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Yaskawa Electric
(6506)
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Rating:54Neutral
Price Target:
¥5,034.00
▼(-1.62% Downside)
Action:Reiterated
Date:07/15/26
The score is supported by solid overall fundamentals (profitable operations, conservative leverage, and improving cash flow), but is pulled down meaningfully by weak technicals (trading below major moving averages with negative momentum) and a demanding valuation (P/E ~42 with only ~1.25% yield).
Positive Factors
Conservative balance sheet
Low leverage around 0.26x equity gives the company durable financial flexibility across manufacturing cycles. This reduces solvency risk, supports steady capex and R&D funding, and preserves optionality for strategic investments or M&A without pressuring cash flow over the next several quarters.
Negative Factors
Slowing revenue growth and margin compression
Slower top-line growth and a step-down in operating and net margins signal pressure on pricing, mix, or volume across end markets. Persistently muted growth and compressed margins reduce room to boost returns, limiting long-term reinvestment capacity and making sustained ROE improvement more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage around 0.26x equity gives the company durable financial flexibility across manufacturing cycles. This reduces solvency risk, supports steady capex and R&D funding, and preserves optionality for strategic investments or M&A without pressuring cash flow over the next several quarters.
Read all positive factors
Yaskawa Electric (6506) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.27T
Dividend Yield1.4%
Average Volume (3M)4.11M
Price to Earnings (P/E)37.4
Beta (1Y)1.88
Revenue Growth4.62%
EPS Growth-38.12%
CountryJP
Employees12,483
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)130.05
Shares Outstanding266,690,500
10 Day Avg. Volume7,402,810
30 Day Avg. Volume4,112,613
Financial Highlights & Ratios
PEG Ratio-1.07
Price to Book (P/B)2.96
Price to Sales (P/S)2.64
P/FCF Ratio241.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,250.00Price Target Upside41.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)188.58
Revenue Forecast (FY)¥597.07B
Yaskawa Electric Business Overview & Revenue Model
Company Description
Established in Kitakyushu, Japan, in 1915, YASKAWA Electric Corporation operates globally, focusing on motion control, robotics, and industrial system engineering. The company produces and distributes a comprehensive array of AC drives, encompassi...
How the Company Makes Money
Yaskawa makes money primarily by selling industrial automation hardware and related solutions to equipment manufacturers and end-user factories. Key revenue streams include: (1) Motion control products—sales of servo motors/servo drives and machin...
Yaskawa Electric Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Feb 2026 | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 555.46B | 542.12B | 537.68B | 575.66B | 555.96B | 479.08B |
| Gross Profit | 194.47B | 191.24B | 191.48B | 209.10B | 192.01B | 168.65B |
| EBITDA | 73.29B | 73.72B | 103.07B | 92.35B | 93.20B | 74.07B |
| Net Income | 33.73B | 35.24B | 56.99B | 50.69B | 51.78B | 38.35B |
Balance Sheet | ||||||
| Total Assets | 824.55B | 812.37B | 743.77B | 702.34B | 653.13B | 559.04B |
| Cash, Cash Equivalents and Short-Term Investments | 57.62B | 61.22B | 59.03B | 40.28B | 42.27B | 55.15B |
| Total Debt | 121.16B | 124.85B | 109.53B | 95.90B | 99.56B | 68.04B |
| Total Liabilities | 329.51B | 318.75B | 304.16B | 294.31B | 298.05B | 260.93B |
| Stockholders Equity | 485.06B | 483.54B | 431.19B | 399.34B | 347.50B | 291.23B |
Cash Flow | ||||||
| Free Cash Flow | 15.03B | 5.93B | 19.20B | 23.59B | -24.14B | 25.01B |
| Operating Cash Flow | 58.15B | 52.17B | 56.51B | 54.62B | -2.21B | 49.23B |
| Investing Cash Flow | -43.23B | -44.22B | -21.29B | -29.35B | -19.69B | -24.16B |
| Financing Cash Flow | -26.83B | -8.63B | -15.67B | -29.42B | 7.20B | -22.48B |
Yaskawa Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥144.11B | 8.89 | 11.21% | 3.42% | 81.06% | 65.37% | |
73 Outperform | ¥2.04T | 19.51 | 13.23% | 1.41% | 10.40% | 15.01% | |
69 Neutral | ¥208.29B | 18.41 | ― | 1.53% | 16.79% | 100.39% | |
68 Neutral | ¥12.42T | 28.48 | 9.80% | 1.19% | 9.57% | 18.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥51.33B | -15.07 | ― | 5.01% | -7.42% | -4245.20% | |
54 Neutral | ¥1.27T | 37.42 | 7.18% | 1.29% | 4.62% | -38.12% |
* Industrials Sector Average
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Yaskawa Electric Corporate Events
Yaskawa Electric Sees Q1 Profit Drop but Keeps Robust Full-Year Outlook and Higher Dividend
Jul 10, 2026
Yaskawa Electric reported a 10.6% year-on-year rise in first-quarter revenue to ¥138.98 billion, but operating profit fell 19.2% and profit attributable to owners of the parent dropped 21.7%, reflecting margin pressure despite firm demand. Th...
Yaskawa Sets Vision 2035 and Dash 35 Plans to Boost Profitability and Physical AI Expansion
May 22, 2026
Yaskawa Electric has unveiled a new long-term business plan, Vision 2035, alongside a four-year mid-term plan, Dash 35, aimed at strengthening its core mechatronics business and expanding into physical AI applications. The company plans to deepen ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.