Nihon Kohden Corporation (6849) AI Stock Analysis

• Market Cap: ¥285.47B
• Dividend Yield: 1.87%
• Average Volume (3M): 801.49K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.78
• Revenue Growth: 1.55%
• EPS Growth: -15.62%
• Country: JP
• Employees: 5,891
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Devices
• EPS (TTM): 36.11
• Shares Outstanding: 170,961,960
• 10 Day Avg. Volume: 749,140
• 30 Day Avg. Volume: 801,493
• PEG Ratio: 0.20
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,750.00
• Price Target Upside: 2.34% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ¥1,803.00 ▲(5.44%Upside)

Nihon Kohden Corporation's stock is supported by a strong financial performance with robust revenue growth and financial stability. However, weak technical indicators and modest valuation metrics suggest caution. The bearish momentum and oversold technical indicators are significant risks, slightly balanced by the company's financial strength.

Nihon Kohden Corporation Business Overview & Revenue Model

Company Description

Nihon Kohden Corporation engages in research and development, production, sale, repair, and maintenance of medical electronic equipment in Japan, Americas, Europe, rest of Asia, and internationally. The company offers physiological measuring equipment, including electroencephalographs, electrocardiographs, evoked potential and electromyogram measuring instruments, and polygraphs for cath labs, as well as diagnostic information systems and related consumables, such as recording papers, electrodes and catheters, and maintenance services. It also provides patient monitors systems comprising central monitors, bedside monitors, wireless monitors, remote access software, and other equipment; and clinical information systems and related consumables, such as electrodes and sensors. In addition, the company offers treatment equipment, which include defibrillators, automated external defibrillators (AED), ventilators, pacemakers, anesthesia machines, cochlear implants, and related consumables and services, which include AED pads and batteries; and other medical equipment, including hematology and clinical chemistry analyzers, ultrasound diagnostic equipment, and equipment for research and others, as well as consumables, including test reagents, and installation and maintenance services. Additionally, it engages in insurance brokerage and technology licensing business. The company was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Kohden Corporation generates revenue through the sale of its medical devices and equipment to hospitals, clinics, and other healthcare facilities worldwide. The company's key revenue streams include patient monitoring systems, which are critical for continuous monitoring of patients' vital signs, and diagnostic and therapeutic instruments such as EEG and ECG machines. Additionally, Nihon Kohden offers service contracts and maintenance agreements, ensuring long-term customer relationships and recurring revenue. The company also collaborates with healthcare institutions and research organizations, contributing to steady demand for its advanced medical technologies. Significant factors contributing to its earnings include its strong brand reputation, continuous investment in research and development for innovative products, and a global distribution network that expands its reach into international markets.

Nihon Kohden Corporation Financial Statement Overview

Summary

Nihon Kohden Corporation exhibits a strong financial position with consistent revenue growth and profitability. The company maintains low leverage and solid equity, ensuring financial stability. Cash flow management is effective, though maintaining growth in operating cash flow is crucial.

Income Statement

Nihon Kohden Corporation demonstrated robust growth with a revenue increase of 8.5% from 2023 to TTM (Trailing-Twelve-Months). Gross profit margin stands at an impressive 51.1%, and the net profit margin is a healthy 7.7%. Despite a slight dip in EBIT margin to 8.9% from 10.2%, the company's steady EBITDA margin of 10.7% underscores its operational efficiency. Overall, the income statement reflects strong profitability and growth prospects.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.15, indicating prudent financial leverage. The equity ratio is robust at 72.1%, showcasing a solid capital structure. Return on equity (ROE) is at 9.7%, showing effective use of shareholders' equity. However, a slight decrease in stockholders' equity suggests a need for careful monitoring. Overall, the balance sheet indicates financial stability and low risk.

Cash Flow

Nihon Kohden's cash flow reveals a decrease in operating cash flow from 2023, yet it remains positive at 14.1 billion yen for TTM. Free cash flow is strong at 9.1 billion yen, although it shows a decline from previous years. The free cash flow to net income ratio is 0.53, indicating a solid conversion of earnings to cash. The cash flow statement reflects healthy liquidity but highlights the importance of sustaining operating cash flow growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
224.29B	221.99B	206.60B	205.13B	199.73B	185.01B
	Gross Profit
114.71B	111.35B	105.93B	109.09B	102.23B	89.33B
	EBIT
20.01B	19.59B	21.12B	30.99B	27.09B	15.50B
	EBITDA
24.03B	33.25B	24.91B	34.48B	31.64B	19.25B
	Net Income Common Stockholders
17.24B	17.03B	17.11B	23.43B	18.24B	9.85B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.52B	50.43B	44.46B	60.92B	44.61B	35.97B
	Total Assets
246.29B	233.23B	216.73B	210.20B	193.03B	167.79B
	Total Debt
25.96B	654.00M	441.00M	359.00M	404.00M	401.00M
	Net Debt
-3.06B	-35.48B	-33.02B	-28.57B	-30.20B	-20.57B
	Total Liabilities
68.59B	52.15B	49.13B	53.82B	54.05B	46.01B
	Stockholders Equity
177.69B	181.08B	167.60B	156.38B	138.98B	121.77B
Cash Flow		Free Cash Flow
9.11B	10.82B	-10.77B	22.77B	10.56B	5.63B
	Operating Cash Flow
14.13B	15.61B	-2.51B	25.70B	13.95B	9.22B
	Investing Cash Flow
-25.22B	-5.21B	-7.65B	-4.30B	-2.95B	-4.61B
	Financing Cash Flow
3.58B	-6.97B	-7.49B	-7.30B	-3.01B	-3.05B

