NITTAN Corporation (6493) AI Stock Analysis

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NITTAN Corporation

(TSE/TYO:6493)

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Rating:70Outperform

Price Target:JPY 462.00▲(2.21% Upside)

Action:upgraded

Date:08/19/26

The score is driven primarily by improved FY2026 profitability, stronger cash generation, and healthier leverage, supported by an attractive low P/E and solid dividend yield. Offsetting these positives are the steep FY2026 revenue contraction and mixed technical backdrop (near-term strength but still below longer-term moving averages).

Positive Factors

Profitability reboundThe broad improvement in gross, EBIT, and net margins indicates stronger earnings conversion in FY2026. If maintained, better operating profitability can support reinvestment, strengthen resilience against cost pressure, and improve the company’s ability to fund growth from its established precision-component business.

Negative Factors

Sharp revenue contractionA steep top-line decline challenges the durability of the FY2026 earnings recovery. Because NITTAN’s revenue depends on automotive and industrial engine production volumes, persistent contraction could reduce scale benefits, weaken customer-program economics, and pressure future profit growth.

NITTAN Corporation (6493) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 13.02B
Dividend Yield: 5.09%
Average Volume (3M): 103.59K
Price to Earnings (P/E): 6.5
Beta (1Y): 1.12
Revenue Growth: 10.80%
EPS Growth: -0.20%
Country: Japan
Employees: 2,503
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

NITTAN Corporation Business Overview & Revenue Model

Company Description

NITTAN Corporation manufactures and distributes engine valves in Japan. The company offers engine valves for engines in automobiles, motorcycles and scooters, trucks, and buses; and engine valves for land, marine, and general-purpose products for eng...

How the Company Makes Money

NITTAN Corporation primarily makes money by manufacturing and selling engine components—most notably engine valves and related precision parts—to customers such as automotive manufacturers and engine producers. Revenue is generated through (1) recurr...

NITTAN Corporation Financial Statement Overview

Summary

FY2026 shows a clear profitability and cash-flow rebound (net margin ~4.3%, EBIT margin ~7.7%, operating cash flow ~¥7.8B and free cash flow ~¥3.5B) alongside improving leverage (debt-to-equity ~0.35). The main offset is the sharp revenue decline (~22.7% in FY2026), which raises uncertainty around the durability of the earnings recovery.

Income Statement

62Positive

Balance Sheet

69Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	55.77B	51.68B	51.45B	49.48B	41.88B	38.67B
Gross Profit	10.13B	9.14B	6.62B	6.62B	5.46B	5.83B
EBITDA	9.03B	7.96B	6.68B	7.06B	6.29B	6.77B
Net Income	2.02B	2.23B	630.21M	601.01M	391.87M	644.64M
Balance Sheet
Total Assets	74.87B	66.92B	66.61B	62.98B	56.91B	54.75B
Cash, Cash Equivalents and Short-Term Investments	12.95B	11.57B	9.27B	9.07B	6.83B	6.31B
Total Debt	11.36B	10.89B	12.30B	10.01B	10.50B	11.12B
Total Liabilities	29.10B	26.57B	28.57B	25.94B	23.93B	23.33B
Stockholders Equity	32.91B	30.98B	29.03B	28.47B	24.95B	23.93B
Cash Flow
Free Cash Flow	0	3.55B	1.24B	3.61B	2.25B	3.53B
Operating Cash Flow	0	7.78B	4.30B	6.96B	4.80B	6.88B
Investing Cash Flow	0	-2.93B	-3.77B	-3.34B	-2.53B	-3.54B
Financing Cash Flow	0	-2.57B	-864.98M	-1.91B	-2.20B	-3.30B

NITTAN Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price452.00

Price Trends

50DMA471.34Negative

100DMA470.73Negative

200DMA540.71Negative

Market Momentum

MACD-6.70Negative

RSI46.83Neutral

STOCH77.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6493, the sentiment is Negative. The current price of 452.00 is below the 20-day moving average (MA) of 456.25, below the 50-day MA of 471.34, and below the 200-day MA of 540.71, indicating a bearish trend. The MACD of -6.70 indicates Negative momentum. The RSI at 46.83 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6493.

NITTAN Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6493 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7292	74Outperform	JPY 78.36B	12.10	―	3.68%	12.15%	-1.02%
JP:6493	70Outperform	JPY 13.28B	6.46	―	5.09%	10.80%	-0.20%
JP:7294	68Neutral	JPY 17.84B	6.92	―	3.93%	2.39%	―
JP:7266	66Neutral	JPY 19.35B	6.46	―	3.35%	-2.65%	82.14%
JP:7280	62Neutral	JPY 50.13B	5.30	―	2.26%	3.27%	-17.13%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:6444	54Neutral	JPY 19.35B	3.90	18.48%	―	12.18%	―

* Consumer Cyclical Sector Average

Performance Comparison

JP:6493 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6493	NITTAN Corporation	452.00	-185.80	-29.13%
JP:6444	SANDEN HOLDINGS CORP	171.00	32.00	23.02%
JP:7266	Imasen Electric Industrial Co., Ltd.	926.00	163.84	21.50%
JP:7280	Mitsuba Corporation	1123.00	238.26	26.93%
JP:7292	Murakami Corporation	6920.00	541.99	8.50%
JP:7294	Yorozu Corporation	866.00	-74.45	-7.92%

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 19, 2026

NITTAN Corporation AI Stock Analysis