# NIPPON GEAR CO.,LTD.: business model and financials

> Latest period: FY ending Mar 2026, non-consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第124期(2025/04/01－2026/03/31) (S100YMQ1)
> Page: https://vizora.meequs.com/en/company/nippon-gear
> Retrieved: 2026-09-30T21:02:48.143Z

## Company

Nippon Gear, founded in 1938, is a company in Industrial Machinery listed on TSE Standard. It has 245 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NIPPON GEAR CO., LTD. |
| Ticker | 6356 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6356.T) |
| Listing | TSE Standard |
| Head office | 東京都港区西新橋1丁目7番14号 |
| Representative (per filing) | 代表取締役社長 寺田 治夫 |
| Founded | Dec 1938 |
| Share capital | ¥1.39B |
| Employees (consolidated) | 245 |
| Average salary (parent only) | ¥7.5M |
| Fiscal year end | March |
| Website | www.nippon-gear.jp (https://www.nippon-gear.jp/) |
| Corporate number | 3021001001619 |
| EDINET | E02173 |
| Industries (Vizora) | Industrial Machinery |

> Profile source: annual securities report (S100YMQ1, filed 2026-06-29). As of filing

## Five-axis industry profile

Primary industry: Industrial Machinery (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 36.8 | 110 |
| Profitability | 98.8 | 122 |
| Cash conversion | 48.7 | 116 |
| Efficiency | 20.9 | 122 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 76% of Nippon Gear's sales come from Gear Production and Gear Equipment Manufacturing, with Service making up much of the rest.
- Out of every ¥100 of sales, about ¥25 is left as operating profit.
- Revenue changed +3.4% from the prior year, operating profit +16.7%.

## Company structure

- Segment revenue mix: Gear Production and Gear Equipment Manufacturing 76.0%、Service 24.0%
- Revenue → net income: ¥9883658000 → ¥1751257000
- Net income → operating cash flow: ¥1751257000 → ¥2423141000（difference ¥671884000）
- Main uses of operating cash flow: CapEx ¥635863000 / dividends ¥113937000 / buybacks ¥236000
- Change in cash: ¥1629449000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥9.88B |  |
| Operating income | ¥2.46B | Margin 24.9% |
| Net income | ¥1.75B | Margin 17.7% |
| Free cash flow | ¥1.79B |  |
| Largest business | Gear Production and Gear Equipment Manufacturing | of segment revenue 76.0% |
| Employees (consolidated) | 245 |  |
| EPS | ¥123.01 |  |
| Book value per share | ¥1017.15 |  |
| Equity ratio | 84.2% |  |
| Shares outstanding | 14,280,000 |  |
| Treasury shares | 43,000 |  |
| Shareholders | 11,737 |  |
| Average salary (parent only) | ¥7.5M | Filing company only |
| Cash ratio | 35.6% | Cash ÷ revenue 62.0% |
| Vs. industry median margin | +17.3 pp | Industrial Machinery |
| ROE | 13.6% | Derived from disclosed figures |
| ROA | 10.8% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 69% of positive segment profit
- FY2026, operating income keeps 25 per ¥100 of revenue
- FY2026, employees -7% while operating income rose 17%

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥7715126000 | ¥9883658000 | +28.1% |
| Operating income | ¥412327000 | ¥2457080000 | +495.9% |
| Operating margin | 5.3% | 24.9% | +19.5 pp |
| Employees | 340 people | 245 people | -27.9% |
| Cash and equivalents | ¥2949846000 | ¥6125746000 | +107.7% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 歯車及び歯車装置 → 歯車及び歯車装置 | 76.0% |
| 歯車及び歯車装置 → 事業再編・廃止 | 3.8% |
| 工事 → 工事 | 20.2% |
| 新設・再編 → 工事 | 3.8% |

Segment revenue source references: 4 (derived)

## Income statement（FY ending Mar 2026, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 9,884 | 100.0% | S100YMQ1 |
| Cost of revenue | 5,078 | 51.4% | 算出 |
| Gross profit | 4,806 | 48.6% | S100YMQ1 |
| SG&A | 2,349 | 23.8% | S100YMQ1 |
| Operating income | 2,457 | 24.9% | S100YMQ1 |
| Ordinary income | 2,508 | 25.4% | S100YMQ1 |
| Pretax income | 2,574 | 26.0% | S100YMQ1 |
| Income tax | 822 | 8.3% | S100YMQ1 |
| Net income | 1,751 | 17.7% | S100YMQ1 |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 51 |
| SG&A | 24 |
| Operating income | 25 |
| (Ref.) Net income | 18 |

