OTCPK:NPSK.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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

Stable Share Price: NPSK.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

NPSK.Y

1.4%

US Machinery

2.6%

US Market


1 Year Return

-13.8%

NPSK.Y

9.2%

US Machinery

15.4%

US Market

Return vs Industry: NPSK.Y underperformed the US Machinery industry which returned 7.1% over the past year.

Return vs Market: NPSK.Y underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

NPSK.YIndustryMarket
7 Day-2.5%1.4%2.6%
30 Day-7.6%8.7%6.1%
90 Day-3.6%22.3%16.6%
1 Year-13.8%-13.8%11.3%9.2%17.8%15.4%
3 Year-44.4%-44.4%22.6%14.5%43.9%34.7%
5 Year-48.5%-48.5%68.0%47.8%76.2%57.3%

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 compared to its fair value and its price relative to the market?

21.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NPSK.Y ($13.55) is trading above our estimate of fair value ($7.08)

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


Price To Earnings Ratio

PE vs Industry: NPSK.Y is good value based on its PE Ratio (21.8x) compared to the US Machinery industry average (24.1x).

PE vs Market: NPSK.Y is poor value based on its PE Ratio (21.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: NPSK.Y is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: NPSK.Y is good value based on its PB Ratio (0.8x) compared to the US Machinery industry average (2.1x).


Next Steps

Future Growth

How is NSK forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPSK.Y's forecast earnings growth (25.1% per year) is above the savings rate (2.2%).

Earnings vs Market: NPSK.Y's earnings (25.1% per year) are forecast to grow faster than the US market (22.6% per year).

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

Revenue vs Market: NPSK.Y's revenue (2.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: NPSK.Y's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NPSK.Y's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has NSK performed over the past 5 years?

-9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPSK.Y has high quality earnings.

Growing Profit Margin: NPSK.Y's current net profit margins (2.1%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: NPSK.Y's earnings have declined by 9.6% per year over the past 5 years.

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

Earnings vs Industry: NPSK.Y had negative earnings growth (-68.7%) over the past year, making it difficult to compare to the Machinery industry average (-12.2%).


Return on Equity

High ROE: NPSK.Y's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is NSK's financial position?


Financial Position Analysis

Short Term Liabilities: NPSK.Y's short term assets (¥466.5B) exceed its short term liabilities (¥217.9B).

Long Term Liabilities: NPSK.Y's short term assets (¥466.5B) exceed its long term liabilities (¥285.4B).


Debt to Equity History and Analysis

Debt Level: NPSK.Y's debt to equity ratio (53%) is considered high.

Reducing Debt: NPSK.Y's debt to equity ratio has reduced from 67.7% to 53% over the past 5 years.

Debt Coverage: NPSK.Y's debt is well covered by operating cash flow (25.9%).

Interest Coverage: NPSK.Y's interest payments on its debt are well covered by EBIT (59.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NPSK.Y's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: NPSK.Y's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.2%), NPSK.Y's payments are 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

  • Explore strong dividend paying companies in the Capital Goods industry.

Management

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

2.6yrs

Average management tenure


CEO

Toshihiro Uchiyama

5.17yrs

Tenure

JP¥151,000,000

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

Compensation vs Market: Toshihiro's total compensation ($USD1.43M) is below average for companies of similar size in the US market ($USD5.74M).

Compensation vs Earnings: Toshihiro's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Toshihiro Uchiyama
President5.17yrsJP¥151.00m0.018%
¥ 663.3k
Saimon Nogami
Senior Executive VPno datano data0.010%
¥ 372.4k
Nobuo Goto
Executive VP & Head of Technology Development Division HQ2.17yrsno data0.0046%
¥ 163.6k
Hidenori Oka
VP & Head of Human Resource Management Division HQno datano data0.00068%
¥ 24.4k
Masatada Fumoto
EVP, Head of Automotive Steeringno datano data0.0065%
¥ 231.7k
Kenichi Yamanaka
Senior VP & Head of ASEAN Operations2.58yrsno data0.0033%
¥ 116.9k
Hiroya Miyazaki
Senior VP & Head of Automotive Technology Development Centerno datano data0.0043%
¥ 155.3k
Masaru Takayama
Senior VP and Head of Manufacturing Strategy Division HQ & Procurement Division HQno datano data0.0020%
¥ 72.1k
Seiji Ijuin
VP, Head of Industrial Machinery Bearing Technology & Head of Industrial Machinery Technologyno datano data0.0028%
¥ 99.4k
Akitoshi Ichii
Executive VP3.17yrsno data0.012%
¥ 421.2k
Nobuaki Mitamura
Senior VP and Head of Core Technology R&D Center & Technology Development Division HQno datano data0.0031%
¥ 110.5k
Ajith Krishnan
Head of Indian Operationsno datano datano data

2.6yrs

Average Tenure

Experienced Management: NPSK.Y's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toshihiro Uchiyama
President5.17yrsJP¥151.00m0.018%
¥ 663.3k
Saimon Nogami
Senior Executive VPno datano data0.010%
¥ 372.4k
Akitoshi Ichii
Executive VP3.17yrsno data0.012%
¥ 421.2k
Yoshitaka Fujita
Independent Director1.17yrsno data0.00055%
¥ 19.7k
Mitsuhiro Nagahama
Independent Director0.58yrno datano data
Toshihiko Enomoto
Directorno datano data0.0045%
¥ 160.4k
Hajime Bada
Independent Director2.17yrsno data0.00074%
¥ 26.5k
Akemi Mochizuki
Independent Director2.08yrsno data0.00074%
¥ 26.5k
Toshio Iwamoto
Independent Director1.17yrsno data0.00016%
¥ 5.7k

2.1yrs

Average Tenure

Experienced Board: NPSK.Y's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NSK Ltd.
  • Ticker: NPSK.Y
  • Exchange: OTCPK
  • Founded: 1914
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥379.854b
  • Listing Market Cap: JP¥3.587b
  • Shares outstanding: 512.62m
  • 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 Analysis2020/08/06 00:41
End of Day Share Price2020/08/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.