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

• Market Cap: ¥7.07B
• Dividend Yield: 3.49%
• Average Volume (3M): 12.05K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.49
• Revenue Growth: 0.24%
• EPS Growth: 20.23%
• Country: JP
• Employees: 515
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 25.28
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,493.00 ▲(4.19% Upside)

Nippon Tungsten Co., Ltd. has a strong financial foundation and attractive valuation, which are the primary drivers of its score. Technical analysis presents mixed signals, with positive long-term trends but short-term caution. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing the company's competitive position.

Cash Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and reduces risk, supporting long-term strategic initiatives.

Negative Factors

Return on Equity

While ROE is positive, it suggests room for improvement in generating higher returns on shareholder investments, impacting growth potential.

Free Cash Flow to Net Income Ratio

A low free cash flow to net income ratio indicates limited cash available for expansion or debt repayment, constraining financial flexibility.

Earnings Call Data Absence

Lack of earnings call data restricts transparency and investor insight into management's strategic direction and operational challenges.

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 strong financial performance with consistent revenue and profit growth, effective cost management, and prudent leverage. While ROE and free cash flow to net income ratio could improve, the overall financial health is robust.

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	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: 1433.00
• 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 1433 is above the 20-day moving average (MA) of 1406.40, above the 50-day MA of 1421.92, and above the 200-day MA of 1277.45, indicating a bullish trend. The MACD of 3.57 indicates Negative momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 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	¥18.57B	9.21	―	2.78%	2.63%	-3.96%
6497	72 Outperform	¥8.01B	8.84	―	2.92%	5.71%	169.04%
6998	71 Outperform	¥7.07B	10.98	―	3.49%	0.24%	20.23%
6138	68 Neutral	¥2.74B	7.62	―	2.70%	3.89%	―
3440	65 Neutral	¥5.35B	6.40	―	4.41%	30.19%	-15.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.45	―	2.66%	-17.16%	-47.34%

Nippon Tungsten Co., Ltd. Corporate Events

Nippon Tungsten Reports Financial Decline Amid Market Challenges

Nippon Tungsten Co., Ltd. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales and profits decreasing compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio and has announced a consistent dividend payout, signaling stability to its stakeholders.