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6471

NSK TSE:6471 Stock Report

Last Price

JP¥732.00

Market Cap

JP¥375.4b

7D

-1.7%

1Y

-19.8%

Updated

05 Jul, 2022

Data

Company Financials +
6471 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends4/6

6471 Stock Overview

NSK Ltd., together with its subsidiaries, manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts worldwide.

NSK Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NSK
Historical stock prices
Current Share PriceJP¥732.00
52 Week HighJP¥955.00
52 Week LowJP¥630.00
Beta1
1 Month Change-6.87%
3 Month Change3.68%
1 Year Change-19.83%
3 Year Change-22.13%
5 Year Change-50.54%
Change since IPO26.21%

Recent News & Updates

Shareholder Returns

6471JP MachineryJP Market
7D-1.7%-3.0%-1.9%
1Y-19.8%-12.4%-5.7%

Return vs Industry: 6471 underperformed the JP Machinery industry which returned -12.4% over the past year.

Return vs Market: 6471 underperformed the JP Market which returned -5.7% over the past year.

Price Volatility

Is 6471's price volatile compared to industry and market?
6471 volatility
6471 Average Weekly Movement4.0%
Machinery Industry Average Movement4.2%
Market Average Movement4.1%
10% most volatile stocks in JP Market8.4%
10% least volatile stocks in JP Market2.2%

Stable Share Price: 6471 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6471's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191430,577Akitoshi Ichiihttps://www.nsk.com/index.html

NSK Ltd., together with its subsidiaries, manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts worldwide. Its products include ball bearings; roller bearings; bearing units; super precision bearings; bearings for steel industry, mining and construction, papermaking machines, and pumps and compressors; and bearings for special environments, including sanitary, corrosive, vacuum, clean, high-temperature, non-magnetic requirement, and dust-contaminated environments. The company also provides automotive products, which comprise chassis products, such as electric power steerings, steering column and intermediate shafts, and hub unit bearings; power train products comprising engine parts and electrical accessories; and drive train products consisting of automatic and manual transmission, products for motorcycles and all-terrain vehicles, half toroidal CVT POWERTOROS units, and differential gear and propeller shafts.

NSK Fundamentals Summary

How do NSK's earnings and revenue compare to its market cap?
6471 fundamental statistics
Market CapJP¥375.41b
Earnings (TTM)JP¥16.59b
Revenue (TTM)JP¥865.17b

22.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6471 income statement (TTM)
RevenueJP¥865.17b
Cost of RevenueJP¥695.44b
Gross ProfitJP¥169.73b
Other ExpensesJP¥153.14b
EarningsJP¥16.59b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)32.34
Gross Margin19.62%
Net Profit Margin1.92%
Debt/Equity Ratio51.5%

How did 6471 perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

77%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6471 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6471?

Other financial metrics that can be useful for relative valuation.

6471 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA7.1x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does 6471's PE Ratio compare to its peers?

6471 PE Ratio vs Peers
The above table shows the PE ratio for 6471 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.1x
6324 Harmonic Drive Systems
56.4x18.1%JP¥374.6b
6113 Amada
12.5x9.5%JP¥347.3b
6302 Sumitomo Heavy Industries
8.2x7.2%JP¥359.7b
7012 Kawasaki Heavy Industries
19.5x18.7%JP¥425.2b
6471 NSK
22.6x21.3%JP¥375.4b

Price-To-Earnings vs Peers: 6471 is good value based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (24.1x).


Price to Earnings Ratio vs Industry

How does 6471's PE Ratio compare vs other companies in the JP Machinery Industry?

Price-To-Earnings vs Industry: 6471 is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the JP Machinery industry average (10.9x)


Price to Earnings Ratio vs Fair Ratio

What is 6471's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6471 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: 6471 is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).


Share Price vs Fair Value

What is the Fair Price of 6471 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6471 (¥732) is trading below our estimate of fair value (¥3011.1)

Significantly Below Fair Value: 6471 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: 6471 is poor value based on its PEG Ratio (1.1x)


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Future Growth

How is NSK forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6471's forecast earnings growth (21.3% per year) is above the savings rate (0.04%).

Earnings vs Market: 6471's earnings (21.3% per year) are forecast to grow faster than the JP market (9% per year).

High Growth Earnings: 6471's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6471's revenue (4.7% per year) is forecast to grow faster than the JP market (4.5% per year).

High Growth Revenue: 6471's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6471's Return on Equity is forecast to be low in 3 years time (6.9%).


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Past Performance

How has NSK performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-37.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6471 has high quality earnings.

Growing Profit Margin: 6471's current net profit margins (1.9%) are higher than last year (0.05%).


Past Earnings Growth Analysis

Earnings Trend: 6471's earnings have declined by 37% per year over the past 5 years.

Accelerating Growth: 6471's earnings growth over the past year (4572.4%) exceeds its 5-year average (-37% per year).

Earnings vs Industry: 6471 earnings growth over the past year (4572.4%) exceeded the Machinery industry 31.4%.


Return on Equity

High ROE: 6471's Return on Equity (2.8%) is considered low.


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Financial Health

How is NSK's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6471's short term assets (¥569.9B) exceed its short term liabilities (¥297.0B).

Long Term Liabilities: 6471's short term assets (¥569.9B) exceed its long term liabilities (¥300.1B).


Debt to Equity History and Analysis

Debt Level: 6471's net debt to equity ratio (29.7%) is considered satisfactory.

Reducing Debt: 6471's debt to equity ratio has reduced from 55.1% to 51.5% over the past 5 years.

Debt Coverage: 6471's debt is not well covered by operating cash flow (6.9%).

Interest Coverage: 6471 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6471's dividend (4.1%) is higher than the bottom 25% of dividend payers in the JP market (1.69%).

High Dividend: 6471's dividend (4.1%) is in the top 25% of dividend payers in the JP market (3.7%)


Stability and Growth of Payments

Stable Dividend: 6471's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6471's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.3%), 6471's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6471 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure


CEO

Akitoshi Ichii

1.5yrs

Tenure

Mr. Akitoshi Ichii serves as President, Chief Executive Officer and Director at NSK Ltd. since 2021 and also served as Executive Vice President since 2019 at NSK Ltd. until 2021.He served as Head of Corpo...


Leadership Team

Experienced Management: 6471's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: 6471's board of directors are considered experienced (3.1 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

NSK Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: NSK Ltd.
  • Ticker: 6471
  • Exchange: TSE
  • Founded: 1914
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: JP¥375.409b
  • Shares outstanding: 512.85m
  • Website: https://www.nsk.com/index.html

Number of Employees


Location

  • NSK Ltd.
  • Nissei Building
  • 1-6-3 Ohsaki
  • Tokyo
  • 141-8560
  • Japan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.