Yamada Corporation (6392) AI Stock Analysis

• Market Cap: ¥15.97B
• Dividend Yield: 3.09%
• Average Volume (3M): 900.00
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.58
• Revenue Growth: 5.78%
• EPS Growth: 6.00%
• Country: JP
• Employees: 350
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 123.17
• Shares Outstanding: 2,400,000
• 10 Day Avg. Volume: 1,180
• 30 Day Avg. Volume: 900
• PEG Ratio: -0.74
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 17.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥7,481.00 ▲(10.83% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality (notably the very conservative balance sheet and solid profitability) and favorable valuation (low P/E with a ~3% yield). These positives are tempered by weakening free cash flow conversion and a neutral-to-soft technical backdrop with negative MACD and the price below key short-term moving averages.

Positive Factors

Conservative balance sheet

Very low leverage and a large equity base provide durable financial flexibility: the company can absorb shocks, fund capex or M&A without stressing creditors, and sustain dividends or strategic investments over the next several quarters without needing to materially change capital structure.

Strong operating profitability

High gross and healthy net margins reflect structural product or pricing advantages and efficient operations. These margins create buffer against cost inflation, support sustained ROE near ~10%, and allow reinvestment or shareholder returns over a multi-quarter horizon.

Robust revenue growth

Sharply higher TTM revenue signals expanding market traction or successful execution on sales initiatives. If sustained, this growth supports scale benefits, spreads fixed costs, and can structurally improve long-term margins and cash generation capacity.

Negative Factors

Weak free cash flow conversion

Free cash flow converting at roughly 39% of net income and a ~23% TTM decline indicate reduced cash durability. Persistently weak conversion constrains funding for capex, dividends, or debt reduction and raises reliance on earnings quality or external financing.

Margin compression vs prior year

Easing margins from prior-year levels suggest pressure from costs, pricing, or mix shifts. Continued compression would erode the company's profitability cushion, reduce free cash flow potential, and limit reinvestment capacity over the medium term.

Declining EPS growth

Negative EPS growth near -13% highlights earnings volatility or one-off headwinds. If this trend persists, it undermines internal funding for growth and dividends, and may reflect operational or demand issues that impair long-term earnings power.

Yamada Corporation Business Overview & Revenue Model

Company Description

Yamada Corporation (6392) is a Japan-based company specializing in the manufacturing and sale of precision machinery and equipment, primarily focusing on the semiconductor and electronics industries. The company operates in various sectors, including industrial machinery, automation, and robotics, providing innovative solutions that enhance productivity and efficiency in manufacturing processes. Yamada Corporation is known for its advanced technology in precision tooling and has built a strong reputation for delivering high-quality products and services to its global clientele.

How the Company Makes Money

Yamada Corporation generates revenue primarily through the sale of its precision machinery and automation equipment to the semiconductor and electronics sectors. The company's revenue model is driven by several key streams, including direct sales of machinery, maintenance and repair services, and customized automation solutions tailored to client specifications. Additionally, Yamada Corporation benefits from strategic partnerships with semiconductor manufacturers and technology firms, which enhances its market presence and provides access to new customer segments. The company also invests in research and development to innovate and expand its product offerings, ensuring sustained revenue growth through technological advancement and market adaptation.

Yamada Corporation Financial Statement Overview

Summary

Strong overall fundamentals supported by a conservative balance sheet (very low leverage, steady ~10% ROE) and healthy profitability (TTM gross margin ~44%, net margin ~11%) alongside sharply higher TTM revenue. The main offset is weaker cash quality: free cash flow conversion is low (~39% of net income) and TTM free cash flow declined (~-23%), indicating reduced cash flow durability.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (growth rate ~166%), while profitability remains healthy with gross margin ~44% and net margin ~11%. That said, profitability has eased versus FY2024 (net margin ~13% and higher EBIT/EBITDA margins), suggesting some margin compression despite higher sales.

Balance Sheet

The balance sheet looks conservative: leverage is very low (TTM debt-to-equity ~0.05) with a large equity base, and returns on equity are steady around ~10%. A modest increase in debt versus recent years is visible, but overall financial risk remains limited given the low leverage and expanding equity/assets.

Cash Flow

Cash generation is mixed. TTM operating cash flow comfortably covers earnings (~1.39x), but free cash flow conversion is weaker (free cash flow is ~39% of net income) and TTM free cash flow declined sharply (growth ~-23%). While prior years showed stronger free cash flow (notably FY2023–FY2024), the recent step-down raises questions around working capital and/or investment intensity.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.42B	14.63B	14.75B	13.72B	12.20B	10.10B
Gross Profit	6.56B	6.32B	6.57B	5.75B	5.35B	4.25B
EBITDA	2.84B	2.84B	3.07B	2.59B	2.01B	1.58B
Net Income	1.51B	1.61B	1.92B	1.49B	1.17B	907.96M
Balance Sheet
Total Assets	20.21B	19.30B	19.04B	18.06B	15.13B	13.01B
Cash, Cash Equivalents and Short-Term Investments	4.05B	4.10B	4.34B	4.53B	4.20B	4.56B
Total Debt	731.34M	943.24M	1.26B	1.73B	1.78B	355.03M
Total Liabilities	2.47B	2.60B	3.23B	4.32B	4.00B	2.65B
Stockholders Equity	17.44B	16.41B	15.52B	13.46B	10.85B	10.07B
Cash Flow
Free Cash Flow	661.21M	784.75M	1.44B	1.36B	-1.62B	346.85M
Operating Cash Flow	2.30B	1.60B	1.84B	1.73B	1.26B	896.58M
Investing Cash Flow	-1.55B	-777.30M	-373.27M	-343.69M	-2.81B	-369.18M
Financing Cash Flow	-802.60M	-987.96M	-617.84M	-463.80M	1.17B	-393.17M

Yamada Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6750.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6392, the sentiment is Neutral. The current price of 6750 is above the 20-day moving average (MA) of 6675.50, below the 50-day MA of 6786.80, and above the 200-day MA of 5614.75, indicating a neutral trend. The MACD of -14.08 indicates Positive momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6392.

Yamada Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6317	78 Outperform	¥17.86B	6.57	―	3.41%	-3.27%	572.42%
6392	75 Outperform	¥15.97B	10.54	―	3.09%	5.78%	6.00%
6505	75 Outperform	¥22.32B	10.32	―	3.32%	21.20%	189.37%
6322	74 Outperform	¥11.58B	9.54	―	3.14%	2.32%	1.94%
6203	65 Neutral	¥23.00B	49.90	―	1.73%	26.09%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%