YKT Corporation (2693) AI Stock Analysis

• Market Cap: ¥2.90B
• Dividend Yield: 2.13%
• Average Volume (3M): 20.62K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.66
• Revenue Growth: 7.62%
• EPS Growth: -104.18%
• Country: JP
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.96
• Shares Outstanding: 11,906,880
• 10 Day Avg. Volume: 21,640
• 30 Day Avg. Volume: 20,620
• PEG Ratio: -0.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 3.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 54 Neutral
• Price Target: ¥243.00 ▲(6.58% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily constrained by volatile and recently weak operating profitability (including operating losses) and inconsistent cash generation despite a 2025 rebound. Technicals are mildly supportive with positive momentum and price holding around key moving averages. Valuation is a clear headwind due to the high P/E, with only modest support from the dividend yield.

Positive Factors

Balance-sheet resilience

Sizable, stable equity provides a durable capital buffer that supports inventory and receivables cycles in machine-tool distribution. This resilience reduces insolvency risk, enables longer payment terms with customers or suppliers, and preserves capacity to finance normal capex and working capital swings over the medium term.

Cash-flow rebound in 2025

A return to positive operating and free cash flow demonstrates the underlying business can convert sales into cash after a disrupted year. Reliable cash generation is critical for supporting warranty/service obligations, funding working capital for equipment sales, and lowering dependence on external financing across manufacturing capex cycles.

Ability to capture capex upturns

The company’s revenue rebound and historically decent gross margins indicate it can capitalize on cyclical manufacturing capex recoveries. As a specialist intermediary in machine tools, recovering top-line and preserved gross margins suggest durable distribution relationships and the operational ability to scale sales when industry investment improves.

Negative Factors

Operating-profit weakness

Sustained operating losses signal underlying margin and cost-structure problems in core trading and services. Reliance on non-operating items to lift net income masks weak operating economics, which undermines reinvestment capacity, service quality, and long-term competitiveness if not corrected.

Rising debt in 2025

A material jump in debt reduces financial flexibility in a cyclical capital-goods market. Higher leverage increases interest and refinancing risk during revenue troughs, constrains funding for inventory and after-sales service, and elevates the company's vulnerability to another downturn in manufacturing capex.

Volatile cash conversion

Wide swings in operating and free cash flow indicate unpredictable working-capital needs and earnings quality. This volatility complicates budgeting, limits reliable reinvestment in service capabilities, and makes dividend or sustained capex programs harder to support without raising external financing.

YKT Corporation Business Overview & Revenue Model

Company Description

YKT Corporation, a machinery trading company, imports and exports electronic equipment, machine tools, measuring equipment, welding machines, and industrial machinery in Japan and internationally. It also offers mounting equipment and semiconductor mounting/bonder equipment. In addition, the company provides products for tool production, die and mold production, component production, medical parts production, turbine blade production, quality control, measuring and inspection, and machinery and equipment production. The company was founded in 1924 and is headquartered in Tokyo, Japan.

How the Company Makes Money

YKT Corporation generates revenue primarily through the sale of its security products and solutions, including hardware sales and software subscriptions. The company has established key revenue streams from direct product sales to government agencies, corporations, and private entities that require robust security measures. Additionally, YKT benefits from recurring revenue through service contracts and maintenance agreements with clients, ensuring ongoing support and upgrades for its systems. Strategic partnerships with technology firms and integration with third-party platforms further enhance its offerings, contributing to higher sales volumes and customer retention.

YKT Corporation Financial Statement Overview

Summary

Overall fundamentals are mixed: the balance sheet is reasonably resilient with moderate leverage (though debt rose sharply in 2025), but earnings quality is weak with volatile revenue and profitability deteriorating to operating losses in 2024–2025. Cash flow improved in 2025 after negative 2024, yet multi-year volatility reduces confidence.

Income Statement

Revenue has been volatile: strong growth in 2025 (+19.7%) follows a decline in 2024 (-7.4%) and a sharp drop in 2023 (-41.7%) after a very strong 2022 (+40.8%). Profitability has also weakened meaningfully—2022–2023 showed solid positive earnings (net profit margin ~3.9% in 2022 and ~2.4% in 2023), but 2024 slipped to a small loss and 2025 shows negative operating profit (EBIT below zero) despite slightly positive net income, suggesting non-operating gains and/or one-offs are supporting the bottom line. Gross margin has been decent historically, but the recent swing to operating losses reduces overall quality and predictability of earnings.

Balance Sheet

Leverage looks moderate overall, with debt-to-equity improving from higher levels in 2020–2021 (~0.61–0.65) to lower levels in 2022–2024 (~0.27–0.45). Equity remains sizable and relatively stable (~6.4B–8.1B), providing balance-sheet resilience. However, total debt rose sharply in 2025 (to ~3.86B from ~2.21B in 2024) alongside a jump in total assets, and returns on equity have deteriorated from strong levels in 2022 (~11.0%) to near zero/negative in 2024, which weakens the balance sheet’s efficiency even if solvency remains acceptable.

Cash Flow

Cash generation has been inconsistent. Operating and free cash flow were very strong in 2022–2023 (operating cash flow ~1.04B and ~2.23B; free cash flow ~1.02B and ~2.19B), but turned negative in 2024 (operating cash flow about -0.24B; free cash flow about -0.25B). 2025 rebounded to positive operating and free cash flow (~0.79B each), which is a constructive signal, but the multi-year volatility raises confidence risk around cash conversion and working-capital swings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.18B	13.39B	11.93B	12.88B	22.08B	15.68B
Gross Profit	1.80B	1.85B	2.10B	2.50B	3.36B	2.47B
EBITDA	40.19M	-147.98M	222.37M	539.68M	1.32B	715.36M
Net Income	-166.01M	55.76M	-1.45M	304.48M	855.98M	436.64M
Balance Sheet
Total Assets	11.87B	17.09B	11.72B	12.44B	13.66B	14.62B
Cash, Cash Equivalents and Short-Term Investments	3.81B	6.61B	3.85B	4.77B	3.23B	3.26B
Total Debt	1.94B	3.86B	2.21B	2.85B	3.46B	4.50B
Total Liabilities	4.12B	9.11B	3.60B	4.34B	5.87B	7.68B
Stockholders Equity	7.71B	7.95B	8.07B	8.05B	7.75B	6.91B
Cash Flow
Free Cash Flow	0.00	789.23M	-252.57M	2.19B	1.02B	-747.58M
Operating Cash Flow	0.00	794.21M	-244.78M	2.23B	1.04B	-709.65M
Investing Cash Flow	0.00	138.63M	-2.62M	-29.07M	-20.55M	-15.05M
Financing Cash Flow	0.00	1.58B	-763.48M	-716.91M	-1.10B	497.05M

YKT Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 228.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2693, the sentiment is Positive. The current price of 228 is below the 20-day moving average (MA) of 240.05, below the 50-day MA of 234.77, and below the 200-day MA of 238.85, indicating a bullish trend. The MACD of 3.45 indicates Negative momentum. The RSI at 75.73 is Negative, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2693.

YKT Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6400	66 Neutral	¥2.43B	10.70	7.95%	2.50%	3.64%	17.76%
6757	64 Neutral	¥4.35B	-94.46	―	4.06%	1.44%	-184.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6408	61 Neutral	¥6.07B	4.00	―	1.37%	-3.05%	―
2693	54 Neutral	¥2.90B	52.05	―	2.13%	7.62%	-104.18%
9972	49 Neutral	¥2.96B	-1.49	―	2.47%	-12.04%	20.36%
6218	47 Neutral	¥3.68B	-2.77	―	1.93%	-14.00%	-216.77%