Yuken Kogyo Co., Ltd. (6393) AI Stock Analysis

• Market Cap: ¥12.10B
• Dividend Yield: 7.06%
• Average Volume (3M): 6.26K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.64
• Revenue Growth: 7.96%
• EPS Growth: 43.37%
• Country: JP
• Employees: 1,252
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 56.96
• Shares Outstanding: 4,510,676
• 10 Day Avg. Volume: 4,900
• 30 Day Avg. Volume: 6,260
• PEG Ratio: 0.12
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 19.47
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,140.00 ▲(4.98% Upside)

The overall stock score for Yuken Kogyo Co., Ltd. is driven primarily by its strong valuation, with a low P/E ratio and high dividend yield making it an attractive investment. Financial performance is stable but hampered by cash flow challenges. Technical analysis indicates mixed signals, with potential for a rebound given the oversold stochastic indicator.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Yuken Kogyo's hydraulic products, suggesting a robust market position and potential for future expansion.

Conservative Leverage Strategy

A conservative leverage strategy enhances financial stability, reducing risk and providing flexibility for future investments or downturns.

Profitability Margins

Stable profitability margins demonstrate efficient cost management and pricing strategies, supporting long-term financial health and competitiveness.

Negative Factors

Cash Flow Management Issues

Poor cash flow management can strain operations and limit investment capacity, posing risks to long-term growth and financial stability.

Limited Cash Conversion Efficiency

Limited cash conversion efficiency indicates challenges in turning profits into cash, which can impact liquidity and operational flexibility.

Low Net Profit Margin

A low net profit margin may indicate inefficiencies or pricing pressures, which could affect profitability and competitiveness over time.

Yuken Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Yuken Kogyo Co., Ltd. develops, manufactures, and sells hydraulic equipment and systems, and environmental machinery in Japan and internationally. The company offers hydraulic pumps and motors; proportional electro-hydraulic controls; pressure control, flow control, directional control, modular, logic, and linear servo valves; and AC servo motor driven pumps. It also provides various hydraulic systems for industrial machine and marine use; special hydraulic power units; and various power packs. In addition, the company offers PET bottle compacting presses, automatic chip compactors, and various garbage compactors/separators. Yuken Kogyo Co., Ltd. was founded in 1929 and is headquartered in Ayase, Japan.

How the Company Makes Money

Yuken Kogyo generates revenue primarily through the sales of its hydraulic machinery and components. Key revenue streams include direct sales of hydraulic pumps and valves, as well as custom hydraulic systems designed for specific industrial applications. The company also benefits from after-sales services, including maintenance and technical support, which contribute to recurring revenue. Significant partnerships with OEMs (original equipment manufacturers) and distributors enhance Yuken Kogyo's market presence and facilitate wider distribution of its products, further driving sales. Additionally, the company invests in research and development to innovate and expand its product offerings, which can lead to increased market share and profitability.

Yuken Kogyo Co., Ltd. Financial Statement Overview

Summary

Yuken Kogyo Co., Ltd. demonstrates stable financial performance with consistent revenue growth and solid profitability margins. The balance sheet reflects a conservative leverage strategy, contributing to financial stability. However, cash flow management issues are evident, with a negative free cash flow growth rate and limited cash conversion efficiency.

Income Statement

Yuken Kogyo Co., Ltd. shows a solid performance in its income statement with a consistent revenue growth rate of 8.1% TTM, indicating a positive trajectory. The gross profit margin of 26.5% and net profit margin of 3.7% TTM reflect stable profitability. However, the net profit margin is relatively low, suggesting room for improvement in cost management or pricing strategies. The EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The balance sheet of Yuken Kogyo Co., Ltd. is stable with a debt-to-equity ratio of 0.30 TTM, indicating a conservative leverage approach. The return on equity (ROE) of 5.4% TTM is moderate, suggesting efficient use of equity but with potential for higher returns. The equity ratio of 50.3% TTM shows a strong equity base, enhancing financial stability.

Cash Flow

The cash flow statement reveals challenges with a negative free cash flow growth rate of -117.9% TTM, indicating cash flow management issues. The operating cash flow to net income ratio of 0.16 TTM suggests limited cash conversion efficiency. However, the free cash flow to net income ratio of 0.23 TTM shows some ability to generate cash relative to net income, albeit with room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.52B	33.50B	29.51B	28.68B	29.18B	23.11B
Gross Profit	8.87B	8.71B	7.60B	7.04B	7.13B	5.52B
EBITDA	3.64B	3.60B	2.83B	4.18B	3.62B	2.17B
Net Income	1.20B	1.25B	785.63M	1.37B	1.32B	651.31M
Balance Sheet
Total Assets	44.95B	46.22B	43.25B	40.80B	40.53B	36.07B
Cash, Cash Equivalents and Short-Term Investments	6.11B	6.51B	6.21B	5.09B	6.11B	5.36B
Total Debt	7.35B	7.28B	6.76B	6.08B	5.88B	6.13B
Total Liabilities	18.78B	18.70B	17.42B	16.40B	18.93B	17.16B
Stockholders Equity	22.62B	23.80B	22.28B	21.45B	19.49B	17.33B
Cash Flow
Free Cash Flow	-85.94M	480.35M	1.34B	-1.44B	651.23M	1.92B
Operating Cash Flow	1.45B	2.08B	3.23B	162.21M	1.63B	3.02B
Investing Cash Flow	-1.33B	-1.40B	-1.53B	-1.10B	-366.57M	-629.78M
Financing Cash Flow	-554.36M	-578.51M	-535.51M	-399.08M	-732.64M	-998.76M

Yuken Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2991.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6393, the sentiment is Positive. The current price of 2991 is above the 20-day moving average (MA) of 2972.35, above the 50-day MA of 2916.98, and above the 200-day MA of 2654.15, indicating a bullish trend. The MACD of 20.32 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 45.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6393.

Yuken Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6392	81 Outperform	¥13.31B	7.83	―	3.72%	5.78%	6.00%
6373	79 Outperform	¥14.64B	12.42	―	1.76%	1.61%	117.39%
6496	76 Outperform	¥20.46B	14.74	―	1.83%	34.70%	-8.44%
6322	74 Outperform	¥11.32B	8.97	―	3.19%	2.32%	1.94%
6393	71 Outperform	¥12.10B	9.33	―	7.06%	7.96%	43.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	50 Neutral	¥5.52B	81.52	―	1.77%	3.96%	―