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

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NKK SWITCHES CO., LTD.

(TSE/TYO:6943)

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Rating:60Neutral

Price Target:JPY 6,143.00▲(5.01% Upside)

Action:downgraded

Date:11/07/26

The score is anchored by strong balance-sheet resilience and an inexpensive valuation (low P/E with a dividend), but it is held back by weak cash-flow quality (negative FY2026 free cash flow) and bearish technical momentum (price below key moving averages with negative MACD and low RSI).

Positive Factors

Conservative balance sheetVery low leverage gives NKK SWITCHES financial resilience and reduces interest-related pressure on operations. A substantial equity base also supports continued investment and helps the company withstand demand volatility without relying heavily on external financing.

Negative Factors

Weak cash conversionDeeply negative free cash flow despite a return to profitability shows that reported earnings are not currently converting reliably into cash. Persistent cash outflows can constrain internally funded investment, dividends, and resilience even while the balance sheet remains conservatively financed.

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

Market Cap: JPY 5.26B
Dividend Yield: 2.22%
Average Volume (3M): 882
Price to Earnings (P/E): 7.0
Beta (1Y): 0.58
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...

NKK SWITCHES CO., LTD. Financial Statement Overview

Summary

Balance sheet strength is a major positive with very low leverage (debt-to-equity ~1–2%) and a solid equity base, but fundamentals are mixed: revenue and profitability rebounded in FY2026 after FY2025 weakness, yet operating margin is still modest (~4.4%) and cash conversion is unreliable with deeply negative FY2026 free cash flow (about -¥753M).

Income Statement

64Positive

Balance Sheet

86Very Positive

Cash Flow

34Negative

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 SentimentPositive

Last Price5850.00

Price Trends

50DMA5855.10Negative

100DMA5457.73Positive

200DMA5140.60Positive

Market Momentum

MACD-75.72Positive

RSI49.61Neutral

STOCH48.55Neutral

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 5850.00 is below the 20-day moving average (MA) of 5911.00, below the 50-day MA of 5855.10, and above the 200-day MA of 5140.60, indicating a neutral trend. The MACD of -75.72 indicates Positive momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.55 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6637	79Outperform	JPY 47.10B	10.72	―	1.66%	15.89%	2.08%
JP:5819	76Outperform	JPY 11.05B	9.69	―	4.27%	-0.88%	-1.47%
JP:6643	74Outperform	JPY 21.71B	7.17	―	3.18%	12.19%	39.80%
JP:6748	66Neutral	JPY 9.36B	8.37	―	2.81%	-4.19%	-28.25%
JP:6804	65Neutral	JPY 110.65B	5.92	12.49%	5.10%	40.52%	147.61%
JP:6943	60Neutral	JPY 4.69B	7.04	―	2.22%	24.22%	―
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.	5850.00	1457.56	33.18%
JP:6804	Hosiden Corp	2196.00	-205.70	-8.56%
JP:5819	Canare Electric Co., Ltd.	1661.00	-183.75	-9.96%
JP:6637	Terasaki Electric Co., Ltd.	3665.00	-1069.92	-22.60%
JP:6643	Togami Electric Mfg.Co., Ltd.	4720.00	902.54	23.64%
JP:6748	Seiwa Electric Mfg. Co., Ltd.	708.00	-82.54	-10.44%

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

NKK SWITCHES CO., LTD. AI Stock Analysis