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Ebara
(6361)
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Rating:69Neutral
Price Target:
¥6,709.00
▲(36.00% Upside)
Action:Downgraded
Date:05/16/26
The score is held back primarily by weak cash generation (negative FCF in 2025 and TTM despite profitability). Offsetting this, the stock shows a strong technical uptrend and momentum, and valuation is reasonable with a mid-teens P/E, though the dividend yield is modest.
Positive Factors
Stable profitability & improving margins
Consistent multi-year revenue growth coupled with mid-teens ROE and EBIT margins near 10–12% indicates durable operating strength. This margin profile supports reinvestment into products and services, underpins resilience across cycles, and sustains long-term profit generation.
Negative Factors
Negative free cash flow in 2025 and TTM
Profitability not translating into cash highlights weak cash conversion driven by working capital or capex timing. Persistent negative FCF reduces internal funding for capex, dividends or deleveraging and raises reliance on external financing if the trend continues.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable profitability & improving margins
Consistent multi-year revenue growth coupled with mid-teens ROE and EBIT margins near 10–12% indicates durable operating strength. This margin profile supports reinvestment into products and services, underpins resilience across cycles, and sustains long-term profit generation.
Read all positive factors
Ebara (6361) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.80T
Dividend Yield1.38%
Average Volume (3M)4.58M
Price to Earnings (P/E)35.6
Beta (1Y)1.68
Revenue Growth12.02%
EPS Growth9.75%
CountryJP
Employees21,148
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)172.25
Shares Outstanding457,439,180
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
¥6,568.33Price Target Upside33.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)230.31
Revenue Forecast (FY)¥1.05T
Ebara Business Overview & Revenue Model
Company Description
Ebara Corporation specializes in the production and distribution of industrial equipment. Its operations are structured across three main divisions: Fluid Machinery & Systems, Environmental Plants, and Precision Machinery. Within its Fluid Machine...
How the Company Makes Money
Ebara makes money primarily by selling industrial equipment and engineered systems and by providing related services over the lifecycle of that equipment.
1) Product sales (core revenue driver)
- Fluid machinery & systems: Revenue is generated fr...
Ebara Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 991.95B | 958.28B | 866.67B | 759.33B | 680.87B | 603.21B |
| Gross Profit | 321.23B | 311.94B | 274.00B | 232.31B | 202.67B | 170.84B |
| EBITDA | 158.47B | 152.55B | 133.98B | 115.66B | 96.09B | 83.20B |
| Net Income | 79.17B | 76.63B | 71.40B | 60.28B | 50.49B | 43.62B |
Balance Sheet | ||||||
| Total Assets | 1.11T | 1.08T | 1.01T | 913.90B | 828.05B | 719.74B |
| Cash, Cash Equivalents and Short-Term Investments | 146.38B | 143.49B | 171.03B | 148.06B | 119.06B | 139.49B |
| Total Debt | 239.12B | 224.74B | 150.43B | 145.25B | 119.33B | 112.05B |
| Total Liabilities | 578.88B | 560.53B | 519.75B | 492.32B | 458.32B | 398.08B |
| Stockholders Equity | 518.43B | 508.88B | 473.28B | 409.88B | 359.97B | 312.31B |
Cash Flow | ||||||
| Free Cash Flow | -23.33B | -51.46B | 50.05B | 35.55B | 12.72B | 47.10B |
| Operating Cash Flow | 68.00B | 40.76B | 100.94B | 70.01B | 37.07B | 72.86B |
| Investing Cash Flow | -93.96B | -91.35B | -48.95B | -35.63B | -38.33B | -31.36B |
| Financing Cash Flow | -5.04B | 16.95B | -31.52B | -4.66B | -23.74B | -29.49B |
Ebara Technical Analysis
Positive
4933.00
Price Trends
5761.59
Positive
5395.33
Positive
4705.44
Positive
Market Momentum
71.36
Positive
53.16
Neutral
35.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6361, the sentiment is Positive. The current price of 4933 is below the 20-day moving average (MA) of 6235.56, below the 50-day MA of 5761.59, and above the 200-day MA of 4705.44, indicating a neutral trend. The MACD of 71.36 indicates Positive momentum. The RSI at 53.16 is Neutral, neither overbought nor oversold. The STOCH value of 35.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | ¥76.32B | 13.13 | ― | 3.09% | 7.43% | 47.87% | |
69 Neutral | ¥2.80T | 35.57 | 16.00% | 1.38% | 12.02% | 9.75% | |
69 Neutral | ¥3.05T | 25.53 | 10.09% | 0.97% | 5.35% | 26.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥647.31B | 20.53 | 4.83% | 2.95% | 2.18% | 5504.89% | |
57 Neutral | ¥3.03T | 18.50 | 23.30% | 0.71% | 1.02% | 42.73% | |
56 Neutral | ¥2.33T | 21.48 | 14.59% | 1.40% | 8.54% | 23.14% |
* Industrials Sector Average
JP:6361
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Ebara Corporate Events
Japan’s Supreme Court Sends Ebara Subsidiary Fire-Damages Case Back to High Court
Jul 7, 2026
Ebara Corporation has disclosed that Japan’s Supreme Court has overturned part of a lower court ruling in a damages lawsuit brought by Gifu City against its consolidated subsidiary, Ebara Environmental Plant. The case stems from a 2015 fire ...
