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

• Market Cap: ¥13.31B
• Dividend Yield: 6.7%
• Average Volume (3M): 6.26K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.66
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,732.00 ▲(15.72% Upside)

Yuken Kogyo Co., Ltd. scores well due to strong financial performance and attractive valuation metrics. Technical indicators support a stable outlook, though cash flow challenges and profitability improvements are needed.

Positive Factors

Revenue Growth

Sustained TTM revenue growth of 78.3% indicates durable demand and expanding market share in hydraulics. Combined with OEM partnerships and after-sales service streams, this supports recurring revenue, scale advantages and continued investment in R&D and product development over months.

Margin Profile

Healthy gross and stable EBIT/EBITDA margins reflect efficient manufacturing and pricing power in engineered hydraulic products. These margin levels provide a cushion for cyclical dips and allow reinvestment in engineering and product support, supporting long-term competitiveness.

Conservative Leverage

A low debt-to-equity ratio and near-50% equity base indicate prudent leverage and financial resilience. This balance sheet strength preserves capacity for capex, strategic R&D, or acquisitions and helps the firm withstand industry cycles without immediate refinancing pressure.

Negative Factors

Weak Cash Conversion

Very low cash conversion and negative free cash flow constrain internal funding for capex, working capital and shareholder returns. Until operating cash generation improves, the company may need external financing for growth initiatives, reducing long-term financial flexibility.

Low ROE and Net Margin

Moderate ROE and thin net margins limit returns to shareholders and suggest limited pricing leverage or high fixed costs. Over time, persistently low profitability can restrict reinvestment capacity and make it harder to convert revenue growth into durable shareholder value.

Cyclical End-Market Exposure

Concentration in construction, manufacturing and automotive ties revenue to capital spending cycles. Structural downturns in these industries can quickly reduce equipment orders and aftermarket demand, causing durable revenue volatility and pressuring margins and working capital needs.

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. shows strong revenue growth and operational efficiency with stable margins and a balanced financial structure. However, cash flow management and profitability enhancement remain challenges.

Income Statement

Yuken Kogyo Co., Ltd. demonstrates strong revenue growth with a TTM growth rate of 78.3%, indicating robust demand and market presence. The gross profit margin of 26.47% and net profit margin of 3.59% are healthy, though there is room for improvement in profitability. The EBIT and EBITDA margins are stable at 6.74% and 10.86% respectively, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio of 0.33 suggests a balanced approach to leveraging, with a manageable level of debt. Return on equity (ROE) is moderate at 5.23%, indicating decent returns for shareholders. The equity ratio of 48.14% shows a solid equity base, providing financial stability.

Cash Flow

Yuken Kogyo's cash flow performance is mixed. The operating cash flow to net income ratio of 0.13 indicates a need for improved cash generation from operations. Free cash flow is negative, impacting the free cash flow to net income ratio, which stands at -0.06. However, the significant free cash flow growth rate of 373.32% in the TTM period is a positive sign of potential recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.79B	33.50B	29.51B	28.68B	29.18B	23.11B
Gross Profit	8.92B	8.71B	7.60B	7.04B	7.13B	5.52B
EBITDA	3.67B	3.60B	2.83B	4.18B	3.62B	2.17B
Net Income	1.24B	1.25B	785.63M	1.37B	1.32B	651.31M
Balance Sheet
Total Assets	46.81B	46.22B	43.25B	40.80B	40.53B	36.07B
Cash, Cash Equivalents and Short-Term Investments	7.24B	6.51B	6.21B	5.09B	6.11B	5.36B
Total Debt	9.26B	7.28B	6.76B	6.08B	5.88B	6.13B
Total Liabilities	20.21B	18.70B	17.42B	16.40B	18.93B	17.16B
Stockholders Equity	22.54B	23.80B	22.28B	21.45B	19.49B	17.33B
Cash Flow
Free Cash Flow	-406.78M	480.35M	1.34B	-1.44B	651.23M	1.92B
Operating Cash Flow	1.62B	2.08B	3.23B	162.21M	1.63B	3.02B
Investing Cash Flow	-1.69B	-1.40B	-1.53B	-1.10B	-366.57M	-629.78M
Financing Cash Flow	1.49B	-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: Positive
• RSI: Neutral
• STOCH: Positive

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 3268.75, above the 50-day MA of 3139.20, and above the 200-day MA of 2818.75, indicating a neutral trend. The MACD of 34.76 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 is Positive, 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
6393	76 Outperform	¥13.31B	9.91	―	6.70%	7.96%	43.37%
6322	74 Outperform	¥11.58B	9.55	―	3.14%	2.32%	1.94%
6392	72 Outperform	¥16.14B	9.50	―	3.09%	5.78%	6.00%
6496	69 Neutral	¥23.50B	14.72	―	1.82%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	54 Neutral	¥8.06B	134.84	―	1.65%	3.96%	―