Yaskawa Electric (6506) AI Stock Analysis

• Market Cap: $1.44T
• Dividend Yield: 1.49%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 38.6
• Beta (1Y): 1.49
• Revenue Growth: -2.18%
• EPS Growth: 30.16%
• Country: JP
• Employees: 13,010
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 28.13
• 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: 1.04
• Enterprise Value/Revenue: 2.79
• Enterprise Value/Gross Profit: 7.86
• Enterprise Value/Ebitda: 20.98
• 1Y Price Target: $5,648.89
• Price Target Upside: 2.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 177.32
• Revenue Forecast (FY): $569.26B

• Rating: 72 Outperform
• Price Target: ¥6,122.00 ▲(11.01% Upside)
• Action: Reiterated Date: 01/11/26
• Date: Action: Reiterated 01/11/26

The score is driven primarily by solid overall fundamentals (strong growth and a strong balance sheet) but held back by weak recent cash conversion and margin compression. Technicals are constructive and provide support, while valuation is a notable headwind due to the high P/E and modest yield.

Positive Factors

Broad industrial automation product portfolio

Yaskawa's deep, diversified product set—robots, motion control, servo drives, PLCs and integrated solutions—creates durable competitive moats across manufacturing, energy and infrastructure. This breadth supports cross‑sell, recurring service revenue and resilience to single‑market cycles.

Strong recent revenue momentum

A reported +54% TTM revenue increase signals durable demand and expanding market penetration in automation. Sustained top‑line growth enhances operating leverage potential, funds R&D and product development, and supports long‑term investment in software and services up‑sell opportunities.

Conservative balance sheet and steady returns

Low leverage and expanding equity provide financial flexibility to fund capex, M&A or weather cyclical downturns without stressing liquidity. Consistent mid‑teens ROE indicates efficient capital use and supports reinvestment into product development and global distribution over the medium term.

Negative Factors

Negative trailing free cash flow

A TTM FCF deficit reduces financial optionality and raises funding risk for growth initiatives. If negative FCF persists, it can constrain dividends, share repurchases or R&D, and increase reliance on balance‑sheet financing despite low leverage, weakening long‑term capital allocation flexibility.

Margin compression and weaker earnings quality

Substantial net‑margin decline suggests rising costs, adverse mix or one‑offs that erode profitability. Persistent margin pressure reduces cash generation and return on sales, making it harder to fund reinvestment or absorb price competition, and could indicate structural cost or pricing challenges.

Material EPS decline

A ~39% EPS contraction points to earnings volatility and underlying profitability stress. Large EPS declines can limit retained earnings for capex and R&D, undermine investor confidence, and may persist if margins and cash conversion do not recover, impacting long‑term strategic execution.

Yaskawa Electric Business Overview & Revenue Model

Company Description

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. YASKAWA Electric Corporation was founded in 1915 and is headquartered in Kitakyushu, Japan.

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

Strong revenue growth (+54% TTM) and a conservatively levered balance sheet (debt-to-equity ~0.25) support quality. However, net margin has compressed (~6.9% TTM vs ~10.6% annually) and TTM free cash flow is slightly negative (~-1.3B), which meaningfully weakens near-term financial confidence.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) gross margin ~35% and EBITDA margin ~13%, indicating healthy value-add and operating leverage. Revenue growth in TTM is very strong (+54%), but earnings quality has softened versus the latest annual period, with net margin falling to ~6.9% in TTM from ~10.6% annually, suggesting higher costs, mix pressure, or one-offs. Overall, growth is a key strength, while the recent margin compression is the main watch item.

Balance Sheet

The balance sheet looks conservatively positioned: debt-to-equity is ~0.25 in TTM (Trailing-Twelve-Months), implying modest leverage for an industrial/electrical equipment business. Equity has steadily expanded across the annual periods provided, supporting balance-sheet resilience. Returns on equity are consistently in the low-to-mid teens (~13% TTM), which is respectable, though not exceptional—strength is financial flexibility, while the main limitation is that returns are not meaningfully accelerating.

