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Ebara Corporation (JP:6361)
:6361

Ebara (6361) AI Stock Analysis

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JP:6361

Ebara

(6361)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥6,115.00
▲(9.76% 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
Revenue Growth Trend
Sustained revenue growth through 2025 indicates durable end-market demand across water, building and industrial segments. This scale expansion supports stable backlog, improves bargaining power with suppliers, and underpins mid-term cash generation assuming continued market activity.
Recurring Aftermarket & Services
A sizeable aftermarket and services stream provides high-frequency, higher-margin revenue and customer lock-in. Lifecycle services smooth cyclicality of project sales, enhance lifetime unit economics, and create predictable annuity-like cash flows valuable over a 2–6 month to multi-year horizon.
Strengthened Equity Base
Marked equity growth improves balance-sheet resilience and credit capacity, offering a buffer for cyclical downturns or project-related working capital needs. A larger equity base supports strategic investments and maintains financial optionality despite temporary cash flow weakness.
Negative Factors
2025 Free Cash Flow Deterioration
Negative FCF while earnings remain positive signals strained cash conversion from higher capex or working-capital absorption. If persistent, this reduces internal funding for maintenance/service investments, raises refinancing needs, and constrains shareholder returns or strategic spending.
Rising Debt Levels
A sizable year-over-year debt increase raises leverage and interest-cost exposure. Combined with the FCF deterioration, higher debt tightens liquidity cushions and elevates refinancing and covenant risk, reducing flexibility for capex, M&A, or weathering prolonged demand softness.
Margin Sensitivity / Mix Risk
Non-linear margin trends indicate exposure to project mix, input cost swings, and pricing pressure on engineered equipment. This variability makes earnings less predictable and can erode operating leverage when standard product sales lag or large project mix shifts occur.

Ebara (6361) vs. iShares MSCI Japan ETF (EWJ)

Ebara Business Overview & Revenue Model

Company DescriptionEbara 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, cryogenic, and standard pumps, as well as blowers and fans to water and energy facilities; centrifugal and axial compressors, steam turbines, and gas expanders to oil refining and petrochemical plants; and centrifugal chillers, absorption chillers/heaters, square/round type cooling towers, and screw modular chillers. It also engages in the design, construction, maintenance, and operation management of environmental plants, such as municipal solid waste incineration power plants, waste treatment facilities and equipment, waste recycling facilities, and biomass power generation facilities. In addition, the company offers precision machineries, such chemical mechanical polishing systems, plating systems, bevel polishing equipment, and gas abatement systems, as well as dry vacuum and turbo molecular pumps; and semiconductor manufacturing equipment. Ebara Corporation was founded in 1912 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyEbara generates revenue primarily through the sale of its products and services in various segments. Key revenue streams include the manufacturing and sale of pumps and pumping systems for water and sewage management, which serve municipal and industrial customers. Additionally, Ebara earns income from providing equipment and solutions for the semiconductor industry, including vacuum pumps and related systems. The company also engages in maintenance and service contracts, ensuring a steady income stream from existing installations. Significant partnerships with local governments and industrial clients further bolster its earnings, as these collaborations often involve long-term contracts and projects that ensure ongoing revenue.

Ebara Financial Statement Overview

Summary
Strong multi-year revenue growth and solid profitability support the income statement, but 2025 cash generation deteriorated sharply with negative free cash flow alongside higher debt, raising near-term financial risk.
Income Statement
82
Very Positive
Revenue has expanded steadily from 2020 to 2025 (¥523.7B to ¥958.3B), showing durable end-market demand, with growth re-accelerating in 2025. Profitability has also improved over the cycle: gross margin and operating profitability are higher than 2020 levels, and net margin has held near ~8% in 2023–2025. The main weakness is that margin improvement is not linear year-to-year (e.g., gross margin slightly lower in 2025 vs. 2024), suggesting some cost/price mix sensitivity.
Balance Sheet
74
Positive
The balance sheet looks generally sound with equity building over time (¥289.6B in 2020 to ¥508.9B in 2025) and moderate leverage for an industrial name. However, debt has risen meaningfully in 2025 (¥224.7B vs. ¥150.4B in 2024), pushing leverage higher versus the prior year. While the debt level is still manageable relative to equity, the direction of travel adds financial risk if cash generation does not rebound.
Cash Flow
45
Neutral
Cash flow quality weakened sharply in 2025: operating cash flow fell to ¥40.8B (from ¥100.9B in 2024) while free cash flow turned negative (−¥51.5B) despite solid reported earnings. This indicates a potentially heavier investment cycle and/or working-capital drag, and it reduces financial flexibility at the same time debt increased. Positively, the prior years (2021–2024) showed consistently positive free cash flow, so 2025 may be abnormal—but it is a notable red flag until it normalizes.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue958.28B866.67B759.33B680.87B603.21B
Gross Profit311.94B286.97B232.31B211.18B178.64B
EBITDA148.86B134.05B115.68B95.38B82.00B
Net Income76.63B71.40B60.28B50.49B43.62B
Balance Sheet
Total Assets1.08T1.01T913.90B828.05B719.74B
Cash, Cash Equivalents and Short-Term Investments143.49B174.83B148.06B119.68B139.75B
Total Debt224.74B150.43B145.25B119.33B112.05B
Total Liabilities560.53B519.75B492.33B458.32B398.08B
Stockholders Equity508.88B473.28B409.88B359.97B312.31B
Cash Flow
Free Cash Flow-51.46B50.05B35.55B12.72B47.10B
Operating Cash Flow40.76B100.94B70.01B37.07B72.86B
Investing Cash Flow-91.35B-48.55B-35.63B-38.32B-31.36B
Financing Cash Flow16.95B-31.91B-4.66B-23.75B-29.49B

