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Harmonic Drive Systems Inc. (HSYDF)
OTHER OTC:HSYDF

Harmonic Drive Systems (HSYDF) AI Stock Analysis

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Positive Factors
Financial Guidance
The company slightly raised its F3/25 sales guidance from ¥54bn to ¥55.5bn and its OP guidance from -¥0.4n to +¥0.4 as it expects sales in Japan and Europe to exceed its prior estimates.
Market Opportunity
Harmonic Drive stands to benefit directly from the humanoid robot trend with a clear fundamental case.
Order Growth
Consolidated new orders increased by 15% YoY and 12% QoQ this quarter, showcasing a recovering trend.
Negative Factors
Competition
Harmonic Drive faces competition from both alternative reducer types and new entrants in SW reducer, its overall share declining from 35+% today to 6% in the long term.
Financial Impairment
HDS will recognize impairment at subsidiary Harmonic Precision, which manufactures special bearings; the company expects to record an extraordinary loss.
Profitability Challenge
SW reducers for humanoids are less profitable than for industrial robots, with its long-term operating margin comparable to that of automotive components.

Harmonic Drive Systems (HSYDF) vs. SPDR S&P 500 ETF (SPY)

Harmonic Drive Systems Business Overview & Revenue Model

Company DescriptionHarmonic Drive Systems Inc. produces and sells precision control equipment and components worldwide. It offers speed reducers, rotary actuators, linear actuators, AC servo motors, and other mechatronics products, as well as HarmonicDrive, a speed reducer for space. The company also provides high-precision planetary-gear speed reducers under the AccuDrive and Harmonic Planetary brands; galvano mirror type optical scanners under the BEAM SERVO brand; and incremental encoders under the Harmonicsyn name. Its products are used in industrial robots, semiconductor manufacturing equipment, and other systems. Harmonic Drive Systems Inc. was founded in 1970 and is headquartered in Tokyo, Japan.
How the Company Makes Money

Harmonic Drive Systems Financial Statement Overview

Summary
The company has a mixed financial position with healthy gross profit margins but inconsistent revenue growth and net income volatility. The balance sheet is stable with a strong equity position, although increasing financial leverage is a concern. Cash flow is declining, indicating potential liquidity issues.
Income Statement
65
Positive
The company shows a mixed income performance over recent years. Gross profit margins remain healthy, although there has been volatility in net income, particularly with a significant loss in 2024. Revenue growth has been inconsistent, with a notable decline in 2023. The EBIT margin indicates fluctuations in operational efficiency, with a sharp drop in 2024 but some recovery in 2025.
Balance Sheet
70
Positive
Harmonic Drive Systems has a solid equity base, contributing to a moderate debt-to-equity ratio. The equity ratio is strong, suggesting stability in asset financing. However, the company's financial leverage increased in 2024, which could pose risks if not managed carefully.
Cash Flow
60
Neutral
The cash flow statement reveals some strengths and weaknesses. Operating cash flow has been positive but shows a declining trend. Free cash flow was negative in 2020 but turned positive in subsequent years, although it decreased significantly in 2025. The cash flow coverage of net income varies, reflecting volatility in earnings and investment activities.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
54.23B55.65B55.80B71.53B57.09B37.03B
Gross Profit
13.93B14.85B15.61B25.79B22.43B12.58B
EBIT
-873.28M7.00M124.58M10.22B8.74B865.92M
EBITDA
-18.75B13.03B-17.07B19.94B17.40B8.52B
Net Income Common Stockholders
-24.76B3.47B-24.81B7.60B6.64B662.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.10B24.95B20.36B20.81B19.93B21.16B
Total Assets
116.31B113.62B119.14B154.34B143.29B140.03B
Total Debt
23.59B20.74B23.81B27.37B20.91B9.50B
Net Debt
4.54B-4.16B3.50B6.58B1.01B-11.64B
Total Liabilities
38.33B34.68B39.74B50.38B44.43B29.97B
Stockholders Equity
77.99B78.94B79.40B103.96B98.86B102.89B
Cash FlowFree Cash Flow
0.002.63B7.42B1.78B5.07B8.17B
Operating Cash Flow
0.007.52B12.73B10.85B9.88B9.56B
Investing Cash Flow
0.001.48B-5.95B-8.66B-19.49B-4.18B
Financing Cash Flow
0.00-5.87B-8.12B-1.60B8.12B-3.61B

Harmonic Drive Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$1.97B94.834.32%0.58%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
$1.49B19.884.82%3.40%
DEJ9R
€3.28B29.649.67%1.20%
$1.95B14.956.35%1.98%
$1.93B26.894.03%3.28%
$2.53B1,020.980.06%3.88%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HSYDF
Harmonic Drive Systems
20.49
-5.65
-21.61%
FMMFF
Fuji
15.78
0.64
4.23%
DE:J9R
Japan Steel Works
44.20
17.43
65.11%
MKMLF
Makino Milling Machine Co
60.11
19.51
48.05%
NCTKF
Nabtesco
15.80
-0.32
-1.99%
SOHVF
Sumitomo Heavy Industries
20.93
-4.32
-17.11%
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.