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6471:TSENSK Ltd. Analysis

Data as of 2026-03-14 - not real-time

¥1,169.50

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

NSK Ltd. is trading well below its discounted cash‑flow implied fair value, offering a compelling price discount while maintaining a solid cash position and a dividend yield near 3%. Technical signals are mixed: the stock sits under the 20‑day and 50‑day moving averages, RSI is in the low‑mid range and MACD shows bearish momentum, yet the broader trend remains bullish and price is anchored above a clear support level.
The company’s revenue is expanding at a healthy pace, but margins are modest and the payout ratio is high, raising questions about dividend sustainability. With a low beta and a “Greed” market sentiment, the upside potential appears attractive for medium‑ to long‑term investors, while short‑term volatility and decreasing volume suggest caution.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price below short‑term moving averages
  • Bearish MACD histogram
  • Decreasing volume and elevated 30‑day volatility

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Significant discount to DCF fair value
  • Strong cash balance and zero net debt
  • Revenue growth outpacing peers

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Undervalued relative to book and sales multiples
  • Resilient demand for bearings across multiple industrial segments
  • Low beta indicating defensive characteristics in a cyclical sector

Key Metrics & Analysis

Financial Health

Revenue Growth23.60%
Profit Margin2.36%
P/E Ratio31.9
ROE3.09%
ROA1.69%
P/B Ratio0.8
Op. Cash Flow¥158.8B
Free Cash Flow¥29.4B

Technical Analysis

TrendBullish
RSI41.5
Support¥1,127.50
Resistance¥1,414.50
MA 20¥1,287.50
MA 50¥1,175.39
MA 200¥875.56
MACDBearish
VolumeDecreasing
Fear & Greed Index72.88

Valuation

Fair Value¥2,608.83
Target Price¥1,273.33
Upside/Downside8.88%
GradeUndervalued
TypeBlend
Dividend Yield2.91%

Risk Assessment

Beta0.54
Volatility53.56%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.