OTCPK:NPSK.F

Stock Analysis Report

Executive Summary

NSK Ltd. manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts.

Snowflake

Fundamentals

Very undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:NPSK.F

-0.3%

US Machinery

0.2%

US Market


1 Year Return

n/a

OTCPK:NPSK.F

-8.0%

US Machinery

-0.7%

US Market

No trading data on NPSK.F.

No trading data on NPSK.F.


Share holder returns

NPSK.FIndustryMarket
7 Day0%-0.3%0.2%
30 Day0%-7.9%-2.7%
90 Dayn/a-2.4%1.6%
1 Yearn/a-6.1%-8.0%1.6%-0.7%
3 Yearn/a35.5%26.7%40.0%30.9%
5 Yearn/a36.8%19.8%53.8%36.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is NSK undervalued based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NSK's share price is below the future cash flow value, and at a moderate discount (> 20%).

NSK's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NSK is good value based on earnings compared to the US Machinery industry average.

NSK is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

NSK is good value based on expected growth next year.


Price Based on Value of Assets

NSK is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is NSK expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NSK's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

NSK's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

NSK's revenue growth is positive but not above the United States of America market average.

NSK's earnings growth is positive but not above the United States of America market average.

NSK's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NSK is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has NSK performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NSK's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

NSK's 1-year earnings growth is negative, it can't be compared to the 5-year average.

NSK's 1-year earnings growth is negative, it can't be compared to the US Machinery industry average.


Return on Equity

NSK has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NSK used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

NSK's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NSK's financial position?


Financial Position Analysis

NSK is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NSK's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NSK's level of debt (54%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (80.7% vs 54% today).

Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 169.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.7x debt.


Next Steps

Dividend

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

4.81%

Expected Dividend Yield


Dividend Yield and Payments Analysis

NSK's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

NSK's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of NSK's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Toshihiro Uchiyama 0

4.2yrs

Tenure

JP¥134,000,000

Compensation

Mr. Toshihiro Uchiyama has been the President and Chief Executive Officer of NSK Ltd. since June 24, 2015. Mr. Uchiyama served as Executive Vice President and Head of Corporate Strategy Division HQ of NSK  ...


CEO Compensation Analysis

Toshihiro's remuneration is lower than average for companies of similar size in United States of America.

Toshihiro's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

The average tenure for the NSK management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

The average tenure for the NSK board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Toshihiro Uchiyama

    President

    • Tenure: 4.2yrs
    • Compensation: JP¥134.00m
  • Yasuhiro Kamio

    Executive VP

    • Tenure: 0.0yrs
  • Koji Inoue

    Senior VP & Head of Human Resources Division

    • Tenure: 1.6yrs
  • Shigeyuki Suzuki

    Executive VP

    • Tenure: 0.0yrs
  • Nobuo Goto

    Executive VP

    • Tenure: 1.2yrs
  • Masatada Fumoto

    Executive VP

    • Tenure: 0.0yrs
  • Saimon Nogami

    Senior Executive VP

    • Tenure: 0.0yrs
  • Adrian Browne

    Senior VP & Head of Finance Division HQ

    • Tenure: 0.0yrs
    • Compensation: JP¥131.00m
  • Kenichi Yamana (59yo)

    Senior VP & Head of ASEAN Operations

    • Tenure: 1.6yrs
  • Hiroya Miyazaki

    Senior VP & Head of Automotive Technology Development Center

    • Tenure: 0.0yrs

Board Members

  • Teruhiko Ikeda (73yo)

    Independent Director

    • Tenure: 0.0yrs
  • Toshihiro Uchiyama

    President

    • Tenure: 4.2yrs
    • Compensation: JP¥134.00m
  • Yasuhiro Kamio

    Executive VP

    • Tenure: 0.0yrs
  • Shigeyuki Suzuki

    Executive VP

    • Tenure: 0.0yrs
  • Nobuo Goto

    Executive VP

    • Tenure: 1.2yrs
  • Saimon Nogami

    Senior Executive VP

    • Tenure: 0.0yrs
  • Toshihiko Enomoto

    Director

    • Tenure: 0.0yrs
  • Akitoshi Ichii

    Executive VP

    • Tenure: 2.2yrs
  • Hajime Bada

    Independent Director

    • Tenure: 1.2yrs
  • Akemi Mochizuki

    Independent Director

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: NSK Ltd.
  • Ticker: NPSK.F
  • Exchange: OTCPK
  • Founded: 1914
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥432.133b
  • Listing Market Cap: JP¥4.062b
  • Shares outstanding: 512.01m
  • Website: https://www.jp.nsk.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPSK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6471TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NSKDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
NPSK.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 1992

Biography

NSK Ltd. manufactures and sells industrial machinery bearings, automotive products, and precision machinery and parts. Its products include ball bearings; roller bearings; bearing units; super precision be ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:01
End of Day Share Price2019/07/02 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.