Yokota Manufacturing Co., Ltd. (6248) AI Stock Analysis

• Market Cap: ¥3.51B
• Dividend Yield: 4.5%
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.21
• Revenue Growth: 4.73%
• EPS Growth: 9.23%
• Country: JP
• Employees: 78
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 59.95
• Shares Outstanding: 1,873,500
• 10 Day Avg. Volume: 950
• 30 Day Avg. Volume: 1,060
• PEG Ratio: 0.49
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 7.28
• 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: 74 Outperform
• Price Target: ¥2,101.00 ▲(28.74% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Yokota Manufacturing Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and cash flow management. The stock's valuation is attractive with a low P/E ratio and high dividend yield. However, technical indicators suggest short-term bearish momentum, which slightly tempers the overall score.

Positive Factors

Balance Sheet Strength

An equity ratio of ~80.5% and minimal leverage materially reduce financial risk and preserve flexibility. This capital structure supports funding capex or strategic initiatives without heavy borrowing, improves resilience in downturns, and strengthens credit profiles over the medium term.

Cash Flow Generation

OCF at 1.45x net income and a 64% rise in free cash flow indicate strong cash conversion and growing discretionary cash. Durable cash generation supports sustainable dividends, reinvestment in the business, and creates a buffer against cyclical downturns in industrial machinery markets.

Profitability & Growth

Double-digit revenue growth paired with very healthy gross and improving net margins reflects product pricing power and efficient operations. A mid-teens ROE shows effective capital deployment, supporting sustainable profit generation and a solid foundation for medium-term expansion.

Negative Factors

Limited Scale

A headcount of 78 implies a small organizational scale, which can constrain capacity, create key-person dependencies, and limit geographic or product expansion. Limited scale may impede winning large contracts and achieving cost efficiencies compared with larger peers.

Low Trading Liquidity

Average three‑month volume around 1,648 shares signals persistent low liquidity. Structural illiquidity can deter institutional ownership, raise execution costs for large trades, and complicate equity raises, reducing strategic financing flexibility over the medium term.

Limited Forward Disclosure

Absence of guidance and empty earnings highlights, together with no recent news, reduce transparency about strategy and capital allocation. Ongoing limited forward disclosure can hinder investor visibility and make it harder to assess future operational plans and long‑term execution risks.

Yokota Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Yokota Manufacturing Co., Ltd., a fluid control solutions company, develops, manufactures, and sells pumps, valves, devices, materials, and parts in Japan and internationally. It offers self-priming centrifugal, enhanced self-priming, de-foaming, degassing, multistage self-priming, turbine, process, centrifugal, multistage centrifugal, double suction volute, and mixed-flow volute pumps. The company also provides non-water hammer check valves; wafer-type check valves; constant flow regulator valves; float-type regulator valves; and pilot-type regulator valves, including constant pressure, constant flow rate, liquid level-1 regulator, liquid level-2 regulator, safety, pressure relief, pressure sustaining, differential pressure regulator, and emergency shutoff valves. In addition, it offers liquid-air switch valves and automatic-cleaning strainers; and special and seawater resistant stainless steel, casting parts, and non-external-flushing mechanical seal products. Further, the company provides installation and piping services. Its products are used in ultra-pure water production, agricultural irrigation, civil engineering, construction, electric power generation, city water, sewage, chemical processing, plant equipment, food, medicine, aquariums, fisheries, and hot springs applications. It serves government and municipal offices, and other companies. The company was formerly known as Yokota Pump Manufacturing Co., Ltd. and changed its name to Yokota Manufacturing Co., Ltd. in 1959. Yokota Manufacturing Co., Ltd. was incorporated in 1953 and is headquartered in Hiroshima, Japan.

How the Company Makes Money

Yokota Manufacturing generates revenue through the sale of its precision machinery and manufacturing equipment to a diverse range of industries. The company's revenue model is primarily based on direct sales to manufacturers and distributors, as well as long-term contracts for customized machinery solutions. Key revenue streams include the sale of standard machinery, custom equipment design and manufacturing services, and after-sales support, including maintenance and spare parts. Significant partnerships with major players in the automotive and electronics sectors enhance Yokota's market presence and contribute to stable, recurring revenue through ongoing contracts and collaborations.

Yokota Manufacturing Co., Ltd. Financial Statement Overview

Summary

Yokota Manufacturing Co., Ltd. exhibits excellent financial health with strong revenue growth, profitability, and cash flow management. The low debt level and high equity ratio enhance financial stability, while strong cash flow metrics reflect operational efficiency.

Income Statement

Yokota Manufacturing Co., Ltd. demonstrates strong revenue growth with a 11.07% increase from 2024 to 2025. The gross profit margin is robust at 47.61%, and net profit margin improved to 14.03% in 2025, showcasing significant profitability. EBIT and EBITDA margins are also strong at 20.02% and 22.53%, respectively. The company's consistent growth in revenue and profitability highlights a positive trajectory.

Balance Sheet

The balance sheet is very healthy with a low debt-to-equity ratio, indicating minimal leverage. The equity ratio stands at 80.51%, underscoring financial stability. Return on equity is impressive at 10.94%, reflecting effective use of equity to generate profits. The company's strong equity position and low reliance on debt reduce financial risk.

Cash Flow

Operating cash flow to net income ratio is strong at 1.45, indicating efficient cash generation relative to net income. Free cash flow has grown by 64.43% from 2024 to 2025, highlighting effective cash management. Free cash flow to net income ratio is also healthy, reflecting the company's ability to translate profits into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.30B	2.28B	2.05B	1.78B	1.73B	1.83B
Gross Profit	1.12B	1.08B	927.86M	773.74M	759.15M	830.30M
EBITDA	536.82M	512.95M	415.88M	302.63M	285.65M	321.28M
Net Income	334.66M	319.47M	272.38M	168.40M	163.09M	194.65M
Balance Sheet
Total Assets	3.18B	3.63B	3.28B	3.06B	2.87B	2.90B
Cash, Cash Equivalents and Short-Term Investments	1.87B	2.09B	1.80B	1.69B	1.72B	1.67B
Total Debt	3.12M	4.53M	5.67M	7.80M	0.00	0.00
Total Liabilities	321.00M	707.02M	585.40M	520.87M	418.63M	535.27M
Stockholders Equity	2.86B	2.92B	2.69B	2.54B	2.45B	2.37B
Cash Flow
Free Cash Flow	0.00	382.48M	232.69M	51.08M	125.97M	211.69M
Operating Cash Flow	0.00	461.75M	290.43M	149.93M	178.72M	252.24M
Investing Cash Flow	0.00	-80.79M	-57.85M	-98.93M	-53.18M	-40.77M
Financing Cash Flow	0.00	-93.89M	-116.64M	-80.56M	-80.52M	-74.97M

Yokota Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1632.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6248, the sentiment is Positive. The current price of 1632 is below the 20-day moving average (MA) of 1868.05, below the 50-day MA of 1761.54, and below the 200-day MA of 1636.34, indicating a bullish trend. The MACD of 50.48 indicates Positive momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6248.

Yokota Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	79 Outperform	¥5.01B	14.96	―	1.19%	-6.39%	-3.86%
6248	74 Outperform	¥3.51B	9.96	―	4.50%	4.73%	9.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6217	57 Neutral	¥4.15B	-15.85	―	―	-5.76%	-120.95%
6467	56 Neutral	¥3.29B	-8.59	―	1.81%	-3.20%	-226.19%
6166	50 Neutral	¥10.30B	62.98	―	―	-7.98%	-52.68%
6218	47 Neutral	¥3.68B	-2.77	―	1.93%	-14.00%	-216.77%