Ebara Finalizes Swing Share Sale, Slightly Revises Expected Gain
Jul 1, 2026
Ebara Corporation has completed the transfer of its shares in Swing Corporation, an equity-method associate, to INFRONEER Holdings, finalizing a transaction first approved by its board in April 2026. The move is part of Ebara’s ongoing portf...
Ebara Advances Share Buyback, Repurchasing 680,000 Shares in June
Jul 1, 2026
Ebara Corporation has repurchased 680,000 of its common shares on the market between June 1 and June 30, 2026, at a total cost of approximately ¥3.85 billion, under the authority granted by its Articles of Incorporation and Japan’s Comp...
Ebara Advances Share Buyback With ¥1.89 Billion Treasury Stock Repurchase
Jun 1, 2026
Ebara Corporation has repurchased 356,500 of its common shares on the market between May 1 and May 31, 2026, at a total cost of about ¥1.89 billion, under a board-approved share buyback program. The transaction, conducted via a discretionary ...
Ebara Books Significant Gain From Sale of Stake in Swing Corporation
May 15, 2026
Ebara Corporation has completed a previously announced transaction to transfer its shares in Swing Corporation, an equity-method affiliate, to INFRONEER Holdings Inc., as approved by its board on April 14, 2026. The divestment is expected to bolst...
Ebara Lifts Profit Outlook on Strong First-Quarter Results and Higher Dividend Plan
May 15, 2026
Ebara Corporation reported strong consolidated results for the three months ended March 31, 2026, with revenue rising 15.8% year on year to ¥246.3 billion and operating profit up 18.4% to ¥26.7 billion. Profit attributable to owners of t...
Ebara Outlines Q1 2026 Performance and Full-Year Outlook
May 15, 2026
Ebara has released its results presentation for the first quarter of fiscal 2026, covering consolidated and segment performance through March 31 under IFRS standards. The update details revenue by region, profit drivers, and order backlogs across ...
Ebara Lifts Full-Year 2026 Profit Outlook After Strong First Quarter
May 15, 2026
Ebara reported strong consolidated results for the three months ended March 31, 2026, with revenue rising 15.8% year on year to ¥246.3 billion and operating profit up 18.4% to ¥26.7 billion. Profit attributable to owners of the parent in...
Ebara Outlines FY26 First-Quarter Results and Full-Year Outlook
May 15, 2026
Ebara reported results for the first quarter of fiscal 2026 ended March 31, 2026, outlining consolidated performance, segment trends, and regional revenue distribution. The company detailed operating profit drivers, order backlogs, and service and...
Ebara Completes ¥1.52 Billion Treasury Share Disposal for Performance-Linked Pay
May 13, 2026
Ebara Corporation has completed the payment process for the disposal of 298,000 treasury shares to be used as performance-linked stock compensation, following a board resolution passed in April 2026. The shares, priced at 5,087 yen each for a tota...
Ebara Completes Restricted Stock Treasury Share Disposal for Executive and Employee Compensation
May 13, 2026
Ebara Corporation has completed the payment process for the disposal of 46,104 shares of its treasury stock, which are being used as restricted stock compensation under a previously approved share-based remuneration plan. The shares, disposed of a...
Ebara Reports No Share Buybacks in April Under Ongoing ¥10 Billion Repurchase Plan
May 1, 2026
Ebara Corporation has disclosed that, although its board authorized a share buyback program of up to 3 million common shares or ¥10 billion between February 16 and December 31, 2026, it did not repurchase any shares during the period from Apr...
Ebara to Grant ¥234 Million in Restricted Stock to Executives and Key Staff
Apr 14, 2026
Ebara Corporation has approved the disposal of 46,104 treasury shares, worth approximately ¥234.5 million, as restricted stock compensation to 54 directors, executive officers, and key employees at the company and its subsidiaries. The shares...
Ebara to Dispose of Treasury Shares for Expanded Performance-Linked Stock Compensation Plan
Apr 14, 2026
Ebara Corporation has approved the disposal of 298,000 treasury shares as performance-linked stock compensation, valued at about ¥1.52 billion, to directors, executive officers, and selected employees of the company and its subsidiaries based...
Ebara to Sell Stake in Water-Plant Operator Swing to INFRONEER
Apr 14, 2026
Ebara Corporation has decided to transfer its entire equity stake in water and environmental plant operator Swing Corporation to INFRONEER Holdings, following a board resolution on April 14, 2026. The move comes as Ebara, alongside co-shareholders...
Ebara Addresses Reported Sale Talks Over Swing Corporation Stake
Apr 14, 2026
Ebara Corporation clarified that recent media reports stating INFRONEER Holdings will acquire all shares of its equity‑method affiliate Swing Corporation, alongside stakes held by Mitsubishi Corporation and JGC Holdings, for over ¥90 bi...
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.