TSE:6376

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nikkiso Co., Ltd. engages in industrial, aerospace, precision equipment, deep UV-LEDs, and medical businesses worldwide. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Nikkiso's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6376 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6376's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

6376

-0.8%

JP Machinery

-0.6%

JP Market


1 Year Return

-25.7%

6376

12.6%

JP Machinery

6.1%

JP Market

Return vs Industry: 6376 underperformed the JP Machinery industry which returned 12.6% over the past year.

Return vs Market: 6376 underperformed the JP Market which returned 6.1% over the past year.


Shareholder returns

6376IndustryMarket
7 Day-0.6%-0.8%-0.6%
30 Day1.2%4.6%2.8%
90 Day-1.5%19.7%12.7%
1 Year-24.2%-25.7%14.5%12.6%8.7%6.1%
3 Year-17.3%-21.6%-9.5%-15.1%5.6%-1.8%
5 Year46.9%34.6%67.6%50.9%49.9%33.0%

Long-Term Price Volatility Vs. Market

How volatile is Nikkiso's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nikkiso undervalued compared to its fair value and its price relative to the market?

11.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6376 (¥1039) is trading above our estimate of fair value (¥617.26)

Significantly Below Fair Value: 6376 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6376 is good value based on its PE Ratio (11.5x) compared to the JP Machinery industry average (16x).

PE vs Market: 6376 is good value based on its PE Ratio (11.5x) compared to the JP market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: 6376 is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: 6376's PB Ratio (0.9x) is in line with the JP Machinery industry average.


Next Steps

Future Growth

How is Nikkiso forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6376's forecast earnings growth (2.9% per year) is above the savings rate (0%).

Earnings vs Market: 6376's earnings (2.9% per year) are forecast to grow slower than the JP market (17.6% per year).

High Growth Earnings: 6376's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6376's revenue (2.7% per year) is forecast to grow slower than the JP market (5.6% per year).

High Growth Revenue: 6376's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6376's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Nikkiso performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6376 has high quality earnings.

Growing Profit Margin: 6376's current net profit margins (4.1%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 6376's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: 6376's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6376 had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Machinery industry average (-25.2%).


Return on Equity

High ROE: 6376's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Nikkiso's financial position?


Financial Position Analysis

Short Term Liabilities: 6376's short term assets (¥122.8B) exceed its short term liabilities (¥69.2B).

Long Term Liabilities: 6376's short term assets (¥122.8B) exceed its long term liabilities (¥116.3B).


Debt to Equity History and Analysis

Debt Level: 6376's debt to equity ratio (143.9%) is considered high.

Reducing Debt: 6376's debt to equity ratio has increased from 98.2% to 143.9% over the past 5 years.

Debt Coverage: 6376's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: 6376's interest payments on its debt are well covered by EBIT (27.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Nikkiso current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6376's dividend (1.92%) is higher than the bottom 25% of dividend payers in the JP market (1.22%).

High Dividend: 6376's dividend (1.92%) is low compared to the top 25% of dividend payers in the JP market (2.97%).


Stability and Growth of Payments

Stable Dividend: 6376's dividends per share have been stable in the past 10 years.

Growing Dividend: 6376's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.2%), 6376's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Toshihiko Kai (74 yo)

16.08yrs

Tenure

Mr. Toshihiko Kai serves as the Chief Executive Officer of Nikkiso Europe GmbH. Mr. Kai has been the President and Chief Executive Officer of Nikkiso Co., Ltd since December 2004. He serves as the Chief Ex...


Leadership Team

NamePositionTenureCompensationOwnership
Toshihiko Kai
President16.08yrsno data0.084%
¥ 61.9m
Kyosuke Watanabe
Executive Officerno datano datano data
Hiroshi Nakamura
Executive VP & Director11.25yrsno datano data
Shoichi Nagato
Executive Officer1.83yrsno data0.014%
¥ 10.3m
Susumu Koito
Executive Officer & GM of Corporate Unitno datano data0.025%
¥ 18.6m
Hisakazu Nakahigashi
Executive Officer3.83yrsno datano data
Yoshihiko Kinoshita
Executive Officer3.83yrsno data0.024%
¥ 17.5m
Masaru Yamamura
Executive Officer1.83yrsno data0.015%
¥ 11.4m
Takayoshi Izumi
Executive Officer & GM of Medical Factory - Kanazawa Plantno datano datano data
Tateki Nakamura
Executive Officer & GM of Higashinihon Branchno datano datano data
Akira Ohsawa
Executive Officer & GM of Precision Equipment Divisionno datano data0.0042%
¥ 3.1m
Kenji Tomura
Executive Officer & GM of Nishinihon Branchno datano datano data

3.8yrs

Average Tenure

66yo

Average Age

Experienced Management: 6376's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toshihiko Kai
President16.08yrsno data0.084%
¥ 61.9m
Hiroshi Nakamura
Executive VP & Director11.25yrsno datano data
Shoichi Nagato
Executive Officer1.83yrsno data0.014%
¥ 10.3m
Hisakazu Nakahigashi
Executive Officer3.83yrsno datano data
Yoshihiko Kinoshita
Executive Officer3.83yrsno data0.024%
¥ 17.5m
Masaru Yamamura
Executive Officer1.83yrsno data0.015%
¥ 11.4m
Eisuke Nagatomo
Independent Outside Director2.83yrsno data0.011%
¥ 8.3m
Mitsuaki Nakakubo
Outside Audit & Supervisory Board Member5.58yrsno data0.0056%
¥ 4.1m
Kenji Hida
Audit & Supervisory Board Member3.83yrsno datano data
Haruko Hirose
Independent Outside Director2.83yrsno data0.0014%
¥ 1.0m
Hiroyuki Muneta
Outside Audit & Supervisory Board Member2.83yrsno datano data
Toshiaki Mitsumi
Audit & Supervisory Board Member1.83yrsno data0.0028%
¥ 2.1m

3.3yrs

Average Tenure

66yo

Average Age

Experienced Board: 6376's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nikkiso Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nikkiso Co., Ltd.
  • Ticker: 6376
  • Exchange: TSE
  • Founded: 1953
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥73.528b
  • Shares outstanding: 71.25m
  • Website: https://www.nikkiso.co.jp

Number of Employees


Location

  • Nikkiso Co., Ltd.
  • Yebisu Garden Place Tower
  • 22nd Floor
  • Tokyo
  • 150-6022
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKODB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
6376TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992

Biography

Nikkiso Co., Ltd. engages in industrial, aerospace, precision equipment, deep UV-LEDs, and medical businesses worldwide. Its Industrial division offers cryogenic submerged motor pumps, metering and mixing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 08:04
End of Day Share Price2021/01/19 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.