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NSK Ltd (NPSKY)
OTHER OTC:NPSKY
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NSK
(OTC:NPSKY)
60Neutral
NSK (NPSKY) vs. S&P 500 (SPY)
Market Cap
$2.04B
Dividend Yield3.24%
Average Volume (3M)487.00
Price to Earnings (P/E)42.7
Beta (1Y)0.41
Revenue Growth-10.71%
EPS Growth-40.55%
CountryUS
Employees33,548
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)0.21
Shares Outstanding250,000,000
10 Day Avg. Volume190
30 Day Avg. Volume487
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
NSK Business Overview & Revenue Model
Company DescriptionNSK Ltd. (NPSKY) is a global leader in the manufacturing and sale of bearings, automotive components, and precision machinery and parts. The company operates across several sectors including automotive, industrial machinery, and precision equipment, serving a diverse range of industries worldwide. NSK is renowned for its innovation in motion and control technologies and is committed to providing high-quality products that enhance productivity and efficiency.
How the Company Makes MoneyNSK generates revenue primarily through the sale of its bearings, which are critical components in reducing friction and wear in machinery across various industries. The company's key revenue streams include the automotive sector, where it supplies bearings and other components to major car manufacturers, and the industrial sector, where its products are used in a wide array of machinery and equipment. NSK also earns income from its precision machinery and parts division, which provides solutions for industries such as healthcare, semiconductor manufacturing, and robotics. Strategic partnerships and long-term contracts with leading companies in these sectors contribute significantly to its earnings, along with continuous investment in research and development to drive innovation and maintain competitive advantage.
NSK Financial Statement Overview
Summary
NSK demonstrates a mixed financial performance. While the company maintains operational efficiency and a healthy balance sheet, it faces challenges in revenue growth and profitability stability. Cash flow management appears effective, yet there is room for improvement in converting income into cash.Income Statement
The company has seen a decline in total revenue from 2019 to 2024, indicating challenges in maintaining growth. The gross profit margin has decreased over time, reflecting potential cost pressures. However, the company has managed to maintain a stable EBITDA margin, suggesting operational efficiency. The net profit margin has fluctuated, indicating some instability in bottom-line profitability.65
Positive
Balance Sheet
NSK exhibits a solid equity ratio, indicating a healthy balance between assets and equity. The debt-to-equity ratio is manageable, suggesting that the company is not overly reliant on debt financing. The return on equity has shown variability, which could reflect inconsistent profitability or changes in financial leverage.72
Positive
Cash Flow
The company's operating cash flow has shown improvement, indicating better cash generation from operations. Free cash flow growth has been positive, reflecting effective capital expenditure management. However, the free cash flow to net income ratio suggests that cash generation relative to net income could be more efficient.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 801.11B | 788.87B | 938.10B | 865.17B | 747.56B | 831.03B | Gross Profit |
| 169.61B | 165.25B | 191.06B | 169.73B | 126.24B | 153.52B | EBIT |
| 26.40B | 24.33B | 32.94B | 29.43B | 6.36B | 23.60B | EBITDA |
| 80.64B | 78.79B | 91.14B | 81.33B | 57.37B | 76.52B | Net Income Common Stockholders |
| 11.33B | 8.50B | 18.41B | 16.59B | 355.00M | 17.41B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 126.33B | 150.58B | 161.70B | 139.16B | 178.21B | 140.44B | Total Assets |
| 1.08T | 1.30T | 1.23T | 1.23T | 1.17T | 1.03T | Total Debt |
| 277.01B | 342.61B | 360.81B | 327.21B | 352.62B | 300.50B | Net Debt |
| 152.38B | -150.58B | 200.71B | 189.70B | 175.98B | 163.20B | Total Liabilities |
| 534.31B | 620.12B | 598.53B | 597.09B | 594.07B | 503.37B | Stockholders Equity |
| 523.38B | 659.98B | 616.21B | 617.80B | 554.38B | 505.50B |
| Cash Flow | Free Cash Flow | ||||
| -13.30B | 41.12B | 12.41B | -13.33B | 20.05B | 24.51B | Operating Cash Flow |
| 41.45B | 99.82B | 64.16B | 22.73B | 53.84B | 72.39B | Investing Cash Flow |
| -71.58B | -90.81B | -48.78B | -19.97B | -51.10B | -39.78B | Financing Cash Flow |
| -804.00M | -24.78B | 4.42B | -48.22B | 29.99B | -21.33B |
NSK Technical Analysis
Neutral
8.85
Price Trends
8.55
Positive
8.70
Positive
9.34
Negative
Market Momentum
0.08
Negative
57.43
Neutral
86.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NPSKY, the sentiment is Neutral. The current price of 8.85 is above the 20-day moving average (MA) of 8.55, above the 50-day MA of 8.55, and below the 200-day MA of 9.34, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.43 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NPSKY.
