NKK SWITCHES CO., LTD. (6943) AI Stock Analysis

NKK SWITCHES CO., LTD.

(TSE/TYO:6943)

Select Model

Rating:71Outperform

Price Target:JPY 6,531.00▲(9.58% Upside)

Action:upgraded

Date:08/18/26

The overall score of 71 is driven by a very attractive valuation and strong technical momentum, which are partially offset by significant cash flow weakness. The company's rock-solid balance sheet provides a strong margin of safety, but the recent negative free cash flow is a key risk that prevents a higher score.

Positive Factors

Conservative balance sheetVery low leverage gives NKK SWITCHES financial resilience and reduces the burden of interest and refinancing obligations. A substantial equity funding base should preserve flexibility to support operations and investment through demand fluctuations without relying heavily on additional borrowing.

Negative Factors

Weak cash conversionDeeply negative free cash flow and minimal operating cash generation show that reported profitability is not currently converting reliably into cash. Continued weak conversion could constrain self-funded investment, increase dependence on the balance sheet, and make execution more sensitive to working-capital or investment demands.

NKK SWITCHES CO., LTD. (6943) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.90B
Dividend Yield: 2.18%
Average Volume (3M): 964
Price to Earnings (P/E): 6.8
Beta (1Y): 0.47
Revenue Growth: 24.22%
EPS Growth: ―
Country: Japan
Employees: 262
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

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, mul...

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 ca...

NKK SWITCHES CO., LTD. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is exceptionally strong (Score 95) with minimal debt, providing a solid foundation. However, the income statement shows modest profitability (Score 55) and cash flow is a significant concern (Score 30) due to deeply negative free cash flow. The overall financial health is supported by the equity base but weighed down by weak cash generation.

Income Statement

55Neutral

Balance Sheet

95Very Positive

Cash Flow

30Negative

Financial statement breakdown
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	-753.13M	218.94M	-700.27M	117.60M	-25.44M
Operating Cash Flow	0	29.62M	651.46M	425.28M	614.11M	190.18M
Investing Cash Flow	0	-1.05B	-642.30M	-1.06B	-606.08M	-192.21M
Financing Cash Flow	0	-128.64M	-145.78M	-143.83M	-166.70M	-137.15M

NKK SWITCHES CO., LTD. Technical Analysis

Technical Analysis SentimentNeutral

Last Price5960.00

Price Trends

50DMA5836.16Positive

100DMA5409.22Positive

200DMA5107.81Positive

Market Momentum

MACD25.50Positive

RSI48.92Neutral

STOCH32.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6943, the sentiment is Neutral. The current price of 5960.00 is below the 20-day moving average (MA) of 6114.00, above the 50-day MA of 5836.16, and above the 200-day MA of 5107.81, indicating a neutral trend. The MACD of 25.50 indicates Positive momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6943.

NKK SWITCHES CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6943 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6643	87Outperform	JPY 23.84B	8.44	―	2.92%	12.68%	31.19%
JP:6804	82Outperform	JPY 115.07B	6.17	12.49%	4.90%	40.52%	147.61%
JP:5819	79Outperform	JPY 11.37B	9.66	―	4.23%	-0.88%	-1.47%
JP:6748	74Outperform	JPY 9.64B	8.58	―	2.73%	-4.19%	-28.25%
JP:6943	71Outperform	JPY 4.86B	6.83	―	2.18%	24.22%	―
JP:6637	70Outperform	JPY 48.47B	11.06	―	1.63%	15.89%	2.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6943 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6943	NKK SWITCHES CO., LTD.	5960.00	1460.19	32.45%
JP:6804	Hosiden Corp	2287.00	-41.93	-1.80%
JP:5819	Canare Electric Co., Ltd.	1679.00	-127.27	-7.05%
JP:6637	Terasaki Electric Co., Ltd.	3750.00	-866.67	-18.77%
JP:6643	Togami Electric Mfg.Co., Ltd.	5140.00	1371.24	36.38%
JP:6748	Seiwa Electric Mfg. Co., Ltd.	732.00	-23.32	-3.09%

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: Aug 18, 2026

NKK SWITCHES CO., LTD. AI Stock Analysis