tungsten Reports Strong Financial Performance for FY 2025

Nippon Tungsten Co., Ltd. reported an 8.1% increase in net sales for the fiscal year ending March 31, 2025, with significant growth in operating and ordinary profits. The company’s financial position remains strong, with a capital adequacy ratio of 71.2%. Despite a decrease in comprehensive income, the company maintains a stable dividend payout, reflecting its commitment to shareholders.