### Margin funnel

Gross margin 48.6% → Operating margin 24.9% → Net margin 17.7%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +3.4%; Core profit growth: +16.7%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 4.86×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 9,556 | 9,884 | 328 | +3.4% |
| Gross profit | 4,266 | 4,806 | 540 | +12.7% |
| Operating income | 2,106 | 2,457 | 351 | +16.7% |
| Operating cash flow | 1,314 | 2,423 | 1,110 | +84.5% |
| Free cash flow | 700 | 1,787 | 1,087 | +155.4% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 7,579 | 568 | 7.5% | 396 | 106 | 63 | S100LQXY |
| FY ending Mar 2021 | 7,715 | 412 | 5.3% | 313 | 721 | 591 | S100ODM4 |
| FY ending Mar 2022 | 7,569 | 119 | 1.6% | 296 | 804 | 706 | S100R1YI |
| FY ending Mar 2023 | 7,520 | 965 | 12.8% | 685 | 1,274 | 977 | S100TZHV |
| FY ending Mar 2024 | 9,622 | 2,128 | 22.1% | 1,539 | 749 | 422 | S100W2KW |
| FY ending Mar 2025 | 9,556 | 2,106 | 22.0% | 1,550 | 1,314 | 700 | S100YMQ1 |
| FY ending Mar 2026 | 9,884 | 2,457 | 24.9% | 1,751 | 2,423 | 1,787 | S100YMQ1 |

## People and productivity（FY ending Mar 2026, non-consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥40.3M |
| Operating income per employee (consolidated) | ¥10M |
| Net income per employee (consolidated) | ¥7.1M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 334 | 302 | 290 | 264 | 245 |
| Average salary (parent company) | ¥6.3M | ¥6.3M | ¥7M | ¥7.1M | ¥7.5M |
| Average age (parent company) | 40.9 years | 41.8 years | 42.4 years | 42.7 years | 42.9 years |
| Average tenure (parent company) | 16.2 years | 16.8 years | 16.7 years | 16.9 years | 17.3 years |

Year over year: Employees (consolidated) -7.2% · Revenue (consolidated) +3.4%

## Segments（FY ending Mar 2026, non-consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Gear Production and Gear Equipment Manufacturing | 7,513 | 76.0% | 1,686 | 22.4% |
| Service | 2,370 | 24.0% | 771 | 32.5% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Gear Production and Gear Equipment Manufacturing | 76.0% | 68.6% | -7.4 | 22.4% |
| Service | 24.0% | 31.4% | 7.4 | 32.5% |

