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

• Market Cap: ¥11.27B
• Dividend Yield: 3.48%
• Average Volume (3M): 12.05K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.37
• 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: 78 Outperform
• Price Target: ¥2,742.00 ▲(81.83% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by solid financial performance (improving profitability and a strong, low-leverage balance sheet), supported by attractive valuation (low P/E with a modest dividend). Technicals add a positive but not aggressive tailwind, with an uptrend versus key moving averages and neutral-to-positive momentum readings.

Positive Factors

Low leverage / strong balance sheet

A conservative capital structure with D/E of 0.20 and a 71% equity ratio provides durable financial flexibility. This reduces refinancing risk across cycles, supports capex or targeted M&A, and helps the company withstand commodity-driven revenue swings without stressing liquidity.

Improving cash flow generation

Operating cash flow growth and positive FCF (¥95m) with OCF/net income of 1.51 indicate improving cash conversion. Sustained cash generation enhances the company's ability to fund operations, support dividends, reduce debt, and invest in higher-margin engineered products over the medium term.

Improving profitability and margins

Consistent revenue growth and expanding gross and net margins reflect better cost control and mix shift toward higher-value engineered parts. Sustained margin expansion signals operational efficiency gains that can persist if the company continues adding precision-processing capabilities and value-added products.

Negative Factors

Commodity price exposure

Dependence on tungsten and molybdenum pricing creates structural margin volatility. Over time, raw-material swings can erode profitability or force price pass-through to customers, complicating planning, capital allocation, and the ability to deliver stable returns in manufacturing cycles.

Low FCF-to-net income ratio

A low FCF/net income ratio (0.14) suggests limited cash conversion of reported earnings despite positive FCF. Persistently low conversion constrains capacity to self-fund growth, sizeable capex, or shareholder distributions without relying on external financing, reducing strategic optionality.

Modest return on equity

ROE of ~5.4% signals moderate capital efficiency relative to peers. Over the medium term, modest ROE may limit shareholder value creation unless management improves asset utilization, raises margins, or targets higher-return product segments, particularly in a capital-intensive materials business.

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 primarily makes money by manufacturing and selling tungsten- and molybdenum-based materials and fabricated products to industrial customers. Key revenue streams generally include: (1) sales of cemented carbide materials and components (e.g., wear-resistant parts, tooling-related components) where revenue is generated per unit or per contract based on material specifications, machining/processing requirements, and performance tolerances; (2) sales of refractory metal materials and processed parts (tungsten/molybdenum and related alloys) used in high-temperature or specialized industrial environments, typically priced based on raw material content, processing complexity (powder metallurgy, sintering, machining), and quality requirements; and (3) sales of other engineered/functional components derived from its materials technologies. Earnings are influenced by demand from end markets such as manufacturing, tooling, and industrial equipment, as well as by raw-material price movements (particularly tungsten and molybdenum), product mix (standard materials versus higher-margin engineered components), and the company’s ability to add value through precision processing and customization. Specific details on material business segment breakdowns, customer concentration, pricing mechanisms, or named strategic partnerships are null.

Nippon Tungsten Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by improving revenue and profitability (income statement score 82) and a conservative balance sheet with low leverage (D/E 0.20; balance sheet score 78). Cash flow is improving with positive free cash flow, but quality is still developing given the low FCF-to-net income ratio (cash flow score 70).

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 2189.10, below the 50-day MA of 1989.94, and above the 200-day MA of 1498.69, indicating a bullish trend. The MACD of 86.76 indicates Positive momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 59.14 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	¥9.60B	8.32	―	2.92%	5.71%	169.04%
6998	78 Outperform	¥11.27B	7.66	―	3.48%	0.24%	20.23%
5644	72 Outperform	¥15.21B	4.33	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥6.85B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥20.54B	3.53	―	4.33%	5.12%	―
2962	53 Neutral	¥10.41B	-73.23	―	―	-19.32%	-171.53%

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.