Nitto Kohki Co., Ltd. (6151) AI Stock Analysis

• Market Cap: ¥32.19B
• Dividend Yield: 2.13%
• Average Volume (3M): 10.91K
• Price to Earnings (P/E): 58.7
• Beta (1Y): 0.67
• Revenue Growth: 1.69%
• EPS Growth: -67.19%
• Country: JP
• Employees: 1,014
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -15.05
• Shares Outstanding: 19,154,495
• 10 Day Avg. Volume: 10,020
• 30 Day Avg. Volume: 10,913
• PEG Ratio: -1.11
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -16.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥1,880.00 ▲(5.20% Upside)

The overall stock score of 60 reflects a stable financial foundation with strong equity and low debt, but is tempered by challenges in revenue growth and profitability. Technical indicators suggest a neutral to slightly bearish trend, while the high P/E ratio indicates potential overvaluation. The dividend yield provides some compensation for valuation concerns, but strategic improvements in operational efficiency are needed to enhance future prospects.

Nitto Kohki Co., Ltd. Business Overview & Revenue Model

Company Description

Nitto Kohki Co., Ltd. (6151) is a Japanese manufacturer specializing in precision tools and measuring instruments. Established in 1939, the company operates primarily in the industrial equipment sector, offering a diverse range of products including air tools, pneumatic components, and automation equipment. Nitto Kohki is known for its commitment to innovation and quality, serving various industries such as automotive, electronics, and construction.

How the Company Makes Money

Nitto Kohki generates revenue primarily through the sale of its precision tools and automation products. The company has a robust revenue model that includes direct sales to manufacturers and distributors, as well as partnerships with companies that integrate its products into their systems. Key revenue streams include the sale of air tools, which are utilized in various manufacturing processes, and pneumatic components, which are essential for automation solutions. Additionally, Nitto Kohki benefits from its global presence, enabling it to tap into international markets, and its focus on research and development helps in creating innovative products that meet market demands, further driving revenue growth.

Nitto Kohki Co., Ltd. Financial Statement Overview

Summary

Nitto Kohki Co., Ltd. demonstrates a stable financial position with strong equity support and low debt levels, providing a robust buffer against market uncertainties. However, challenges in maintaining consistent revenue growth and improving profitability margins need addressing. The company's ability to generate cash flow has been under pressure, which warrants strategic focus on enhancing operational efficiency and profitability.

Income Statement

The income statement reveals mixed performance. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin has declined over recent years, reflecting pressures on profitability. Revenue growth is inconsistent, with fluctuations in annual revenues, highlighting potential market or operational challenges. EBIT and EBITDA margins are satisfactory, yet they have shown a downtrend from previous levels, suggesting a need for operational improvements.

Balance Sheet

The balance sheet indicates financial stability with a strong equity base, as evidenced by a high equity ratio. The debt-to-equity ratio is low, suggesting prudent leverage management. However, the return on equity has been decreasing, which might be a concern for investors looking for strong returns on capital. Overall, the company's balance sheet reflects a conservative financial structure with ample equity to support operations.

Cash Flow

Cash flow analysis shows declining free cash flow, which could constrain future investments and growth. The operating cash flow to net income ratio is positive, indicating good cash conversion efficiency. However, the free cash flow to net income ratio is negative in the latest period, highlighting operational cash flow challenges. Despite these issues, the company maintains a solid liquidity position with substantial cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.15B	27.26B	27.07B	28.09B	25.28B	22.53B
Gross Profit	11.96B	12.14B	12.32B	12.88B	11.79B	10.57B
EBITDA	2.92B	3.67B	4.00B	5.22B	4.45B	3.78B
Net Income	547.00M	1.35B	1.84B	2.49B	1.86B	1.55B
Balance Sheet
Total Assets	65.62B	66.61B	65.48B	66.83B	64.33B	61.72B
Cash, Cash Equivalents and Short-Term Investments	13.67B	20.30B	25.16B	31.82B	31.80B	31.20B
Total Debt	1.63B	1.59B	1.63B	1.75B	1.74B	1.16B
Total Liabilities	8.49B	8.42B	7.89B	8.87B	8.61B	7.22B
Stockholders Equity	57.12B	58.17B	57.58B	57.96B	55.72B	54.49B
Cash Flow
Free Cash Flow	-1.54B	-2.08B	-3.61B	1.24B	1.73B	2.11B
Operating Cash Flow	554.00M	2.71B	2.31B	2.30B	2.95B	3.76B
Investing Cash Flow	-2.53B	-6.85B	-333.00M	4.65B	3.64B	-6.12B
Financing Cash Flow	-423.50M	-1.39B	-3.74B	-1.50B	-1.15B	-1.64B

Nitto Kohki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1787.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6151, the sentiment is Positive. The current price of 1787 is above the 20-day moving average (MA) of 1762.65, above the 50-day MA of 1786.42, and below the 200-day MA of 1877.67, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6151.

Nitto Kohki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6144	―	¥32.76B	12.97	―	3.89%	4.62%	39.04%
6223	―	¥34.34B	9.91	―	4.18%	1.33%	15.33%
6240	―	¥54.55B	31.50	―	1.96%	9.94%	52.90%
6145	―	¥43.54B	22.31	―	1.91%	14.09%	-18.06%
6247	―	¥38.16B	9.83	―	3.65%	20.08%	67.61%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6151	―	¥32.19B	58.72	―	2.13%	1.69%	-67.19%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Achieves Compliance with Tokyo Stock Exchange Prime Market Criteria

Nitto Kohki Co., Ltd. has announced that it now complies with all the continued listing criteria of the Tokyo Stock Exchange Prime Market as of September 30, 2025. This compliance was achieved by increasing the ratio of tradable shares above the required threshold, following strategic initiatives to encourage shareholders to reduce their holdings. The company plans to further enhance share liquidity and corporate value through its medium-term management plan and improved information disclosure.

The most recent analyst rating on (JP:6151) stock is a Hold with a Yen1799.00 price target. To see the full list of analyst forecasts on Nitto Kohki Co., Ltd. stock, see the JP:6151 Stock Forecast page.

Nitto Kohki Reports First Quarter FY2025 Financial Results Amid Industry Challenges

Nitto Kohki Co., Ltd. reported a slight decline in net sales for the first quarter of FY2025, attributed to U.S. tariff measures and uncertainties in the automotive industry. The company’s relocation of its plant led to a net loss due to decreased operating rates and extraordinary relocation expenses. While demand for semiconductor-related products increased, higher material costs impacted profits. The door closers segment saw growth, driven by strong performance in data centers and new customer acquisitions.

Nitto Kohki Reports Decline in Q1 2025 Financial Performance

Nitto Kohki Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales decreasing by 1.6% and operating profit dropping by 37.7% compared to the same period in the previous year. The company also experienced a significant decline in profit attributable to owners of the parent, resulting in a loss of 281 million yen. Despite these challenges, the company’s capital adequacy ratio remains strong at 87.0%, indicating a stable financial position. The financial forecast for the fiscal year ending March 31, 2026, shows a modest increase in net sales by 7.5%, although operating and ordinary profits are expected to decline significantly, reflecting ongoing challenges in the market.