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

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JP:6151

Nitto Kohki Co., Ltd.

(TSE/TYO:6151)

Select Model
Rating:69Neutral
Price Target:JPY 1,682.00â–²(14.58% Upside)
Action:reiterated
Date:08/17/26

Overall score reflects solid technical momentum and reasonable valuation, tempered by mixed financial performance—particularly pressured operating margins and three consecutive years of negative free cash flow—despite a notably conservative, low-leverage balance sheet.

Positive Factors
Conservative Balance SheetVery low leverage gives Nitto Kohki substantial financial flexibility through industrial cycles. The company can support operations and selective investment without heavy interest obligations, while its gradually rising equity and assets provide a durable buffer against weaker demand.
Negative Factors
Operating Margin PressureThe sharp decline in operating profitability shows that recent revenue improvement has not translated proportionally into operating earnings. Persistently lower margins would reduce the company’s ability to convert industrial demand into profits and could constrain investment and shareholder returns.

Nitto Kohki Co., Ltd. (6151) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:6151-15.14%EWJ+10.02%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 27.44B
Dividend Yield
2.45%
Average Volume (3M)
21.80K
Price to Earnings (P/E)
9.9
Beta (1Y)
0.92
Revenue Growth
2.42%
EPS Growth
406.25%
Country
Japan
Employees
1,032
Sector
Industrials
Sector Strength
63
Industry
Industrial - Machinery

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

Company Description

Nitto Kohki Co., Ltd., established in Tokyo, Japan, in 1956, is a global developer and manufacturer of diverse industrial components. The company specializes in producing advanced fluid couplings, labor-saving machine tools, and a variety of pumps, i...

How the Company Makes Money

Nitto Kohki primarily makes money by manufacturing and selling industrial products to business customers through domestic and overseas sales channels. Key revenue streams include: (1) Sales of quick-connect couplings and related connection components...

Nitto Kohki Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: a very strong, low-debt balance sheet (debt-to-equity ~2%–3%) supports stability, but operating profitability has weakened (operating margin ~4% in 2026 vs. high-single/low-double digits in 2023–2025) and free cash flow has been negative for three straight years (2024–2026, about -¥2.1B in 2026), indicating pressured cash conversion despite improved revenue and a net margin recovery in 2026.

Income Statement

62Positive

Balance Sheet

82Very Positive

Cash Flow

48Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue27.80B27.29B27.26B27.07B28.09B25.28B
Gross Profit11.44B11.46B12.14B12.32B12.88B11.79B
EBITDA3.28B3.15B3.67B4.00B5.20B4.43B
Net Income2.78B2.15B1.35B1.84B2.49B1.86B
Balance Sheet
Total Assets68.62B68.67B67.57B65.99B67.26B64.79B
Cash, Cash Equivalents and Short-Term Investments15.49B16.22B20.30B25.16B31.82B31.80B
Total Debt1.48B1.54B1.59B1.63B1.75B1.74B
Total Liabilities7.46B7.72B9.38B8.82B9.49B9.12B
Stockholders Equity61.14B60.93B58.17B57.16B57.76B55.66B
Cash Flow
Free Cash Flow0-2.13B-2.08B-3.61B1.24B1.73B
Operating Cash Flow04.17B2.71B2.31B2.30B2.95B
Investing Cash Flow0-4.80B-6.85B-333.00M4.65B3.64B
Financing Cash Flow0-1.04B-1.39B-3.74B-1.50B-1.15B

Nitto Kohki Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1468.00

Price Trends

50DMA1682.02Negative
100DMA1684.37Negative
200DMA1696.22Negative

Market Momentum

MACD-38.43Positive
RSI29.94Positive
STOCH14.36Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6151, the sentiment is Negative. The current price of 1468.00 is below the 20-day moving average (MA) of 1628.10, below the 50-day MA of 1682.02, and below the 200-day MA of 1696.22, indicating a bearish trend. The MACD of -38.43 indicates Positive momentum. The RSI at 29.94 is Positive, neither overbought nor oversold. The STOCH value of 14.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6151.

Nitto Kohki Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:6151 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6381JP:638184OutperformJPY 67.25B11.34―5.28%6.49%36.18%
JP:6517JP:651771OutperformJPY 71.72B10.23―4.08%9.99%41.83%
JP:6151JP:615169NeutralJPY 28.75B9.90―2.45%2.42%406.25%
JP:6498JP:649868NeutralJPY 152.27B12.0010.16%3.67%7.97%-1.68%
JP:6376JP:637665NeutralJPY 164.84B9.8110.59%2.05%10.77%147.98%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:6363JP:636357NeutralJPY 66.38B8.52―2.67%0.93%212.09%

* Industrials Sector Average

Performance Comparison

0%50%100%150%JP:6151JP:6498JP:6376JP:6363JP:6381JP:6517Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6151 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6151Nitto Kohki Co., Ltd.1468.00-261.81-15.14%
JP:6498Kitz Corporation1662.00-9.31-0.56%
JP:6376Nikkiso Co., Ltd.2534.001050.7070.84%
JP:6363Torishima Pump Mfg.Co., Ltd.2470.00460.2722.90%
JP:6381ANEST IWATA Corp.1612.00182.4312.76%
JP:6517Denyo Co., Ltd.3435.00654.2123.53%

Nitto Kohki Co., Ltd. Corporate Events

Nitto Kohki Returns to Profit but Plans Dividend Cut Despite Higher Sales

Aug 7, 2026

Nitto Kohki Co., Ltd., listed on the Tokyo Stock Exchange under securities code 6151, operates in the manufacturing sector, focusing on industrial equipment and related technologies. The company serves both domestic and overseas markets, with consoli...

Nitto Kohki Posts Higher Q1 Earnings as Plant Relocation Impact Fades

Aug 7, 2026

Nitto Kohki reported a solid start to FY2026, with first-quarter sales rising 7.8% year on year to 7,102 million yen, driven mainly by stronger demand for couplings and linear pumps. Operating profit increased 4.2% to 471 million yen and ordinary 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