Aida Engineering,Ltd. (6118) AI Stock Analysis

• Market Cap: ¥54.41B
• Dividend Yield: 3.15%
• Average Volume (3M): 157.94K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.61
• Revenue Growth: 4.02%
• EPS Growth: 74.93%
• Country: JP
• Employees: 2,020
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 16.57
• Shares Outstanding: 67,204,620
• 10 Day Avg. Volume: 143,820
• 30 Day Avg. Volume: 157,936
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,023.00
• Price Target Upside: 7.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,023.00 ▲(7.46% Upside)

Aida Engineering's strong financial performance is the most significant factor, showcasing robust growth and financial stability. The stock's valuation is attractive, with a reasonable P/E ratio and solid dividend yield. Neutral technical indicators suggest cautious optimism.

Aida Engineering,Ltd. Business Overview & Revenue Model

Company Description

Aida Engineering, Ltd. manufactures and sells press machines, auto-processing lines, industrial robots, auto-conveyers, and dies in Japan, China, rest of Asia, the Americas, and Europe. It offers general-purpose servo, mid-size and large servo, general-purpose, mid-size and large, precision forming, high speed automatic, and cold forging presses, as well as transfer equipment, coil feeders, and tooling dies. The company also provides factory automation equipment, such as piling systems; material feeders comprising coil feeders, destack feeders, etc.; and transfer equipment, which include transfer robots, intermediate transfer feeders, die changers, etc.; and electrical control equipment. In addition, it offers troubleshooting/spare parts, retrofit/modernization, routine inspection, and overhaul/machine relocation services. The company was formerly known as AIDA Ironworks and changed its name to Aida Engineering, Ltd. in 1970. Aida Engineering, Ltd. was founded in 1917 and is headquartered in Sagamihara, Japan.

How the Company Makes Money

Aida Engineering, Ltd. generates revenue through the sale of its industrial machinery products, including mechanical and servo presses, as well as automation equipment. The company capitalizes on its extensive expertise in engineering to provide cutting-edge solutions that enhance manufacturing efficiency and productivity. In addition to equipment sales, Aida Engineering offers maintenance and support services, which contribute to its revenue streams. The company also engages in partnerships and collaborations with other industrial firms to expand its market reach and leverage technological advancements, further boosting its financial performance.

Aida Engineering,Ltd. Financial Statement Overview

Summary

Aida Engineering demonstrates strong financial health with consistent revenue and profit growth, robust margins, and efficient cash conversion. The balance sheet reflects low leverage and substantial equity, ensuring stability and minimizing risk.

Income Statement

Aida Engineering has shown consistent revenue growth with an increase from ¥58,099 million in 2021 to ¥76,006 million in 2025. The gross profit margin has improved, reaching approximately 21.1% in 2025. Net profit margin also saw a significant rise to 6.7% in 2025 from 2.3% in 2022. EBIT and EBITDA margins have strengthened over the years, indicating enhanced operational efficiency. Overall, the income statement reflects robust growth and improving profitability.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity base, as evidenced by a high equity ratio of 68.0% in 2025. The debt-to-equity ratio remains low at 0.04, indicating minimal leverage risk. Return on equity has improved significantly to 6.1% in 2025, reflecting better utilization of shareholder funds. Stability is achieved through consistent asset growth and effective debt management, though there's room for further ROE enhancement.

Cash Flow

Aida Engineering reported strong free cash flow growth, driven by increasing operating cash flows, reaching ¥6,512 million in 2025. The free cash flow to net income ratio indicates a strong cash generation ability. The operating cash flow to net income ratio has improved, showing better cash conversion efficiency. The cash flow statement highlights a solid cash position, supporting future growth and financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	76.01B	72.74B	68.80B	62.47B	58.10B
Gross Profit	16.04B	14.04B	11.63B	10.89B	12.35B
EBITDA	8.34B	5.64B	3.39B	4.34B	5.77B
Net Income	5.10B	2.81B	1.29B	896.00M	1.32B
Balance Sheet
Total Assets	122.86B	126.19B	116.29B	113.93B	107.79B
Cash, Cash Equivalents and Short-Term Investments	35.86B	33.32B	30.51B	35.03B	31.70B
Total Debt	3.12B	2.97B	2.08B	2.59B	2.80B
Total Liabilities	39.22B	43.88B	38.25B	35.27B	30.28B
Stockholders Equity	83.55B	82.32B	78.04B	77.99B	76.82B
Cash Flow
Free Cash Flow	5.66B	1.51B	-3.50B	3.71B	6.01B
Operating Cash Flow	6.51B	3.17B	-1.13B	5.91B	7.26B
Investing Cash Flow	-1.83B	-1.99B	-1.88B	-2.83B	-1.92B
Financing Cash Flow	-3.76B	-1.13B	-2.17B	-1.53B	-3.77B

Aida Engineering,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 952.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6118, the sentiment is Positive. The current price of 952 is above the 20-day moving average (MA) of 928.50, above the 50-day MA of 915.54, and above the 200-day MA of 837.53, indicating a bullish trend. The MACD of 10.80 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 76.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6118.

