Ebara Corporation (JP:6361)
:6361
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Ebara
(6361)
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Rating:69Neutral
Price Target:
¥6,059.00
▲(22.83% 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
Sustained revenue and margins
Multi-year revenue growth in the low-to-mid teens combined with sustainable EBIT and net margins indicates durable demand and pricing power across industrial markets. Consistent mid-single-digit to double-digit growth with stable margins supports reinvestment and return generation over 2–6 months and beyond.
Negative Factors
Weak cash generation / negative FCF
Negative free cash flow despite profitable income indicates earnings are not converting to cash, raising risks to funding of capex, dividends and working capital. If persistent, this forces reliance on financing or asset sales and reduces resilience to cyclical downturns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and margins
Multi-year revenue growth in the low-to-mid teens combined with sustainable EBIT and net margins indicates durable demand and pricing power across industrial markets. Consistent mid-single-digit to double-digit growth with stable margins supports reinvestment and return generation over 2–6 months and beyond.
Read all positive factors
Ebara (6361) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.26T
Dividend Yield1.38%
Average Volume (3M)4.58M
Price to Earnings (P/E)26.5
Beta (1Y)1.60
Revenue Growth12.02%
EPS Growth9.75%
CountryJP
Employees20,510
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)172.25
Shares Outstanding457,262,700
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
¥5,972.50Price Target Upside21.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)209.99
Revenue Forecast (FY)¥1.04T
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 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 | 154.81B | 148.86B | 133.78B | 113.45B | 97.46B | 79.52B |
| 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
Neutral
4933.00
Price Trends
5055.80
Positive
4887.15
Positive
4179.57
Positive
Market Momentum
130.69
Positive
44.94
Neutral
17.09
Positive
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 4933 is below the 20-day moving average (MA) of 5432.20, below the 50-day MA of 5055.80, and above the 200-day MA of 4179.57, indicating a neutral trend. The MACD of 130.69 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 17.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥2.26T | 26.50 | 16.00% | 1.38% | 12.02% | 9.75% | |
69 Neutral | ¥2.94T | 18.60 | 10.09% | 0.97% | 5.35% | 26.51% | |
66 Neutral | ¥2.36T | 22.39 | 14.59% | 1.40% | 8.54% | 23.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥69.54B | 13.34 | ― | 3.09% | 7.43% | 47.68% | |
60 Neutral | ¥621.70B | 21.78 | 4.83% | 2.95% | 2.18% | 5504.89% | |
57 Neutral | ¥2.76T | 20.66 | 23.30% | 0.71% | 1.02% | 42.74% |
* Industrials Sector Average
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Ebara Corporate Events
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...
Ebara Leaves Authorized Share Buyback Untapped in March
Apr 1, 2026
Ebara Corporation disclosed that, although its board had authorized a share repurchase program allowing market purchases of up to 3 million common shares, or 0.66% of outstanding stock excluding treasury shares, for a maximum of ¥10 billion b...
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...
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.