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

• Market Cap: ¥3.45B
• Dividend Yield: 4.5%
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.20
• 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: 82 Outperform
• Price Target: ¥2,138.00 ▲(31.00% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by strong financial quality—rising margins and a near debt-free balance sheet—supported by very attractive valuation (low P/E and high dividend yield). Technicals are constructive but more neutral in the near term, with mixed momentum indicators and slight weakness versus the 20-day average.

Positive Factors

Balance Sheet Strength

An equity ratio above 80% and minimal leverage provide durable financial flexibility, reducing solvency and interest-rate risk. Combined with a c.10.9% ROE, the company can sustainably fund operations, dividends or targeted investments without relying on costly external debt.

Free Cash Flow Generation

Strong free cash flow growth and an operating-cash-flow-to-net-income ratio >1 indicate high cash conversion quality. This durable cash generation supports capex, dividend sustainability and balance-sheet optionality, enabling strategic investment without compromising liquidity.

Robust Profitability & Revenue Trends

Consistent double-digit revenue growth with high gross and operating margins signals structural competitiveness—likely efficient cost structure or differentiated products. Sustainable margins support reinvestment and resilience through industry cycles, underpinning long-term earnings durability.

Negative Factors

Small Operational Scale

A headcount of 78 suggests limited scale and potentially constrained operational bandwidth. Over the medium term this can limit capacity to take on large contracts, slow product development, and create single-site or key-person dependency risks that hinder rapid expansion.

Low Trading Liquidity

Very low average trading volume implies limited secondary-market liquidity. For the company, this can translate into higher transaction costs for investors, potential valuation volatility on fund flows, and more difficulty executing equity raises or attracting large institutional holders.

Limited Forward Guidance & Public Communication

Absence of guidance, empty earnings highlights and no reported corporate events reduce forward visibility for investors and analysts. Structurally, limited disclosure hampers forecasting, may impede investor confidence, and makes long-term capital planning and external scrutiny harder.

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.

Yokota Manufacturing Co., Ltd. Financial Statement Overview

Summary

Strong and improving profitability (gross margin ~48%, operating margin ~20%, net margin ~14% in FY2025) and an exceptionally conservative balance sheet with near-zero debt support a high score. Offsetting factors are uneven revenue growth over the period and cash conversion that trails net income (FCF and operating cash flow generally <1.0x of net income), which can add volatility.

Income Statement

Profitability is strong and improving: gross margin expanded from ~44% (FY2022–FY2023) to ~48% (FY2025), while operating margin rose from ~14% (FY2022–FY2023) to ~20% (FY2025). Net margin also strengthened to ~14% (FY2025) from ~9–11% in prior years. Revenue growth re-accelerated meaningfully (FY2025: ~+4% vs. flat-to-modest growth earlier), indicating improving demand and/or pricing. Key watch-out is the uneven top-line trajectory across the period, with some earlier contraction/low growth, which can pressure operating leverage if the cycle turns.

Balance Sheet

Balance sheet is exceptionally conservative: debt is near-zero (debt-to-equity ~0.00–0.00x across the period; FY2025 ~0.002x), providing high flexibility and low financial risk. Equity and assets have steadily grown over time, supporting resilience. Returns on equity have improved to ~11% (FY2025) from ~6–8% (FY2022–FY2023), reflecting better earnings power, though absolute returns are solid rather than best-in-class for the sector.

Cash Flow

Cash generation is generally positive with improving momentum: free cash flow rebounded strongly in FY2024–FY2025 (FY2025 free cash flow ~382M vs. ~51M in FY2023). Free cash flow remains consistently below net income (about ~0.34–0.84x historically; ~0.83x in FY2025), suggesting some earnings are tied up in working capital or reinvestment. Operating cash flow relative to net income is also below 1.0x (about ~0.40–0.78x), improving recently but still indicating moderate cash conversion risk if working capital swings against the company.

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	923.18M	769.78M	753.95M	824.58M
EBITDA	536.77M	507.06M	416.07M	300.58M	285.23M	321.50M
Net Income	335.08M	319.47M	272.38M	168.40M	163.09M	194.65M
Balance Sheet
Total Assets	3.18B	3.63B	3.28B	3.08B	2.88B	2.92B
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	6.80M	0.00	0.00
Total Liabilities	321.25M	707.02M	585.40M	540.11M	435.84M	558.04M
Stockholders Equity	2.86B	2.92B	2.69B	2.54B	2.45B	2.37B
Cash Flow
Free Cash Flow	0.00	382.48M	248.48M	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: Neutral
• Last Price: 1632.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 1870.30, below the 50-day MA of 1810.02, and below the 200-day MA of 1661.36, indicating a neutral trend. The MACD of 10.87 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 81.30 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	82 Outperform	¥3.45B	6.95	―	4.50%	4.73%	9.23%
6482	74 Outperform	¥22.80B	46.66	―	2.77%	-4.47%	-24.47%
6440	65 Neutral	¥18.69B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥26.60B	-53.89	―	3.56%	-3.85%	-45.64%
6757	49 Neutral	¥4.18B	40.07	―	4.06%	1.44%	-184.10%
6218	47 Neutral	¥3.55B	4.24	―	1.93%	-14.00%	-216.77%