Aida Engineering,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6118	73 Outperform	¥54.41B	10.32		3.15%	4.02%	74.93%
Sector *	63 Neutral	$10.78B	16.39	6.80%	2.08%	2.65%	-16.28%
TOA	―	€501.80M	8.24	9.64%	―	―	―
6137	78 Outperform	¥27.37B	8.03		3.58%	5.98%	-0.49%
6125	71 Outperform	¥30.61B	12.49		3.44%	-2.14%	-47.09%
6151	65 Neutral	¥35.09B	64.01		2.08%	1.69%	-67.19%
6279	52 Neutral	¥25.68B	―		1.02%	-1.44%	-108.44%

Aida Engineering,Ltd. Corporate Events

Aida Engineering Completes Share Repurchase and Plans Stock Cancellation

Aida Engineering, Ltd. has completed its planned repurchase of 568,600 common shares, costing approximately 513.6 million yen, between July 1 and July 8, 2025, as part of a broader initiative approved by the Board of Directors in March and April 2025. The company will cancel 3,242,600 shares, representing 5.24% of its issued shares, by September 30, 2025, which is expected to optimize its capital structure and potentially enhance shareholder value.

Aida Engineering Announces Progress in Stock Repurchase Program

Aida Engineering, Ltd. announced the status of its stock repurchase program, which was resolved in March and April 2025. The company repurchased 1,600,000 shares at a cost of 1,484,315,800 yen between June 1 and June 30, 2025, as part of a broader plan to repurchase up to 4,200,000 shares by July 31, 2025. This move is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

Aida Engineering Withdraws Share Acquisition Rights Registration

Aida Engineering, Ltd. announced the withdrawal of its registration for the issuance of share acquisition rights, following the discontinuation of its takeover defense measures. This decision, effective immediately after the 90th Ordinary General Meeting of Shareholders, signifies a strategic shift in the company’s approach to managing large-scale acquisitions of its shares, potentially impacting its market positioning and shareholder relations.

Aida Engineering Completes Stock Repurchase to Enhance Shareholder Value

Aida Engineering, Ltd. announced the completion of a stock repurchase program, acquiring 1,074,000 shares at a total cost of 1,002,072,100 yen. This move is part of a broader strategy approved by the Board to repurchase up to 4.2 million shares, aiming to enhance shareholder value and optimize capital structure, reflecting the company’s commitment to strategic financial management.

Aida Engineering Proposes New Board Compensation Framework

Aida Engineering, Ltd. announced a proposal to re-establish its Board Benefit Trust (BBT) compensation framework, which will be presented at the upcoming General Meeting of Shareholders. The revised framework aims to enhance the company’s medium- to long-term corporate value by increasing stock-based compensation for directors, raising the limit on points granted, and removing the cash contribution cap. This move is expected to align directors’ interests with shareholders and incentivize performance, potentially impacting the company’s share price and stakeholder value.

Aida Engineering Unveils New Capital Policy for Sustainable Growth

Aida Engineering, Ltd. has announced a new capital policy aimed at improving its price-to-book ratio and achieving sustainable growth. The policy includes strategic investments, stable shareholder returns, and optimizing equity capital and balance sheets. The company targets a return on equity of 8% or higher and a total payout ratio of 100% or more, reflecting its commitment to enhancing capital efficiency and shareholder value.

Aida Engineering Reports Strong Financial Growth for Fiscal Year 2025

Aida Engineering, Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 4.5% to 76,006 million yen and net income attributable to owners of the parent increasing by 81.7% to 5,101 million yen. The company also announced a forecast for continued growth in the next fiscal year, with expected net sales of 78,000 million yen, despite a projected decrease in net income attributable to owners. This performance highlights Aida’s strong market positioning and potential for sustained growth, benefiting stakeholders and reinforcing its competitive edge in the industry.