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Yokota Manufacturing Co., Ltd. (JP:6248)
:6248
Japanese Market

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

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JP:6248

Yokota Manufacturing Co., Ltd.

(6248)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥2,122.00
▲(30.02% Upside)
Action:ReiteratedDate: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
Strong balance sheet
An equity ratio above 80% and minimal leverage materially reduce financial risk and increase resilience through downturns. This capital structure supports discretionary investment, R&D, dividends or buybacks without heavy reliance on external debt, sustaining long-term strategic optionality.
Robust cash generation
Strong operating cash conversion and a large year-over-year rise in free cash flow indicate the business reliably translates profits into liquidity. This enables self-funded capex, working capital needs and shareholder returns while lowering refinancing risk and supporting sustainable growth initiatives.
High margins with revenue growth
Double-digit revenue growth combined with high gross and operating margins suggests durable competitive advantages or cost efficiency. Consistent profitability provides internal funding for expansion, enhances returns on invested capital, and supports margin sustainability across business cycles.
Negative Factors
Small scale and low liquidity
A small workforce and low trading volumes imply limited operational scale and market visibility. Scale constraints can hinder ability to win large contracts, achieve cost synergies, or absorb margin pressure, while low liquidity can raise transaction costs and complicate capital raises over the medium term.
Cyclical industry exposure
Operating in industrial machinery ties revenue and orders to capital expenditure cycles. Demand sensitivity to macroeconomic swings and capex budgets can induce earnings volatility and slower growth during downturns, requiring conservative balance sheet management and longer planning horizons.
Limited forward guidance/visibility
Absence of formal guidance and no reported corporate events reduce transparency for forecasting and investor planning. Limited disclosure can impede market confidence, make resource allocation decisions harder, and obscure near-term strategic priorities over the next several quarters.

Yokota Manufacturing Co., Ltd. (6248) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionYokota 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 MoneyYokota 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
85
Very Positive
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
90
Very Positive
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
88
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.30B2.28B2.05B1.78B1.73B1.83B
Gross Profit1.12B1.08B927.86M773.74M759.15M830.30M
EBITDA536.82M512.95M415.88M302.63M285.65M321.28M
Net Income334.66M319.47M272.38M168.40M163.09M194.65M
Balance Sheet
Total Assets3.18B3.63B3.28B3.06B2.87B2.90B
Cash, Cash Equivalents and Short-Term Investments1.87B2.09B1.80B1.69B1.72B1.67B
Total Debt3.12M4.53M5.67M7.80M0.000.00
Total Liabilities321.00M707.02M585.40M520.87M418.63M535.27M
Stockholders Equity2.86B2.92B2.69B2.54B2.45B2.37B
Cash Flow
Free Cash Flow0.00382.48M232.69M51.08M125.97M211.69M
Operating Cash Flow0.00461.75M290.43M149.93M178.72M252.24M
Investing Cash Flow0.00-80.79M-57.85M-98.93M-53.18M-40.77M
Financing Cash Flow0.00-93.89M-116.64M-80.56M-80.52M-74.97M

Yokota Manufacturing Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1632.00
Price Trends
50DMA
1769.22
Positive
100DMA
1711.47
Positive
200DMA
1640.15
Positive
Market Momentum
MACD
37.47
Positive
RSI
46.94
Neutral
STOCH
11.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6248, the sentiment is Neutral. The current price of 1632 is below the 20-day moving average (MA) of 1882.30, below the 50-day MA of 1769.22, and below the 200-day MA of 1640.15, indicating a neutral trend. The MACD of 37.47 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 11.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6248.

Yokota Manufacturing Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥5.18B15.471.19%-6.39%-3.86%
74
Outperform
¥3.42B9.714.50%4.73%9.23%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
¥3.75B-14.31-5.76%-120.95%
56
Neutral
¥3.22B-8.421.81%-3.20%-226.19%
50
Neutral
¥9.02B55.10-7.98%-52.68%
47
Neutral
¥3.66B-2.751.93%-14.00%-216.77%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6248
Yokota Manufacturing Co., Ltd.
1,828.00
424.20
30.22%
JP:6166
Nakamura Choukou Co., Ltd.
818.00
461.00
129.13%
JP:6217
TSUDAKOMA Corp.
587.00
203.00
52.86%
JP:6218
Enshu Limited
581.00
72.16
14.18%
JP:6396
Unozawa-Gumi Iron Works, Limited
4,690.00
1,786.17
61.51%
JP:6467
Nichidai Corporation
356.00
10.65
3.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025