AMADA HOLDINGS CO (6113) AI Stock Analysis

• Market Cap: ¥793.70B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.26
• Revenue Growth: -1.14%
• EPS Growth: -19.79%
• Country: JP
• Employees: 9,005
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 24.73
• Shares Outstanding: 328,173,000
• 10 Day Avg. Volume: 1,322,360
• 30 Day Avg. Volume: 1,369,886
• PEG Ratio: -0.86
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 12.05
• 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): 103.54
• Revenue Forecast (FY): ¥436.46B

• Rating: 72 Outperform
• Price Target: ¥2,728.00 ▲(48.06% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by solid financial quality (notably low leverage) and clear technical strength in the trend. Offsetting factors are weakening profitability/returns versus last year, stretched momentum signals (RSI/Stoch), and a relatively high P/E that makes the valuation less compelling.

Positive Factors

Conservative balance sheet

A very low debt-to-equity ratio (~0.14) provides durable financial flexibility, allowing AMADA to fund R&D, maintain service networks, support customers through downturns, and pursue opportunistic capex or M&A without stressing liquidity or covenant risk.

Installed-base recurring revenue

AMADA's installed base and bundled services create recurring, higher-margin aftermarket revenue (consumables, tooling, parts, maintenance and software). Those steady streams reduce reliance on new machine sales and improve lifetime customer economics over cycles.

Strong cash generation in absolute terms

Substantial trailing free cash flow (~¥44.5B; FCF covers ~89% of net income) supports reinvestment in product development, aftermarket service infrastructure and shareholder returns, giving management optionality to prioritize long-term value creation.

Negative Factors

Weakening profitability and returns

Declining net margin and ROE indicate margin compression or unfavorable mix that has reduced capital efficiency. If structural, this weakens the firm's ability to convert revenue into shareholder returns and may constrain reinvestment or dividend sustainability.

Variable free cash flow profile

While FCF is strong in absolute terms, historical volatility and occasional zero-FCF years complicate multi-year planning. Inconsistent cash conversion can limit reliable capex funding, M&A capacity or predictable shareholder distributions during downturns.

Exposure to customers' capex cycles

Revenue relies on large, project-based capital equipment purchases that are cyclical. Even with aftermarket revenue, downturns in customer capex can materially reduce new equipment orders and revenue growth for several quarters, increasing structural cyclicality risk.

AMADA HOLDINGS CO Business Overview & Revenue Model

Company Description

AMADA HOLDINGS CO (6113) is a leading manufacturer of metalworking machinery and equipment, primarily operating in the machinery and tools sector. The company specializes in providing solutions for sheet metal processing, including laser cutting machines, press brakes, and punching machines. With a strong emphasis on innovation and technology, AMADA offers a range of products designed to enhance productivity and efficiency in manufacturing processes, catering to various industries such as automotive, aerospace, and construction.

How the Company Makes Money

AMADA HOLDINGS CO generates revenue through multiple streams, primarily from the sale of its machinery and equipment, which includes laser cutting machines, press brakes, and other metal processing tools. The company also earns income from providing maintenance services, spare parts, and technical support to its customers, ensuring that their equipment operates optimally over time. Additionally, AMADA has established strategic partnerships with other technology firms and manufacturers, which enhances its product offerings and market reach. The company's focus on research and development enables it to introduce innovative products, thereby driving sales and increasing market share in the competitive metalworking industry.

AMADA HOLDINGS CO Financial Statement Overview

Summary

Solid fundamentals backed by a conservative balance sheet (low debt-to-equity ~0.14) and continued TTM revenue growth (+5.1%). However, profitability and returns have softened versus FY2024 (TTM net margin ~7.0% vs ~10.1% in FY2024; ROE ~5.3% vs ~7.7%), and free cash flow has been somewhat variable despite being strong in absolute terms.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 5.1%, showing continued demand, while profitability remains solid with ~42% gross margin and ~15.6% EBITDA margin. However, margins and earnings have softened versus the most recent annual periods (net margin down to ~7.0% TTM from ~10.1% in FY2024), suggesting some mix/price or cost pressure and a less favorable profit trajectory than last year.