Cash Flow

Cash generation is the weak spot in the latest period. TTM (Trailing-Twelve-Months) operating cash flow is positive (~47.6B), but free cash flow is slightly negative (~-1.3B) and free cash flow relative to net income is also negative, pointing to elevated capital spending and/or working-capital drag. Annual history shows the business can generate healthy free cash flow (e.g., positive in 2024/2025 annual periods), but the swing to negative in TTM increases near-term execution risk and reduces financial optionality.

Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	539.22B	537.68B	575.66B	555.96B	479.08B	389.71B
Gross Profit	191.34B	191.48B	209.10B	192.01B	168.65B	116.37B
EBITDA	71.69B	100.28B	87.94B	88.50B	71.23B	43.27B
Net Income	37.05B	56.99B	50.69B	51.78B	38.35B	18.93B
Balance Sheet
Total Assets	796.57B	743.77B	702.34B	653.13B	559.04B	487.43B
Cash, Cash Equivalents and Short-Term Investments	43.72B	59.03B	40.28B	42.27B	55.15B	50.95B
Total Debt	117.71B	109.53B	95.90B	99.56B	68.04B	76.54B
Total Liabilities	323.87B	304.16B	294.32B	298.06B	260.94B	237.87B
Stockholders Equity	463.22B	431.19B	399.34B	347.50B	291.23B	246.27B
Cash Flow
Free Cash Flow	-1.27B	19.20B	23.59B	-24.14B	25.01B	30.99B
Operating Cash Flow	47.61B	56.51B	54.62B	-2.21B	49.23B	39.60B
Investing Cash Flow	-48.07B	-21.29B	-29.35B	-19.69B	-24.16B	-9.60B
Financing Cash Flow	-1.15B	-15.67B	-29.42B	7.20B	-22.48B	-20.28B

Yaskawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5515.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5515 is above the 20-day moving average (MA) of 5230.78, above the 50-day MA of 5036.23, and above the 200-day MA of 3869.62, indicating a bullish trend. The MACD of 89.98 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 75.34 is Neutral, 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
6516	75 Outperform	¥193.52B	24.60	―	1.53%	3.37%	21.35%
6506	72 Outperform	$1.44T	38.61	13.26%	1.49%	-2.18%	30.16%
6804	72 Outperform	¥147.83B	9.44	8.07%	2.64%	79.29%	35.48%
6503	71 Outperform	€12.59T	33.01	10.23%	1.19%	4.62%	40.65%
6504	64 Neutral	$1.99T	23.82	12.05%	1.50%	5.44%	-5.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥56.27B	-141.26	―	5.01%	-32.74%	-117.06%

Yaskawa Electric Corporate Events

Yaskawa Electric Holds Forecast and Dividend as Profit Slumps Despite Stable Revenue

Yaskawa Electric reported consolidated revenue of ¥395.2 billion for the first three quarters of the fiscal year ending February 28, 2026, a slight 0.4% increase year on year, while operating profit dipped 3.3% to ¥33.2 billion and profit attributable to owners of the parent fell 43.8% to ¥25.5 billion, reflecting weaker profitability despite stable top-line growth. Total assets and equity both increased versus the previous fiscal year-end, and the equity ratio remained solid at just over 58%, while the company maintained its dividend policy, confirming a full-year forecast of ¥68 per share with no revisions. Yaskawa left its full-year guidance unchanged, still projecting a 2.4% decline in revenue and a more pronounced drop in profit before tax and net profit for the year amid geopolitical risks and U.S. tariff uncertainty, though management noted a recently emerging recovery trend in demand and stable progress in line with expectations through the first three quarters.

The most recent analyst rating on (JP:6506) stock is a Buy with a Yen5246.00 price target. To see the full list of analyst forecasts on Yaskawa Electric stock, see the JP:6506 Stock Forecast page.