Nikkato Corporation (5367) AI Stock Analysis

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Nikkato Corporation

(TSE/TYO:5367)

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Rating:67.1Neutral

Price Target:JPY 1,168.00▲(12.96% Upside)

Action:reiterated

Date:11/05/26

The score is supported primarily by strong financial footing (low and declining debt, rising equity, and improved 2026 profitability) and reasonable valuation (P/E 10.57 with a ~2.42% yield). These positives are partially offset by weak near-term technicals, with price below key moving averages and a negative MACD indicating bearish momentum.

Positive Factors

Improving Revenue and ProfitabilityThe latest recovery in revenue and net income shows renewed demand for Nikkato’s industrial ceramic products and improved earnings capacity. If this momentum continues, higher operating scale can support reinvestment and strengthen the company’s position with manufacturing customers over the next several quarters.

Negative Factors

Cyclical Earnings TrajectoryThe uneven revenue and margin history indicates that Nikkato’s earnings remain exposed to cycles in manufacturing activity and customer production demand. Even after the latest rebound, recurring fluctuations could make future profit growth less predictable and limit the reliability of near-term earnings expansion.

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

Fundamentals are solid: 2026 revenue grew ~13% to ~¥11.34B and net income rose to ~¥0.78B (vs ~¥0.50B in 2025). The balance sheet is a clear strength with meaningfully lower debt (~¥1.66B to ~¥0.51B from 2021–2026) and rising equity (~¥11.43B to ~¥14.14B). Cash flow is positive (2026 OCF ~¥1.68B; FCF ~¥1.15B) but has been volatile across years, which tempers the score.

Income Statement

76Positive

Balance Sheet

86Very Positive

Cash Flow

72Positive

Financial statement breakdown
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

Technical Analysis SentimentNegative

Last Price1034.00

Price Trends

50DMA1288.94Negative

100DMA1298.05Negative

200DMA1061.21Negative

Market Momentum

MACD-85.15Positive

RSI39.47Neutral

STOCH51.01Neutral

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 1034.00 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

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5367 against its peers
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	67Neutral	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

JP:5367 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5367	Nikkato Corporation	1034.00	450.10	77.09%
JP:6376	Nikkiso Co., Ltd.	2880.00	1468.27	104.00%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2644.00	776.14	41.55%
JP:6381	ANEST IWATA Corp.	1687.00	261.23	18.32%
JP:6393	Yuken Kogyo Co., Ltd.	3000.00	171.87	6.08%
JP:6517	Denyo Co., Ltd.	3430.00	445.77	14.94%

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.

Date of analysis: Nov 05, 2026

Nikkato Corporation AI Stock Analysis