Ebara (6361) AI Stock Analysis

• Market Cap: $1.05T
• Dividend Yield: 2.03%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.63
• Revenue Growth: 15.14%
• EPS Growth: 8.30%
• Country: JP
• Employees: 20,510
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 34.18
• Shares Outstanding: 462,184,170
• 10 Day Avg. Volume: 1,464,350
• 30 Day Avg. Volume: 1,799,693
• PEG Ratio: 0.09
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.83
• 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: $3,600.23
• Price Target Upside: 58.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥2,582.00 ▲(13.90%Upside)

Ebara's strong financial performance is the primary driver of its overall score, supported by robust revenue growth and stable profitability. The valuation is attractive, with a reasonable P/E ratio and a solid dividend yield. Technical analysis provides mixed signals, with positive momentum offset by neutral to oversold conditions.

Ebara Business Overview & Revenue Model

Company Description

Ebara Corporation is a leading Japanese company specializing in the manufacturing and distribution of industrial machinery. The company operates through several segments, including Fluid Machinery & Systems, Environmental Plants, and Precision Machinery. Ebara is well-known for its high-quality pumps, compressors, and turbines, which are utilized across various industries such as water treatment, oil and gas, and semiconductor manufacturing.

How the Company Makes Money

Ebara Corporation generates revenue primarily through the sale of its industrial machinery products, including pumps, compressors, and turbines. These products are essential in sectors like water treatment, oil and gas, and semiconductor manufacturing, providing a steady demand for Ebara's offerings. The company also earns income from its Environmental Plants segment, which involves the construction and maintenance of facilities for waste treatment and renewable energy. Additionally, Ebara benefits from service contracts and maintenance agreements, ensuring long-term client relationships and recurring revenue streams. Key partnerships with industrial clients and governmental bodies also contribute significantly to its earnings, facilitating large-scale projects and consistent sales.

Ebara Financial Statement Overview

Summary

Ebara demonstrates strong financial performance with consistent revenue growth, stable profit margins, and solid operational efficiency. The balance sheet is robust with a moderate debt-to-equity ratio and a healthy equity position. Cash flow generation is strong, despite increased capital expenditures impacting free cash flow.

Income Statement

Ebara demonstrates strong financial performance with consistent revenue growth, reaching a TTM total of JPY 885,495 billion. The gross profit margin slightly improved to 33.3% in TTM, indicating effective cost management. Net profit margin is stable at 8.2%, with EBIT and EBITDA margins at 12.1% and 15.2%, respectively, reflecting solid operational efficiency. The revenue growth rate of 13.8% from 2023 to 2024 underlines robust demand and market presence.

Balance Sheet

Ebara's balance sheet is stable, with a moderate debt-to-equity ratio of 0.39 in TTM, showcasing prudent leverage. The equity ratio stands at 46.5%, indicating a strong equity position. Return on equity (ROE) is healthy at 15.6%, reflecting effective use of shareholder funds to generate profit. The company's financial health is reinforced by a substantial asset base.

Cash Flow

The cash flow statement highlights Ebara's capability to generate cash, with operating cash flow at JPY 79,799 billion in TTM. The free cash flow decreased due to higher capital expenditures, yet remains positive at JPY 21,308 billion. The operating cash flow to net income ratio of 1.10 suggests efficient cash conversion, while free cash flow to net income ratio at 0.29 indicates sound cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
885.50B	866.67B	759.33B	680.87B	603.21B	523.73B
	Gross Profit
294.86B	286.97B	232.31B	211.18B	178.64B	144.64B
	EBIT
107.55B	103.77B	86.03B	70.57B	61.37B	37.88B
	EBITDA
134.35B	134.05B	115.68B	97.44B	79.97B	56.49B
	Net Income Common Stockholders
72.49B	71.40B	60.28B	50.49B	43.62B	24.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
167.27B	174.83B	148.06B	119.68B	139.75B	123.03B
	Total Assets
1.00T	1.01T	913.90B	828.05B	719.74B	621.58B
	Total Debt
183.57B	150.43B	145.25B	119.33B	112.05B	74.72B
	Net Debt
16.30B	-20.60B	-2.81B	3.19B	-24.44B	-47.27B
	Total Liabilities
525.11B	519.75B	492.33B	458.32B	398.08B	317.11B
	Stockholders Equity
465.88B	473.28B	409.88B	359.97B	312.31B	297.00B
Cash Flow		Free Cash Flow
21.31B	50.05B	35.55B	12.72B	47.10B	32.98B
	Operating Cash Flow
79.80B	100.94B	70.01B	37.07B	72.86B	64.23B
	Investing Cash Flow
-58.83B	-48.55B	-35.63B	-38.32B	-31.36B	-29.07B
	Financing Cash Flow
-16.22B	-31.91B	-4.66B	-23.75B	-29.49B	-9.63B

Ebara Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2267.00
• 50DMA: Positive
• 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:6361, the sentiment is Neutral. The current price of 2267 is below the 20-day moving average (MA) of 2324.45, above the 50-day MA of 2199.92, and below the 200-day MA of 2316.35, indicating a neutral trend. The MACD of -4.63 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 44.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6361.

Ebara Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6383	78 Outperform	¥1.41T	18.57	19.46%	1.72%	―	―
6361	76 Outperform	$1.05T	14.44	16.07%	2.03%	15.14%	8.30%
6406	67 Neutral	¥429.14B	30.40		3.18%	5.17%	-18.62%
7012	66 Neutral	$1.77T	20.14	12.94%	1.45%	15.14%	246.85%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
6268	66 Neutral	$279.30B	25.99	4.03%	3.21%	2.87%	2.48%

Ebara Corporate Events

Ebara Corporation Reports Strong Q1 2025 Financial Results and Announces Stock Split

Ebara Corporation reported its consolidated financial results for the three months ended March 31, 2025, showing a notable increase in revenue and operating profit compared to the previous year. The company also announced a 5-for-1 stock split effective July 1, 2024, which has implications for its earnings per share calculations. Ebara’s financial forecast for the fiscal year ending December 31, 2025, anticipates continued growth, with revenue and profit expected to rise, reflecting the company’s strong market positioning and operational efficiency.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen3600.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

Ebara Corporation Completes New Share Issuance for Stock Compensation

Ebara Corporation has completed the issuance of new shares as part of a restricted stock compensation plan, following a board resolution from April 8, 2025. This strategic move involves the allocation of 115,950 shares to directors, executive officers, and certain employees, potentially enhancing stakeholder alignment and incentivizing key personnel.

Ebara Corporation Announces New Share Issuance for Stock Compensation

Ebara Corporation has announced the issuance of new shares as part of a restricted stock compensation plan aimed at incentivizing directors, executive officers, and certain employees. This initiative is designed to align the interests of these stakeholders with the company’s performance and shareholder value, potentially enhancing business outcomes and market positioning.