Harmonic Drive Systems (6324) AI Stock Analysis

• Market Cap: $280.41B
• Dividend Yield: 0.74%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 74.4
• Beta (1Y): 1.27
• Revenue Growth: 4.38%
• EPS Growth: N/A
• Country: JP
• Employees: 1,349
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.40
• Shares Outstanding: 96,315,400
• 10 Day Avg. Volume: 1,774,100
• 30 Day Avg. Volume: 1,536,183
• 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: 0.94
• Enterprise Value/Revenue: 4.67
• Enterprise Value/Gross Profit: 17.17
• Enterprise Value/Ebitda: 19.38
• 1Y Price Target: $3,863.08
• Price Target Upside: 43.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥2,952.00 ▲(9.33% Upside)

Harmonic Drive Systems' overall stock score is primarily influenced by its mixed financial performance and technical analysis. The company's financials show volatility in revenue and net income, with concerns over cash flow management. Technical indicators suggest short-term bearish momentum but potential for a rebound. The high P/E ratio indicates overvaluation, which negatively impacts the score.

Positive Factors

Strong Market Position

The company's leadership in precision gear systems for high-tech industries like robotics and aerospace ensures a robust market position, driving long-term demand for its products.

Strategic Partnerships

Strategic partnerships enhance market reach and customer base, providing a competitive edge and supporting sustained revenue growth through collaborative innovation.

Innovative Technology

Commitment to innovation and high-quality product offerings strengthens competitive advantage, allowing the company to maintain premium pricing and customer loyalty.

Negative Factors

Volatile Revenue

Revenue volatility can undermine financial predictability and investor confidence, potentially impacting the company's ability to plan and invest for future growth.

Declining Cash Flow

Declining free cash flow limits the company's ability to reinvest in growth opportunities and manage financial obligations, posing a risk to long-term financial health.

Increased Financial Leverage

Higher financial leverage increases risk exposure, potentially leading to financial strain if revenue does not stabilize, affecting the company's ability to weather economic downturns.

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: Negative
• Last Price: 2700.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6324, the sentiment is Negative. The current price of 2700 is below the 20-day moving average (MA) of 3006.15, below the 50-day MA of 2814.96, and below the 200-day MA of 3214.49, indicating a bearish trend. The MACD of -34.43 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%	47.00%
6268	70 Outperform	$442.34B	27.70	5.25%	2.34%	-2.23%	130.96%
6302	64 Neutral	$513.04B	151.45	0.59%	3.09%	-2.67%	-85.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6135	61 Neutral	¥274.07B	17.21	6.63%	0.88%	9.03%	10.77%
5631	59 Neutral	€724.49B	38.70	11.66%	0.93%	9.43%	21.15%
6324	55 Neutral	$280.41B	74.40	4.73%	0.74%	4.38%	―

Harmonic Drive Systems Corporate Events

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.

Harmonic Drive Systems Reports Modest Sales Growth

Harmonic Drive Systems Inc. is a company listed on the Tokyo Stock Exchange, specializing in precision motion control technology, primarily serving the robotics and automation sectors. The company is known for its innovative harmonic gear technology, which is widely used in various high-tech applications.

Harmonic Drive Systems Updates Financial and Dividend Forecasts Amid Tariff Uncertainties

Harmonic Drive Systems Inc. has revised its financial results and dividend forecasts for the fiscal year ending March 31, 2026. The company anticipates net sales of 57,000 million yen and a profit attributable to owners of the parent of 1,300 million yen. The revision comes amid uncertainties related to U.S. tariff policies, but the company expects limited direct impact due to its local manufacturing capabilities in the U.S. The dividend forecast has been set at 20 yen per share, reflecting the company’s commitment to stable shareholder returns despite challenging business conditions.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen4427.00 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 Financial Challenges

Harmonic Drive Systems reported a modest increase in net sales for the quarter ending June 30, 2025, with a 3.8% rise compared to the previous year. However, the company experienced a slight loss attributable to the owners, indicating ongoing challenges despite improved sales figures. The financial forecast for the fiscal year ending March 31, 2026, anticipates continued growth in net sales and operating profit, suggesting a cautiously optimistic outlook. The company’s capital adequacy ratio improved slightly, reflecting a stable financial position, but comprehensive income showed a significant decline, highlighting potential areas of concern for stakeholders.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen4427.00 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 Market Challenges

Harmonic Drive Systems Inc. reported a modest increase in net sales for the three months ending June 30, 2025, with a 3.8% rise compared to the previous year. Despite the increase in sales, the company faced a loss attributable to owners of the parent, reflecting ongoing challenges in the market. The company has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating a cautious outlook with expected growth in net sales and profits, albeit with a significant decrease in profit attributable to owners of the parent.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen4427.00 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 Completes Treasury Share Disposal for Director Remuneration

Harmonic Drive Systems Inc. has completed the payment procedure for the disposal of 28,137 treasury shares as part of a restricted share-based remuneration plan for its directors. This move, resolved in a recent board meeting, reflects the company’s strategic approach to align management incentives with shareholder interests, potentially impacting its governance and financial strategies.

The most recent analyst rating on (JP:6324) stock is a Hold with a Yen4427.00 price target. To see the full list of analyst forecasts on Harmonic Drive Systems stock, see the JP:6324 Stock Forecast page.