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NSK (TSE:6471) Could Be 36% Undervalued As First Quarter Earnings Jump

Simply Wall St · 2d ago

Why NSK’s latest quarterly earnings matter for investors

NSK (TSE:6471) reported first quarter results to 30 June 2026 that included sales of ¥255,638 million and net income of ¥9,701 million, compared with ¥195,760 million and ¥1,083 million a year earlier.

See our latest analysis for NSK.

The strong first quarter result comes at a time when NSK’s share price return is up 16.13% year to date and the 1 year total shareholder return is 66.73%. However, the 90 day share price return is down 8.61%, which suggests earlier momentum has cooled recently but remains robust over a longer horizon.

If this earnings update has you thinking about where else growth stories might emerge, it could be a good moment to scan other industrial and automation opportunities through the 36 robotics and automation stocks

After a sharp 1 year run and a softer 90 day patch, NSK now sits between its recent price, analyst targets and intrinsic value estimates. Which of those markers is closest to fair value today?

Most Popular Narrative: 36% Undervalued

NSK last closed at ¥1,152, while the most followed narrative sets fair value at ¥1,800 per share. That gap rests on some ambitious internal levers.

Full consolidation of the Steering Business from September 2025 creates a separate segment with JPY 90b of projected additional sales and JPY 3.5b of operating income in the current fiscal year. This directly lifts group revenue and earnings capacity.

Read the complete narrative. Read the complete narrative.

Want to understand why this narrative stretches so far beyond today’s price? It leans on faster top line growth, fatter margins and a richer future earnings multiple. The interesting part is how those three pieces are wired together to back a much higher fair value.

Result: Fair Value of ¥1,800 (UNDERVALUED)

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

However, this NSK narrative still depends on key risks, such as tariff costs proving stickier than planned and structural reforms delivering smaller margin gains than expected.

Find out about the key risks to this NSK narrative.

Next Steps

With both risks and rewards in play for NSK, this is a good time to review the full picture yourself and move quickly. Start by weighing the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond NSK?

If NSK has sharpened your focus, do not stop here. Broader research across other stocks can help you spot opportunities that match your goals and risk comfort.

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.