Harmonic Drive Systems (6324) AI Stock Analysis

• Market Cap: $267.61B
• Dividend Yield: 0.73%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 56.9
• Beta (1Y): 1.26
• Revenue Growth: 6.22%
• EPS Growth: N/A
• Country: JP
• Employees: 1,349
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.75
• Shares Outstanding: 96,315,400
• 10 Day Avg. Volume: 1,514,980
• 30 Day Avg. Volume: 1,259,070
• PEG Ratio: -0.76
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 5.39
• P/FCF Ratio: 113.93
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 4.41
• Enterprise Value/Gross Profit: 16.20
• Enterprise Value/Ebitda: 18.28
• 1Y Price Target: $3,875.74
• Price Target Upside: 21.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ¥3,114.00 ▼(-2.69% Downside)

Harmonic Drive Systems' overall stock score is primarily influenced by its mixed financial performance and technical indicators. The strong balance sheet is offset by income volatility and declining cash flow. Technical analysis suggests bearish sentiment, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Diversified Customer Base

A diversified customer base reduces dependency on a single sector, mitigating risks and providing stability in revenue streams.

Innovative Technology

Innovation in technology strengthens competitive advantage, enabling the company to offer superior products and maintain market leadership.

Solid Equity Base

A strong equity base provides financial stability and flexibility, supporting long-term growth and investment opportunities.

Negative Factors

Income Volatility

Income volatility can affect financial predictability and investor confidence, posing challenges for consistent growth.

Declining Cash Flow

Declining cash flow may limit the company's ability to fund operations and investments, impacting long-term sustainability.

Increased Financial Leverage

Higher financial leverage can increase risk, potentially leading to financial strain if earnings do not support debt levels.

Harmonic Drive Systems Business Overview & Revenue Model

Company Description

Harmonic Drive Systems (6324) is a leading manufacturer of precision motion control components, specializing in harmonic gear drives, servo actuators, and motion control systems. The company operates primarily in the industrial machinery and robotics sectors, providing high-performance solutions for applications in automation, aerospace, medical devices, and renewable energy. Harmonic Drive Systems is known for its innovative technology and commitment to quality, enabling customers to achieve greater efficiency and precision in their operations.

How the Company Makes Money

Harmonic Drive Systems generates revenue primarily through the sale of its precision motion control products, including harmonic gears and servo actuators. The company has a diversified customer base across various industries such as robotics, aerospace, and medical technology, which helps mitigate risks associated with dependence on a single sector. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers) and distributors, as well as aftermarket services and support. Additionally, the company may benefit from strategic partnerships with technology firms and collaborations in research and development, which can enhance its product offerings and market reach, contributing to its overall earnings.

Harmonic Drive Systems Financial Statement Overview

Summary

Harmonic Drive Systems shows a mixed financial position. The income statement highlights volatility in revenue and net income, which could affect future profitability. The balance sheet is relatively strong, with a good equity position, although there is a need to monitor debt levels. Cash flow performance is a concern due to declining free cash flow and inconsistent cash returns on net income.

Income Statement

The company shows a mixed income performance over recent years. Gross profit margins remain healthy, although there has been volatility in net income, particularly with a significant loss in 2024. Revenue growth has been inconsistent, with a notable decline in 2023. The EBIT margin indicates fluctuations in operational efficiency, with a sharp drop in 2024 but some recovery in 2025.

Balance Sheet

Harmonic Drive Systems has a solid equity base, contributing to a moderate debt-to-equity ratio. The equity ratio is strong, suggesting stability in asset financing. However, the company's financial leverage increased in 2024, which could pose risks if not managed carefully.

Cash Flow

The cash flow statement reveals some strengths and weaknesses. Operating cash flow has been positive but shows a declining trend. Free cash flow was negative in 2020 but turned positive in subsequent years, although it decreased significantly in 2025. The cash flow coverage of net income varies, reflecting volatility in earnings and investment activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.14B	55.65B	55.80B	71.53B	57.09B	37.03B
Gross Profit	15.27B	14.85B	15.61B	25.79B	22.43B	12.58B
EBITDA	13.54B	13.03B	-17.07B	19.94B	17.40B	8.52B
Net Income	3.72B	3.47B	-24.81B	7.60B	6.64B	662.50M
Balance Sheet
Total Assets	107.84B	113.62B	119.14B	154.34B	143.29B	140.03B
Cash, Cash Equivalents and Short-Term Investments	20.96B	24.95B	20.36B	20.81B	19.93B	21.16B
Total Debt	18.78B	20.74B	23.81B	27.37B	20.91B	9.50B
Total Liabilities	31.73B	34.68B	39.74B	50.38B	44.43B	29.97B
Stockholders Equity	76.12B	78.94B	79.40B	103.96B	98.86B	102.89B
Cash Flow
Free Cash Flow	0.00	2.63B	7.42B	1.78B	5.07B	8.17B
Operating Cash Flow	0.00	7.52B	12.73B	10.85B	9.88B	9.56B
Investing Cash Flow	0.00	1.48B	-5.95B	-8.66B	-19.49B	-4.18B
Financing Cash Flow	0.00	-5.87B	-8.12B	-1.60B	8.12B	-3.61B