Balance Sheet

The balance sheet is conservatively positioned with low leverage (TTM debt-to-equity ~0.14) and a large equity base versus assets, which supports resilience through cycles. The main watch-out is returns: return on equity is moderate (TTM ~5.3%) and below FY2024 levels (~7.7%), indicating profitability is not fully translating into strong shareholder returns lately.

Cash Flow

Cash generation is generally healthy: TTM free cash flow is strong (~¥44.5B) and covers most of net income (free cash flow to net income ~0.89). That said, TTM free cash flow declined (-4.5%) and the cash conversion profile has been choppier historically (including a year with zero free cash flow), which reduces confidence in consistency versus top-tier industrial peers.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	416.82B	396.67B	403.50B	365.69B	312.66B	250.45B
Gross Profit	173.71B	172.39B	175.18B	159.35B	133.64B	99.20B
EBITDA	65.65B	69.89B	76.59B	67.23B	58.13B	46.08B
Net Income	30.21B	32.39B	40.64B	34.16B	27.77B	18.56B
Balance Sheet
Total Assets	745.67B	649.89B	681.05B	647.56B	614.44B	557.30B
Cash, Cash Equivalents and Short-Term Investments	130.38B	104.84B	126.41B	123.49B	130.18B	101.55B
Total Debt	98.79B	10.95B	8.24B	5.32B	7.07B	14.91B
Total Liabilities	215.12B	126.14B	146.66B	139.04B	130.41B	106.49B
Stockholders Equity	525.77B	519.21B	529.66B	504.13B	479.79B	447.08B
Cash Flow
Free Cash Flow	44.53B	39.41B	31.55B	0.00	41.59B	37.88B
Operating Cash Flow	49.77B	46.19B	47.59B	24.95B	56.87B	57.58B
Investing Cash Flow	-25.28B	7.85B	-15.19B	-13.32B	-7.92B	-8.73B
Financing Cash Flow	6.96B	-42.42B	-38.15B	-20.39B	-22.31B	-22.90B

AMADA HOLDINGS CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1842.50
• 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:6113, the sentiment is Positive. The current price of 1842.5 is below the 20-day moving average (MA) of 2290.78, below the 50-day MA of 2067.59, and above the 200-day MA of 1794.52, indicating a bullish trend. The MACD of 142.75 indicates Negative momentum. The RSI at 74.98 is Negative, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6113.

AMADA HOLDINGS CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6118	74 Outperform	¥63.15B	12.62	―	2.54%	2.00%	39.80%
6622	73 Outperform	¥334.15B	26.05	―	1.65%	14.49%	-21.17%
6113	72 Outperform	¥793.70B	26.48	5.14%	3.31%	-1.14%	-19.79%
6508	71 Outperform	¥343.45B	15.47	14.28%	2.40%	8.03%	23.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5631	59 Neutral	¥703.95B	34.30	11.66%	1.03%	10.11%	41.98%
6302	59 Neutral	¥712.36B	22.59	0.59%	2.95%	-2.67%	-85.21%

AMADA HOLDINGS CO Corporate Events

Amada to Shift Governance Structure to Audit & Supervisory Committee Model in 2026

Amada Co., Ltd. plans to transition from its current Board of Corporate Auditors framework to a Company with an Audit & Supervisory Committee, pending shareholder approval at the 88th Ordinary General Meeting in June 2026. The shift is designed to strengthen the board’s supervisory role, enable multifaceted discussions on management policy and strategy, and enhance coordination with the internal Auditing Department.

By embedding Audit & Supervisory Committee members directly into the board’s decision-making, Amada aims to accelerate transparent, fair, and decisive management decisions that support its next medium-term business plan starting in fiscal 2026. The company expects this governance overhaul to improve its ability to seize investment opportunities, execute disciplined growth strategies, and bolster global competitiveness and corporate value, with further details on bylaw changes and executive structure to be announced later.

