Yaskawa Electric (6506) AI Stock Analysis

• Market Cap: ¥1.20T
• Dividend Yield: 1.55%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.46
• Revenue Growth: -2.18%
• EPS Growth: 30.16%
• Country: JP
• Employees: 13,010
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 43.55
• Shares Outstanding: 266,690,500
• 10 Day Avg. Volume: 7,402,810
• 30 Day Avg. Volume: 4,112,613
• PEG Ratio: 1.45
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 54.75
• 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: ¥4,441.49
• Price Target Upside: -3.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥5,246.00 ▲(14.44% Upside)

Yaskawa Electric's overall stock score is driven by its solid financial performance and fair valuation. The company's strong balance sheet and operational efficiency provide a stable foundation, despite recent revenue challenges. Technical indicators suggest bullish momentum, but caution is advised due to potential overvaluation in the short term.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to invest in growth opportunities.

Operational Efficiency

Healthy EBIT and EBITDA margins reflect strong operational efficiency, enabling the company to maintain profitability despite revenue challenges.

Robust Profitability Margins

Consistent gross profit margins demonstrate effective cost management, supporting long-term profitability and competitive positioning.

Negative Factors

Revenue Decline

Negative revenue growth indicates challenges in maintaining sales momentum, which could impact future market position and profitability.

Reduced Free Cash Flow Growth

Decreased free cash flow growth may limit the company's ability to invest in new projects and innovations, affecting long-term growth potential.

Declining Net Profit Margin

A declining net profit margin suggests pressure on profitability, which could affect the company's ability to generate shareholder value over time.

Yaskawa Electric Business Overview & Revenue Model

Company Description

Yaskawa Electric Corporation (TYO: 6506) is a leading global manufacturer of industrial automation and robotics solutions, primarily serving sectors such as manufacturing, energy, and infrastructure. Established in 1915, the company is headquartered in Kitakyushu, Japan, and specializes in a range of products, including motion control systems, industrial robots, servo drives, and programmable logic controllers (PLCs). Yaskawa's innovations in automation technology have positioned it as a key player in enhancing productivity and efficiency across various industries.

How the Company Makes Money

Yaskawa Electric generates revenue through several key streams, primarily from the sale of industrial automation products, including robotics and motion control systems. The company earns significant income from providing integrated solutions, focusing on automation in manufacturing processes. Additional revenue comes from maintenance services, software solutions, and consulting services that facilitate the implementation and optimization of their technologies. Yaskawa has established strategic partnerships with various industry players, enhancing its market reach and capabilities, particularly in sectors such as automotive, electronics, and food processing. The growing demand for automation and smart manufacturing globally further drives Yaskawa's revenue growth.

Yaskawa Electric Financial Statement Overview

Summary

Yaskawa Electric demonstrates solid financial health with strong profitability margins and a robust balance sheet. However, recent revenue declines and reduced free cash flow growth pose challenges. The company maintains operational efficiency and a conservative capital structure, which should support resilience in the face of market fluctuations.

Income Statement

Yaskawa Electric's income statement shows a stable gross profit margin around 35%, indicating consistent cost management. However, the net profit margin has slightly declined in the TTM period to 10.6% from 10.6% annually, reflecting pressure on profitability. Revenue growth has been negative recently, with a -1.26% decline in the TTM period, suggesting challenges in maintaining sales momentum. Despite this, the EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.25, indicating conservative leverage. The return on equity is robust at 13.7% in the TTM period, reflecting effective use of shareholder funds. The equity ratio stands at 56.8%, showcasing a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth, down by 7.5% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is stable at 0.31, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.34, suggesting moderate cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	536.30B	537.68B	575.66B	555.96B	479.08B	389.71B
Gross Profit	191.16B	191.48B	209.10B	192.01B	168.65B	116.37B
EBITDA	72.94B	100.28B	87.94B	88.50B	71.23B	43.27B
Net Income	57.38B	56.99B	50.69B	51.78B	38.35B	18.93B
Balance Sheet
Total Assets	765.87B	743.77B	702.34B	653.13B	559.04B	487.43B
Cash, Cash Equivalents and Short-Term Investments	48.30B	59.03B	40.28B	42.27B	55.15B	50.95B
Total Debt	109.18B	109.53B	95.90B	99.56B	68.04B	76.54B
Total Liabilities	310.06B	304.16B	294.32B	298.06B	260.94B	237.87B
Stockholders Equity	447.05B	431.19B	399.34B	347.50B	291.23B	246.27B
Cash Flow
Free Cash Flow	11.82B	19.20B	23.59B	-24.14B	25.01B	30.99B
Operating Cash Flow	49.23B	56.51B	54.62B	-2.21B	49.23B	39.60B
Investing Cash Flow	-25.77B	-21.29B	-29.35B	-19.69B	-24.16B	-9.60B
Financing Cash Flow	-27.52B	-15.67B	-29.42B	7.20B	-22.48B	-20.28B

Yaskawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4584.00
• 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:6506, the sentiment is Positive. The current price of 4584 is above the 20-day moving average (MA) of 4503.35, above the 50-day MA of 4311.02, and above the 200-day MA of 3486.14, indicating a bullish trend. The MACD of 129.22 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6506.

Yaskawa Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6504	76 Outperform	¥1.67T	20.45	12.05%	1.51%	5.44%	-5.19%
6516	76 Outperform	¥155.46B	19.57	―	1.59%	3.37%	21.35%
5801	73 Outperform	¥687.66B	19.86	10.06%	1.23%	10.52%	60.75%
6503	72 Outperform	¥9.82T	24.33	10.23%	1.18%	4.62%	40.65%
6506	70 Outperform	¥1.20T	20.73	13.26%	1.55%	-2.18%	30.16%
5803	63 Neutral	¥4.90T	38.00	32.32%	0.91%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Yaskawa Electric Corporate Events

Yaskawa Electric Reports Improved Profitability Amid Revenue Dip

Yaskawa Electric Corporation reported its consolidated financial results for the first half of the fiscal year ending February 2026, showing a slight decline in revenue by 0.5% compared to the previous year. However, the company experienced growth in operating profit and profit before tax, indicating improved operational efficiency. Despite challenges such as the U.S. tariff policy, Yaskawa has revised its annual financial forecasts upward, reflecting a positive outlook for the remainder of the fiscal year. The company maintains its dividend forecast, signaling stability and confidence in its financial health.