NSK (NPSKY) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: 3.3%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.46
• Revenue Growth: 2.25%
• EPS Growth: 83.31%
• Country: US
• Employees: 24,057
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.11
• Shares Outstanding: 250,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -1.78
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 10.98
• Enterprise Value/Market Cap: 168.19
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 8.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): $5.83B

• Rating: 68 Neutral
• Price Target: $19.50 ▲(47.73% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 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 sizable operating cash (~160B) provide durable internal funding for capex, dividends or debt reduction. FCF at ~0.78x of net income improves financial flexibility, enabling multi-quarter reinvestment and resilience through industry cycles.

Improving leverage

A materially lower debt-to-equity versus prior periods signals stronger capital structure and reduced interest exposure. This sustainable leverage improvement enhances balance-sheet resilience, supports discretionary capital allocation, and lowers refinancing risk across the next several quarters.

Revenue recovery and stability

Consistent TTM revenue growth (6.3%) after a prior weak patch indicates stabilizing demand and a return to growth. Durable top-line expansion supports fixed-cost absorption, incremental margin recovery potential, and steadier cash generation over a 2–6 month horizon and beyond.

Negative Factors

Thin net profitability

A persistently low net margin (~2.4%) limits retained earnings and buffers against cost inflation or revenue shocks. Over time thin after-tax profitability constrains the company’s ability to self-fund growth, dividends, or buybacks without sustained margin improvement or higher revenue growth.

Low return on equity

ROE near ~2.8% signals weak capital efficiency and modest returns on invested equity. Structurally low ROE makes it harder to justify incremental capital deployment and may pressure long-term shareholder value unless operational improvements raise margins or asset turnover.

Limited debt coverage by operating cash

Operating cash covering ~0.5x of total debt means debt paydown capacity is adequate but not robust. This constraint could slow leverage reduction or limit strategic spending under stress, leaving the company vulnerable to interest-cost or liquidity pressures absent sustained cash flow gains.

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 bearings; bearings for steel industry, mining and construction, papermaking machines, and pumps and compressors; and bearings for special environments, including sanitary, corrosive, vacuum, clean, high-temperature, non-magnetic requirement, and dust-contaminated environments. The company also provides automotive products, which comprise chassis products, such as electric power steerings, steering column and intermediate shafts, and hub unit bearings; power train products comprising engine parts and electrical accessories; and drive train products consisting of automatic and manual transmission, products for motorcycles and all-terrain vehicles, half toroidal CVT POWERTOROS units, and differential gear and propeller shafts. In addition, it offers precision machine components, including ball screws, linear guides, monocarriers, XY tables, and spindles; and accessories, including ball screw support bearings, air bearings, and clean grease, as well as support units for heavy and light loads, machine tools, and small equipment. Further, the company provides megatorque motors; maintenance and repair services; design, development, sales, and maintenance services for computer systems and networks; and sells industrial machinery bearings and automotive components. It serves agriculture, automotive, cement, food processing machinery, industrial motor, gearbox, injection molding machine, machine tool, medical device, mining and construction, motorcycle, office equipment, palm oil, papermaking machinery, pump and compressor, railway, semiconductor, steel, sugar, and wind turbine industries. NSK Ltd. was founded in 1914 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NSK generates revenue through the sale of its precision bearings and related products, which are utilized in numerous industries including automotive, aerospace, and manufacturing. The company has a diversified revenue model that includes direct sales to original equipment manufacturers (OEMs), aftermarket sales, and systems and services related to its products. Key revenue streams include high-demand products like automotive bearings and industrial machinery components. NSK also engages in strategic partnerships with major automotive and industrial companies, enhancing its market reach and enabling joint development projects, which further contributes to its earnings. Additionally, the company invests in R&D to innovate and improve product offerings, positioning itself competitively in the market.

NSK Financial Statement Overview

Summary

Financials are improving: TTM revenue grew 6.3%, leverage declined (debt-to-equity ~0.33), and cash generation strengthened materially with strong free cash flow (+27.9%). Offsetting this, profitability is still thin (net margin ~2.4%) and ROE is low (~2.8%), limiting overall quality and resilience.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 6.3%, showing demand stability after a weak patch in 2024 (annual revenue decline). Profitability is moderate for the sector: TTM gross margin is ~21% and EBITDA margin is ~10.5%, but net margin remains thin at ~2.4%, indicating limited pricing power and/or higher cost pressure below the operating line. Net income improved versus the last annual periods, yet earnings still look somewhat cyclical given the prior swings in growth and profitability.

Balance Sheet

Leverage looks reasonable and improving: TTM debt-to-equity is ~0.33 versus higher levels in prior annual periods (~0.47–0.60), suggesting a stronger capital position and/or debt reduction. Equity is sizable relative to assets, supporting balance-sheet resilience. The main weakness is modest shareholder returns: TTM return on equity is ~2.8%, which is low and implies the company is not converting its capital base into strong bottom-line profitability.

Cash Flow

Cash generation strengthened materially in TTM (Trailing-Twelve-Months): operating cash flow (~160B) and free cash flow (~125B) are both well above the most recent annual figures, and free cash flow growth is strong (+27.9%). Free cash flow is sizable relative to net income (TTM ~0.78x), supporting cash quality. The key watch-out is that operating cash flow covers only about half of total debt in TTM (~0.50x), so while cash flow momentum is positive, debt paydown capacity is good but not exceptional.

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

• Technical Analysis Sentiment: Positive
• Last Price: 13.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 16.49, below the 50-day MA of 14.53, and above the 200-day MA of 11.31, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 78.79 is Negative, neither overbought nor oversold. The STOCH value of 95.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NPSKY.

NSK Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	72 Outperform	$2.56B	13.14	14.37%	0.57%	-4.03%	-39.51%
NPSKY	68 Neutral	$4.37B	32.72	1.78%	3.30%	2.25%	83.31%
PHIN	68 Neutral	$2.75B	22.40	8.23%	1.77%	-0.72%	-4.90%
GTX	63 Neutral	$3.81B	13.37	―	1.49%	-1.09%	56.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	59 Neutral	$3.77B	53.85	-2.12%	1.70%	-18.23%	―
GT	48 Neutral	$2.36B	-1.38	-43.08%	―	-3.87%	-482.29%