Nakamura Choukou Co., Ltd. (6166) AI Stock Analysis

• Market Cap: ¥3.31B
• Dividend Yield: N/A
• Average Volume (3M): 48.69K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.06
• Revenue Growth: 9.44%
• EPS Growth: -122.75%
• Country: JP
• Employees: 145
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): -1.75
• Shares Outstanding: 11,020,900
• 10 Day Avg. Volume: 66,170
• 30 Day Avg. Volume: 48,686
• PEG Ratio: 0.12
• Price to Book (P/B): 3.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥297.00 ▼(-1.00%Downside)

The overall stock score of 46 reflects significant financial and technical challenges. The company's unstable financial performance and high leverage present major risks. Technical indicators confirm bearish market sentiment. The lack of positive valuation metrics further compounds the negative outlook.

Nakamura Choukou Co., Ltd. Business Overview & Revenue Model

Company Description

Nakamura Choukou Co., Ltd. is a Japanese company engaged in the manufacture and sale of industrial cutting tools and precision machinery components. The company specializes in the production of high-precision saw blades, including those used for cutting semiconductors and other advanced materials. It serves a diverse range of industries, including electronics, automotive, and manufacturing, providing essential tools that enhance the efficiency and precision of industrial processes.

How the Company Makes Money

Nakamura Choukou Co., Ltd. generates revenue primarily through the sale of its high-precision cutting tools and machinery components. The company's key revenue streams include the manufacturing and distribution of saw blades specifically designed for semiconductor and other high-tech applications. It also earns from custom solutions tailored to meet specific industrial needs, allowing it to cater to a broad client base across various sectors. Additionally, strategic partnerships with equipment manufacturers and suppliers help bolster its market presence and drive sales. The company also benefits from ongoing research and development, which enables it to innovate and introduce new products that meet evolving industry demands.

Nakamura Choukou Co., Ltd. Financial Statement Overview

Summary

Nakamura Choukou Co., Ltd. shows a mixed financial health profile. While profitability margins are commendable, the company faces operational efficiency challenges and high leverage, which could impact future growth and financial stability. Cash flow concerns also highlight the need for improved cash generation capabilities.

Income Statement

The income statement shows mixed results with declining revenue over the past few years. The TTM data reflects a gross profit margin of 20.8% and a net profit margin of 21.3%, which are relatively high, but the company has experienced negative EBIT margins (-7.1% for TTM) and EBITDA margins. This indicates challenges in operational efficiency, although the revenue growth rate from the previous annual report is positive at 11.6%.

Balance Sheet

The balance sheet reveals a moderately leveraged position with a debt-to-equity ratio of 3.55 for TTM. Despite a reasonable equity ratio of 15.2%, the company's return on equity is strong at 68.3%, suggesting efficient use of shareholder funds to generate profits. However, the high debt levels pose potential risks if not managed well.

Cash Flow

Cash flow analysis indicates significant challenges, with TTM free cash flow at zero and negative free cash flow in previous periods. The operating cash flow to net income ratio is undefined in TTM due to zero operating cash flow, suggesting issues in converting profits into cash. Historically, free cash flow to net income ratios have also been unfavorable.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.69B	2.41B	3.32B	4.04B	3.81B	2.80B
	Gross Profit
560.55M	386.42M	999.04M	1.26B	1.21B	583.00M
	EBIT
-191.06M	-532.39M	33.15M	311.55M	167.56M	-578.00M
	EBITDA
-18.76M	760.27M	140.67M	-41.20M	194.61M	-387.33M
	Net Income Common Stockholders
573.41M	144.17M	-124.47M	-257.12M	7.52M	-600.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.45B	1.50B	2.00B	2.93B	3.03B	252.69M
	Total Assets
5.52B	6.00B	4.69B	5.87B	6.02B	6.48B
	Total Debt
2.99B	3.18B	2.50B	2.78B	3.13B	4.56B
	Net Debt
1.53B	1.69B	496.74M	-152.96M	106.37M	4.30B
	Total Liabilities
4.68B	5.15B	3.97B	5.03B	5.51B	5.96B
	Stockholders Equity
840.00M	854.90M	714.97M	840.03M	515.31M	522.00M
Cash Flow		Free Cash Flow
0.00	-1.13B	-561.70M	-345.30M	248.34M	135.00M
	Operating Cash Flow
0.00	642.00M	-81.99M	175.23M	530.80M	228.00M
	Investing Cash Flow
0.00	-1.77B	-470.68M	-520.07M	161.53M	1.99B
	Financing Cash Flow
0.00	609.54M	-378.40M	228.49M	-1.47B	-699.00M

Nakamura Choukou Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 300.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6166, the sentiment is Neutral. The current price of 300 is above the 20-day moving average (MA) of 298.90, below the 50-day MA of 307.84, and below the 200-day MA of 367.86, indicating a neutral trend. The MACD of -4.35 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6166.

Nakamura Choukou Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	78 Outperform	¥3.25B	8.18		1.70%	-10.20%	-6.44%
Sector *	65 Neutral	$4.46B	12.18	5.23%	249.77%	4.11%	-12.28%
6334	61 Neutral	¥3.35B	27.01		2.04%	32.99%	-61.72%
6467	60 Neutral	¥3.20B	56.73		1.69%	2.46%	25.52%
6218	55 Neutral	¥2.86B	―		2.21%	-9.15%	-1123.11%
3444	48 Neutral	¥3.30B	―		3.66%	2.18%	22.90%
6166	46 Neutral	¥3.31B	5.87		―	9.44%	-122.75%