Ebara Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5571.00
Price Trends
50DMA
4777.90
Positive
100DMA
4358.27
Positive
200DMA
3564.68
Positive
Market Momentum
MACD
234.72
Positive
RSI
61.97
Neutral
STOCH
42.08
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 5571 is above the 20-day moving average (MA) of 5417.55, above the 50-day MA of 4777.90, and above the 200-day MA of 3564.68, indicating a bullish trend. The MACD of 234.72 indicates Positive momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 42.08 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥70.88B14.833.09%6.35%-34.20%
69
Neutral
¥2.68T23.566.88%0.97%5.35%26.51%
67
Neutral
¥4.78T37.7026.54%0.71%-1.66%19.02%
66
Neutral
$2.55T33.3216.00%1.38%13.96%12.97%
64
Neutral
$3.08T27.8413.25%1.40%14.12%54.64%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
¥769.44B23.980.59%2.95%-2.67%-85.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6361
Ebara
5,393.00
2,945.00
120.30%
JP:7013
IHI
4,215.00
2,729.84
183.81%
JP:7012
Kawasaki Heavy Industries
17,285.00
9,291.03
116.23%
JP:6594
Nidec
2,266.00
-306.27
-11.91%
JP:6302
Sumitomo Heavy Industries
6,017.00
3,114.90
107.33%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,616.00
484.38
22.72%

Ebara Corporate Events

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 changes in operating profit, capital expenditures, R&D spending, and plans for shareholder returns, suggesting continued investment in growth areas and a focus on sustaining competitiveness across its key industrial and precision machinery markets.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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% to ¥76.6 billion. Margins improved modestly, equity attributable to owners grew to ¥508.9 billion, and the company maintained a double-digit return on equity at 15.6%, underscoring resilient profitability amid continued investment.

Operating cash flow declined sharply to ¥40.8 billion while investing cash outflows expanded to ¥91.2 billion, indicating heightened capital deployment, but financing cash flow turned positive, supporting liquidity with cash and equivalents at ¥143.5 billion. Ebara raised its 2025 annual dividend to ¥59 per share and forecasts further growth in 2026 with revenue projected at ¥1.02 trillion and operating profit at ¥125 billion, signaling confidence in earnings expansion and a continued focus on shareholder returns.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 be chaired by independent director Hiroshi Oeda, while long-serving independent director Junko Nishiyama will retire at the close of the meeting.

The company is strengthening its governance framework by populating its Nomination, Compensation and Audit committees entirely with directors, most of whom are independent. A notable addition is seasoned technology and corporate executive Takayo Hasegawa as a new independent director and member of the Nomination Committee, signaling continued emphasis on independent oversight and technological expertise at the board level.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 submitted to the March 26, 2026 shareholders’ meeting, implies a total dividend payment of ¥14,154 million funded from retained earnings and reflects the company’s policy of linking shareholder returns to business performance with a target consolidated payout ratio of at least 35 percent.

The revised dividend lifts Ebara’s annual dividend for 2025 to ¥59 per share, compared with an effective ¥55 per share in 2024 after adjusting for a 5-for-1 stock split implemented in July 2024. The move underscores management’s emphasis on stable and improving shareholder returns, signaling confidence in earnings strength and potentially enhancing the company’s appeal to income-focused investors in the industrial and infrastructure equipment sector.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 runs from February 16 to December 31, 2026, with purchases executed in the market under a discretionary dealing contract.

The company frames the authorization as part of its recently formulated medium-term management plan, aimed at returning profits to shareholders while optimizing equity capital levels. Management notes that actual repurchases will depend on investment opportunities and market conditions, meaning some or all of the authorized amount may ultimately not be executed, which leaves flexibility in capital allocation for both shareholders and corporate growth needs.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 reduce total shares outstanding to 457,199,185 and leave 612,853 treasury shares, signaling a shareholder-return and capital-efficiency measure that marginally boosts per-share metrics and underscores disciplined balance-sheet management.

