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Nikko Co., Ltd. (JP:6306)
:6306
Japanese Market
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Nikko Co., Ltd. (6306) AI Stock Analysis

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JP:6306

Nikko Co., Ltd.

(6306)

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Outperform 71 (OpenAI - Gpt-5.6Sol)
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)

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 trends are constructive with steady revenue growth and materially improving margins into 2026, and the balance sheet appears conservatively levered with improving debt metrics. The main offset is weak and volatile cash generation (inconsistent free cash flow and low cash conversion versus earnings), which reduces the quality and reliability of reported profitability.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue52.90B49.37B49.16B44.10B39.66B38.85B
Gross Profit15.79B15.20B13.54B11.70B9.95B10.24B
EBITDA4.77B4.40B3.94B2.99B2.02B2.81B
Net Income2.80B2.54B2.01B1.31B1.02B1.65B
Balance Sheet
Total Assets65.65B64.44B63.73B62.23B52.13B52.08B
Cash, Cash Equivalents and Short-Term Investments14.17B11.48B14.04B15.55B10.32B12.44B
Total Debt7.86B8.00B10.28B10.72B5.78B3.82B
Total Liabilities28.62B27.03B29.16B29.14B20.52B20.03B
Stockholders Equity37.02B37.40B34.55B33.03B31.64B32.00B
Cash Flow
Free Cash Flow0.00588.00M76.00M2.01B-3.82B527.00M
Operating Cash Flow0.002.59B2.99B4.33B-1.64B2.22B
Investing Cash Flow0.00-1.43B-2.81B-2.33B-1.23B-2.17B
Financing Cash Flow0.00-3.78B-1.75B3.19B710.00M-282.00M

Nikko Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price791.00
Price Trends
50DMA
960.30
Positive
100DMA
890.29
Positive
200DMA
837.11
Positive
Market Momentum
MACD
23.44
Negative
RSI
71.02
Negative
STOCH
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥94.13B13.474.79%8.11%38.06%
78
Outperform
¥360.03B12.512.99%10.92%14.74%
71
Outperform
¥39.49B14.384.26%11.12%73.48%
70
Outperform
¥13.68B9.503.58%
64
Neutral
¥41.01B15.891.56%4.86%189.26%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥3.19T12.048.59%1.82%12.54%57.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6306
Nikko Co., Ltd.
1,041.00
276.62
36.19%
JP:6326
Kubota
2,793.50
1,065.85
61.69%
JP:6310
Iseki & Co., Ltd.
1,818.00
-95.71
-5.00%
JP:6316
Maruyama Mfg.Co., Inc.
3,015.00
785.73
35.25%
JP:6345
Aichi Corporation
1,445.00
180.12
14.24%
JP:6432
Takeuchi Mfg.Co., Ltd.
7,570.00
2,483.76
48.83%
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 18, 2026