Nihon Kohden Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1710.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6849, the sentiment is Negative. The current price of 1710 is below the 20-day moving average (MA) of 1719.60, below the 50-day MA of 1752.96, and below the 200-day MA of 2019.83, indicating a bearish trend. The MACD of -16.59 indicates Negative momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 60.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6849.

Nihon Kohden Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6849	63 Neutral	¥285.47B	20.15		1.87%	1.55%	-15.62%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
2GY		€700.44M	10.63	7.51%	4.80%	―	―
5187	78 Outperform	¥8.68B	8.45		4.19%	4.59%	1130.01%
6823	78 Outperform	¥30.42B	10.63		3.00%	8.36%	7.74%
6678	74 Outperform	¥15.73B	12.72		3.68%	5.92%	8.59%
4549	66 Neutral	¥65.05B	31.39		2.65%	1.22%	-8.83%

Nihon Kohden Corporation Corporate Events

Nihon Kohden Announces Change in Largest Shareholder

Nihon Kohden Corporation announced a change in its largest shareholder, with Sprucegrove Investment Management Ltd. now holding a reduced share of 9.76% as of May 16, 2025, down from 10.88% previously. This change, confirmed by a Report of Possession of Large Volume submitted to the Kanto Local Finance Bureau, may influence the company’s shareholder dynamics but does not immediately affect its operational outlook.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Corrects Financial Highlights for FY2025

Nihon Kohden Corporation announced a correction to its Consolidated Financial Highlights for the fiscal year ended March 31, 2025, due to errors discovered post-announcement. This correction pertains to the Financial Condition section, which may impact stakeholders’ understanding of the company’s financial health and future strategy.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Corrects Financial Results for FY2025

Nihon Kohden Corporation announced corrections to its consolidated financial results for the fiscal year ended March 31, 2025, due to errors in the calculation of income taxes and tax effects. The corrections resulted in adjustments to the Consolidated Balance Sheets and Non-Consolidated Balance Sheets, increasing both total assets and liabilities without affecting net assets. This announcement highlights the company’s commitment to transparency and accuracy in financial reporting, which is crucial for maintaining stakeholder trust and ensuring compliance with financial regulations.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Reports FY2024 Financial Results and Announces Stock Split

Nihon Kohden Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 1.5% compared to the previous year, despite a significant decrease in net income by 34.1%. The company also announced a stock split effective July 1, 2024, and included three new subsidiaries in its consolidation scope, which may impact its market positioning and stakeholder interests.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Introduces Employee Stock Ownership Plan

Nihon Kohden Corporation has announced the introduction of an Employee Stock Ownership Plan as an incentive for its employees and some subsidiaries, aiming to enhance motivation and contribute to long-term business performance. The plan involves the disposal of treasury stock through a third-party allotment, with 930,000 shares allocated to Custody Bank of Japan, Ltd., reflecting a minor impact on the secondary market.

The most recent analyst rating on (JP:6849) stock is a Hold with a Yen1700.00 price target. To see the full list of analyst forecasts on Nihon Kohden Corporation stock, see the JP:6849 Stock Forecast page.

Nihon Kohden Announces Leadership Changes

Nihon Kohden Corporation announced a significant change in its leadership, with the retirement of Representative Director Takashi Tamura due to health reasons, effective June 26, 2025. The company also introduced new director candidates, including Kazuhiro Kato and Mamoru Morita, as part of its strategic leadership restructuring, which could impact its corporate governance and strategic direction.

Nihon Kohden Completes Share Buyback Program

Nihon Kohden Corporation announced the completion of its share buyback program, acquiring a total of 493,200 common shares for approximately 1.05 billion yen through market purchases on the Tokyo Stock Exchange. This acquisition finalizes the company’s plan, initially resolved by the Board of Directors in May 2024, to buy back up to 6 million shares, aiming to enhance shareholder value and optimize capital structure.