Fanuc (FANUY) AI Stock Analysis

• Market Cap: $39.42B
• Dividend Yield: 1.37%
• Average Volume (3M): 53.84K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.81
• Revenue Growth: 4.90%
• EPS Growth: 15.26%
• Country: US
• Employees: 9,970
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 1,964,767,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 53,838
• PEG Ratio: 2.13
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 4.81
• P/FCF Ratio: 17.88
• Enterprise Value/Market Cap: 141.07
• Enterprise Value/Revenue: 6.97
• Enterprise Value/Gross Profit: 18.31
• Enterprise Value/Ebitda: 25.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $25.00 ▲(22.49% Upside)

The score is driven primarily by strong financial performance (excellent balance sheet and improved free cash flow), supported by bullish technical conditions. The main restraint is valuation, with a high P/E and modest dividend yield.

Positive Factors

Strong Financial Position

Fanuc's low debt-to-equity ratio and high equity ratio indicate strong financial health, providing resilience and flexibility for future growth.

Profitability

Effective cost management and healthy net profit margins support Fanuc's solid profitability, ensuring sustainable earnings over time.

Global Market Presence

Fanuc's strong global presence, particularly in Asia, Europe, and North America, diversifies revenue streams and reduces reliance on any single market.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential challenges in expanding sales, which could impact future profitability and market share.

Cash Flow Volatility

Inconsistent free cash flow generation may affect Fanuc's ability to invest in growth opportunities and manage financial obligations effectively.

Technical Analysis

Bearish technical indicators could signal potential investor concerns, possibly affecting capital raising and stock performance in the medium term.

Fanuc Business Overview & Revenue Model

Company Description

Fanuc Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive systems, an open platform for the manufacturing industry. The company was incorporated in 1950 and is headquartered in Yamanashi, Japan.

How the Company Makes Money

Fanuc generates revenue primarily through the sale of its industrial robots, CNC systems, and factory automation solutions. The company benefits from a strong global presence, with a significant portion of its sales coming from international markets, particularly in Asia, Europe, and North America. Fanuc's revenue model is supported by its extensive product lineup, which caters to various industry needs, ranging from small-scale operations to large manufacturing plants. In addition to equipment sales, Fanuc also earns from providing maintenance services, spare parts, and software solutions that complement its hardware offerings. Strategic partnerships and collaborations with major industrial firms further bolster its market position and contribute to its earnings.

Fanuc Financial Statement Overview

Summary

High-quality fundamentals supported by strong and fairly consistent profitability, exceptional balance sheet strength with effectively negligible debt, and robust free cash flow that stepped up significantly in the latest period. Main offsets are uneven/cyclical revenue growth and some variability in cash conversion year-to-year.

Income Statement

Profitability is strong and fairly consistent, with net margins in the mid-to-high teens across the period and a clear rebound in FY2025 (net margin ~18.5% vs. ~16.7% in FY2024). Revenue has grown meaningfully since FY2020, but the growth path is uneven (notable declines in FY2020 and a slight dip in FY2024, followed by a sharp re-acceleration in FY2025). Overall: high-quality margins with some cyclicality in the top line.

Balance Sheet

Balance sheet strength is exceptional: debt is effectively negligible (debt-to-equity near zero, and FY2025 shows zero reported debt), supported by a large equity base. Returns on equity are solid for a low-leverage profile (roughly mid-single digits to ~10% over time), though they have softened from the FY2022–FY2023 highs. Key watch-out is not leverage, but sustaining returns as the company scales its asset/equity base.

Cash Flow

Cash generation is strong, with free cash flow consistently positive and a major step-up in FY2025 (free cash flow more than doubling vs. FY2024). Cash conversion is generally healthy, with free cash flow tracking a large portion of net income (roughly ~0.53 to ~0.84 across the years), though it was weaker in FY2023. The main risk is volatility in cash generation year-to-year (e.g., FY2023 dip), but the latest period shows a strong recovery.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	798.39B	797.13B	795.27B	851.96B	733.01B	551.29B
Gross Profit	303.77B	294.93B	275.84B	316.52B	286.16B	192.99B
EBITDA	215.12B	205.29B	190.92B	240.55B	230.32B	157.62B
Net Income	156.60B	147.56B	133.16B	170.59B	155.27B	94.01B
Balance Sheet
Total Assets	1.90T	1.94T	1.93T	1.87T	1.78T	1.63T
Cash, Cash Equivalents and Short-Term Investments	602.96B	606.50B	539.08B	529.23B	601.22B	586.78B
Total Debt	0.00	0.00	6.42B	5.11B	2.44B	2.16B
Total Liabilities	177.45B	197.14B	206.84B	245.98B	234.09B	189.64B
Stockholders Equity	1.71T	1.72T	1.71T	1.62T	1.54T	1.43T
Cash Flow
Free Cash Flow	0.00	214.47B	117.88B	52.44B	91.22B	96.23B
Operating Cash Flow	0.00	255.27B	171.76B	99.50B	125.58B	118.00B
Investing Cash Flow	0.00	-134.08B	-13.56B	-78.00B	-53.93B	-16.77B
Financing Cash Flow	0.00	-136.62B	-122.51B	-127.92B	-89.15B	-53.13B

Fanuc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FANUY, the sentiment is Positive. The current price of 20.41 is below the 20-day moving average (MA) of 20.63, above the 50-day MA of 19.30, and above the 200-day MA of 15.49, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 63.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FANUY.

Fanuc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GGG	81 Outperform	$15.18B	28.83	19.92%	1.32%	2.85%	3.09%
FANUY	80 Outperform	$39.42B	35.67	8.88%	1.37%	4.90%	15.26%
NDSN	77 Outperform	$15.93B	32.68	16.21%	1.64%	3.78%	4.85%
IEX	72 Outperform	$15.89B	31.42	12.21%	1.56%	7.09%	-2.29%
ROK	71 Outperform	$48.33B	56.13	24.24%	1.33%	0.98%	-7.51%
RRX	69 Neutral	$11.84B	44.27	3.89%	0.97%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%