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

• Market Cap: ¥13.70B
• Dividend Yield: 6.7%
• Average Volume (3M): 6.26K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.63
• Revenue Growth: 7.96%
• EPS Growth: 43.37%
• Country: JP
• Employees: 1,252
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 73.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥3,360.00 ▲(4.19% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is held back primarily by weak cash-flow conversion and negative TTM free cash flow despite improving revenue and margins. Valuation is a key offset (low P/E and high dividend yield), while technical indicators are mixed-to-soft and do not strongly support near-term momentum.

Positive Factors

Robust Revenue Growth

A 78.3% TTM revenue growth indicates meaningful expansion in end-market penetration and product uptake. That scale lift supports lasting improvements in fixed-cost absorption, bargaining power with suppliers, and the ability to invest in product development and sales capacity over the next several quarters.

Conservative Leverage and Solid Equity Base

A low debt-to-equity ratio and near-50% equity ratio provide financial flexibility and lower refinancing risk. This balance sheet conservatism supports steady capital spending, funding for cyclical downturns, and the ability to pursue selective investments without pressuring liquidity or requiring immediate external financing.

Strong Free Cash Flow Recovery Trend

A large year-over-year free cash flow growth rate signals operational improvements and progress converting profits into cash. If sustained, improving FCF trends can fund capex, dividends, and deleveraging, materially strengthening financial resilience and strategic optionality over the medium term.

Negative Factors

Weak Cash Conversion of Earnings

Operating cash flow covers only a small fraction of reported net income, suggesting earnings are not yet translating into cash due to working capital or collection issues. That limits internally available funds for reinvestment, dividends, and debt reduction absent structural improvement.

Low Net Profitability and Modest ROE

A sub-4% net margin and single-digit ROE indicate constrained profitability versus capital employed. Persistently low returns reduce retained-earnings accumulation, constrain reinvestment capacity, and make it harder to build durable excess returns without material margin expansion or higher asset efficiency.

End-Market Cyclicality

Revenue reliance on capital-equipment cycles exposes the business to prolonged demand troughs when industrial investment slows. This structural cyclicality increases revenue and cash-flow volatility, complicates long-term capacity planning, and can lengthen recovery times after downturns.

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

Income statement trends are improving (TTM revenue up ~25% and net margin ~3.7% vs ~2.7% in 2024), and leverage remains moderate (~0.41x debt/equity). However, cash-flow quality is a major concern: TTM free cash flow is negative (-0.69B) with weak operating cash conversion (~0.13x OCF to net income), increasing execution risk despite better reported profitability.

Income Statement

Top-line momentum is solid, with revenue up ~25% in TTM (Trailing-Twelve-Months) versus ~14% in the latest annual period, and profitability has improved versus 2024 (net margin ~3.7% in TTM vs ~2.7% in 2024). Gross margin has also been steady-to-slightly higher (~26%). Offsetting this, net margin remains modest for an industrial business and earnings have been volatile historically (notably stronger margins in 2022–2023, then compressed), which reduces overall quality and predictability of profits.

Balance Sheet

Leverage is moderate with debt at ~0.41x equity in TTM (Trailing-Twelve-Months), but it has stepped up versus the latest annual level (~0.31x), indicating a weaker debt trajectory. Equity remains sizable relative to assets, supporting balance-sheet stability. Returns are positive but not standout, with return on equity around ~5% in TTM, suggesting the company is profitable but not generating particularly high shareholder returns.

Cash Flow

Cash conversion is the weak spot: TTM (Trailing-Twelve-Months) free cash flow is negative (-0.69B) despite positive net income, and free cash flow is negative relative to earnings (free cash flow to net income is below zero). Operating cash generation is also light relative to the scale of revenue and earnings (operating cash flow to net income is ~0.13x in TTM). While the latest annual period showed positive free cash flow (0.48B), the swing to negative TTM points to working-capital or investment-driven volatility that increases execution risk.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.87B	33.50B	29.51B	28.68B	29.18B	23.11B
Gross Profit	8.65B	8.71B	7.60B	7.04B	7.13B	5.52B
EBITDA	3.33B	3.60B	2.83B	4.18B	3.62B	2.17B
Net Income	1.13B	1.25B	785.63M	1.37B	1.32B	651.31M
Balance Sheet
Total Assets	48.75B	46.22B	43.25B	40.80B	40.53B	36.07B
Cash, Cash Equivalents and Short-Term Investments	7.68B	6.51B	6.21B	5.09B	6.11B	5.36B
Total Debt	11.24B	7.28B	6.76B	6.08B	5.88B	6.13B
Total Liabilities	21.96B	18.70B	17.42B	16.40B	18.93B	17.16B
Stockholders Equity	22.57B	23.80B	22.28B	21.45B	19.49B	17.33B
Cash Flow
Free Cash Flow	-689.30M	480.35M	1.34B	-1.44B	651.23M	1.92B
Operating Cash Flow	1.63B	2.08B	3.23B	162.21M	1.63B	3.02B
Investing Cash Flow	-2.19B	-1.40B	-1.53B	-1.10B	-366.57M	-629.78M
Financing Cash Flow	1.91B	-578.51M	-535.51M	-399.08M	-732.64M	-998.76M

Yuken Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3225.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3225 is below the 20-day moving average (MA) of 3272.00, below the 50-day MA of 3255.00, and above the 200-day MA of 2920.70, indicating a bullish trend. The MACD of 16.46 indicates Negative momentum. The RSI at 62.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, 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	75 Outperform	¥16.04B	10.54	―	3.09%	5.78%	6.00%
6322	74 Outperform	¥11.71B	9.54	―	3.14%	2.32%	1.94%
6496	69 Neutral	¥26.43B	16.86	―	1.82%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6393	60 Neutral	¥13.70B	11.04	―	6.70%	7.96%	43.37%
6495	55 Neutral	¥11.67B	242.29	―	1.65%	3.96%	―