NSK Ltd. (6471) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

JTEKT Corp.

Niterra Co., Ltd.

Toyoda Gosei Co., Ltd.

Aisin Corp.

Toyota Boshoku Corp.

NSK Ltd.

TOKAI RIKA CO., LTD.

Koito Manufacturing Co., Ltd.

Stanley Electric Co., Ltd.

NHK Spring Co., Ltd.

DENSO Corp.

Why is NSK Ltd. ?

The company has declared positive results in Mar'2025 after 7 consecutive negative quarters

INTEREST COVERAGE RATIO(Q) Highest at 1,957.09
RAW MATERIAL COST(Y) Fallen by -0.05% (YoY)
CASH AND EQV(HY) Highest at JPY 356,398 MM

With ROCE of 3.92%, it has a very attractive valuation with a 0.54 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 44.84%, its profits have fallen by -8.3%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 44.84% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to NSK Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NSK Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

NSK Ltd.

40.67%

430.66

26.13%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.84%

EBIT Growth (5y)

3.85%

EBIT to Interest (avg)

6.17

Debt to EBITDA (avg)

2.00

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

0.91

Tax Ratio

59.56%

Dividend Payout Ratio

156.08%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

2.81%

ROE (avg)

2.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.49

EV to EBIT

13.63

EV to EBITDA

4.76

EV to Capital Employed

0.54

EV to Sales

0.48

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

3.92%

ROE (Latest)

2.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,957.09

RAW MATERIAL COST(Y)

Fallen by -0.05% (YoY

CASH AND EQV(HY)

Highest at JPY 356,398 MM

DEBT-EQUITY RATIO (HY)

Lowest at 7.63 %

-11What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.28%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.33%

NET SALES(Q)

Lowest at JPY 195,760 MM

OPERATING PROFIT(Q)

Lowest at JPY 17,105 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.74 %

NET PROFIT(Q)

Lowest at JPY 1,083 MM

Here's what is working for NSK Ltd.

Interest Coverage Ratio

Highest at 1,957.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at JPY 356,398 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 7.63 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for NSK Ltd.

Net Profit

At JPY 1,083 MM has Fallen at -65.4%

over average net sales of the previous four periods of JPY 3,130.5 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 195,760 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 17,105 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 8.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 1,083 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Inventory Turnover Ratio

Lowest at 3.28%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.33%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio