Harmonic Drive Systems Inc. (JP:6324)
:6324
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Harmonic Drive Systems
(6324)
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Rating:58Neutral
Price Target:
¥4,300.00
▲(12.42% Upside)
Action:ReiteratedDate:02/14/26
Overall score reflects mixed financial performance (earnings/revenue volatility and weaker cash flow trends partially offset by a solid equity base), a neutral-to-mixed technical picture, and a major valuation headwind from the very high P/E alongside a low dividend yield.
Positive Factors
Solid equity base
A strong equity ratio provides lasting balance-sheet stability, giving the company capacity to finance operations and capex internally, absorb cyclical demand in industrial customers, and sustain supplier and customer confidence through multi-month production cycles.
Negative Factors
Earnings volatility and 2024 loss
Intermittent profitability and a material loss in 2024 weaken the predictability of cash generation and reinvestment capacity. Persistent earnings volatility complicates long-term planning for R&D, capacity expansion, and weakens stakeholder confidence across multi-quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid equity base
A strong equity ratio provides lasting balance-sheet stability, giving the company capacity to finance operations and capex internally, absorb cyclical demand in industrial customers, and sustain supplier and customer confidence through multi-month production cycles.
Read all positive factors
Harmonic Drive Systems (6324) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥368.21B
Dividend Yield0.56%
Average Volume (3M)1.26M
Price to Earnings (P/E)197.7
Beta (1Y)1.24
Revenue Growth6.22%
EPS GrowthN/A
CountryJP
Employees1,349
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)4.78
Shares Outstanding96,315,400
10 Day Avg. Volume1,514,980
30 Day Avg. Volume1,259,070
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)3.80
Price to Sales (P/S)5.39
P/FCF Ratio113.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,667.62Price Target Upside22.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)16.81
Revenue Forecast (FY)¥58.46B
Harmonic Drive Systems Business Overview & Revenue Model
Company Description
Harmonic Drive Systems Inc. produces and sells precision control equipment and components worldwide. It offers speed reducers, rotary actuators, linear actuators, AC servo motors, and other mechatronics products, as well as HarmonicDrive, a speed ...
How the Company Makes Money
Harmonic Drive Systems primarily makes money by manufacturing and selling precision reduction gear products—especially harmonic drive (strain-wave) gear reducers and related motion-control components—to equipment manufacturers. Its revenue model i...
Harmonic Drive Systems Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.47B | 55.65B | 55.80B | 71.53B | 57.09B | 37.03B |
| Gross Profit | 16.71B | 13.23B | 13.05B | 23.46B | 20.11B | 10.28B |
| EBITDA | 9.01B | 8.03B | 10.49B | 19.80B | 16.99B | 8.26B |
| Net Income | 4.60B | 3.47B | -24.81B | 7.60B | 6.64B | 662.49M |
Balance Sheet | ||||||
| Total Assets | 109.15B | 113.62B | 119.14B | 154.34B | 143.29B | 140.03B |
| Cash, Cash Equivalents and Short-Term Investments | 20.57B | 25.77B | 20.36B | 20.81B | 19.93B | 21.16B |
| Total Debt | 18.49B | 20.74B | 23.81B | 27.37B | 20.91B | 9.50B |
| Total Liabilities | 31.58B | 34.68B | 39.74B | 50.38B | 44.43B | 29.97B |
| Stockholders Equity | 77.57B | 78.94B | 79.40B | 103.96B | 98.86B | 102.89B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.63B | 7.79B | 2.01B | 5.14B | 8.23B |
| 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
Negative
3825.00
Price Trends
3948.60
Negative
3621.13
Positive
3199.06
Positive
Market Momentum
27.18
Positive
42.23
Neutral
36.16
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 3825 is below the 20-day moving average (MA) of 4286.75, below the 50-day MA of 3948.60, and above the 200-day MA of 3199.06, indicating a neutral trend. The MACD of 27.18 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥277.44B | 14.76 | ― | 2.50% | 6.16% | 17.11% | |
73 Outperform | ¥261.07B | 14.24 | ― | 1.65% | 14.49% | -21.17% | |
71 Outperform | ¥475.50B | 28.49 | 5.25% | 2.13% | -2.23% | 130.96% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥368.21B | 197.68 | 5.94% | 0.56% | 6.22% | ― | |
55 Neutral | ¥503.87B | -6.48 | 1.88% | 6.16% | 1.98% | -48.28% | |
54 Neutral | ¥585.32B | 11.29 | 4.83% | 2.95% | -2.67% | -85.21% |
* Industrials Sector Average
JP:6324
Harmonic Drive Systems
3,885.00
268.55
7.43%
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1,010.38
28.17%
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2,156.08
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11,970.00
5,212.84
77.15%
Harmonic Drive Systems Corporate Events
Harmonic Drive Systems Moves Listing to TSE Prime Market
Feb 27, 2026
Harmonic Drive Systems Inc. has shifted its stock listing from the Tokyo Stock Exchange’s Standard Market to the Prime Market, effective February 27, 2026. The move underscores the company’s maturity and eligibility for the exchange...
Harmonic Drive Systems Wins Approval to Join TSE Prime Market
Feb 20, 2026
Harmonic Drive Systems has received approval from Tokyo Stock Exchange, Inc. to move its listing from the Standard Market to the Prime Market, effective February 27, 2026. The upgrade reflects the company’s progress toward higher governance ...
Harmonic Drive Systems Revamps Executive Structure to Sharpen Operations and Cost Control
Feb 20, 2026
Harmonic Drive Systems has approved a new business execution structure effective April 1, 2026, largely built around reappointments of its existing top management, including President and CEO Akira Maruyama and CFO Kazutoshi Kamijoh, to ensure con...
Harmonic Drive Systems Overhauls Board and Audit Lineup to Bolster Governance
Feb 20, 2026
Harmonic Drive Systems announced board-level changes, appointing Executive Officer Shizuka Yata as Director and naming Masao Yoshikawa, a veteran of Mizuho Trust Banking and TAISEI CORPORATION, as a new Outside Director expected to be designated ...
Harmonic Drive Systems Returns to Profit as Sales Edge Higher
Feb 18, 2026
Harmonic Drive Systems reported a return to profitability for the nine months ended Dec. 31, 2025, with net sales rising 4.5% year on year to ¥42.18 billion and profit attributable to owners of parent reaching ¥769 million, reversing a l...
Harmonic Drive Systems Swings Back to Profit, Keeps Dividend Outlook Intact
Feb 10, 2026
Harmonic Drive Systems reported a return to profitability for the nine months ended Dec. 31, 2025, as net sales rose 4.5% year on year to ¥42.2 billion, lifting operating profit to ¥1.2 billion and profit attributable to owners of parent...
Harmonic Drive Systems Swings Back to Profit on Higher Nine-Month Sales
Feb 10, 2026
Harmonic Drive Systems reported consolidated net sales of ¥42.18 billion for the nine months to December 31, 2025, up 4.5% year on year, with operating profit rebounding to ¥1.19 billion from a prior loss and profit attributable to owner...
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.