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Nikki Co., Ltd. (JP:6042)
:6042
Japanese Market
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Nikki Co., Ltd. (6042) AI Stock Analysis

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JP:6042

Nikki Co., Ltd.

(6042)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥4,398.00
▲(11.34% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily supported by attractive valuation (low P/E and a reasonable dividend yield). This is tempered by financial performance concerns driven by a multi-year pattern of weak/volatile free cash flow and inconsistent operating cash flow, despite solid operating profitability and a recent revenue rebound. Technical indicators add a modest positive tilt, with improving momentum and price holding above short-term moving averages.
Positive Factors
Revenue Rebound
The strong 2026 revenue rebound indicates renewed demand and business traction after the prior-year decline. Sustained customer or market recovery could support operating leverage and improve the company’s earnings base over the next several quarters.
Negative Factors
Weak Cash Conversion
Repeated negative free cash flow and uneven operating cash flow indicate that accounting profits have not consistently converted into funding. Heavy investment needs or working-capital swings could constrain reinvestment, debt reduction, and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Rebound
The strong 2026 revenue rebound indicates renewed demand and business traction after the prior-year decline. Sustained customer or market recovery could support operating leverage and improve the company’s earnings base over the next several quarters.
Read all positive factors

Nikki Co., Ltd. (6042) vs. iShares MSCI Japan ETF (EWJ)

Nikki Co., Ltd. Business Overview & Revenue Model

Company Description
Nikki Co., Ltd. is a global enterprise specializing in the research, design, development, and sale of a wide array of carburetors and fuel-related systems. Their diverse product portfolio encompasses electric motors; advanced components for fuel c...
How the Company Makes Money
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Nikki Co., Ltd. Financial Statement Overview

Summary
Operating profitability appears solid and revenue rebounded strongly in 2026, but cash-flow quality is a major drag: free cash flow was negative in most years (2021–2025) and operating cash flow has been inconsistent. Leverage is manageable but not light, with sizable debt remaining elevated, which matters given the cash-flow volatility.
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
44
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.90B9.27B8.36B9.36B8.80B8.84B
Gross Profit3.03B2.95B2.71B2.68B2.75B2.48B
EBITDA2.18B1.95B1.90B3.85B1.78B1.80B
Net Income1.02B955.18M630.55M2.19B878.23M923.48M
Balance Sheet
Total Assets24.69B24.30B23.37B23.06B20.28B17.84B
Cash, Cash Equivalents and Short-Term Investments5.11B4.62B4.10B4.18B4.68B3.26B
Total Debt7.93B8.08B8.16B7.25B7.65B5.93B
Total Liabilities10.48B10.34B10.30B10.67B10.45B8.69B
Stockholders Equity14.18B13.93B13.03B12.37B9.81B9.12B
Cash Flow
Free Cash Flow0.001.21B-698.87M-2.68B-2.44B-1.84B
Operating Cash Flow0.001.52B-441.34M1.92B801.51M677.39M
Investing Cash Flow0.00-749.05M-295.23M-2.45B-2.67B-2.47B
Financing Cash Flow0.00-271.84M539.75M-367.91M3.19B1.32B

Nikki Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3950.00
Price Trends
50DMA
3946.20
Negative
100DMA
4127.25
Negative
200DMA
3985.23
Negative
Market Momentum
MACD
-25.20
Positive
RSI
36.72
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6042, the sentiment is Negative. The current price of 3950 is below the 20-day moving average (MA) of 3963.00, above the 50-day MA of 3946.20, and below the 200-day MA of 3985.23, indicating a bearish trend. The MACD of -25.20 indicates Positive momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6042.

Nikki Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥9.53B7.613.34%-1.38%1.69%
68
Neutral
¥7.34B7.013.13%27.08%34.26%
63
Neutral
¥7.16B5.582.77%17.43%176.28%
62
Neutral
¥6.51B4.604.87%5.85%-4.12%
61
Neutral
¥8.99B6.666.38%-4.33%882.27%
58
Neutral
¥6.11B19.033.46%-4.43%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6042
Nikki Co., Ltd.
3,835.00
913.17
31.25%
JP:5189
Sakura Rubber Co., Ltd.
3,615.00
1,340.21
58.92%
JP:6699
Diamond Electric Holdings Co., Ltd.
513.00
-41.51
-7.49%
JP:7228
Daytona Corporation
4,045.00
221.83
5.80%
JP:7291
Nihon Plast Co., Ltd.
470.00
52.84
12.67%
JP:7297
Car Mate Mfg. Co Ltd
866.00
34.24
4.12%

Nikki Co., Ltd. Corporate Events

Nikki Co., Ltd. Delivers Strong Q1 Earnings and Bolsters Balance Sheet
Jul 31, 2026
Nikki Co., Ltd. reported strong results for the first quarter of the fiscal year ending March 2027, with net sales rising 30.8% year on year to &#165;2,683 million and operating profit up 14.1% to &#165;366 million, driving a 29.7% increase in pro...
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: Aug 17, 2026