Ebara Corporation (JP:6361)
:6361
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Ebara
(6361)
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Rating:66Neutral
Price Target:
¥4,822.00
▲(8.00% Upside)
Action:DowngradedDate:02/18/26
The score is driven by strong operating performance over multiple years, but it is held back by a significant 2025 cash flow deterioration and higher leverage. Technicals are supportive but appear overextended, and a high P/E with a low dividend yield reduces valuation support.
Positive Factors
Recurring aftermarket & services revenue
Ebara's service-led revenue (maintenance, spare parts, overhauls) creates recurring cash flows and customer lock-in. Over time this stabilizes revenue vs. project cycles, supports higher lifetime margins, and provides predictable demand for parts and field teams, strengthening long-term cash generation.
Negative Factors
2025 cash-flow deterioration
A sharp drop in operating cash flow and negative FCF in 2025 materially reduces financial flexibility. If the weakness reflects sustained working-capital pressure or elevated capex, it could constrain reinvestment, force additional debt, or pressure margins until normal cash generation resumes.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket & services revenue
Ebara's service-led revenue (maintenance, spare parts, overhauls) creates recurring cash flows and customer lock-in. Over time this stabilizes revenue vs. project cycles, supports higher lifetime margins, and provides predictable demand for parts and field teams, strengthening long-term cash generation.
Read all positive factors
Ebara (6361) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.04T
Dividend Yield1.38%
Average Volume (3M)4.58M
Price to Earnings (P/E)22.2
Beta (1Y)1.59
Revenue Growth13.96%
EPS Growth12.97%
CountryJP
Employees20,510
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)69.55
Shares Outstanding457,201,170
10 Day Avg. Volume8,594,650
30 Day Avg. Volume4,580,516
Financial Highlights & Ratios
PEG Ratio2.93
Price to Book (P/B)3.34
Price to Sales (P/S)1.77
P/FCF Ratio-32.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,290.00Price Target Upside40.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)200.4
Revenue Forecast (FY)¥1.02T
Ebara Business Overview & Revenue Model
Company Description
Ebara Corporation manufactures and sells industrial machinery. It operates through Fluid Machinery & Systems Business, Environmental Plants Business, and Precision Machinery Business segments. The company offers large, high pressure, API, cryogeni...
How the Company Makes Money
Ebara makes money primarily by selling engineered equipment and systems and by providing lifecycle services around that installed base. Key revenue streams include: (1) Product and system sales: revenue from manufacturing and selling pumps (for wa...
Ebara Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 958.28B | 866.67B | 759.33B | 680.87B | 603.21B |
| Gross Profit | 311.94B | 274.00B | 232.31B | 202.67B | 170.84B |
| EBITDA | 148.86B | 133.78B | 113.45B | 97.46B | 79.52B |
| Net Income | 76.63B | 71.40B | 60.28B | 50.49B | 43.62B |
Balance Sheet | |||||
| Total Assets | 1.08T | 1.01T | 913.90B | 828.05B | 719.74B |
| Cash, Cash Equivalents and Short-Term Investments | 143.49B | 171.03B | 148.06B | 119.06B | 139.49B |
| Total Debt | 224.74B | 150.43B | 145.25B | 119.33B | 112.05B |
| Total Liabilities | 560.53B | 519.75B | 492.32B | 458.32B | 398.08B |
| Stockholders Equity | 508.88B | 473.28B | 409.88B | 359.97B | 312.31B |
Cash Flow | |||||
| Free Cash Flow | -51.46B | 50.05B | 35.55B | 12.72B | 47.10B |
| Operating Cash Flow | 40.76B | 100.94B | 70.01B | 37.07B | 72.86B |
| Investing Cash Flow | -91.35B | -48.95B | -35.63B | -38.33B | -31.36B |
| Financing Cash Flow | 16.95B | -31.52B | -4.66B | -23.74B | -29.49B |
Ebara Technical Analysis
Negative
4465.00
Price Trends
5084.92
Negative
4538.78
Negative
3810.10
Positive
Market Momentum
-167.12
Positive
40.28
Neutral
50.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6361, the sentiment is Negative. The current price of 4465 is below the 20-day moving average (MA) of 4913.20, below the 50-day MA of 5084.92, and above the 200-day MA of 3810.10, indicating a neutral trend. The MACD of -167.12 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 50.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6361.
Ebara Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥82.03B | 4.09 | ― | 3.09% | 6.35% | -34.20% | |
69 Neutral | ¥2.38T | 18.60 | 10.09% | 0.97% | 5.35% | 26.51% | |
67 Neutral | ¥3.78T | 25.09 | 23.30% | 0.71% | -1.66% | 19.02% | |
66 Neutral | ¥2.04T | 22.15 | 16.00% | 1.38% | 13.96% | 12.97% | |
64 Neutral | ¥2.54T | 9.91 | 14.59% | 1.40% | 14.12% | 54.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | ¥622.19B | 11.29 | 4.83% | 2.95% | -2.67% | -85.21% |
* Industrials Sector Average
JP:6361
Ebara
4,465.00
2,257.58
102.27%
JP:7013
IHI
3,500.00
2,031.62
138.36%
JP:7012
Kawasaki Heavy Industries
15,195.00
6,335.87
71.52%
JP:6594
Nidec
2,080.00
-393.10
-15.89%
JP:6302
Sumitomo Heavy Industries
5,079.00
2,137.36
72.66%
JP:6363
Torishima Pump Mfg.Co., Ltd.
