NSK (TSE:6471): Valuation Spotlight After Strong H1 Growth and Shift Toward Automation

NSK (TSE:6471) has just reported an increase in sales and operating income for the first half of fiscal 2026. This was propelled by the integration of its steering business and a focus on investments in robotics and automation.

See our latest analysis for NSK.

Momentum has really picked up for NSK, with a 1-month share price return of nearly 15% and an impressive 39% total shareholder return over the past year. The market seems to be taking notice as the company leans into automation and restructures for profitability. This suggests investor confidence is building both for the near term and as they look further ahead.

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But with shares trading at a strong premium after recent gains, the big question for investors is whether NSK remains undervalued, or if the market has already priced in its automation-driven future growth story.

Most Popular Narrative: 17% Overvalued

NSK’s latest fair value estimate trails behind its recent closing price, placing shares above the level justified by analyst assumptions. Expectations for robust expansion in high-value segments set the tone for why this valuation remains above target.

The company's initiatives in the automotive market with electrification focus and significant anticipated growth in the market share of products like eAxle and ball screws for electric hydraulic brakes may drive future revenue growth and profitability improvement through a more diversified sales portfolio.

Read the complete narrative.

Can one business line ignite a multi-billion yen transformation for NSK? Behind this verdict, analysts are betting hard on future margins and a profit surge that rivals top growth contenders. Want the surprising assumptions that might turn the narrative on its head? Click through to see the precise forecasts that analysts are using to shape this bold fair value call.

Result: Fair Value of ¥758 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower recovery in the automotive segment or persistent cost pressures in key overseas markets could quickly challenge the current earnings optimism around NSK's growth story.

Find out about the key risks to this NSK narrative.

Build Your Own NSK Narrative

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A great starting point for your NSK research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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