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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 70 (OpenAI - 5.2)
Rating:70Neutral
Price Target:
¥5,433.00
▼(-5.35% Downside)
Action:Reiterated
Date:07/15/26
The score is primarily held back by weak cash-flow conversion (negative operating cash flow in 2025–2026 and multiple years of negative free cash flow) despite strong revenue growth and a conservatively financed balance sheet. Technical indicators are supportive with strong momentum, and valuation looks reasonable with a moderate P/E and a modest dividend yield.
Positive Factors
Sustained Revenue Growth
Consistent, accelerating top-line growth over multiple years indicates expanding market penetration and demand for Nakakita's valves and control systems. Durable revenue expansion supports scale economics, long-term customer adoption, and potential for continued investment in product and service capabilities.
Negative Factors
Weak Cash Generation
Recent swings to negative operating and free cash flow indicate accounting profits are not translating into cash. Persistent working-capital drag or high investment spending raises funding and execution risk, potentially forcing external financing or curbing returns and strategic investments if the trend continues.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent, accelerating top-line growth over multiple years indicates expanding market penetration and demand for Nakakita's valves and control systems. Durable revenue expansion supports scale economics, long-term customer adoption, and potential for continued investment in product and service capabilities.
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 designing, manufacturing, and selling industrial valves and fluid control equipment to customers that operate or build facilities requiring precise flow control (e.g., industrial plants and related infr...

Nakakita Seisakusho Co., Ltd. Financial Statement Overview

Summary
Strong revenue growth and improved net margins versus earlier years, supported by low leverage and 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.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
33
Negative
BreakdownMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue29.25B23.77B18.61B15.78B17.16B
Gross Profit4.83B4.13B3.40B2.93B2.57B
EBITDA1.95B1.44B1.40B1.05B760.98M
Net Income1.72B1.73B1.02B806.41M556.52M
Balance Sheet
Total Assets39.74B36.45B32.29B29.43B28.15B
Cash, Cash Equivalents and Short-Term Investments4.88B5.49B6.72B7.13B8.46B
Total Debt5.01B3.08B1.62B1.76B1.20B
Total Liabilities11.63B11.00B7.50B6.14B5.69B
Stockholders Equity28.10B25.46B24.79B23.30B22.46B
Cash Flow
Free Cash Flow-2.57B-3.39B501.89M-1.98B113.03M
Operating Cash Flow-290.92M-2.52B811.48M1.63B609.82M
Investing Cash Flow-1.89B2.18B-1.11B-876.10M194.55M
Financing Cash Flow1.57B1.02B-507.44M313.69M-357.33M

Nakakita Seisakusho Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5740.00
Price Trends
50DMA
5273.80
Positive
100DMA
5338.02
Positive
200DMA
5924.16
Negative
Market Momentum
MACD
106.66
Negative
RSI
55.75
Neutral
STOCH
53.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6496, the sentiment is Positive. The current price of 5740 is above the 20-day moving average (MA) of 5434.25, above the 50-day MA of 5273.80, and below the 200-day MA of 5924.16, indicating a neutral trend. The MACD of 106.66 indicates Negative momentum. The RSI at 55.75 is Neutral, neither overbought nor oversold. The STOCH value of 53.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
70
Outperform
¥78.66B10.573.09%0.93%212.09%
70
Neutral
¥20.00B11.291.82%23.08%0.67%
63
Neutral
¥170.93B14.0910.64%2.68%7.97%-1.68%
62
Neutral
¥221.31B14.739.52%1.33%10.77%147.98%
58
Neutral
¥23.65B9.860.72%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
¥5.76B65.951.65%9.69%29.00%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6496
Nakakita Seisakusho Co., Ltd.
5,580.00
346.56
6.62%
JP:6498
Kitz
1,951.00
490.30
33.57%
JP:6376
Nikkiso Co., Ltd.
3,805.00
2,337.39
159.26%
JP:6363
Torishima Pump Mfg.Co., Ltd.
3,065.00
1,098.24
55.84%
JP:6492
Okano Valve Mfg. Co., Ltd.
14,270.00
4,732.62
49.62%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
120.00
-2.86
-2.33%
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: Jul 15, 2026