Yaskawa Electric (6506) AI Stock Analysis

• Market Cap: $1.14T
• Dividend Yield: 1.69%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.44
• 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: 0.73
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 11.58
• 1Y Price Target: $4,443.75
• Price Target Upside: 5.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥3,989.00 ▼(-5.29% Downside)

Yaskawa Electric's overall stock score is driven primarily by its solid financial performance, which is slightly offset by recent revenue declines and reduced free cash flow growth. Technical analysis suggests caution due to bearish indicators, while the valuation remains fair. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility for future investments.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest effective cost management and operational efficiency, supporting long-term profitability.

Management of Shareholder Funds

A strong return on equity reflects effective management of shareholder funds, indicating potential for sustained investor returns.

Negative Factors

Revenue Decline

Negative revenue growth suggests challenges in maintaining sales momentum, which could impact long-term growth prospects.

Free Cash Flow Reduction

Reduced free cash flow growth may limit the company's ability to invest in new opportunities and manage financial obligations.

Profit Margin Pressure

A decline in net profit margin indicates pressure on profitability, which could affect the company's ability to sustain earnings.

Yaskawa Electric Business Overview & Revenue Model

Company Description

Yaskawa Electric Corporation, founded in 1915 and headquartered in Kitakyushu, Japan, is a leading manufacturer of motion control and robotics technology. The company operates primarily in the sectors of motion control, robotics, systems engineering, and information technology. Its core products include industrial robots, servomotors, controllers, inverters, and system engineering solutions, serving various industries such as automotive, semiconductor, food processing, and logistics.

How the Company Makes Money

Yaskawa Electric makes money through the sale of its advanced automation products and solutions. The company's revenue model is built around its key product categories: motion control systems, robotics, and system engineering. Motion control products, such as servomotors and controllers, are widely used in manufacturing processes to enhance precision and efficiency, generating substantial sales. The robotics division, known for its Motoman robots, contributes significantly to revenue by providing automation solutions across several industries. Additionally, Yaskawa's system engineering segment offers customized engineering solutions and services, adding another layer of revenue. Strategic partnerships and continuous innovation in technology also play critical roles in maintaining and expanding Yaskawa's market share and profitability.

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	530.91B	537.68B	575.66B	555.96B	479.08B	389.71B
Gross Profit	189.53B	191.48B	209.10B	192.01B	168.65B	116.37B
EBITDA	72.35B	100.28B	87.94B	88.50B	71.23B	43.27B
Net Income	54.74B	56.99B	50.69B	51.78B	38.35B	18.93B
Balance Sheet
Total Assets	748.66B	743.77B	702.34B	653.13B	559.04B	487.43B
Cash, Cash Equivalents and Short-Term Investments	65.32B	59.03B	40.28B	42.27B	55.15B	50.95B
Total Debt	120.30B	109.53B	95.90B	99.56B	68.04B	76.54B
Total Liabilities	314.56B	304.16B	294.32B	298.06B	260.94B	237.87B
Stockholders Equity	425.52B	431.19B	399.34B	347.50B	291.23B	246.27B
Cash Flow
Free Cash Flow	17.76B	19.20B	23.59B	-24.14B	25.01B	30.99B
Operating Cash Flow	55.99B	56.51B	54.62B	-2.21B	49.23B	39.60B
Investing Cash Flow	-22.85B	-21.29B	-29.35B	-19.69B	-24.16B	-9.60B
Financing Cash Flow	-15.76B	-15.67B	-29.42B	7.20B	-22.48B	-20.28B

Yaskawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4212.00
• 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:6506, the sentiment is Positive. The current price of 4212 is above the 20-day moving average (MA) of 4033.90, above the 50-day MA of 3898.90, and above the 200-day MA of 3448.38, indicating a bullish trend. The MACD of 6.89 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 92.65 is Negative, 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	$1.55T	18.89	12.05%	1.67%	5.44%	-5.19%
5801	73 Outperform	$774.93B	22.92	10.06%	1.17%	10.52%	60.75%
6503	72 Outperform	€9.10T	22.71	10.23%	1.27%	4.62%	40.65%
6516	72 Outperform	¥148.45B	25.71	―	1.04%	3.37%	21.35%
5803	63 Neutral	€5.71T	55.30	32.32%	0.69%	27.53%	137.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6506	63 Neutral	$1.14T	19.82	13.26%	1.69%	-2.18%	30.16%

Yaskawa Electric Corporate Events

Yaskawa Electric Reports Steady Profits Amid Revenue Dip

Yaskawa Electric Corporation is a leading company in the industrial automation sector, specializing in motion control, robotics, and system engineering solutions. The company is listed on the Tokyo and Fukuoka stock exchanges.

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.

The most recent analyst rating on (JP:6506) stock is a Buy with a Yen3374.00 price target. To see the full list of analyst forecasts on Yaskawa Electric stock, see the JP:6506 Stock Forecast page.