Nippon Thompson Co., Ltd. (6480) AI Stock Analysis

• Market Cap: ¥35.05B
• Dividend Yield: 3.92%
• Average Volume (3M): 117.52K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.02
• Revenue Growth: -8.70%
• EPS Growth: -89.31%
• Country: JP
• Employees: 2,472
• Sector: Industrials
• Sector Strength: 83
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 14.05
• Shares Outstanding: 73,501,430
• 10 Day Avg. Volume: 64,090
• 30 Day Avg. Volume: 117,516
• PEG Ratio: -1.38
• Price to Book (P/B): 0.44
• 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

The overall stock score for Nippon Thompson Co., Ltd. is 58, reflecting a combination of financial challenges, mixed technical signals, and stretched valuation. The company's strong balance sheet is overshadowed by declining revenue and cash flow issues, while the high P/E ratio suggests overvaluation. Investors should be cautious of the liquidity risks, despite the stable equity position and attractive dividend yield.

Nippon Thompson Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Thompson Co., Ltd., also known as IKO International, is a leading Japanese manufacturer specializing in the production of linear motion products, needle roller bearings, and precision positioning tables. Founded in 1950, the company serves diverse sectors including industrial machinery, automotive, and electronics, providing essential components that enhance the performance and reliability of equipment and devices.

How the Company Makes Money

Nippon Thompson Co., Ltd. generates revenue through the manufacturing and sale of its specialized products, including linear motion guides, needle roller bearings, and positioning stages. These products are essential components used in various industries, such as automotive, industrial machinery, and electronics, contributing to the efficiency and precision of equipment. The company benefits from strong demand in these sectors driven by trends like automation and miniaturization. Additionally, Nippon Thompson collaborates with various partners and distributors globally, expanding its market reach and enhancing its sales channels, further contributing to its revenue streams.

Nippon Thompson Co., Ltd. Financial Statement Overview

Summary

Nippon Thompson Co., Ltd.'s financial performance is mixed. The income statement indicates declining revenue and compressed margins, with a net profit margin at 0.78%, showing challenges in profitability. The balance sheet is stable with low leverage and a strong equity position, but cash flow issues are significant, as indicated by zero operating cash flow and negative free cash flow, raising liquidity concerns.

Income Statement

Nippon Thompson Co., Ltd. shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue of ¥53.198 billion indicates a declining trend compared to the previous annual figure of ¥55.048 billion, signaling a revenue contraction. The gross profit margin for TTM is approximately 30.5%, a solid figure reflecting efficient cost control. However, the net profit margin at 0.78% is notably low, indicating challenges in converting sales into net income. The EBIT and EBITDA margins are also compressed at 1.95% and 8.57% respectively, showing limited operational profitability. Despite these challenges, past revenue growth has been positive, but the recent decline calls for attention.

Balance Sheet

The balance sheet of Nippon Thompson Co., Ltd. presents a strong equity position with a stockholders' equity of ¥76.284 billion and an equity ratio of 62.7%, indicating financial stability and low leverage. The debt-to-equity ratio stands at 0.44, demonstrating prudent leverage management. Return on equity (ROE) is relatively low at 0.54%, reflecting limited profitability from shareholder investments. Overall, the balance sheet is stable with manageable debt levels, though profitability could be enhanced.

Cash Flow

Cash flow analysis reveals significant concerns for Nippon Thompson Co., Ltd. The operating cash flow for the TTM period is zero, indicating potential issues in generating cash from core business activities. Historical free cash flow has shown fluctuations, with the recent annual free cash flow at ¥-7.496 billion, highlighting cash management challenges. The lack of positive cash flow metrics and erratic free cash flow trends suggest liquidity risks that need addressing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
53.20B	55.05B	68.26B	62.28B	44.34B	47.46B
	Gross Profit
16.26B	18.00B	24.48B	19.34B	11.65B	14.77B
	EBIT
1.04B	3.16B	9.46B	5.90B	-559.00M	1.34B
	EBITDA
4.56B	8.48B	12.88B	9.78B	3.27B	5.14B
	Net Income Common Stockholders
415.00M	2.67B	7.47B	4.13B	215.00M	-185.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.72B	19.77B	18.85B	18.00B	15.49B	12.92B
	Total Assets
121.63B	119.19B	114.35B	107.08B	100.95B	98.12B
	Total Debt
33.65B	32.71B	22.12B	23.86B	29.22B	28.05B
	Net Debt
11.93B	13.73B	3.27B	5.86B	13.73B	15.12B
	Total Liabilities
45.35B	43.02B	42.69B	43.11B	41.52B	40.68B
	Stockholders Equity
76.28B	76.16B	71.66B	63.97B	59.42B	57.44B
Cash Flow		Free Cash Flow
0.00	-7.50B	4.06B	8.29B	2.55B	-8.73B
	Operating Cash Flow
0.00	-2.49B	6.40B	10.27B	5.66B	-2.50B
	Investing Cash Flow
0.00	-5.30B	-2.70B	-2.10B	-3.01B	-6.19B
	Financing Cash Flow
0.00	7.57B	-3.35B	-6.44B	-412.00M	4.62B

Nippon Thompson Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 494.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6480, the sentiment is Positive. The current price of 494 is above the 20-day moving average (MA) of 472.40, above the 50-day MA of 482.81, and above the 200-day MA of 489.18, indicating a bullish trend. The MACD of 3.77 indicates Negative momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6480.

Nippon Thompson Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6988	74 Outperform	$1.90T	13.74	13.37%	2.04%	10.79%	35.98%
6479	73 Outperform	¥870.19B	14.56	8.10%	1.97%	7.44%	-5.08%
6473	68 Neutral	¥365.55B	28.46	1.72%	4.24%	-0.38%	-65.61%
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
6480	58 Neutral	¥35.05B	34.86		3.92%	-8.70%	-89.31%
6472	57 Neutral	€119.18B	30.58	-2.10%	4.97%	0.75%	-128.63%
6471	52 Neutral	¥289.92B	39.81		5.41%	-3.42%	-35.09%