NSK Ltd (NPSKY)
OTHER OTC:NPSKY
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NSK
(OTC:NPSKY)
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Rating:68Neutral
Price Target:
$15.00
▲(13.64% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by improving financial performance, especially stronger free cash flow and lower leverage, tempered by thin net profitability and low ROE. Technicals are supportive due to a clear uptrend, but overbought signals increase near-term risk. Valuation is the main drag, with a relatively high P/E only partly supported by a moderate dividend yield.
Positive Factors
Free Cash Flow Strength
Material FCF growth (+27.9%) and elevated trailing operating and free cash flows provide durable internal funding. This strengthens the company's ability to fund capex, dividends, and debt reduction without relying on external financing, improving long-term financial flexibility.
Negative Factors
Thin Net Profitability
Net margin near 2.4% leaves a small earnings buffer after costs and taxes, exposing results to modest revenue swings or cost inflation. Persistently low net margins constrain reinvestment and shareholder returns and limit resilience to sector cost shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Material FCF growth (+27.9%) and elevated trailing operating and free cash flows provide durable internal funding. This strengthens the company's ability to fund capex, dividends, and debt reduction without relying on external financing, improving long-term financial flexibility.
Read all positive factors
NSK (NPSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.64B
Dividend Yield3.3%
Average Volume (3M)0.00
Price to Earnings (P/E)27.9
Beta (1Y)0.49
Revenue Growth2.25%
EPS Growth83.31%
CountryUS
Employees24,057
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.11
Shares Outstanding250,000,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-1.78
Price to Book (P/B)0.54
Price to Sales (P/S)0.44
P/FCF Ratio10.98
Enterprise Value/Market Cap177.55
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit3.48
Enterprise Value/Ebitda7.16
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)$6.44B
NSK Business Overview & Revenue Model
Company Description
NSK Ltd., together with its subsidiaries, manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts worldwide. Its products include ball bearings; roller bearings; bearing units; super precision b...
How the Company Makes Money
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NSK Earnings Call Summary
Earnings Call Date:Oct 31, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant challenges in the industrial machinery sector and revised downward forecasts due to economic slowdowns, particularly in China. However, there were positive developments in the automotive sector, successful strategic initiatives, and maintained shareholder returns. This balance of positive and negative aspects suggests a neutral sentiment.Positive Updates
Automotive Business Recovery
The automotive industry showed signs of recovery with production volume increasing by about 10% year-on-year, driven by a resolution of the semiconductor shortage. Sales reached JPY 199.1 billion, showing alignment with increased automotive production.
Negative Updates
Industrial Machinery Business Decline
The industrial machinery business experienced a significant decline with sales down JPY 24.4 billion and segment income down JPY 15 billion year-on-year, continuing sluggish performance in the semiconductor and E&E segments.
Read all updates
Q2-2024 Updates
Positive
Negative
Automotive Business Recovery
The automotive industry showed signs of recovery with production volume increasing by about 10% year-on-year, driven by a resolution of the semiconductor shortage. Sales reached JPY 199.1 billion, showing alignment with increased automotive production.
Read all positive updates
Company Guidance
In the earnings call for NSK Limited, President and CEO Akitoshi Ichii provided a detailed overview of the company's financial performance for the first half of fiscal 2023 and discussed the revised full-year forecast. The company reported first-half sales of JPY 386.7 billion and an operating income of JPY 11.1 billion, but due to a prolonged economic slowdown in China and ongoing weakness in demand for industrial machinery, the full-year sales forecast was revised down to JPY 800 billion with operating income expected at JPY 30 billion. The automotive segment showed signs of recovery, driven by an alleviation in semiconductor shortages, achieving sales of JPY 199.1 billion with a segment income of JPY 5.7 billion. Despite cost reductions of JPY 3.2 billion and a positive currency impact of JPY 3.2 billion, the company faced an overall operating income decline of JPY 8.5 billion from the previous year. Additionally, Ichii highlighted the successful completion of an equity method affiliate for the steering business and maintained a commitment to stable shareholder returns with a full-year dividend of JPY 30 per share. Looking ahead, the company aims to address challenges through structural reforms and expand sales, particularly in the Americas, while continuing to progress towards the Mid-Term Plan 2026 objectives.NSK Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 866.43B | 796.67B | 788.87B | 938.10B | 865.17B | 747.56B |
| Gross Profit | 185.73B | 172.78B | 165.25B | 191.06B | 169.73B | 126.24B |
| EBITDA | 90.24B | 84.11B | 78.79B | 91.14B | 81.33B | 57.37B |
| Net Income | 20.48B | 10.65B | 8.50B | 18.41B | 16.59B | 355.00M |
Balance Sheet | ||||||
| Total Assets | 1.30T | 1.22T | 1.30T | 1.23T | 1.23T | 1.17T |
| Cash, Cash Equivalents and Short-Term Investments | 154.47B | 201.04B | 195.66B | 161.70B | 139.16B | 178.21B |
| Total Debt | 226.72B | 306.40B | 318.94B | 360.81B | 327.21B | 332.44B |
| Total Liabilities | 604.02B | 550.35B | 620.12B | 598.53B | 597.09B | 594.07B |
| Stockholders Equity | 680.04B | 651.46B | 659.98B | 616.21B | 617.80B | 554.38B |
Cash Flow | ||||||
| Free Cash Flow | 124.89B | 31.82B | 41.12B | 12.41B | -13.33B | 20.05B |
| Operating Cash Flow | 160.26B | 82.18B | 99.82B | 64.16B | 22.73B | 53.84B |
| Investing Cash Flow | -142.61B | -58.75B | -90.81B | -48.78B | -19.97B | -51.10B |
| Financing Cash Flow | -4.02B | -33.74B | -24.78B | 4.42B | -48.22B | 29.99B |
NSK Technical Analysis
Positive
13.20
Price Trends
15.39
Negative
13.96
Positive
12.07
Positive
Market Momentum
-0.36
Negative
51.92
Neutral
44.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSKY, the sentiment is Positive. The current price of 13.2 is below the 20-day moving average (MA) of 14.47, below the 50-day MA of 15.39, and above the 200-day MA of 12.07, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 51.92 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPSKY.
NSK Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.60B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
68 Neutral | $3.64B | 27.89 | 1.78% | 3.30% | 2.25% | 83.31% | |
68 Neutral | $2.76B | 19.35 | 8.21% | 1.77% | -0.72% | -4.90% | |
63 Neutral | $3.62B | 11.23 | -39.65% | 1.49% | -1.09% | 56.16% | |
62 Neutral | $3.85B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
43 Neutral | $2.02B | -1.47 | -42.27% | ― | -3.87% | -482.29% |
* Consumer Cyclical Sector Average
NPSKY
NSK
14.93
7.37
97.47%
DAN
Dana Incorporated
35.43
23.71
202.38%
GT
GoodYear Tire
7.05
-2.69
-27.62%
VC
Visteon
97.02
23.91
32.70%
GTX
Garrett Motion
19.04
10.49
122.56%
PHIN
PHINIA Inc.
72.76
32.71
81.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.