3,125.00
1,111.93
55.24%
Ebara Corporate Events
Ebara Leaves Authorized Share Buyback Untapped in February 2026
Mar 2, 2026
Ebara Corporation has disclosed that it did not repurchase any of its own shares during the period from February 1 to February 28, 2026, despite having board authorization for a buyback program. The absence of transactions means the total number o...
Ebara Outlines FY2025 Results and FY2026 Outlook
Feb 13, 2026
Ebara released its FY2025 results presentation for the year ended December 31, 2025, detailing consolidated performance, segment results and regional revenue distribution. The document also outlines a FY2026 earnings forecast with projected change...
Ebara Delivers Higher 2025 Profits, Lifts Dividend and Forecasts Further Growth for 2026
Feb 13, 2026
Ebara Corporation reported consolidated revenue of ¥958.3 billion for the fiscal year ended December 31, 2025, up 10.6%, with operating profit rising 16.2% to ¥113.8 billion and profit attributable to owners of the parent increasing 7.3%...
Ebara Revamps Board, Adds Independent Director to Bolster Governance
Feb 13, 2026
Ebara Corporation has announced a slate of director and executive officer nominations, including the reappointment of President and CEO Shugo Hosoda as a director, ahead of its 161st general shareholders meeting on March 26, 2026. The board will b...
Ebara Raises Year-End Dividend, Signals Stronger Shareholder Returns
Feb 13, 2026
Ebara Corporation has announced that its board has approved an increase in the year-end dividend for the fiscal year ended December 31, 2025, raising the payout to ¥31 per share from the previously forecast ¥28. The proposal, to be submi...
Ebara Sets ¥10 Billion Cap on Share Buyback to Optimize Capital and Reward Shareholders
Feb 13, 2026
Ebara Corporation’s board has approved a new limit on the repurchase of its own shares, authorizing buybacks of up to 3 million common shares, or about 0.66% of outstanding stock, for a maximum total of ¥10 billion. The buyback window r...
Ebara to Cancel 5 Million Treasury Shares, Tightening Equity Base
Feb 13, 2026
Ebara Corporation has announced that its board of directors resolved to cancel 5,000,000 of its own common shares, representing 1.08% of outstanding shares as of the end of January 2026. The cancellation, scheduled for February 27, 2026, will redu...
Ebara Releases FY2025 Results and Sets Outlook for FY2026
Feb 13, 2026
Ebara Corporation has released its FY2025 results for the year ended December 31, 2025, along with detailed segment data covering precision machinery, energy, building service and industrial, infrastructure, and environmental solutions. The disclo...
Ebara Lifts Profit and Dividend as Revenue Climbs, Signals Further Growth in 2026
Feb 13, 2026
Ebara Corporation reported consolidated revenue of ¥958.3 billion for the fiscal year ended December 31, 2025, up 10.6% year on year, with operating profit rising 16.2% to ¥113.8 billion and profit attributable to owners of the parent in...
Ebara Revamps Board Lineup and Committees, Adding Veteran Independent Director
Feb 13, 2026
Ebara Corporation has announced a slate of director and executive officer nominations to be voted on at its March 26, 2026 shareholders meeting, including the addition of independent director Takayo Hasegawa and the retirement of independent direc...
Ebara Lifts Year-End Dividend, Signals Stronger Shareholder Returns
Feb 13, 2026
Ebara Corporation has announced that its board has approved an increase in the year-end dividend for the fiscal year ended December 31, 2025, raising the payout to ¥31 per share from the previously forecast ¥28. The total year-end divide...
Ebara sets ¥10 billion cap on share buybacks to optimize capital and reward investors
Feb 13, 2026
Ebara Corporation has set an upper limit for repurchasing up to 3 million of its common shares, equivalent to 0.66% of outstanding shares excluding treasury stock, for a total amount of up to 10 billion yen. The buyback window runs from February 1...
Ebara to Cancel 5 Million Treasury Shares, Tightening Capital Structure
Feb 13, 2026
Ebara Corporation’s board has approved the cancellation of 5,000,000 common treasury shares, equivalent to 1.08% of its outstanding shares at the end of January 2026. The cancellation, scheduled for February 27, 2026, will reduce the total n...
Ebara Sets 2035 Long-Term Vision and Launches 2028 Medium-Term Plan
Feb 13, 2026
Ebara Corporation has unveiled a new long-term vision, dubbed E-Vision 2035, setting the company’s strategic direction through 2035, alongside a three-year medium-term management plan called E-Plan 2028 that will start in fiscal 2026. The tw...
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.
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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.