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Nakakita Seisakusho Co., Ltd. (JP:6496)
:6496
Japanese Market
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Nakakita Seisakusho Co., Ltd. (6496) AI Stock Analysis

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JP:6496

Nakakita Seisakusho Co., Ltd.

(6496)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
¥4,843.00
▼(-15.63% Downside)
Action:Reiterated
Date:10/08/26
The score is primarily driven by solid growth and a conservatively financed balance sheet, but it is materially held back by weak cash flow conversion (negative operating cash flow in the last two years and volatile/negative free cash flow). Technical signals are mixed with softer near-term trend, while valuation is supportive with a moderate P/E and a reasonable dividend yield.
Positive Factors
Strong Revenue Growth
The company has delivered accelerating revenue growth across the last three reported years, indicating stronger demand for its industrial flow-control products. Sustained expansion can improve scale, deepen customer relationships, and support continued investment in product capability and market coverage.
Negative Factors
Weak Cash Conversion
Recent accounting profits have not translated into operating cash, while free cash flow has also been negative in several years. Persistent weak conversion can constrain internally funded growth, increase reliance on financing, and raise execution risk if working-capital or investment demands remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The company has delivered accelerating revenue growth across the last three reported years, indicating stronger demand for its industrial flow-control products. Sustained expansion can improve scale, deepen customer relationships, and support continued investment in product capability and market coverage.
Read all positive factors

Nakakita Seisakusho Co., Ltd. (6496) vs. iShares MSCI Japan ETF (EWJ)

Nakakita Seisakusho Co., Ltd. Business Overview & Revenue Model

Company Description
Established in Daito, Japan in 1930, Nakakita Seisakusho Co., Ltd. is a key player in the design, manufacturing, and distribution of a wide array of automatic control valves, butterfly valves, and sophisticated remote control systems. Their extens...
How the Company Makes Money
Nakakita Seisakusho makes money primarily by manufacturing and selling industrial flow-control products (e.g., valves and related control/actuation equipment) to corporate and institutional customers. Revenue is generated mainly through (1) produc...

Nakakita Seisakusho Co., Ltd. Financial Statement Overview

Summary
Strong revenue growth and improved net margins support the score, and leverage remains low with a growing equity base. However, operating cash flow turned negative in 2025–2026 and free cash flow has been repeatedly negative, weakening earnings quality and raising execution/funding risk despite solid accounting profitability.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
33
Negative
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue29.38B29.25B23.77B18.61B15.78B17.16B
Gross Profit4.71B4.83B4.13B3.40B2.93B2.57B
EBITDA1.81B1.95B1.44B1.40B1.05B760.98M
Net Income1.57B1.72B1.73B1.02B806.41M556.52M
Balance Sheet
Total Assets40.62B39.74B36.45B32.29B29.43B28.15B
Cash, Cash Equivalents and Short-Term Investments5.92B4.88B5.49B6.72B7.13B8.46B
Total Debt5.90B5.01B3.08B1.62B1.76B1.20B
Total Liabilities12.11B11.63B11.00B7.50B6.14B5.69B
Stockholders Equity28.50B28.10B25.46B24.79B23.30B22.46B
Cash Flow
Free Cash Flow-2.57B-2.57B-3.39B501.89M-1.98B113.03M
Operating Cash Flow-290.92M-290.92M-2.52B811.48M1.63B609.82M
Investing Cash Flow-1.89B-1.89B2.18B-1.11B-876.10M194.55M
Financing Cash Flow1.57B1.57B1.02B-507.44M313.69M-357.33M

Nakakita Seisakusho Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5740.00
Price Trends
50DMA
5349.40
Negative
100DMA
5216.35
Negative
200DMA
5820.54
Negative
Market Momentum
MACD
-238.90
Positive
RSI
37.21
Neutral
STOCH
33.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6496, the sentiment is Negative. The current price of 5740 is above the 20-day moving average (MA) of 5065.50, above the 50-day MA of 5349.40, and below the 200-day MA of 5820.54, indicating a bearish trend. The MACD of -238.90 indicates Positive momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 33.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6496.

Nakakita Seisakusho Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥20.82B8.65―0.90%――
65
Neutral
¥16.70B10.37―2.35%13.02%15.94%
65
Neutral
¥193.53B12.1010.59%1.64%10.77%147.98%
65
Neutral
¥70.21B9.35―2.42%0.93%212.09%
63
Neutral
¥166.16B13.6810.16%3.19%7.97%-1.68%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
¥5.29B61.69―1.94%9.69%29.00%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6496
Nakakita Seisakusho Co., Ltd.
4,675.00
-1,244.47
-21.02%
JP:6498
Kitz
1,914.00
265.01
16.07%
JP:6376
Nikkiso Co., Ltd.
3,170.00
1,697.49
115.28%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,727.00
715.31
35.56%
JP:6492
Okano Valve Mfg. Co., Ltd.
12,290.00
3,574.35
41.01%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
103.00
-9.95
-8.81%
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: Oct 08, 2026