Segment → industry: Service → Industrial Machinery / Gear Production and Gear Equipment Manufacturing → Industrial Machinery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 2,423 | 24.5% | S100YMQ1 |
| Capital expenditure | 636 | 6.4% | S100YMQ1 |
| Free cash flow | 1,787 | 18.1% | 算出 |
| Investing cash flow | -642 | -6.5% | S100YMQ1 |
| Financing cash flow | -152 | -1.5% | S100YMQ1 |
| Dividends paid | 114 | 1.2% | S100YMQ1 |
| Share buyback | 0 | 0.0% | S100YMQ1 |
| Change in cash | 1,629 | 16.5% | S100YMQ1 |
| Cash and equivalents | 6,126 | 62.0% | S100YMQ1 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 3,528 | 4,303 | 4,476 | 4,496 | 6,126 | S100TZHV, S100W2KW, S100YMQ1 |
| Total assets | 11,365 | 12,716 | 14,677 | 15,234 | 17,201 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Net assets | 8,794 | 9,440 | 11,096 | 12,562 | 14,481 | S100TZHV, S100W2KW, S100YMQ1 |
| Share capital | 1,389 | 1,389 | 1,389 | 1,389 | 1,389 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Property, plant and equipment | 1,526 | 1,625 | 1,769 | 2,058 | 2,167 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Intangible assets excluding goodwill | 118 | 119 | 116 | 184 | 137 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Investment securities | 635 | 666 | 983 | 1,060 | 1,479 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Current assets | 8,170 | 9,309 | 10,829 | 10,483 | 11,991 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Current liabilities | 1,712 | 2,541 | 2,877 | 2,017 | 2,017 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Long-term borrowings | 500 | 366 | 222 | 72 | 35 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Total liabilities | 2,571 | 3,276 | 3,581 | 2,672 | 2,720 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Equity attributable to owners of parent | 8,563 | 9,191 | 10,630 | 12,053 | 13,690 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Retained earnings | 6,345 | 6,973 | 8,413 | 9,835 | 11,472 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |
| Treasury stock | -15 | -16 | -16 | -16 | -16 | S100R1YI, S100TZHV, S100W2KW, S100YMQ1 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 36% | S100YMQ1 |
| Property, plant and equipment | 12% | S100YMQ1 |
| Intangibles and goodwill | 1% | S100YMQ1 |
| Investment securities | 9% | S100YMQ1 |
| Other assets | 42% | S100YMQ1 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 16% | S100YMQ1 |
| Equity | 84% | S100YMQ1 |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 11,365 | 12,716 | 14,677 | 15,234 | 17,201 |
| Equity | 8,794 | 9,440 | 11,096 | 12,562 | 14,481 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 3,528 | 4,303 | 4,476 | 4,496 | 6,126 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 21.9% | S100YMQ1 |
| Fixed assets ÷ total assets | 12.6% | S100YMQ1 |
| Goodwill ÷ parent equity | — | —, S100YMQ1 |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 35.6% |
| Cash ÷ revenue | 62.0% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 98.6% |
| Cash vs. profit gap | 672 JPY mn (of net income 38.4%) |
| Shareholder returns / net income | 6.5% |
| Shareholder returns / FCF | 6.4% |
| Shareholder payments — dividends / net income | 6.5% |
| Shareholder payments — dividends / FCF | 6.4% |
| CapEx intensity (capex ÷ revenue) | 6.4% |
| Investing CF relative to operating CF | 26.5% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 3.9% | 0.67× | 2.6% | 1.33× | 3.5% | S100R1YI |
| 2023 | 9.1% | 0.62× | 5.7% | 1.36× | 7.7% | S100TZHV |
| 2024 | 16.0% | 0.70× | 11.2% | 1.38× | 15.5% | S100W2KW |
| 2025 | 16.2% | 0.64× | 10.4% | 1.32× | 13.7% | S100YMQ1 |
| 2026 | 17.7% | 0.61× | 10.8% | 1.26× | 13.6% | S100YMQ1 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 株式会社成和 | Major shareholder | 39.6% | 2026-03-31 |
| 株式会社三田商店 | Major shareholder | 7.2% | 2026-03-31 |
| MSIP CLIENT SECURITIES （常任代理人モルガン・スタンレーＭＵＦＧ証券株式会社） | Major shareholder | 3.5% | 2026-03-31 |
| 株式会社ＧＭ ＩＮＶＥＳＴＭＥＮＴＳ | Major shareholder | 2.1% | 2026-03-31 |
| 日本ギア取引先持株会 | Major shareholder | 2.0% | 2026-03-31 |
| 株式会社千代田組 | Major shareholder | 1.5% | 2026-03-31 |
| セントラル短資株式会社 | Major shareholder | 1.4% | 2026-03-31 |
| BNYM SA/NV FOR BNYM FOR BNYM GCM CLIENT ACCTS M IL M FE (常任代理人株式会社三菱ＵＦＪ銀行) | Major shareholder | 1.2% | 2026-03-31 |
| 正法工業株式会社 | Major shareholder | 1.1% | 2026-03-31 |
| 株式会社日伝 | Major shareholder | 0.9% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第124期(2025/04/01－2026/03/31) | S100YMQ1 | 2026-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YMQ1,, |
| 有価証券報告書－第123期(2024/04/01－2025/03/31) | S100W2KW | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W2KW,, |
| 訂正有価証券報告書－第122期(2023/04/01－2024/03/31) | S100TZHV | 2024-07-03 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TZHV,, |
| 有価証券報告書－第121期(2022/04/01－2023/03/31) | S100R1YI | 2023-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R1YI,, |
| 有価証券報告書－第120期(令和3年4月1日－令和4年3月31日) | S100ODM4 | 2022-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100ODM4,, |
| 有価証券報告書－第119期(令和2年4月1日－令和3年3月31日) | S100LQXY | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LQXY,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).