Makita Corporation (6586) AI Stock Analysis

• Market Cap: ¥1.37T
• Dividend Yield: 2.18%
• Average Volume (3M): 640.20K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.13
• Revenue Growth: -1.72%
• EPS Growth: 31.58%
• Country: JP
• Employees: 17,641
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 73.73
• Shares Outstanding: 280,017,550
• 10 Day Avg. Volume: 753,990
• 30 Day Avg. Volume: 640,196
• PEG Ratio: 0.20
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 11.80
• 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: ¥4,200.00
• Price Target Upside: -11.34% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥4,623.00 ▼(-2.41% Downside)

Makita Corporation's overall stock score is driven by its strong financial performance and reasonable valuation. The company's robust balance sheet and profitability are key strengths, but challenges in revenue and cash flow growth need to be addressed. Technical indicators suggest potential short-term weakness, but the stock remains fairly valued with an attractive dividend yield.

Positive Factors

Strong Balance Sheet

Makita's minimal leverage and strong equity base enhance its financial stability, providing resilience against economic fluctuations and supporting long-term growth.

Profitability

Strong profit margins indicate efficient operations and pricing power, which can sustain profitability and provide a buffer against cost increases.

Cash Generation

Efficient cash generation relative to net income suggests robust operational efficiency, supporting reinvestment and shareholder returns.

Negative Factors

Revenue Growth Decline

A decline in revenue growth poses challenges to maintaining sales momentum, which could impact future profitability and market competitiveness.

Free Cash Flow Decline

Reduced free cash flow limits the company's ability to invest in growth opportunities and return capital to shareholders, potentially affecting long-term value creation.

Revenue and Cash Flow Challenges

Ongoing challenges in revenue and cash flow growth may hinder Makita's ability to invest in innovation and maintain competitive positioning over time.

Makita Corporation Business Overview & Revenue Model

Company Description

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, rest of Asia, Central and South America, Oceania, and the Middle East and Africa. The company offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. It provides its products under the Makita brand. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.

How the Company Makes Money

Makita Corporation generates revenue primarily through the sale of its power tools and outdoor equipment. The company has a diversified revenue model that includes direct sales to retailers, distributors, and end-users, as well as international sales through its extensive global network. Key revenue streams include sales of cordless tools, electric tools, and outdoor power equipment. Additionally, Makita benefits from a strong brand reputation and customer loyalty, which contribute to repeat purchases. The company also engages in partnerships with various retailers and distributors to expand its market reach. Factors such as the growing demand for power tools in construction and renovation projects, as well as increasing interest in DIY home improvement, positively influence its earnings.

Makita Corporation Financial Statement Overview

Summary

Makita Corporation shows strong financial performance with solid revenue growth, improved profit margins, and low leverage risk. However, the negative free cash flow growth rate is a concern.

Income Statement

Makita Corporation demonstrates strong financial performance with a consistent upward trajectory in revenue, showcasing a revenue growth rate of 1.59% from 2024 to 2025. The gross profit margin improved to 36.05% and the net profit margin increased to 10.53% in 2025, indicating enhanced profitability. The EBIT margin of 14.21% and EBITDA margin of 19.15% further highlight robust operational efficiency.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.01, reflecting minimal leverage risk. A return on equity (ROE) of 8.57% suggests decent profitability relative to shareholder equity. The equity ratio stands at 83.70%, indicating a strong capital structure with high equity financing.

Cash Flow

Makita exhibits a strong cash flow position with a free cash flow of 112.28 billion JPY in 2025, though it has decreased from the previous year. The operating cash flow to net income ratio is high at 1.64, indicating effective cash generation from operations. However, the free cash flow growth rate is negative, pointing to a potential area for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	745.11B	753.13B	741.39B	764.70B	739.26B	608.33B
Gross Profit	277.08B	271.43B	223.94B	188.75B	228.32B	203.05B
EBITDA	140.20B	144.25B	99.74B	57.45B	114.67B	106.77B
Net Income	79.94B	79.34B	43.69B	11.71B	64.77B	62.02B
Balance Sheet
Total Assets	1.13T	1.11T	1.06T	1.10T	1.01T	812.88B
Cash, Cash Equivalents and Short-Term Investments	278.92B	253.28B	196.65B	169.69B	76.34B	166.87B
Total Debt	3.14B	10.15B	19.89B	186.39B	79.67B	2.61B
Total Liabilities	174.81B	174.03B	180.60B	323.65B	254.97B	149.55B
Stockholders Equity	948.43B	926.00B	868.16B	769.25B	746.34B	657.86B
Cash Flow
Free Cash Flow	81.98B	112.28B	219.24B	5.34B	-163.60B	14.68B
Operating Cash Flow	101.18B	129.87B	237.09B	44.43B	-103.66B	64.54B
Investing Cash Flow	-26.60B	-37.87B	-25.62B	-37.68B	-27.89B	-42.91B
Financing Cash Flow	-66.02B	-33.55B	-191.28B	80.97B	52.63B	-23.04B

Makita Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4737.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6586, the sentiment is Positive. The current price of 4737 is below the 20-day moving average (MA) of 4798.55, above the 50-day MA of 4619.98, and above the 200-day MA of 4613.59, indicating a bullish trend. The MACD of 87.31 indicates Negative momentum. The RSI at 75.69 is Negative, neither overbought nor oversold. The STOCH value of 87.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6586.

Makita Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5851	73 Outperform	¥90.18B	12.84	4.34%	3.36%	3.80%	-15.46%
6586	70 Outperform	¥1.37T	16.93	―	2.18%	-1.72%	31.58%
5966	67 Neutral	¥6.07B	13.91	―	3.24%	1.16%	-31.17%
5952	66 Neutral	¥2.46B	15.09	―	2.75%	0.32%	19.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5967	61 Neutral	¥12.47B	17.30	―	2.20%	-2.69%	6.29%
5969	60 Neutral	¥2.39B	77.16	―	2.52%	-2.79%	-88.80%

Makita Corporation Corporate Events

Makita Corporation Announces Restricted Stock Incentive Plan for Employees

Makita Corporation announced a plan to dispose of treasury shares as part of a restricted stock incentive plan for its employees, marking its 110th anniversary. This initiative aims to align employee and shareholder interests and enhance corporate value by granting restricted stock to employees through the Makita Employee Shareholding Association, with a total of 200,150 shares to be allocated.

The most recent analyst rating on (JP:6586) stock is a Buy with a Yen4623.00 price target. To see the full list of analyst forecasts on Makita Corporation stock, see the JP:6586 Stock Forecast page.

Makita Corporation Revises Financial Forecast Upwards Amid Favorable Market Conditions

Makita Corporation has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, due to better-than-expected sales of outdoor power equipment and favorable foreign exchange rates. Despite ongoing challenging demand conditions, the company anticipates a more favorable sales environment and has adjusted its revenue and profit expectations upwards, reflecting a positive outlook for stakeholders.

The most recent analyst rating on (JP:6586) stock is a Buy with a Yen5351.00 price target. To see the full list of analyst forecasts on Makita Corporation stock, see the JP:6586 Stock Forecast page.