Makita Corporation (6586) AI Stock Analysis

• Market Cap: ¥1.16T
• Dividend Yield: 2.57%
• Average Volume (3M): 994.37K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.13
• Revenue Growth: 1.58%
• EPS Growth: 81.90%
• Country: JP
• Employees: 17,641
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 65.02
• Shares Outstanding: 280,017,550
• 10 Day Avg. Volume: 909,060
• 30 Day Avg. Volume: 994,373
• PEG Ratio: 1.63
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.37
• 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: ¥5,575.00
• Price Target Upside: 30.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: ¥4,846.00 ▲(13.28%Upside)

Makita Corporation has a strong financial foundation with solid profit margins and low leverage, which is the primary driver of its overall score. The technical analysis shows mixed signals, with some bearish trends but potential for upward movement. Valuation is reasonable, with an attractive P/E ratio and solid dividend yield, adding to the stock's appeal.

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 equipment. The company's key revenue streams include direct sales to retailers and distributors, as well as sales through online platforms. Makita's products are sold globally, with a significant portion of sales coming from markets in North America, Europe, and Asia. The company also benefits from strategic partnerships and collaborations with retailers and distributors, which help expand its market reach. Additionally, Makita invests in research and development to continuously innovate and offer new products that cater to evolving customer needs, thereby driving sales growth.

Makita Corporation Financial Statement Overview

Summary

Makita Corporation is financially robust, marked by strong revenue and profit margins, low leverage, and a solid equity base. While the cash flow is strong, the negative free cash flow growth rate warrants attention. Overall, the company's financial health is sound, with continued growth potential in the manufacturing industry.

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
753.13B	741.39B	764.70B	739.26B	608.33B
	Gross Profit
271.43B	223.94B	188.75B	228.32B	203.05B
	EBIT
107.04B	66.17B	28.25B	91.73B	88.46B
	EBITDA
144.25B	99.74B	54.13B	112.73B	104.95B
	Net Income Common Stockholders
79.34B	43.69B	11.71B	64.77B	62.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
253.28B	196.65B	169.69B	76.34B	166.87B
	Total Assets
1.11T	1.06T	1.10T	1.01T	812.88B
	Total Debt
10.15B	19.89B	186.39B	79.67B	2.61B
	Net Debt
-243.13B	-176.75B	23.67B	8.62B	-146.03B
	Total Liabilities
174.03B	180.60B	323.65B	254.97B	149.55B
	Stockholders Equity
926.00B	868.16B	769.25B	746.34B	657.86B
Cash Flow		Free Cash Flow
112.28B	219.24B	5.34B	-163.60B	14.68B
	Operating Cash Flow
129.87B	237.09B	44.43B	-103.66B	64.54B
	Investing Cash Flow
-37.87B	-25.62B	-37.68B	-27.89B	-42.91B
	Financing Cash Flow
-33.55B	-191.28B	80.97B	52.63B	-23.04B

Makita Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4278.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6586, the sentiment is Negative. The current price of 4278 is below the 20-day moving average (MA) of 4434.65, below the 50-day MA of 4369.20, and below the 200-day MA of 4627.46, indicating a bearish trend. The MACD of -16.11 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 18.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6586.

Makita Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6586	74 Outperform	¥1.16T	14.51		2.57%	1.58%	81.90%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
RYBIF		$481.36M	11.39	3.98%	3.68%	―	―
5966	80 Outperform	¥6.30B	9.64		3.08%	6.58%	29.17%
5952	75 Outperform	¥2.02B	14.36		2.91%	0.89%	6.55%
5967	71 Outperform	¥11.46B	10.25		2.09%	10.47%	48.78%
5969	65 Neutral	¥2.32B	28.97		2.50%	-3.66%	-72.39%

Makita Corporation Corporate Events

Makita Corporation Announces Share Repurchase Plan

Makita Corporation announced the repurchase of 244,300 of its common shares at a total purchase price of 1,023,776,000 yen, as part of a broader plan approved by its board to repurchase up to 7,000,000 shares. This strategic move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value.

Makita Corporation Reports Significant Financial Variations for FY 2025

Makita Corporation reported significant differences in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a notable increase in net sales driven by higher overseas orders, resulting in a 35.4% rise. However, ordinary income and net income saw substantial declines due to decreased dividend income and other factors, impacting the overall financial performance.

Makita Corporation Announces Share Buyback Plan

Makita Corporation announced a decision by its Board of Directors to repurchase up to 7 million of its common shares, representing 2.60% of the total issued shares, for a maximum of 20 billion yen. This move is part of Makita’s strategy to return profits to shareholders, reflecting its commitment to flexible profit distribution and potentially enhancing shareholder value.

Makita Corporation Announces Management Restructuring

Makita Corporation announced upcoming changes in its management structure, set to take effect following the 113th Ordinary General Meeting of Shareholders on June 25, 2025. Key changes include the appointment of Takashi Ando as an Outside Director and Minae Fukumoto as an Outside Director and Audit & Supervisory Committee Member. These changes are part of Makita’s strategy to strengthen its governance and operational oversight, potentially impacting its market position and stakeholder relationships.

Makita Corporation Announces Year-End Dividend with Commemorative Addition

Makita Corporation announced a proposed year-end cash dividend of 90 yen per share, including a 6 yen commemorative dividend to mark its 110th anniversary. This decision reflects the company’s commitment to maintaining a total return ratio of 35% or greater, and it underscores its appreciation for shareholder support. The dividend proposal will be finalized at the upcoming General Meeting of Shareholders, with the effective date set for June 26, 2025.