NSK Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.31B | 11.56 | 50.69% | 1.04% | 6.26% | 12.62% | |
70 Outperform | $5.16B | 11.08 | 10.81% | 3.10% | -0.70% | -7.27% | |
64 Neutral | $2.02B | ― | -3.92% | 2.96% | -2.57% | -248.28% | |
62 Neutral | $6.39B | 19.85 | 6.46% | 1.47% | -11.10% | -46.32% | |
60 Neutral | $2.04B | 42.73 | 1.58% | 3.24% | -10.71% | -40.55% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
59 Neutral | $5.63B | 14.74 | 16.69% | 1.84% | 0.61% | -4.04% |
* Consumer Cyclical Sector Average
Performance Comparison
NPSKY
NSK
8.75
-2.01
-18.68%
ALSN
Allison Transmission Holdings
97.23
22.50
30.11%
BWA
BorgWarner
28.56
-3.48
-10.86%
DAN
Dana Holding
14.10
2.57
22.29%
GNTX
Gentex
24.42
-11.05
-31.15%
LEA
Lear
94.83
-44.71
-32.04%
NSK Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 1.72% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant challenges in the industrial machinery sector and revised downward forecasts due to economic slowdowns, particularly in China. However, there were positive developments in the automotive sector, successful strategic initiatives, and maintained shareholder returns. This balance of positive and negative aspects suggests a neutral sentiment.Highlights
Automotive Business Recovery
The automotive industry showed signs of recovery with production volume increasing by about 10% year-on-year, driven by a resolution of the semiconductor shortage. Sales reached JPY 199.1 billion, showing alignment with increased automotive production.
Successful Establishment of Steering Business Joint Venture
The establishment of an equity method affiliate for the steering business was successfully completed in August.
Shareholder Returns
The company maintained its initial plan to pay an interim dividend of JPY 15 per share and completed the buyback and cancellation of 51 million treasury shares.
Progress in Automotive Business Strategy
The automotive business exceeded the midterm plan target for fiscal 2026 with sales projected at JPY 414 billion, attributed to strategies like increasing electric vehicle market share and expanding new product sales.
Lowlights
Industrial Machinery Business Decline
The industrial machinery business experienced a significant decline with sales down JPY 24.4 billion and segment income down JPY 15 billion year-on-year, continuing sluggish performance in the semiconductor and E&E segments.
Revised Downward Forecast
The company revised its full-year forecast downward due to ongoing economic slowdown in China and weaker-than-expected demand recovery. Sales forecast reduced by JPY 8 billion and operating income by JPY 14 billion.
Operating Income Decrease
Operating income decreased by JPY 8.5 billion due to negative impacts from volume and mix changes and increased inflation and labor costs.
Challenges in Achieving Midterm Plan Targets
The company is currently far from achieving its midterm plan 2026 targets, facing a JPY 100 billion gap in forecasted sales versus targets, alongside deteriorating business environments in Europe and China.
Company Guidance
In the earnings call for NSK Limited, President and CEO Akitoshi Ichii provided a detailed overview of the company's financial performance for the first half of fiscal 2023 and discussed the revised full-year forecast. The company reported first-half sales of JPY 386.7 billion and an operating income of JPY 11.1 billion, but due to a prolonged economic slowdown in China and ongoing weakness in demand for industrial machinery, the full-year sales forecast was revised down to JPY 800 billion with operating income expected at JPY 30 billion. The automotive segment showed signs of recovery, driven by an alleviation in semiconductor shortages, achieving sales of JPY 199.1 billion with a segment income of JPY 5.7 billion. Despite cost reductions of JPY 3.2 billion and a positive currency impact of JPY 3.2 billion, the company faced an overall operating income decline of JPY 8.5 billion from the previous year. Additionally, Ichii highlighted the successful completion of an equity method affiliate for the steering business and maintained a commitment to stable shareholder returns with a full-year dividend of JPY 30 per share. Looking ahead, the company aims to address challenges through structural reforms and expand sales, particularly in the Americas, while continuing to progress towards the Mid-Term Plan 2026 objectives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.