Makino Milling Machine Co (6135) AI Stock Analysis

• Market Cap: $263.67B
• Dividend Yield: 0.94%
• Average Volume (3M): 94.45K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.77
• Revenue Growth: 9.03%
• EPS Growth: 10.76%
• Country: JP
• Employees: 4,782
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 235.78
• Shares Outstanding: 24,893,840
• 10 Day Avg. Volume: 118,620
• 30 Day Avg. Volume: 94,453
• PEG Ratio: -2.22
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 1.17
• P/FCF Ratio: -199.68
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: 9.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥11,816.00 ▲(9.61% Upside)

Makino Milling Machine Co's stock score is primarily influenced by its strong financial performance, despite concerns over declining net profit margins and negative free cash flow. Technical analysis indicates a bearish trend, while valuation metrics suggest the stock is fairly valued. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Makino's products and services, enhancing its market position and long-term viability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling Makino to invest in growth opportunities.

Gross Profit Margin Improvement

Improved gross profit margins reflect efficient cost management and pricing power, supporting long-term profitability.

Negative Factors

Declining Net Profit Margins

Declining net profit margins suggest rising costs or inefficiencies, which could pressure future profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity challenges or high capital expenditures, which could limit financial flexibility.

Decreasing Return on Equity

A declining ROE suggests reduced efficiency in generating returns from equity, potentially impacting investor confidence and growth prospects.

Makino Milling Machine Co Business Overview & Revenue Model

Company Description

Makino Milling Machine Co., Ltd. (6135) is a leading manufacturer of advanced machining solutions, specializing in high-precision milling and electrical discharge machines (EDM). Established in Japan, the company serves various sectors including automotive, aerospace, and medical industries, providing innovative technologies and services that enhance production efficiency and machining accuracy. Makino's core products encompass a range of CNC milling machines, EDM machines, and automation systems, supported by comprehensive customer service and technical support.

How the Company Makes Money

Makino generates revenue primarily through the sale of its machinery and equipment, which includes CNC milling machines and EDM systems. The company's revenue model is built on direct sales to manufacturers in key industries, complemented by after-sales services such as maintenance, repair, and spare parts supply. Additionally, Makino earns income from software solutions that enhance machine functionality and productivity. Significant partnerships with OEMs and technology providers also play a crucial role in expanding its market reach and enhancing product offerings, contributing to steady revenue streams. The company's focus on innovation and technology development ensures it remains competitive, driving demand for its solutions across global markets.

Makino Milling Machine Co Financial Statement Overview

Summary

Makino Milling Machine Co shows strong revenue growth and a solid balance sheet with low leverage and high equity. However, declining net profit margins and negative free cash flow in 2025 are concerns that could impact future profitability and liquidity. Strategic cost management and cash flow improvement are recommended.

Income Statement

Makino Milling Machine Co has demonstrated strong revenue growth with a consistent increase over the past years, from 116.7 billion in 2021 to 234.2 billion in 2025. The gross profit margin has improved significantly to 30.9% in 2025. However, net profit margin decreased from 7.1% in 2024 to 6.2% in 2025, which could indicate rising costs or other expenses impacting profitability. The EBIT margin is steady at 7.9% in 2025, reflecting operational efficiency, but the declining net income calls for careful cost management.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.25 in 2025, indicating manageable leverage levels. Return on Equity (ROE) has decreased from 7.2% in 2024 to 6.4% in 2025, suggesting a slight decline in profitability. The equity ratio is robust at 61.6%, reflecting strong financial stability with ample equity backing the company's assets. Overall, the balance sheet presents a stable financial position, though monitoring of ROE is advised.

Cash Flow

Cash flow analysis reveals a concerning trend, with free cash flow turning negative in 2025 at -1.37 billion, compared to a positive 3.33 billion in 2024. This indicates potential liquidity issues or increased capital expenditures. Operating cash flow to net income ratio has improved, showing better cash generation from operations relative to net income. However, the negative free cash flow warrants attention to ensure sufficient liquidity for ongoing operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.75B	234.22B	225.36B	227.99B	186.59B	116.74B
Gross Profit	72.51B	72.44B	64.81B	66.39B	50.62B	26.93B
EBITDA	25.93B	28.88B	28.20B	27.67B	18.46B	4.77B
Net Income	12.43B	14.42B	15.98B	16.07B	12.04B	-2.70B
Balance Sheet
Total Assets	367.74B	367.04B	362.33B	348.46B	325.58B	280.01B
Cash, Cash Equivalents and Short-Term Investments	75.72B	64.19B	72.80B	72.55B	76.64B	75.38B
Total Debt	59.62B	57.20B	57.34B	57.08B	51.55B	57.03B
Total Liabilities	143.72B	140.38B	140.78B	150.68B	146.80B	118.03B
Stockholders Equity	223.66B	226.29B	221.17B	197.28B	177.89B	161.18B
Cash Flow
Free Cash Flow	0.00	-1.37B	3.33B	-3.48B	6.48B	12.64B
Operating Cash Flow	0.00	13.57B	12.91B	2.95B	14.94B	18.04B
Investing Cash Flow	0.00	-13.88B	-6.41B	-8.79B	-9.52B	-6.57B
Financing Cash Flow	0.00	-6.73B	-6.39B	-340.00M	-8.17B	6.02B

Makino Milling Machine Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10780.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6135, the sentiment is Negative. The current price of 10780 is below the 20-day moving average (MA) of 11021.50, below the 50-day MA of 11202.80, and below the 200-day MA of 11293.45, indicating a bearish trend. The MACD of -159.76 indicates Positive momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 34.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6135.

Makino Milling Machine Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6104	81 Outperform	€95.29B	9.75	5.02%	3.23%	-10.00%	-51.92%
6137	81 Outperform	¥34.76B	10.20	―	2.87%	0.25%	-18.79%
6134	77 Outperform	$282.39B	18.83	6.46%	2.27%	12.95%	46.98%
6118	74 Outperform	¥61.85B	11.93	―	2.58%	2.00%	39.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥32.48B	13.25	―	3.62%	-3.85%	-45.64%
6135	61 Neutral	$263.67B	16.65	6.63%	0.94%	9.03%	10.76%

Makino Milling Machine Co Corporate Events

Makino Milling Machine Co. Reports Strong Financial Performance for H1 2025

Makino Milling Machine Co. reported a significant improvement in its financial performance for the six months ending September 30, 2025, with net sales increasing by 10.3% year-on-year to ¥119,421 million. The company’s operating profit rose by 25.4%, and ordinary profit surged by 38.9%, reflecting strong operational efficiency and market demand. These results indicate a robust positioning in the market, with a notable increase in profitability, which could positively impact stakeholders and reinforce the company’s competitive stance in the industry.