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

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JP:6943

NKK SWITCHES CO., LTD.

(TSE/TYO:6943)

Select Model
Rating:62Neutral
Price Target:JPY 6,572.00â–¼(-5.98% Downside)
Action:downgraded
Date:11/07/26

NKK Switches earns a moderate overall score of 62. The company's primary strengths are its deeply discounted valuation (P/E of 6.07) and an ironclad, essentially debt-free balance sheet. However, the score is significantly weighed down by underlying structural cash flow inefficiencies, deeply negative free cash flows, and prevailing short-to-medium-term bearish technical trends.

Positive Factors
Conservative Balance SheetVery low leverage gives NKK SWITCHES meaningful financial resilience and reduces the burden of interest obligations. A substantial equity base should help the company fund operations and absorb demand variability while preserving flexibility for investment over the next several quarters.
Negative Factors
Weak Cash ConversionCash generation materially lagged reported earnings in FY2026, with very low operating cash flow and deeply negative free cash flow. This reduces internally available funding, raises execution risk around investment or working capital, and makes near-term financial performance less dependable.

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

-10%0%10%20%30%40%50%60%70%JP:6943+62.75%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 5.92B
Dividend Yield
3.29%
Average Volume (3M)
1,415
Price to Earnings (P/E)
5.7
Beta (1Y)
0.88
Revenue Growth
33.15%
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...

NKK SWITCHES CO., LTD. Financial Statement Overview

Summary

The financial profile is mixed. The company features a fortress balance sheet with nearly zero leverage (D/E of 0.016) and a solid double-digit revenue recovery. However, this structural safety is offset by severe cash flow volatility and deeply negative free cash flows (-753 million), which highlight poor earnings conversion.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

35Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.20B8.37B7.56B9.44B10.33B8.94B
Gross Profit4.15B3.63B2.76B3.66B4.05B3.66B
EBITDA1.28B963.26M234.96M989.06M1.43B949.83M
Net Income718.14M383.77M-404.09M389.26M826.28M581.11M
Balance Sheet
Total Assets16.65B15.79B14.97B15.54B15.35B14.07B
Cash, Cash Equivalents and Short-Term Investments4.01B3.72B4.69B4.84B5.39B5.42B
Total Debt566.83M225.56M254.35M305.49M123.34M156.04M
Total Liabilities2.52B2.09B2.27B2.26B3.03B2.85B
Stockholders Equity14.12B13.70B12.70B13.27B12.32B11.22B
Cash Flow
Free Cash Flow0-753.13M218.94M-700.27M117.60M-25.44M
Operating Cash Flow029.62M651.46M425.28M614.11M190.18M
Investing Cash Flow0-1.05B-642.30M-1.06B-606.08M-192.21M
Financing Cash Flow0-128.64M-145.78M-143.83M-166.70M-137.15M

NKK SWITCHES CO., LTD. Technical Analysis

Technical Analysis SentimentPositive
Last Price6990.00

Price Trends

50DMA5897.83Positive
100DMA5491.75Positive
200DMA5159.77Positive

Market Momentum

MACD56.33Negative
RSI69.74Neutral
STOCH78.75Neutral

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 6990.00 is above the 20-day moving average (MA) of 5955.50, above the 50-day MA of 5897.83, and above the 200-day MA of 5159.77, indicating a bullish trend. The MACD of 56.33 indicates Negative momentum. The RSI at 69.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.75 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6943 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6637JP:663779OutperformJPY 46.38B10.19―1.77%15.89%2.08%
JP:5819JP:581976OutperformJPY 11.39B9.63―4.24%-0.88%-1.47%
JP:6643JP:664374OutperformJPY 21.89B7.09―3.19%12.19%39.80%
JP:6748JP:674866NeutralJPY 9.36B7.33―2.81%-3.19%-14.59%
JP:6804JP:680465NeutralJPY 110.85B5.9812.49%5.05%25.40%46.48%
JP:6943JP:694362NeutralJPY 5.10B5.70―3.29%33.15%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-25%0%25%50%75%JP:6943JP:6804JP:5819JP:6637JP:6643JP:6748Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6943 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6943NKK SWITCHES CO., LTD.6990.002597.5659.14%
JP:6804Hosiden Corp2217.00-192.37-7.98%
JP:5819Canare Electric Co., Ltd.1673.00-109.23-6.13%
JP:6637Terasaki Electric Co., Ltd.3455.00-1353.83-28.15%
JP:6643Togami Electric Mfg.Co., Ltd.4705.00950.8425.33%
JP:6748Seiwa Electric Mfg. Co., Ltd.732.00-41.91-5.42%
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: Nov 07, 2026