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Ebara Corporation (JP:6361)
:6361

Ebara (6361) AI Stock Analysis

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JP

Ebara

(OTC:6361)

Rating:76Outperform
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 (6361) vs. iShares MSCI Japan ETF (EWJ)

Ebara Business Overview & Revenue Model

Company DescriptionEbara 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 MoneyEbara 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
85
Very Positive
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
88
Very Positive
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
82
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
885.50B866.67B759.33B680.87B603.21B523.73B
Gross Profit
294.86B286.97B232.31B211.18B178.64B144.64B
EBIT
107.55B103.77B86.03B70.57B61.37B37.88B
EBITDA
134.35B134.05B115.68B97.44B79.97B56.49B
Net Income Common Stockholders
72.49B71.40B60.28B50.49B43.62B24.24B
Balance SheetCash, Cash Equivalents and Short-Term Investments
167.27B174.83B148.06B119.68B139.75B123.03B
Total Assets
1.00T1.01T913.90B828.05B719.74B621.58B
Total Debt
183.57B150.43B145.25B119.33B112.05B74.72B
Net Debt
16.30B-20.60B-2.81B3.19B-24.44B-47.27B
Total Liabilities
525.11B519.75B492.33B458.32B398.08B317.11B
Stockholders Equity
465.88B473.28B409.88B359.97B312.31B297.00B
Cash FlowFree Cash Flow
21.31B50.05B35.55B12.72B47.10B32.98B
Operating Cash Flow
79.80B100.94B70.01B37.07B72.86B64.23B
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 Price2267.00
Price Trends
50DMA
2199.92
Positive
100DMA
2362.71
Negative
200DMA
2316.35
Negative
Market Momentum
MACD
-4.63
Positive
RSI
47.36
Neutral
STOCH
44.68
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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.41T18.5719.46%1.72%
76
Outperform
$1.05T14.4416.07%2.03%15.14%8.30%
67
Neutral
¥429.14B30.40
3.18%5.17%-18.62%
66
Neutral
$1.77T20.1412.94%1.45%15.14%246.85%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
66
Neutral
$279.30B25.994.03%3.21%2.87%2.48%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6361
Ebara
2,267.00
-119.98
-5.03%
JP:6406
Fujitec Co., Ltd.
5,728.00
1,767.94
44.64%
JP:7012
Kawasaki Heavy Industries
10,455.00
4,949.53
89.90%
JP:6383
Daifuku Co
3,696.00
835.60
29.21%
JP:6268
Nabtesco
2,356.00
-251.49
-9.64%

Ebara Corporate Events

Ebara Corporation Reports Strong Q1 2025 Financial Results and Announces Stock Split
May 15, 2025

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
May 7, 2025

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
Apr 8, 2025

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.

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.