Yaskawa Electric (6506) AI Stock Analysis

• Market Cap: ¥1.31T
• Dividend Yield: 1.49%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.48
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,412.50
• Price Target Upside: -12.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥5,579.00 ▲(11.00% Upside)

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

Strong revenue growth

Sustained double-digit TTM revenue expansion signals durable demand for Yaskawa's automation and robotics offerings across manufacturing and energy sectors. Persistent top-line growth supports scale, R&D investment, and market-share gains that underpin long-term competitiveness.

Conservative balance sheet

Low leverage and steady equity expansion provide financial flexibility to fund capital expenditures, absorb cyclical downturns, and pursue strategic M&A without excessive refinancing risk. A conservatively levered structure supports longevity of operations and investment capacity.

Healthy gross and EBITDA margins

High gross and mid-single-digit EBITDA margins indicate meaningful product differentiation and operating leverage in automation products. Durable margin foundations support reinvestment in product development and service capabilities, helping preserve profitability over time.

Negative Factors

Net margin compression

A material decline in net margin reflects cost or mix pressures and reduces earnings resiliency. If sustained, compressed margins will lower free cash flow and returns on capital, constraining reinvestment, dividend capacity, and the firm's ability to fund growth without altering strategy.

Negative free cash flow (TTM)

A TTM FCF deficit despite positive operating cash flow points to elevated capex or working-capital strain. Persistent negative FCF erodes financial optionality, pressures liquidity and investment plans, and could necessitate external funding that raises execution and financing risk.

Earnings volatility / EPS decline

A marked decline in EPS signals earnings volatility and weaker earnings quality, which may stem from margin decline, one-offs, or execution issues. Sustained EPS weakness undermines ability to self-fund strategic initiatives and reduces confidence in long-term profitability trends.

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

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

Yaskawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5026.00
• 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 5026 is above the 20-day moving average (MA) of 4746.85, above the 50-day MA of 4437.62, and above the 200-day MA of 3537.26, indicating a bullish trend. The MACD of 150.67 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 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
6504	76 Outperform	¥1.70T	20.75	12.05%	1.50%	5.44%	-5.19%
6516	76 Outperform	¥157.54B	19.67	―	1.53%	3.37%	21.35%
5801	73 Outperform	$704.90B	20.09	10.06%	1.21%	10.52%	60.75%
6506	72 Outperform	¥1.31T	35.19	13.26%	1.49%	-2.18%	30.16%
6503	72 Outperform	¥9.95T	24.83	10.23%	1.19%	4.62%	40.65%
5803	63 Neutral	¥4.71T	36.39	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 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.