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NSK Ltd (NPSKY)
OTHER OTC:NPSKY
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NSK
(OTC:NPSKY)
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Rating:57Neutral
Price Target:
$10.50
▲(2.24% Upside)
NSK's stock score is primarily influenced by its financial performance and technical analysis. The company's operational efficiency and solid capital structure are strengths, but challenges in revenue growth and cash generation weigh heavily on the score. Technical indicators suggest a lack of strong momentum, and valuation metrics indicate potential overvaluation concerns.
NSK (NPSKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.50B
Dividend Yield1.72%
Average Volume (3M)0.00
Price to Earnings (P/E)39.0
Beta (1Y)0.46
Revenue Growth-1.47%
EPS Growth-14.79%
CountryUS
Employees24,057
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.03
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 Cap1.10
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.02
Enterprise Value/Ebitda0.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
NSK Business Overview & Revenue Model
Company DescriptionNSK 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 MoneyNSK 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
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.Q2-2024 Updates
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.
Successful Establishment of Steering Business Joint Venture
The establishment of an equity method affiliate for the steering business was successfully completed in August.
Shareholder Returns
The company maintained its initial plan to pay an interim dividend of JPY 15 per share and completed the buyback and cancellation of 51 million treasury shares.
Progress in Automotive Business Strategy
The automotive business exceeded the midterm plan target for fiscal 2026 with sales projected at JPY 414 billion, attributed to strategies like increasing electric vehicle market share and expanding new product sales.
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.
Revised Downward Forecast
The company revised its full-year forecast downward due to ongoing economic slowdown in China and weaker-than-expected demand recovery. Sales forecast reduced by JPY 8 billion and operating income by JPY 14 billion.
Operating Income Decrease
Operating income decreased by JPY 8.5 billion due to negative impacts from volume and mix changes and increased inflation and labor costs.
Challenges in Achieving Midterm Plan Targets
The company is currently far from achieving its midterm plan 2026 targets, facing a JPY 100 billion gap in forecasted sales versus targets, alongside deteriorating business environments in Europe and China.
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
The overall financial performance of NSK is mixed. While the company shows operational efficiency and a solid balance sheet, it struggles with declining revenue and fluctuating profitability. Cash flow management is effective, but there is room for improvement in income conversion.Income Statement
The company has seen a decline in total revenue from 2019 to 2024, indicating challenges in maintaining growth. The gross profit margin has decreased over time, reflecting potential cost pressures. However, the company has managed to maintain a stable EBITDA margin, suggesting operational efficiency. The net profit margin has fluctuated, indicating some instability in bottom-line profitability.65
Positive
Balance Sheet
NSK exhibits a solid equity ratio, indicating a healthy balance between assets and equity. The debt-to-equity ratio is manageable, suggesting that the company is not overly reliant on debt financing. The return on equity has shown variability, which could reflect inconsistent profitability or changes in financial leverage.70
Positive
Cash Flow
The company's operating cash flow has shown improvement, indicating better cash generation from operations. Free cash flow growth has been positive, reflecting effective capital expenditure management. However, the free cash flow to net income ratio suggests that cash generation relative to net income could be more efficient.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 791.93B | 796.67B | 788.87B | 938.10B | 865.17B | 747.56B |
| Gross Profit | 171.80B | 172.78B | 165.25B | 191.06B | 169.73B | 126.24B |
| EBITDA | 73.14B | 84.11B | 78.79B | 91.14B | 81.33B | 57.37B |
| Net Income | 9.83B | 10.65B | 8.50B | 18.41B | 16.59B | 355.00M |
Balance Sheet | ||||||
| Total Assets | 1.21T | 1.22T | 1.30T | 1.23T | 1.23T | 1.17T |
| Cash, Cash Equivalents and Short-Term Investments | 180.86B | 201.04B | 195.66B | 161.70B | 139.16B | 178.21B |
| Total Debt | 0.00 | 306.40B | 318.94B | 360.81B | 327.21B | 332.44B |
| Total Liabilities | 551.95B | 550.35B | 620.12B | 598.53B | 597.09B | 594.07B |
| Stockholders Equity | 643.51B | 651.46B | 659.98B | 616.21B | 617.80B | 554.38B |
Cash Flow | ||||||
| Free Cash Flow | 64.47B | 31.82B | 41.12B | 12.41B | -13.33B | 20.05B |
| Operating Cash Flow | 99.89B | 82.18B | 99.82B | 64.16B | 22.73B | 53.84B |
| Investing Cash Flow | -63.98B | -58.75B | -90.81B | -48.78B | -19.97B | -51.10B |
| Financing Cash Flow | -26.94B | -33.74B | -24.78B | 4.42B | -48.22B | 29.99B |
NSK Technical Analysis
Positive
10.27
Price Trends
10.44
Negative
9.98
Positive
9.30
Positive
Market Momentum
-0.01
Negative
50.00
Neutral
74.85
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 10.27 is above the 20-day moving average (MA) of 10.16, below the 50-day MA of 10.44, and above the 200-day MA of 9.30, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 74.85 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 |
|---|---|---|---|---|---|---|---|
| ― | $2.10B | 24.33 | 5.47% | 2.04% | -0.72% | -4.90% | |
| ― | $2.84B | 9.64 | 23.16% | 0.25% | -4.03% | -39.51% | |
| ― | $3.32B | 11.08 | ― | 1.21% | -1.09% | 56.16% | |
| ― | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
| ― | $2.50B | 38.98 | 1.78% | 1.72% | -1.47% | -14.79% | |
| ― | $2.01B | 4.95 | 8.37% | ― | -4.52% | ― | |
| ― | $2.63B | ― | -5.00% | 2.03% | -14.46% | -2170.83% |
* Consumer Cyclical Sector Average
NPSKY
NSK
10.27
1.06
11.51%
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GTX
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17.08
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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.