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Nikko Co., Ltd.
(6306)
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Rating:71Outperform
Price Target:
¥1,134.00
▲(43.36% Upside)
Action:Upgraded
Date:08/18/26
The score is driven primarily by improving operating performance and a healthy, low-leverage balance sheet, tempered by inconsistent free cash flow and weaker cash conversion. Technicals are supportive with strong trend and momentum (despite overbought signals), while valuation looks reasonable with a mid-teens P/E and an attractive dividend yield.
Positive Factors
Steady revenue and margin expansion
Sustained revenue growth alongside materially higher gross margins indicates improving scale and operating execution. If maintained, this combination can support stronger earnings resilience and provide a durable foundation for the company’s machinery business over the next several periods.
Negative Factors
Inconsistent free cash flow
Volatile free cash flow makes internally generated funding less dependable, even when accounting earnings improve. This can constrain investment timing, reduce dividend or buyback flexibility, and increase reliance on balance-sheet resources during weaker operating periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue and margin expansion
Sustained revenue growth alongside materially higher gross margins indicates improving scale and operating execution. If maintained, this combination can support stronger earnings resilience and provide a durable foundation for the company’s machinery business over the next several periods.
Read all positive factors
Nikko Co., Ltd. (6306) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.49B
Dividend Yield3.84%
Average Volume (3M)74.70K
Price to Earnings (P/E)14.4
Beta (1Y)0.71
Revenue Growth11.12%
EPS Growth73.48%
CountryJP
Employees1,169
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)72.69
Shares Outstanding40,000,000
10 Day Avg. Volume52,610
30 Day Avg. Volume74,703
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)0.80
Price to Sales (P/S)0.61
P/FCF Ratio51.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)¥54.50B
Nikko Co., Ltd. Business Overview & Revenue Model
Company Description
Nikko Co., Ltd. operates in the Asian market as a key manufacturer and supplier of equipment for asphalt mixing and concrete batching. Their asphalt plant solutions are comprehensive, featuring main processing units, aggregate delivery systems, co...
Nikko Co., Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.90B | 49.37B | 49.16B | 44.10B | 39.66B | 38.85B |
| Gross Profit | 15.79B | 15.20B | 13.54B | 11.70B | 9.95B | 10.24B |
| EBITDA | 4.77B | 4.40B | 3.94B | 2.99B | 2.02B | 2.81B |
| Net Income | 2.80B | 2.54B | 2.01B | 1.31B | 1.02B | 1.65B |
Balance Sheet | ||||||
| Total Assets | 65.65B | 64.44B | 63.73B | 62.23B | 52.13B | 52.08B |
| Cash, Cash Equivalents and Short-Term Investments | 14.17B | 11.48B | 14.04B | 15.55B | 10.32B | 12.44B |
| Total Debt | 7.86B | 8.00B | 10.28B | 10.72B | 5.78B | 3.82B |
| Total Liabilities | 28.62B | 27.03B | 29.16B | 29.14B | 20.52B | 20.03B |
| Stockholders Equity | 37.02B | 37.40B | 34.55B | 33.03B | 31.64B | 32.00B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 588.00M | 76.00M | 2.01B | -3.82B | 527.00M |
| Operating Cash Flow | 0.00 | 2.59B | 2.99B | 4.33B | -1.64B | 2.22B |
| Investing Cash Flow | 0.00 | -1.43B | -2.81B | -2.33B | -1.23B | -2.17B |
| Financing Cash Flow | 0.00 | -3.78B | -1.75B | 3.19B | 710.00M | -282.00M |
Nikko Co., Ltd. Technical Analysis
Positive
791.00
Price Trends
960.30
Positive
890.29
Positive
837.11
Positive
Market Momentum
23.44
Negative
71.02
Negative
83.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6306, the sentiment is Positive. The current price of 791 is below the 20-day moving average (MA) of 1004.95, below the 50-day MA of 960.30, and below the 200-day MA of 837.11, indicating a bullish trend. The MACD of 23.44 indicates Negative momentum. The RSI at 71.02 is Negative, neither overbought nor oversold. The STOCH value of 83.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6306.
Nikko Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥94.13B | 13.47 | ― | 4.79% | 8.11% | 38.06% | |
78 Outperform | ¥360.03B | 12.51 | ― | 2.99% | 10.92% | 14.74% | |
71 Outperform | ¥39.49B | 14.38 | ― | 4.26% | 11.12% | 73.48% | |
70 Outperform | ¥13.68B | 9.50 | ― | 3.58% | ― | ― | |
64 Neutral | ¥41.01B | 15.89 | ― | 1.56% | 4.86% | 189.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥3.19T | 12.04 | 8.59% | 1.82% | 12.54% | 57.90% |
* Industrials Sector Average
JP:6306
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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.