NSK (NPSKY) AI Stock Analysis

NSK

(Other OTC:NPSKY)

Select Model

Rating:65Neutral

Price Target:$13.50▲(6.04% Upside)

Action:downgraded

Date:10/31/26

The score is primarily supported by strong financial performance, including lower leverage, substantial equity, and improved operating profitability. Reasonable valuation provides additional support, but declining free cash flow and clearly weak technical momentum weigh on the overall assessment.

Positive Factors

Improving MarginsExpanding net and EBITDA margins indicate improved profitability on the existing revenue base. If sustained, this strengthens earnings quality, provides more internal funding for investment, and gives NSK greater resilience when pricing or demand conditions become less favorable.

Negative Factors

Weakening Free Cash FlowThe decline in free cash flow and weaker conversion indicate that earnings are translating into less available cash than before. If this persists, NSK may have less flexibility to fund growth, absorb operating pressure, or sustain shareholder distributions without relying more heavily on its balance sheet.

NSK (NPSKY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $3.46B
Dividend Yield: 2.63%
Average Volume (3M): 647
Price to Earnings (P/E): 15.1
Beta (1Y): 0.71
Revenue Growth: 19.06%
EPS Growth: 70.31%
Country: US
Employees: 26,278
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

NSK Business Overview & Revenue Model

Company Description

NSK Ltd., a company founded in Tokyo, Japan, in 1914, operates globally, focusing on the manufacturing and sale of industrial machinery bearings, automotive components, and precision machine parts. The company's diverse product portfolio includes a w...

NSK Earnings Call Summary

Earnings Call Date:Oct 30, 2024(Q2-2024)|% Change Since:39.27%|Next Earnings Date:Jan 28, 2027

Earnings Call SentimentNeutral

The earnings call presented a mixed outlook with significant challenges in the industrial machinery sector and revised downward forecasts due to economic slowdowns, particularly in China. However, there were positive developments in the automotive sector, successful strategic initiatives, and maintained shareholder returns. This balance of positive and negative aspects suggests a neutral sentiment.

Positive Updates

Automotive Business Recovery

The automotive industry showed signs of recovery with production volume increasing by about 10% year-on-year, driven by a resolution of the semiconductor shortage. Sales reached JPY 199.1 billion, showing alignment with increased automotive production.

Negative Updates

Industrial Machinery Business Decline

The industrial machinery business experienced a significant decline with sales down JPY 24.4 billion and segment income down JPY 15 billion year-on-year, continuing sluggish performance in the semiconductor and E&E segments.

Company Guidance

In the earnings call for NSK Limited, President and CEO Akitoshi Ichii provided a detailed overview of the company's financial performance for the first half of fiscal 2023 and discussed the revised full-year forecast. The company reported first-half sales of JPY 386.7 billion and an operating income of JPY 11.1 billion, but due to a prolonged economic slowdown in China and ongoing weakness in demand for industrial machinery, the full-year sales forecast was revised down to JPY 800 billion with operating income expected at JPY 30 billion. The automotive segment showed signs of recovery, driven by an alleviation in semiconductor shortages, achieving sales of JPY 199.1 billion with a segment income of JPY 5.7 billion. Despite cost reductions of JPY 3.2 billion and a positive currency impact of JPY 3.2 billion, the company faced an overall operating income decline of JPY 8.5 billion from the previous year. Additionally, Ichii highlighted the successful completion of an equity method affiliate for the steering business and maintained a commitment to stable shareholder returns with a full-year dividend of JPY 30 per share. Looking ahead, the company aims to address challenges through structural reforms and expand sales, particularly in the Americas, while continuing to progress towards the Mid-Term Plan 2026 objectives.

NSK Financial Statement Overview

Summary

Strong revenue growth and improving profitability are supported by a solid balance sheet and lower leverage. However, modest net profitability, declining free cash flow, and weaker cash conversion limit the score.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2026	Mar 2025	Mar 2024	Mar 2023
Income Statement
Total Revenue	866.43B	796.67B	966.62B	788.87B	938.10B	865.17B
Gross Profit	185.73B	172.78B	202.83B	165.25B	191.06B	169.73B
EBITDA	90.24B	84.11B	90.68B	78.79B	91.14B	81.33B
Net Income	20.48B	10.65B	24.25B	8.50B	18.41B	16.59B
Balance Sheet
Total Assets	1.30T	1.22T	1.25T	1.30T	1.23T	1.23T
Cash, Cash Equivalents and Short-Term Investments	154.47B	201.04B	199.70B	195.66B	161.70B	139.16B
Total Debt	226.72B	306.40B	220.06B	318.94B	360.81B	327.21B
Total Liabilities	604.02B	550.35B	550.01B	620.12B	598.53B	597.09B
Stockholders Equity	680.04B	651.46B	674.89B	659.98B	616.21B	617.80B
Cash Flow
Free Cash Flow	124.89B	31.82B	63.38B	41.12B	12.41B	-13.33B
Operating Cash Flow	160.26B	82.18B	103.70B	99.82B	64.16B	22.73B
Investing Cash Flow	-142.61B	-58.75B	-68.66B	-90.81B	-48.78B	-19.97B
Financing Cash Flow	-4.02B	-33.74B	-40.07B	-24.78B	4.42B	-48.22B

NSK Technical Analysis

Technical Analysis SentimentNegative

Last Price12.73

Price Trends

50DMA13.61Negative

100DMA13.96Negative

200DMA14.62Negative

Market Momentum

MACD-0.28Positive

RSI38.57Neutral

STOCH60.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSKY, the sentiment is Negative. The current price of 12.73 is below the 20-day moving average (MA) of 13.22, below the 50-day MA of 13.61, and below the 200-day MA of 14.62, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NPSKY.

NSK Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

NPSKY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAAS	86Outperform	$129.73M	2.25	13.77%	―	17.64%	42.96%
LEA	69Neutral	$5.84B	10.32	11.52%	2.60%	3.52%	40.59%
NPSKY	65Neutral	$3.11B	15.15	4.75%	2.63%	19.06%	70.31%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BWA	60Neutral	$10.37B	21.60	8.61%	1.32%	0.42%	267.86%
DAN	53Neutral	$2.49B	-11.16	-16.24%	1.99%	-8.85%	-374.41%
LKQ	47Neutral	$4.68B	18.56	3.96%	6.47%	-3.24%	-62.39%

* Consumer Cyclical Sector Average

Performance Comparison

NPSKY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NPSKY	NSK Ltd.	12.73	2.62	25.88%
BWA	Borgwarner Inc	51.63	8.32	19.21%
CAAS	China Automotive	4.30	0.06	1.42%
DAN	Dana Incorporated	23.11	2.84	14.00%
LEA	Lear Corp.	118.44	12.91	12.23%
LKQ	LKQ Corporation	18.56	-10.58	-36.30%

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: Oct 31, 2026

NSK AI Stock Analysis