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Harmonic Drive Systems Inc. (HSYDF)
OTHER OTC:HSYDF
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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)
Market Cap
$1.97B
Dividend Yield0.58%
Average Volume (3M)80.00
Price to Earnings (P/E)94.8
Beta (1Y)-0.20
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,349
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.28
Shares Outstanding96,315,400
10 Day Avg. Volume93
30 Day Avg. Volume80
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)3.50
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.70Price Target Upside40.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
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
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 2025.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.60
Neutral
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 54.23B | 55.65B | 55.80B | 71.53B | 57.09B | 37.03B | Gross Profit |
| 13.93B | 14.85B | 15.61B | 25.79B | 22.43B | 12.58B | EBIT |
| -873.28M | 7.00M | 124.58M | 10.22B | 8.74B | 865.92M | EBITDA |
| -18.75B | 13.03B | -17.07B | 19.94B | 17.40B | 8.52B | Net Income Common Stockholders |
| -24.76B | 3.47B | -24.81B | 7.60B | 6.64B | 662.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 19.10B | 24.95B | 20.36B | 20.81B | 19.93B | 21.16B | Total Assets |
| 116.31B | 113.62B | 119.14B | 154.34B | 143.29B | 140.03B | Total Debt |
| 23.59B | 20.74B | 23.81B | 27.37B | 20.91B | 9.50B | Net Debt |
| 4.54B | -4.16B | 3.50B | 6.58B | 1.01B | -11.64B | Total Liabilities |
| 38.33B | 34.68B | 39.74B | 50.38B | 44.43B | 29.97B | Stockholders Equity |
| 77.99B | 78.94B | 79.40B | 103.96B | 98.86B | 102.89B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 2.63B | 7.42B | 1.78B | 5.07B | 8.17B | Operating Cash Flow |
| 0.00 | 7.52B | 12.73B | 10.85B | 9.88B | 9.56B | Investing Cash Flow |
| 0.00 | 1.48B | -5.95B | -8.66B | -19.49B | -4.18B | Financing Cash Flow |
| 0.00 | -5.87B | -8.12B | -1.60B | 8.12B | -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 |
|---|---|---|---|---|---|---|---|
| $1.97B | 94.83 | 4.32% | 0.58% | ― | ― | ||
66 Neutral | $4.50B | 12.29 | 5.40% | 248.66% | 4.13% | -12.33% | |
| $1.49B | 19.88 | 4.82% | 3.40% | ― | ― | ||
| €3.28B | 29.64 | 9.67% | 1.20% | ― | ― | ||
| $1.95B | 14.95 | 6.35% | 1.98% | ― | ― | ||
| $1.93B | 26.89 | 4.03% | 3.28% | ― | ― | ||
| $2.53B | 1,020.98 | 0.06% | 3.88% | ― | ― |
* Industrials Sector Average
Performance Comparison
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.