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

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JP:6496

Nakakita Seisakusho Co., Ltd.

(TSE/TYO:6496)

Select Model
Rating:64Neutral
Price Target:JPY 4,911.00â–²(6.99% Upside)
Action:downgraded
Date:10/08/26

Nakakita Seisakusho's score is supported by an attractive valuation and a highly stable balance sheet with minimal leverage. However, upside is significantly constrained by deeply negative free cash flow generation and sluggish technical momentum.

Positive Factors
Strong Revenue GrowthRapid multi-year revenue growth indicates expanding demand for the company’s industrial flow-control products and stronger project capture. If sustained, this larger revenue base can support operating scale, broaden customer penetration, and create a durable platform for future earnings growth.
Negative Factors
Negative Operating Cash FlowPersistent negative operating cash flow means recent reported earnings are not converting into cash, weakening earnings quality and internal funding capacity. If this continues, the company may have less flexibility to finance growth, absorb working-capital needs, or maintain shareholder distributions.

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

-30%-20%-10%0%10%20%30%40%JP:6496-24.94%EWJ+10.53%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 14.98B
Dividend Yield
2.40%
Average Volume (3M)
5,293
Price to Earnings (P/E)
9.5
Beta (1Y)
1.11
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

Displays strong revenue growth and an exceptionally stable balance sheet with low debt, though this is heavily offset by persistent negative operating and free cash flows.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

35Negative
Financial statement breakdown
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 SentimentNegative
Last Price4590.00

Price Trends

50DMA5256.20Negative
100DMA5215.20Negative
200DMA5780.93Negative

Market Momentum

MACD-203.92Negative
RSI38.09Neutral
STOCH53.29Neutral

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 4590.00 is below the 20-day moving average (MA) of 4781.50, below the 50-day MA of 5256.20, and below the 200-day MA of 5780.93, indicating a bearish trend. The MACD of -203.92 indicates Negative momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.29 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
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6376JP:637672OutperformJPY 176.44B9.0610.59%1.93%10.77%147.98%
JP:6492JP:649272OutperformJPY 19.33B6.46―1.06%――
JP:6498JP:649868NeutralJPY 158.34B11.7210.16%3.48%7.97%-1.68%
JP:6496JP:649664NeutralJPY 16.66B9.48―2.40%13.02%15.94%
JP:6363JP:636357NeutralJPY 68.10B8.21―2.56%0.93%212.09%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6495JP:649549NeutralJPY 5.25B59.30―1.98%9.69%29.00%

* General Sector Average

Performance Comparison

0%50%100%150%JP:6496JP:6498JP:6376JP:6363JP:6492JP:6495Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6496 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6496Nakakita Seisakusho Co., Ltd.4590.00-1251.07-21.42%
JP:6498Kitz Corporation1754.0094.345.68%
JP:6376Nikkiso Co., Ltd.2700.001232.3983.97%
JP:6363Torishima Pump Mfg.Co., Ltd.2578.00591.7529.79%
JP:6492Okano Valve Mfg. Co., Ltd.10390.002240.8227.50%
JP:6495Miyairi Valve Mfg.Co., Ltd.101.00-10.96-9.79%
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