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Makita Corporation (JP:6586)
:6586
Japanese Market
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Makita Corporation (6586) AI Stock Analysis

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JP:6586

Makita Corporation

(6586)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
¥5,880.00
▲(4.57% Upside)
Action:Reiterated
Date:07/31/26
The score is driven primarily by strong financial quality—improving margins and an exceptionally low-leverage balance sheet—partly offset by weaker technicals (price below key moving averages) and only moderate valuation support (P/E ~19 with ~2.83% yield).
Positive Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.002) gives Makita durable financial flexibility to invest through downturns, support R&D, sustain dividends or buybacks, and pursue opportunistic M&A without cash-flow distress, reducing structural financial risk.
Negative Factors
Modest revenue growth
Top-line growth is tepid (TTM ~+2.6%), limiting scale advantages and the pace at which Makita can expand installed-base consumption. Slow revenue expansion constrains long-term earnings upside and increases dependence on margin improvements or new product cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.002) gives Makita durable financial flexibility to invest through downturns, support R&D, sustain dividends or buybacks, and pursue opportunistic M&A without cash-flow distress, reducing structural financial risk.
Read all positive factors

Makita Corporation (6586) vs. iShares MSCI Japan ETF (EWJ)

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, Asia, Central and South America, Oceania, The Middle East, and Africa. It offer...
How the Company Makes Money
Makita primarily makes money by selling power tools and outdoor power equipment through a global sales and distribution network. Its core revenue stream is product sales of cordless and electric tools (e.g., drills, drivers, saws, grinders) and ou...

Makita Corporation Financial Statement Overview

Summary
Profitability has rebounded strongly (TTM net margin ~10.2%, operating margin ~14.4%) and the balance sheet is exceptionally conservative (debt-to-equity ~0.002). Offsets are modest TTM revenue growth (~+2.6%) and somewhat mixed cash conversion (OCF/NI ~0.74; FCF/NI ~0.79) with historical cash-flow variability.
Income Statement
82
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
74
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue797.54B777.60B753.13B741.39B764.70B739.26B
Gross Profit296.13B283.97B271.43B223.94B188.75B228.32B
EBITDA144.81B142.07B139.50B95.50B51.91B114.16B
Net Income83.00B79.41B79.34B43.69B11.71B64.77B
Balance Sheet
Total Assets1.19T1.18T1.11T1.06T1.10T1.01T
Cash, Cash Equivalents and Short-Term Investments256.36B257.38B253.28B196.65B162.72B71.06B
Total Debt17.21B2.38B30.10B40.32B203.62B96.46B
Total Liabilities177.54B176.64B174.03B180.60B323.65B254.97B
Stockholders Equity1.01T997.34B926.00B868.16B769.25B746.34B
Cash Flow
Free Cash Flow99.29B80.80B112.28B219.24B5.34B-163.60B
Operating Cash Flow119.91B102.34B129.87B237.09B44.43B-103.66B
Investing Cash Flow-25.71B-17.63B-37.87B-25.62B-37.68B-27.89B
Financing Cash Flow-94.49B-99.17B-33.55B-191.28B80.97B52.63B

Makita Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5623.00
Price Trends
50DMA
5625.40
Negative
100DMA
5556.49
Negative
200DMA
5245.14
Positive
Market Momentum
MACD
-77.20
Positive
RSI
45.78
Neutral
STOCH
49.77
Neutral
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 5623 is above the 20-day moving average (MA) of 5549.75, below the 50-day MA of 5625.40, and above the 200-day MA of 5245.14, indicating a neutral trend. The MACD of -77.20 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 49.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6586.

Makita Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥360.30B15.6711.26%2.47%12.95%66.36%
74
Outperform
¥87.31B8.357.01%4.09%3.21%64.77%
72
Outperform
¥1.48T17.252.67%6.94%3.00%
64
Neutral
¥329.27B32.731.17%39.69%58.96%
63
Neutral
¥520.94B21.6410.72%2.77%11.79%146.87%
60
Neutral
¥135.81B18.473.95%2.30%3.28%58.68%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6586
Makita Corporation
5,440.00
388.83
7.70%
JP:6141
DMG MORI CO
3,674.00
241.92
7.05%
JP:6136
OSG
3,891.00
1,911.79
96.59%
JP:5851
Ryobi
2,769.00
441.16
18.95%
JP:6474
Nachi-Fujikoshi Corp.
5,710.00
2,379.53
71.45%
JP:6278
Union Tool Co.
16,900.00
10,265.24
154.72%

Makita Corporation Corporate Events

Makita Boosts Quarterly Profit Despite Revenue Decline
Jul 29, 2026
Makita reported consolidated revenue of ¥186.6 billion for the quarter ended June 30, 2026, down 3.8% year-on-year, while operating profit surged 74.5% to ¥47.0 billion. Profit attributable to owners of the parent climbed 18.6% to ¥...
Makita Tweaks Restricted Stock Disposal Schedule for Directors
Jul 7, 2026
Makita Corporation, listed under ticker 6586, is a Japan-based manufacturer best known for its power tools and related equipment for professional and consumer markets. The company operates globally, supplying cordless and corded tools, outdoor pow...
Makita to Grant Restricted Treasury Shares to Directors Under Long-Term Incentive Plan
Jun 24, 2026
Makita Corporation’s board has approved the disposal of 5,701 shares of its treasury stock to eight internal directors as stock-based compensation with transfer restrictions, valued at a total of ¥32.37 million and priced at ¥5,678...
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.Date of analysis: Jul 31, 2026