Harmonic Drive Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3200 is above the 20-day moving average (MA) of 2826.30, above the 50-day MA of 2908.99, and above the 200-day MA of 3105.46, indicating a bullish trend. The MACD of 50.03 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 94.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6134	77 Outperform	$282.39B	18.83	6.46%	2.76%	12.95%	46.98%
5631	66 Neutral	€724.49B	38.70	11.66%	0.93%	10.11%	41.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6135	61 Neutral	$266.09B	16.71	6.63%	0.90%	9.03%	10.76%
6324	59 Neutral	$267.61B	56.89	5.62%	0.73%	6.22%	―
6302	59 Neutral	¥513.17B	151.48	0.59%	2.94%	-2.67%	-85.21%
6268	57 Neutral	$442.34B	27.70	5.25%	2.29%	-2.23%	130.96%

Harmonic Drive Systems Corporate Events

HDSI Strengthens Focus on Total Motion Control for Industry Leadership

HDSI has announced its strategic focus on enhancing its management processes and flexibility to maintain a competitive edge in the dynamic business environment. The company’s commitment to ‘Total Motion Control’ underscores its ambition to become a world leader in precision engineering, which could significantly impact its market positioning and stakeholder interests.

The most recent analyst rating on (JP:6324) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.

Harmonic Drive Systems Revises Financial Results, Revealing Profit Decline

Harmonic Drive Systems Inc. announced corrections to its previously reported financial results for the six months ended September 30, 2024. The adjustments, which only affect segment information, revealed a significant decrease in segment profit, primarily due to lower sales and reduced dividend income from subsidiaries. This correction highlights challenges in the company’s recovery pace in key markets such as industrial robotics and semiconductor manufacturing, impacting its financial performance and potentially affecting stakeholder confidence.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen2952.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.

Harmonic Drive Systems Exceeds Financial Forecasts for First Half of FY 2026

Harmonic Drive Systems Inc. reported better-than-expected financial results for the first half of the fiscal year ending March 31, 2026. The company saw a notable increase in net sales, particularly in China and North America, driven by favorable foreign exchange rates and lower-than-anticipated expenses. These results indicate a stronger operational performance and improved profitability, which may positively impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen2952.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.

Harmonic Drive Systems Reports Modest Sales Growth Amidst Operational Challenges

Harmonic Drive Systems reported its consolidated financial results for the six months ending September 30, 2025, showing a 4.8% increase in net sales compared to the previous year. Despite this growth, the company recorded a comprehensive income loss of ¥438 million. The financial outlook for the fiscal year ending March 31, 2026, anticipates a modest 2.4% increase in net sales, with a significant rise in ordinary profit, although profit attributable to owners is expected to decrease by 62.6%. This financial performance reflects ongoing challenges and adjustments in the company’s operations, impacting its market positioning and stakeholder expectations.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen2952.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.

Harmonic Drive Systems Reports Positive Financial Turnaround

Harmonic Drive Systems Inc. reported a positive turnaround in its financial performance for the six months ending September 30, 2025, with net sales increasing by 4.8% compared to the previous year. The company achieved a profit attributable to owners of the parent of ¥317 million, a significant improvement from the previous year’s loss. The equity-to-asset ratio improved to 71.7%, indicating a stronger financial position. The company maintained its dividend forecast, reflecting stability and confidence in its future performance.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen2952.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.

Harmonic Drive Systems Reports Modest Sales Growth Amid Financial Challenges

Harmonic Drive Systems Inc. reported a 3.8% increase in net sales for the three months ending June 30, 2025, compared to the same period in 2024. Despite the rise in sales, the company faced a net loss attributable to owners of the parent, highlighting ongoing financial challenges. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating a cautious outlook with modest growth expectations in net sales and operating profit. The dividend forecast for the fiscal year remains unchanged, reflecting a stable approach to shareholder returns.

The most recent analyst rating on (JP:6324) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.