Nakakita Seisakusho Co., Ltd. (6496) AI Stock Analysis

Nakakita Seisakusho Co., Ltd.

(TSE/TYO:6496)

Select Model

Rating:66Neutral

Price Target:JPY 4,865.00▲(6.81% Upside)

Action:downgraded

Date:10/08/26

The overall score of 66 reflects a company with solid fundamentals and attractive valuation, but facing near-term headwinds. The primary strength is the healthy balance sheet and strong revenue growth, which supports a positive long-term outlook. However, the score is constrained by weak cash flow generation, which raises liquidity concerns, and a bearish technical trend that suggests short-term price pressure. The low P/E ratio provides a margin of safety, making the risk-reward profile moderately favorable.

Positive Factors

Strong Revenue GrowthThe 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 ConversionRecent 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.

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

Market Cap: JPY 16.39B
Dividend Yield: 2.34%
Average Volume (3M): 5,423
Price to Earnings (P/E): 10.4
Beta (1Y): 1.12
Revenue Growth: 13.02%
EPS Growth: 15.94%
Country: Japan
Employees: 511
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

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 extensive...

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) product s...

Nakakita Seisakusho Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and a robust balance sheet are offset by weak cash flow generation. The income statement and balance sheet scores average 82, but the cash flow score of 45 significantly drags down the overall financial health, resulting in a composite score of 70.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	29.38B	29.25B	23.77B	18.61B	15.78B	17.16B
Gross Profit	4.71B	4.83B	4.13B	3.40B	2.93B	2.57B
EBITDA	1.81B	1.95B	1.44B	1.40B	1.05B	760.98M
Net Income	1.57B	1.72B	1.73B	1.02B	806.41M	556.52M
Balance Sheet
Total Assets	40.62B	39.74B	36.45B	32.29B	29.43B	28.15B
Cash, Cash Equivalents and Short-Term Investments	5.92B	4.88B	5.49B	6.72B	7.13B	8.46B
Total Debt	5.90B	5.01B	3.08B	1.62B	1.76B	1.20B
Total Liabilities	12.11B	11.63B	11.00B	7.50B	6.14B	5.69B
Stockholders Equity	28.50B	28.10B	25.46B	24.79B	23.30B	22.46B
Cash Flow
Free Cash Flow	-2.57B	-2.57B	-3.39B	501.89M	-1.98B	113.03M
Operating Cash Flow	-290.92M	-290.92M	-2.52B	811.48M	1.63B	609.82M
Investing Cash Flow	-1.89B	-1.89B	2.18B	-1.11B	-876.10M	194.55M
Financing Cash Flow	1.57B	1.57B	1.02B	-507.44M	313.69M	-357.33M

Nakakita Seisakusho Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4555.00

Price Trends

50DMA5314.20Negative

100DMA5216.55Negative

200DMA5809.25Negative

Market Momentum

MACD-222.22Positive

RSI39.07Neutral

STOCH46.84Neutral

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 4555.00 is below the 20-day moving average (MA) of 4954.50, below the 50-day MA of 5314.20, and below the 200-day MA of 5809.25, indicating a bearish trend. The MACD of -222.22 indicates Positive momentum. The RSI at 39.07 is Neutral, neither overbought nor oversold. The STOCH value of 46.84 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

JP:6496 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6376	72Outperform	JPY 183.76B	11.65	10.59%	1.73%	10.77%	147.98%
JP:6492	72Outperform	JPY 19.67B	8.02	―	0.95%	―	―
JP:6496	66Neutral	JPY 16.77B	10.41	―	2.34%	13.02%	15.94%
JP:6495	59Neutral	JPY 5.19B	60.49	―	1.98%	9.69%	29.00%
JP:6363	57Neutral	JPY 68.03B	9.12	―	2.50%	0.93%	212.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6498	53Neutral	JPY 162.77B	13.54	10.16%	3.25%	7.97%	-1.68%

* General Sector Average

Performance Comparison

JP:6496 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6496	Nakakita Seisakusho Co., Ltd.	4695.00	-1479.29	-23.96%
JP:6498	Kitz Corporation	1875.00	159.05	9.27%
JP:6376	Nikkiso Co., Ltd.	3010.00	1522.78	102.39%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2642.00	602.91	29.57%
JP:6492	Okano Valve Mfg. Co., Ltd.	11610.00	3103.05	36.48%
JP:6495	Miyairi Valve Mfg.Co., Ltd.	101.00	-12.94	-11.36%

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

Nakakita Seisakusho Co., Ltd. AI Stock Analysis