Makita Corporation (6586) AI Stock Analysis

• Market Cap: ¥1.30T
• Dividend Yield: 2.07%
• Average Volume (3M): 640.20K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.16
• Revenue Growth: -0.67%
• EPS Growth: 70.49%
• Country: JP
• Employees: 17,641
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 72.07
• Shares Outstanding: 280,017,550
• 10 Day Avg. Volume: 753,990
• 30 Day Avg. Volume: 640,196
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,333.33
• Price Target Upside: 9.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥5,351.00 ▲(10.33% Upside)

Makita Corporation's strong financial performance and reasonable valuation are offset by bearish technical indicators. The company's robust revenue growth and profit margins are key strengths, while the negative free cash flow growth rate and lack of positive market momentum present challenges.

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 demonstrates strong financial performance with robust revenue and profit margins, low leverage, and high equity financing. While cash flow is strong, the negative free cash flow growth rate requires attention.

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	753.13B	753.13B	741.39B	764.70B	739.26B	608.33B
Gross Profit	271.43B	271.43B	223.94B	188.75B	228.32B	203.05B
EBITDA	140.30B	144.25B	99.74B	54.13B	112.73B	104.95B
Net Income	79.34B	79.34B	43.69B	11.71B	64.77B	62.02B
Balance Sheet
Total Assets	1.11T	1.11T	1.06T	1.10T	1.01T	812.88B
Cash, Cash Equivalents and Short-Term Investments	253.28B	253.28B	196.65B	169.69B	76.34B	166.87B
Total Debt	10.15B	10.15B	19.89B	186.39B	79.67B	2.61B
Total Liabilities	174.03B	174.03B	180.60B	323.65B	254.97B	149.55B
Stockholders Equity	926.00B	926.00B	868.16B	769.25B	746.34B	657.86B
Cash Flow
Free Cash Flow	112.28B	112.28B	219.24B	5.34B	-163.60B	14.68B
Operating Cash Flow	129.87B	129.87B	237.09B	44.43B	-103.66B	64.54B
Investing Cash Flow	-37.87B	-37.87B	-25.62B	-37.68B	-27.89B	-42.91B
Financing Cash Flow	-33.55B	-33.55B	-191.28B	80.97B	52.63B	-23.04B

Makita Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4850.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 4850 is above the 20-day moving average (MA) of 4821.60, below the 50-day MA of 4946.45, and above the 200-day MA of 4633.84, indicating a bullish trend. The MACD of 6.68 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 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
5952	―	¥2.48B	14.94	―	2.49%	1.63%	18.55%
5851	―	¥90.18B	13.68	4.08%	3.23%	1.66%	-37.57%
6586	―	¥1.30T	15.61	―	2.07%	-0.67%	70.49%
5967	―	¥14.59B	14.98	―	1.63%	-2.69%	6.29%
5966	―	¥5.83B	10.69	―	3.22%	6.47%	-50.56%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5969	―	¥2.29B	188.49	―	2.55%	-5.24%	-96.07%

Makita Corporation Corporate Events

Makita Corporation Announces Disposal of Treasury Stock as Employee Incentives

Makita Corporation has announced the disposal of 4,655 shares of its treasury stock as restricted shares for employees in management positions. This move aims to align the interests of employees with shareholders and incentivize long-term service, with transfer restrictions in place until the employees retire or leave the company.

The most recent analyst rating on (JP:6586) stock is a Hold with a Yen4400.00 price target. To see the full list of analyst forecasts on Makita Corporation stock, see the JP:6586 Stock Forecast page.