Nikkato Corporation AI Stock Analysis
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Nikkato Corporation (5367) AI Stock Analysis
Nikkato Corporation
(TSE/TYO:5367)
Nikkato scores in the mid-range, anchored by a very conservative balance sheet with almost no debt and a steadily growing equity base, which provides strong resilience in a cyclical industry. Profitability is the main limitation: return on equity of only 4-6% and margin compression in FY2025 point to underutilised capital, though FY2026 forecasts for 12.5% revenue growth and stronger free cash flow are constructive. Valuation is supportive at a 10.6x P/E with a 2.4% dividend yield. The biggest drag is technical: the stock trades far below its 20-, 50- and 100-day moving averages with negative MACD momentum, leaving it reliant on the 200-day average as support. Overall, a financially stable, reasonably priced company whose near-term share price trend remains unfavourable.
Nikkato Corporation (5367) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 12.30B
- Dividend Yield
- 2.51%
- Average Volume (3M)
- 184.21K
- Price to Earnings (P/E)
- 10.8
- Beta (1Y)
- 1.30
- Revenue Growth
- 21.15%
- EPS Growth
- 104.15%
- Country
- Japan
- Employees
- 279
- Sector
- General
- Sector Strength
- 55
- Industry
- Industrial - Machinery
Nikkato Corporation Business Overview & Revenue Model
Company Description
Nikkato Corporation, a Japanese company established in 1913 with its headquarters in Sakai, specializes in the production and distribution of industrial ceramic goods. The company operates through two main divisions: Ceramics Business and Engineering...
How the Company Makes Money
Nikkato makes money primarily by selling industrial ceramic products and related materials to business customers that use them in manufacturing and processing operations. Revenue is generated through (1) sales of ceramic components and consumables us...
Nikkato Corporation Financial Statement Overview
Summary
Nikkato combines a fortress balance sheet (score 75) with moderate earnings quality (income statement 58) and improving cash generation (68). Debt has been cut to roughly ¥509 million against ¥14.1 billion of equity, implying near-zero leverage and strong downside protection. Offsetting this, margins compressed in FY2025 (EBIT ~6.3%, net ~5%) and return on equity remains low at ~4-6%, signalling inefficient use of a large equity base. FY2026 projections are encouraging — 12.5% revenue growth to ¥11.3 billion, net income of ¥776 million and free cash flow rising to ¥1.15 billion — but the recent volatility in revenue, margins and cash flow keeps the score in the moderate range.
Income Statement
58NeutralBalance Sheet
75PositiveCash Flow
68Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.13B | 11.34B | 10.08B | 10.24B | 10.73B | 9.98B |
| Gross Profit | 2.32B | 2.57B | 1.97B | 2.27B | 2.53B | 2.29B |
| EBITDA | 1.56B | 1.80B | 1.38B | 1.60B | 1.81B | 1.70B |
| Net Income | 676.61M | 775.70M | 503.57M | 701.91M | 835.36M | 671.88M |
Balance Sheet | ||||||
| Total Assets | 16.80B | 18.85B | 17.28B | 17.32B | 17.05B | 16.68B |
| Cash, Cash Equivalents and Short-Term Investments | 3.38B | 4.14B | 3.64B | 3.38B | 3.51B | 3.36B |
| Total Debt | 988.83M | 509.18M | 724.35M | 935.92M | 1.16B | 1.42B |
| Total Liabilities | 4.15B | 4.72B | 4.17B | 4.25B | 4.66B | 4.90B |
| Stockholders Equity | 12.65B | 14.14B | 13.11B | 13.07B | 12.39B | 11.79B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 1.15B | 780.91M | 392.35M | 676.35M | 1.11B |
| Operating Cash Flow | 0 | 1.68B | 1.68B | 785.12M | 938.74M | 1.64B |
| Investing Cash Flow | 0 | -710.29M | -925.64M | -398.90M | -267.22M | -561.30M |
| Financing Cash Flow | 0 | -469.61M | -493.09M | -509.93M | -521.09M | -396.86M |
Nikkato Corporation Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5367, the sentiment is Negative. The current price of 1030.00 is below the 20-day moving average (MA) of 1141.10, below the 50-day MA of 1288.94, and below the 200-day MA of 1061.21, indicating a bearish trend. The MACD of -85.15 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 51.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5367.
Nikkato Corporation Peers Comparison
Overall Rating
JP:638183Outperform
JP:636376Outperform
JP:637672Outperform
JP:639371Outperform
JP:651771Outperform- JP:536764Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6381 | 83Outperform | JPY 66.54B | 11.33 | ― | 5.04% | 13.76% | 38.30% |
| JP:6363 | 76Outperform | JPY 68.44B | 9.12 | ― | 2.50% | -1.87% | 215.99% |
| JP:6376 | 72Outperform | JPY 175.64B | 11.15 | 10.59% | 1.81% | 10.77% | 147.98% |
| JP:6393 | 71Outperform | JPY 12.23B | 10.52 | ― | 5.00% | 0.61% | 3.85% |
| JP:6517 | 71Outperform | JPY 71.42B | 10.22 | ― | 4.08% | 9.85% | 33.61% |
| JP:5367 | 64Neutral | JPY 12.84B | 10.76 | ― | 2.51% | 21.15% | 104.15% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5367 | Nikkato Corporation | 1030.00 | 454.87 | 79.09% | |
| JP:6376 | Nikkiso Co., Ltd. | 2759.00 | 1190.41 | 75.89% | |
| JP:6363 | Torishima Pump Mfg.Co., Ltd. | 2550.00 | 710.52 | 38.63% | |
| JP:6381 | ANEST IWATA Corp. | 1700.00 | 273.28 | 19.15% | |
| JP:6393 | Yuken Kogyo Co., Ltd. | 2989.00 | 174.21 | 6.19% | |
| JP:6517 | Denyo Co., Ltd. | 3415.00 | 358.45 | 11.73% |
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.
Date of analysis: Nov 05, 2026