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

JP:6480

Nippon Thompson Co., Ltd.

(TSE/TYO:6480)

Select Model
Rating:72Outperform
Price Target:JPY 1,651.00â–²(11.03% Upside)
Action:reiterated
Date:08/06/26

Nippon Thompson scores 72, reflecting a solid financial foundation and a strong price uptrend, tempered by a relatively high valuation. The company's low debt and improving profitability provide resilience, while technicals suggest the uptrend may be losing momentum. Investors should monitor valuation and momentum indicators.

Positive Factors
2026 Revenue and Margin ReboundThe 2026 recovery shows renewed demand for the company’s motion components and improved conversion of sales into profit. If revenue momentum persists across industrial and automation customers, the rebound can rebuild earnings power and provide greater capacity for investment and competitive positioning.
Negative Factors
Cyclical Industrial DemandBecause sales depend on capital investment by manufacturers and equipment makers, demand can weaken when industrial customers defer or reduce spending. This exposure makes revenue less predictable than a recurring-consumption model and can amplify downturns across the company’s end markets.

Nippon Thompson Co., Ltd. (6480) vs. iShares MSCI Japan ETF (EWJ)

-50%0%50%100%150%200%250%300%JP:6480+119.91%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 103.93B
Dividend Yield
2.12%
Average Volume (3M)
907.31K
Price to Earnings (P/E)
17.9
Beta (1Y)
1.66
Revenue Growth
20.64%
EPS Growth
186.33%
Country
Japan
Employees
2,547
Sector
Industrials
Sector Strength
63
Industry
Manufacturing - Tools & Accessories

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

Company Description

Operating globally under its IKO brand, Nippon Thompson Co., Ltd. is a Japanese enterprise specializing in the development, manufacturing, and distribution of various industrial components. Its extensive product catalog includes a diverse range of ne...

How the Company Makes Money

Nippon Thompson primarily makes money by manufacturing and selling mechanical motion components and related systems to equipment manufacturers and industrial users. Key revenue streams include: (1) Sales of linear motion products such as linear guide...

Nippon Thompson Co., Ltd. Financial Statement Overview

Summary

Nippon Thompson exhibits strong financial health: revenue growth and margin expansion, a robust balance sheet with low debt (D/E 0.16), and solid cash flow generation. The latest fiscal year shows a positive trajectory after past volatility.

Income Statement

75Positive

Balance Sheet

90Very Positive

Cash Flow

80Positive
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue67.94B63.03B54.38B55.05B68.26B62.28B
Gross Profit22.63B20.20B17.12B18.00B24.48B19.34B
EBITDA9.44B7.32B4.83B6.49B12.88B9.78B
Net Income5.80B4.07B978.00M2.67B7.47B4.13B
Balance Sheet
Total Assets127.64B125.46B120.67B119.19B114.35B107.08B
Cash, Cash Equivalents and Short-Term Investments23.12B25.00B24.43B19.77B18.85B18.00B
Total Debt25.41B30.54B34.90B32.71B22.12B23.86B
Total Liabilities40.38B42.27B45.03B43.02B42.68B43.10B
Stockholders Equity87.25B83.18B75.63B76.16B71.66B63.97B
Cash Flow
Free Cash Flow06.22B3.27B-6.79B4.21B8.47B
Operating Cash Flow09.48B6.45B-2.49B6.40B10.27B
Investing Cash Flow0-3.73B-3.44B-5.30B-2.70B-2.10B
Financing Cash Flow0-6.20B912.00M7.57B-3.35B-6.44B

Nippon Thompson Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1487.00

Price Trends

50DMA1714.46Negative
100DMA1845.30Negative
200DMA1497.21Negative

Market Momentum

MACD-77.09Positive
RSI37.33Neutral
STOCH58.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6480, the sentiment is Negative. The current price of 1487.00 is below the 20-day moving average (MA) of 1691.65, below the 50-day MA of 1714.46, and below the 200-day MA of 1497.21, indicating a bearish trend. The MACD of -77.09 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 58.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6480.

Nippon Thompson Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:6480 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9962JP:996276OutperformJPY 1.05T23.4713.63%1.75%24.26%64.65%
JP:6877JP:687774OutperformJPY 109.27B12.68―2.20%17.28%26.43%
JP:6480JP:648072OutperformJPY 105.51B17.89―2.12%20.64%186.33%
JP:6136JP:613670OutperformJPY 324.83B11.1113.79%2.82%20.29%99.83%
JP:6474JP:647464NeutralJPY 127.48B14.244.67%1.87%8.26%102.64%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:6472JP:647258NeutralJPY 213.49B14.725.21%3.34%2.92%―

* Industrials Sector Average

Performance Comparison

0%100%200%JP:6480JP:9962JP:6472JP:6136JP:6474JP:6877Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:6480 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6480Nippon Thompson Co., Ltd.1487.00835.17128.13%
JP:9962Misumi Group 3925.001562.4266.13%
JP:6472NTN Corporation359.1025.067.50%
JP:6136OSG Corp3508.001353.0262.79%
JP:6474Nachi-Fujikoshi Corp.5360.001507.7739.14%
JP:6877Obara Group Incorporated6820.002736.4367.01%

Nippon Thompson Co., Ltd. Corporate Events

Nippon Thompson Lifts FY2027 Forecasts on Weak Yen and Strong Capex Demand

Aug 7, 2026

Nippon Thompson has sharply raised its semi-annual and full-year consolidated earnings forecasts for the fiscal year ending March 31, 2027, citing stronger-than-expected business performance. The company now projects higher net sales, operating profi...

Nippon Thompson Posts Strong Q1 Rebound and Lifts Full-Year Outlook

Aug 7, 2026

Nippon Thompson Co., Ltd. reported a sharp rebound in performance for the three months ended June 30, 2026, with net sales climbing 32.9% year-on-year to ¥19,847 million and operating profit surging 281.9% to ¥2,793 million. Profit attribut...

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 06, 2026