The most recent analyst rating on (JP:6113) stock is a Buy with a Yen2557.00 price target. To see the full list of analyst forecasts on AMADA HOLDINGS CO stock, see the JP:6113 Stock Forecast page.

Amada Posts Higher Revenue but Lower Profit, Keeps Full-Year Outlook Intact

Amada reported consolidated revenue of ¥294.98 billion for the nine months ended Dec. 31, 2025, up 7.3% year on year, but operating profit fell 15.4% to ¥26.51 billion and profit attributable to owners of parent declined 10.7% to ¥18.19 billion, indicating margin pressure despite top-line growth. Total assets rose to ¥745.67 billion and equity attributable to owners of parent reached ¥525.77 billion as the equity ratio eased to 70.5%, while the company kept its dividend forecast unchanged at an annual ¥62 per share and maintained its full-year outlook, including revenue of ¥440 billion and a modest decline in operating profit, after expanding its consolidation scope with 13 newly included subsidiaries such as H&F Corporation and Via Mechanics, Ltd.

The most recent analyst rating on (JP:6113) stock is a Buy with a Yen2557.00 price target. To see the full list of analyst forecasts on AMADA HOLDINGS CO stock, see the JP:6113 Stock Forecast page.

AMADA Advances Share Buyback, Repurchasing Over 9.4 Million Shares Under Ongoing Program

AMADA CO., LTD. has disclosed the status of its ongoing share buyback program authorized by its board in May 2025, under which the company is repurchasing its own common shares via market purchases on the Tokyo Stock Exchange. Between January 1 and January 31, 2026, AMADA bought 1,098,300 shares for approximately ¥2.16 billion, bringing the cumulative total since the start of the program in June 2025 to 9,456,400 shares at a cost of about ¥17.03 billion, against an overall authorization of up to 18 million shares or ¥20 billion by March 31, 2026; this continued execution of the buyback signals management’s commitment to capital return and may support shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (JP:6113) stock is a Buy with a Yen2338.00 price target. To see the full list of analyst forecasts on AMADA HOLDINGS CO stock, see the JP:6113 Stock Forecast page.

AMADA Advances Share Buyback, Repurchasing Over 8.3 Million Shares Under Ongoing Program

AMADA CO., LTD. has reported progress on a previously authorized share buyback program, confirming that it repurchased 1,295,300 of its own common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total consideration of approximately ¥2.42 billion via market transactions executed through a securities company. Under the broader Board-approved authorization from May 15, 2025—allowing purchases of up to 18 million shares or ¥20 billion through March 31, 2026—the company has cumulatively bought back 8,358,100 shares for about ¥14.87 billion as of December 31, 2025, signaling continued capital return to shareholders and potential support for its share price and capital efficiency metrics.

The most recent analyst rating on (JP:6113) stock is a Buy with a Yen2121.00 price target. To see the full list of analyst forecasts on AMADA HOLDINGS CO stock, see the JP:6113 Stock Forecast page.

AMADA CO., LTD. Announces Subsidiaries Merger to Enhance Efficiency

AMADA CO., LTD. announced its decision to merge with its wholly-owned subsidiaries, HOKKAIDO AMADA CO., LTD. and AMADA BUSINESS SUPPORT CO., LTD., effective April 1, 2026. This absorption-type merger aims to streamline group management by consolidating sales, service, and HR functions under one unified structure, which could enhance operational efficiency and strengthen its market positioning.

The most recent analyst rating on (JP:6113) stock is a Buy with a Yen2121.00 price target. To see the full list of analyst forecasts on AMADA HOLDINGS CO stock, see the JP:6113 Stock Forecast page.

AMADA HOLDINGS CO., LTD. Announces Treasury Share Buyback

AMADA HOLDINGS CO., LTD. announced the purchase of 1,239,000 of its common shares for approximately ¥2.24 billion during November 2025, as part of a broader initiative to buy back up to 18 million shares by March 2026. This move is part of the company’s strategic financial management, potentially enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:6113) stock is a Buy with a Yen2000.00 price target. To see the full list of analyst forecasts on AMADA HOLDINGS CO stock, see the JP:6113 Stock Forecast page.