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

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Nakakita Seisakusho Co., Ltd.

(TSE/TYO:6496)

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Rating:65Neutral

Price Target:JPY 4,789.00▲(7.50% Upside)

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 GrowthAccelerating revenue growth indicates stronger demand and expanding business activity across the company’s industrial flow-control offering. If sustained, this scale can improve customer penetration, support operating investment, and strengthen the earnings base over the next several quarters.

Negative Factors

Weak Recent Cash ConversionNegative operating cash flow in the latest two years indicates that reported earnings are not converting into cash efficiently. Persistent weak conversion can constrain internally funded growth, increase reliance on financing or working-capital management, and reduce earnings quality.

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

Market Cap: JPY 16.91B
Dividend Yield: 2.47%
Average Volume (3M): 5,461
Price to Earnings (P/E): 10.8
Beta (1Y): 1.16
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 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

74Positive

Balance Sheet

82Very Positive

Cash Flow

33Negative

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 Price4455.00

Price Trends

50DMA5155.60Negative

100DMA5206.40Negative

200DMA5727.67Negative

Market Momentum

MACD-217.16Negative

RSI38.13Neutral

STOCH45.24Neutral

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 4455.00 is below the 20-day moving average (MA) of 4632.50, below the 50-day MA of 5155.60, and below the 200-day MA of 5727.67, indicating a bearish trend. The MACD of -217.16 indicates Negative momentum. The RSI at 38.13 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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:6363	76Outperform	JPY 67.43B	9.25	―	2.48%	0.93%	212.09%
JP:6492	72Outperform	JPY 17.35B	8.70	―	1.23%	―	―
JP:6496	65Neutral	JPY 15.78B	10.82	―	2.47%	13.02%	15.94%
JP:6376	64Neutral	JPY 169.72B	11.25	10.59%	1.81%	10.77%	147.98%
JP:6498	64Neutral	JPY 152.09B	12.35	10.55%	3.38%	14.51%	10.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6495	50Neutral	JPY 5.30B	62.89	―	1.96%	9.69%	29.00%

* 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.	4455.00	-1709.49	-27.73%
JP:6498	Kitz Corporation	1805.00	129.81	7.75%
JP:6376	Nikkiso Co., Ltd.	2877.00	1372.13	91.18%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2658.00	772.53	40.97%
JP:6492	Okano Valve Mfg. Co., Ltd.	10580.00	1745.10	19.75%
JP:6495	Miyairi Valve Mfg.Co., Ltd.	102.00	-9.96	-8.89%

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