AMADA HOLDINGS CO (6113) AI Stock Analysis

• Market Cap: ¥687.91B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.19
• Revenue Growth: -1.14%
• EPS Growth: -19.79%
• Country: JP
• Employees: 9,005
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 24.03
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,386.00 ▲(29.50% Upside)

AMADA HOLDINGS CO demonstrates strong financial performance with robust revenue growth and efficient operations, supported by a solid balance sheet. Technical indicators show a positive trend, although valuation metrics suggest the stock may be slightly overvalued. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Balance Sheet Strength

Extremely low leverage provides durable financial flexibility: the company can fund capex, sustain dividends, and support aftermarket service investments without depending on external debt. This reduces bankruptcy risk through manufacturing cycles and preserves strategic optionality over months.

Gross Margin and Operational Efficiency

A ~43% gross margin indicates structural production and pricing advantages in machine tool manufacturing. High margin on equipment plus aftermarket sales supports investment in R&D and service, cushions operating profitability through cyclical demand, and sustains long-term competitive positioning.

Cash Generation

Strong FCF growth and high conversion mean the business reliably turns earnings into cash, enabling reinvestment in product development, maintenance of service networks, and shareholder distributions. Consistent cash generation strengthens resilience across capital spending cycles.

Negative Factors

Declining Net Profit Margin

A falling net margin signals pressure below the gross line—higher operating costs, SG&A, or pricing pressure—that can erode long-term profitability if persistent. For a capital goods firm, sustained margin compression would limit reinvestment capacity and reduce returns to shareholders.

Weak/Inconsistent Revenue Trends

Negative recent revenue growth reflects sensitivity to customer capex cycles and potential softness in equipment orders. Prolonged weak or inconsistent top-line growth constrains scale economies, aftermarket expansion, and long-term earnings trajectory in a capital-intensive industry.

Moderate Return on Equity

A mid-single-digit ROE suggests limited efficiency converting equity into profits in a capital-intensive business. If ROE remains constrained, shareholder returns may lag peers and the company may need structural moves—higher pricing, product mix changes, or cost reduction—to materially lift long-term profitability.

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

AMADA HOLDINGS CO exhibits a stable financial position with strong revenue growth and efficient operations. The balance sheet is solid with low leverage, and cash flow generation is robust. However, there is a slight decline in net profit margin, which could be a point of concern if it continues.

Income Statement

AMADA HOLDINGS CO has demonstrated stable revenue growth with a TTM revenue growth rate of 1.42%. The gross profit margin is strong at 43.17%, indicating efficient production processes. However, the net profit margin has slightly decreased to 7.32% from the previous annual report's 8.16%, suggesting some pressure on profitability. The EBIT and EBITDA margins remain healthy, reflecting good operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The return on equity (ROE) is moderate at 5.51%, showing decent profitability relative to shareholder equity. The equity ratio is robust, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

AMADA HOLDINGS CO has shown a significant increase in free cash flow, with a growth rate of 32% in the TTM period. The operating cash flow to net income ratio is 0.36, suggesting a reasonable conversion of income into cash. The free cash flow to net income ratio is high at 87.18%, indicating strong cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	396.42B	396.67B	403.50B	365.69B	312.66B	250.45B
Gross Profit	167.85B	172.39B	175.18B	159.35B	133.64B	99.20B
EBITDA	62.02B	69.89B	76.59B	67.23B	58.13B	46.08B
Net Income	27.66B	32.39B	40.64B	34.16B	27.77B	18.56B
Balance Sheet
Total Assets	738.16B	649.89B	681.05B	647.56B	614.44B	557.30B
Cash, Cash Equivalents and Short-Term Investments	147.40B	104.84B	126.41B	123.49B	130.18B	101.55B
Total Debt	73.93B	10.95B	8.24B	5.32B	7.07B	14.91B
Total Liabilities	211.46B	126.14B	146.66B	139.04B	130.41B	106.49B
Stockholders Equity	522.11B	519.21B	529.66B	504.13B	479.79B	447.08B
Cash Flow
Free Cash Flow	46.63B	39.41B	31.55B	0.00	41.59B	37.88B
Operating Cash Flow	52.53B	46.19B	47.59B	24.95B	56.87B	57.58B
Investing Cash Flow	-20.18B	7.85B	-15.19B	-13.32B	-7.92B	-8.73B
Financing Cash Flow	5.96B	-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: Negative

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 2009.35, below the 50-day MA of 1923.25, and above the 200-day MA of 1726.80, indicating a bullish trend. The MACD of 57.87 indicates Negative momentum. The RSI at 78.14 is Negative, neither overbought nor oversold. The STOCH value of 93.72 is Negative, 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
6113	76 Outperform	¥687.91B	24.57	5.14%	3.31%	-1.14%	-19.79%
6118	74 Outperform	¥66.62B	12.71	―	2.54%	2.00%	39.80%
6622	73 Outperform	¥271.85B	20.50	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥296.72B	13.29	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	¥661.92B	29.46	11.66%	1.03%	10.11%	41.98%
6302	59 Neutral	¥648.41B	181.68	0.59%	2.95%	-2.67%	-85.21%

AMADA HOLDINGS CO Corporate Events

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.

AMADA CO., LTD. Revises Financial Forecasts and Business Plan Amid Market Challenges

AMADA CO., LTD. has revised its full-year financial forecast and medium-term business plan due to recent performance trends and external factors. The company anticipates higher revenue and profit due to favorable currency exchange rates and strategic acquisitions, despite challenges such as inflation and supply chain disruptions. However, profitability targets have been adjusted downward due to these ongoing challenges. AMADA aims to transform its business structure to enhance long-term corporate value by investing in growth markets and balancing growth with profitability.

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.

AMADA HOLDINGS Reports Mixed Financial Results for H1 2025

AMADA HOLDINGS CO., LTD. reported a slight decrease in revenue for the six months ended September 30, 2025, with a significant drop in operating profit and profit before tax compared to the previous year. Despite these declines, the company experienced a notable increase in comprehensive income, indicating potential positive developments in other areas of its operations. The company also revised its consolidated financial forecasts for the fiscal year ending March 31, 2026, reflecting a cautious outlook with a slight increase in revenue but a decrease in operating profit and profit attributable to owners of the parent.

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.

AMADA CO., LTD. Announces Strategic Treasury Share Buyback

AMADA CO., LTD. announced the purchase of 1,343,800 of its treasury shares for approximately ¥2.5 billion during October 2025, as part of a broader plan approved by the Board of Directors to buy back up to 18 million shares by March 2026. This strategic move is aimed at optimizing capital structure and enhancing shareholder value, reflecting the company’s commitment to financial stability and market competitiveness.

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.