The move slightly tightens Ebara’s equity base while maintaining a small treasury stock balance, which may support future strategic or incentive uses. For investors, the cancellation should provide modest earnings-per-share accretion and can be read as a vote of confidence in the company’s financial position and long-term value, reinforcing its standing within the Japanese industrial and capital markets landscape.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 disclosure includes consolidated results, regional revenue breakdowns, order backlogs, and key drivers of changes in operating profit, underscoring how each business line contributed to overall performance.

The company also presented its FY2026 forecasts, outlining the expected business environment by segment, projected consolidated performance, and anticipated shifts in operating profit. Additional materials highlight capital expenditure, R&D, cash flow trends, and ESG topics, giving stakeholders a structured view of Ebara’s operational priorities and financial direction for the coming year, as well as its approach to shareholder returns.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 increasing 7.3% to ¥76.6 billion. Profitability metrics remained solid with an 11.9% operating margin and 15.6% return on equity, while total assets grew to ¥1.08 trillion and equity attributable to owners reached ¥508.9 billion.

Cash flow from operating activities fell sharply to ¥40.8 billion amid significantly higher investing outflows of ¥91.2 billion, suggesting stepped-up capital investment, while cash and cash equivalents declined to ¥143.5 billion from ¥171.0 billion. The company raised its annual dividend for 2025 to ¥59 per share and forecasts further growth in 2026, guiding revenue to ¥1.02 trillion and operating profit to ¥125.0 billion, alongside a higher projected annual dividend of ¥66, underscoring confidence in earnings momentum and continued shareholder returns.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 director Junko Nishiyama. The company is also reshaping its Nomination, Compensation, and Audit Committees under independent chairs, signaling continued focus on governance and board diversity, supported by Hasegawa’s extensive leadership and technology background from SWCC Corporation and HOYA Corporation.

Hasegawa, currently CEO and representative director of SWCC Corporation and an outside director at Hoya Corporation, brings decades of experience in advanced materials, R&D management, and corporate leadership. These moves are expected to strengthen Ebara’s board competencies and independent oversight, which may enhance strategic decision-making and stakeholder confidence as the company navigates its industrial and infrastructure markets.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 dividend payment will be approximately ¥14.2 billion, funded from retained earnings, and is subject to shareholder approval at the March 26, 2026 annual meeting.

The decision underscores Ebara’s policy of linking shareholder returns to business performance and maintaining a consolidated payout ratio of at least 35%. For 2025, the company’s total annual dividend will be ¥59 per share, higher than the adjusted ¥55 per share for 2024 after accounting for a 5-for-1 stock split, signaling confidence in earnings strength and a continued commitment to shareholder returns.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 16 to December 31, 2026, via market purchases under a discretionary dealing contract.

The board says the planned share repurchase framework is aligned with its recently formulated medium-term management plan, aiming to enhance shareholder returns while optimizing equity capital levels. Management also signaled flexibility, noting that the scale of actual buybacks will depend on investment opportunities and market conditions, which may result in no or only partial execution of the authorized repurchase.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 number of shares outstanding to 457,199,185 and leave 612,853 shares held in treasury.

By shrinking its share count, Ebara is tightening its capital structure in a move typically viewed as shareholder friendly and potentially supportive of per-share metrics such as earnings per share. The modest scale of the cancellation signals disciplined balance sheet management while still demonstrating a commitment to capital efficiency and return of value to investors.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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 twin frameworks are intended to guide management priorities and resource allocation over the medium to long term, signaling a structured roadmap for growth and operational execution that investors and other stakeholders will track as the plans are implemented.

While details of specific financial targets or strategic initiatives were not disclosed in the brief announcement, the move formalizes Ebara’s planning horizon at both long-term and three-year intervals. This structured planning approach may help the company clarify its priorities, improve visibility into future initiatives, and strengthen its positioning within its industrial markets as it works toward its 2035 objectives.

The most recent analyst rating on (JP:6361) stock is a Buy with a Yen5800.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

Ebara Corporation Completes Significant Share Repurchase
Dec 5, 2025

Ebara Corporation has completed the repurchase of 403,700 of its common shares, amounting to approximately 1.59 billion yen, as part of a broader strategy authorized by its Board of Directors. This move, finalized between December 1 and December 4, 2025, is part of a larger plan to repurchase up to 9,090,909 shares, reflecting the company’s commitment to optimizing its capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:6361) stock is a Hold with a Yen4297.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

Ebara Corporation Announces Strategic Share Repurchase
Dec 1, 2025

Ebara Corporation announced the repurchase of 2,032,600 common shares, amounting to 8.1 billion yen, as part of its treasury shares acquisition plan. This move, executed through market purchases, reflects the company’s strategic initiative to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:6361) stock is a Hold with a Yen4297.00 price target. To see the full list of analyst forecasts on Ebara stock, see the JP:6361 Stock Forecast page.

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.Date of analysis: Feb 18, 2026