Harmonic Drive Systems Inc. (JP:6324)
:6324
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Harmonic Drive Systems
(6324)
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Rating:55Neutral
Price Target:
¥8,046.00
▲(81.63% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by weakened cash flow quality and still-depressed profitability versus prior peak years, alongside a very expensive valuation (high P/E and low yield). Technicals are supportive due to a strong uptrend, but overbought signals increase near-term pullback risk.
Positive Factors
Niche product leadership
Harmonic Drive's core technology is a specialized, precision gear solution widely adopted in robotics and factory automation. This design-in advantage creates durable customer stickiness, high technical barriers to entry, and a steady addressable market tied to long product development cycles and industrial automation trends.
Negative Factors
Weak free cash flow
Material compression in free cash flow reduces internal funding for investments, R&D, and working capital, increasing reliance on external financing or equity. Persistently low FCF limits strategic flexibility and raises vulnerability to cyclical demand shocks over the next several quarters to years.
Read all positive and negative factors
Positive Factors
Negative Factors
Niche product leadership
Harmonic Drive's core technology is a specialized, precision gear solution widely adopted in robotics and factory automation. This design-in advantage creates durable customer stickiness, high technical barriers to entry, and a steady addressable market tied to long product development cycles and industrial automation trends.
Read all positive factors
Harmonic Drive Systems (6324) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥747.96B
Dividend Yield0.56%
Average Volume (3M)1.26M
Price to Earnings (P/E)456.6
Beta (1Y)1.51
Revenue Growth7.03%
EPS Growth-53.53%
CountryJP
Employees1,349
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)16.99
Shares Outstanding96,315,400
10 Day Avg. Volume1,514,980
30 Day Avg. Volume1,259,070
Financial Highlights & Ratios
PEG Ratio-3.81
Price to Book (P/B)4.08
Price to Sales (P/S)5.51
P/FCF Ratio446.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,522.00Price Target Upside69.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)55.55
Revenue Forecast (FY)¥68.99B
Harmonic Drive Systems Business Overview & Revenue Model
Company Description
Operating globally, Harmonic Drive Systems Inc. specializes in the manufacture and distribution of high-precision control systems and their constituent parts. Their diverse product lineup encompasses various motion control elements such as speed r...
How the Company Makes Money
The company primarily makes money by manufacturing and selling precision reduction gears—especially harmonic drive (strain wave) gear units—used by OEMs and system integrators building robots and automated machinery. Its key revenue stream is prod...
Harmonic Drive Systems Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 59.56B | 55.65B | 55.80B | 71.53B | 57.09B |
| Gross Profit | 18.13B | 13.23B | 13.05B | 23.46B | 20.11B |
| EBITDA | 9.91B | 13.03B | -17.07B | 19.94B | 17.40B |
| Net Income | 1.61B | 3.47B | -24.81B | 7.60B | 6.64B |
Balance Sheet | |||||
| Total Assets | 111.40B | 113.62B | 119.14B | 154.34B | 143.29B |
| Cash, Cash Equivalents and Short-Term Investments | 21.68B | 25.77B | 20.36B | 20.81B | 19.93B |
| Total Debt | 18.07B | 20.74B | 23.81B | 27.37B | 20.91B |
| Total Liabilities | 31.01B | 34.68B | 39.74B | 50.38B | 44.43B |
| Stockholders Equity | 80.39B | 78.94B | 79.40B | 103.96B | 98.86B |
Cash Flow | |||||
| Free Cash Flow | 734.56M | 2.63B | 7.79B | 2.01B | 5.14B |
| Operating Cash Flow | 6.43B | 7.52B | 12.73B | 10.85B | 9.88B |
| Investing Cash Flow | -4.94B | 1.48B | -5.95B | -8.66B | -19.49B |
| Financing Cash Flow | -5.87B | -5.87B | -8.12B | -1.60B | 8.12B |
Harmonic Drive Systems Technical Analysis
Positive
4430.00
Price Trends
5981.60
Positive
4948.62
Positive
4012.21
Positive
Market Momentum
302.93
Positive
61.72
Neutral
84.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6324, the sentiment is Positive. The current price of 4430 is below the 20-day moving average (MA) of 7252.50, below the 50-day MA of 5981.60, and above the 200-day MA of 4012.21, indicating a bullish trend. The MACD of 302.93 indicates Positive momentum. The RSI at 61.72 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6324.
Harmonic Drive Systems Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥627.45B | 35.76 | 5.25% | 2.13% | -7.11% | 68.57% | |
72 Outperform | ¥525.39B | 39.52 | ― | 2.50% | 1.45% | 0.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥410.16B | 31.29 | ― | 1.65% | 5.02% | 19.84% | |
60 Neutral | ¥666.30B | 22.11 | 4.83% | 2.95% | 2.18% | 5504.89% | |
56 Neutral | ¥862.56B | -13.33 | 1.88% | 6.16% | 1.98% | -48.28% | |
55 Neutral | ¥747.96B | 456.64 | 5.94% | 0.56% | 7.03% | -53.53% |
* Industrials Sector Average
JP:6324
Harmonic Drive Systems
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Harmonic Drive Systems Corporate Events
Harmonic Drive Systems Reaffirms Independence Despite KODEN Stake
Jun 18, 2026
Harmonic Drive Systems has clarified its relationship with other affiliate KODEN Holdings, which owns 35.4% of its voting rights but operates in different business domains through subsidiaries focused on electronics and instruments. The company em...
Harmonic Drive Systems Details Governance and Ownership Structure of Parent KODEN Holdings
Jun 18, 2026
Harmonic Drive Systems announced the finalized fiscal 2026 results and governance details of its unlisted parent, KODEN Holdings, which holds a 35.40% voting rights stake and functions as a strategic management entity for group companies. The disc...
Harmonic Drive Systems Books €11 Million Dividend from German Subsidiary
Jun 17, 2026
Harmonic Drive Systems Inc. has received dividends totaling 11 million euros, or approximately 2,144 million yen, from its German consolidated subsidiary Harmonic Drive SE. The payment, received on May 8, 2026, triggered a statutory extraordinary ...
Harmonic Drive Systems Sees Profit Slump but Projects Strong Rebound in FY 2027
May 19, 2026
Harmonic Drive Systems reported a 7% rise in net sales to ¥59.6 billion for the year ended March 31, 2026, but operating profit was only ¥2.6 billion and profit attributable to owners of the parent dropped 53.7% to ¥1.6 billion, wei...
Harmonic Drive Systems Unveils New 2026–2030 Growth Plan Focused on AI Robots, Aerospace and E‑Mobility
May 13, 2026
Harmonic Drive Systems has revised its existing medium-term management plan for fiscal 2024–2026 and decided to launch a new plan covering fiscal 2026–2030, after recognizing that adoption of AI robots is progressing more slowly than i...
Harmonic Drive Systems Posts Profit Slump but Signals Strong Rebound in FY2027 Outlook
May 13, 2026
Harmonic Drive Systems reported consolidated net sales of ¥59.6 billion for the fiscal year ended March 31, 2026, up 7.0% year on year, while operating profit recovered to ¥2.6 billion from near break-even a year earlier. However, profit...
Harmonic Drive Systems Lifts Full-Year Forecast on Strong Robot and Chip Equipment Demand
Apr 24, 2026
Harmonic Drive Systems revised its full-year forecast for the fiscal year ended March 31, 2026, reporting stronger-than-expected demand for components used in robots and semiconductor manufacturing equipment. Consolidated net sales are now put at ...
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.