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NKK SWITCHES CO., LTD.
(6943)
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Rating:71Outperform
Price Target:
¥6,166.00
▲(34.04% Upside)
Action:Upgraded
Date:08/18/26
The score is driven primarily by solid financial stability (very low leverage) and an attractive valuation (low P/E and dividend yield). These positives are tempered by the weakest factor—unreliable cash generation with deeply negative FY2026 free cash flow—along with technically overbought momentum signals that may raise short-term volatility despite the broader uptrend.
Positive Factors
Conservative Balance Sheet
Minimal leverage reduces interest and refinancing risk, preserves financial flexibility, and gives NKK SWITCHES capacity to absorb demand volatility or fund product and production investments without relying heavily on external debt.
Negative Factors
Weak and Inconsistent Cash Conversion
Cash generation is materially weaker than reported profitability, exposing the company to working-capital and investment execution risk. Repeated negative free cash flow years could constrain self-funded growth and reduce financial flexibility despite low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Minimal leverage reduces interest and refinancing risk, preserves financial flexibility, and gives NKK SWITCHES capacity to absorb demand volatility or fund product and production investments without relying heavily on external debt.
Read all positive factors
NKK SWITCHES CO., LTD. (6943) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.61B
Dividend Yield2.15%
Average Volume (3M)1.09K
Price to Earnings (P/E)6.5
Beta (1Y)0.50
Revenue Growth24.22%
EPS GrowthN/A
CountryJP
Employees262
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)872.90
Shares Outstanding842,520
10 Day Avg. Volume190
30 Day Avg. Volume1,093
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)0.29
Price to Sales (P/S)0.48
P/FCF Ratio-5.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NKK SWITCHES CO., LTD. Business Overview & Revenue Model
Company Description
NKK Switches Co., Ltd. engages in the development, manufacture, and sale of various switches for industrial. It operates through Japan, Europe and the United States, and Asia segments. It offers toggle, rocker, pushbutton, illuminated pushbutton, ...
How the Company Makes Money
NKK SWITCHES makes money primarily by manufacturing and selling switches and related input/interface components to business customers (B2B). Its core revenue stream is product sales, generated when OEMs and other equipment makers purchase standard...
NKK SWITCHES CO., LTD. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
86
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.20B | 8.37B | 7.56B | 9.44B | 10.33B | 8.94B |
| Gross Profit | 4.15B | 3.63B | 2.76B | 3.66B | 4.05B | 3.66B |
| EBITDA | 1.28B | 963.26M | 234.96M | 989.06M | 1.43B | 949.83M |
| Net Income | 718.14M | 383.77M | -404.09M | 389.26M | 826.28M | 581.11M |
Balance Sheet | ||||||
| Total Assets | 16.65B | 15.79B | 14.97B | 15.54B | 15.35B | 14.07B |
| Cash, Cash Equivalents and Short-Term Investments | 4.01B | 3.72B | 4.69B | 4.84B | 5.39B | 5.42B |
| Total Debt | 566.83M | 225.56M | 254.35M | 305.49M | 123.34M | 156.04M |
| Total Liabilities | 2.52B | 2.09B | 2.27B | 2.26B | 3.03B | 2.85B |
| Stockholders Equity | 14.12B | 13.70B | 12.70B | 13.27B | 12.32B | 11.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -753.13M | 218.94M | -700.27M | 117.60M | -25.44M |
| Operating Cash Flow | 0.00 | 29.62M | 651.46M | 425.28M | 614.11M | 190.18M |
| Investing Cash Flow | 0.00 | -1.05B | -642.30M | -1.06B | -606.08M | -192.21M |
| Financing Cash Flow | 0.00 | -128.64M | -145.78M | -143.83M | -166.70M | -137.15M |
NKK SWITCHES CO., LTD. Technical Analysis
Positive
4600.00
Price Trends
5113.00
Positive
5014.75
Positive
4827.00
Positive
Market Momentum
146.98
Negative
62.61
Neutral
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6943, the sentiment is Positive. The current price of 4600 is below the 20-day moving average (MA) of 5330.00, below the 50-day MA of 5113.00, and below the 200-day MA of 4827.00, indicating a bullish trend. The MACD of 146.98 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6943.
NKK SWITCHES CO., LTD. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥26.07B | 9.41 | ― | 3.12% | 12.68% | 31.19% | |
79 Outperform | ¥11.91B | 10.19 | ― | 3.02% | 3.86% | 0.13% | |
74 Outperform | ¥135.57B | 7.29 | 11.21% | 3.39% | 40.52% | 147.61% | |
74 Outperform | ¥55.96B | 13.07 | ― | 0.91% | 15.89% | 2.08% | |
74 Outperform | ¥10.32B | 9.27 | ― | 2.23% | -4.19% | -28.25% | |
71 Outperform | ¥4.61B | 6.50 | ― | 1.79% | 24.22% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:6943
NKK SWITCHES CO., LTD.
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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.