Makita Corporation (JP:6586)
:6586
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Makita Corporation
(6586)
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Rating:77Outperform
Price Target:
¥6,869.00
▲(22.51% Upside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by strong financial performance, especially the conservative balance sheet and improved profitability. Technicals are constructive with price above major moving averages, but momentum looks stretched with RSI near 70. Valuation is reasonable (mid-teens P/E) with a moderate dividend yield, providing some support but not a major catalyst.
Positive Factors
Conservative balance sheet
Makita's extremely conservative balance sheet (very low leverage and ~¥1.01T equity) provides durable financial flexibility. Low debt reduces interest burden, supports capital allocation (capex/dividends/M&A) and increases resilience through construction and cyclical downturns.
Negative Factors
Stagnant revenue growth
Revenue growth is modest and essentially flat, limiting the benefits of operating leverage. Long-term value creation will depend on new product cycles, market share gains, or expansion into adjacencies; absent stronger top-line momentum, profit gains may be harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Makita's extremely conservative balance sheet (very low leverage and ~¥1.01T equity) provides durable financial flexibility. Low debt reduces interest burden, supports capital allocation (capex/dividends/M&A) and increases resilience through construction and cyclical downturns.
Read all positive factors
Makita Corporation (6586) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.52T
Dividend Yield2.18%
Average Volume (3M)640.20K
Price to Earnings (P/E)16.7
Beta (1Y)1.13
Revenue Growth-1.72%
EPS Growth31.58%
CountryJP
Employees17,641
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)70.77
Shares Outstanding280,017,550
10 Day Avg. Volume753,990
30 Day Avg. Volume640,196
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.43
Price to Sales (P/S)1.76
P/FCF Ratio11.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,100.00Price Target Upside8.79% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)304.53
Revenue Forecast (FY)¥810.92B
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 Afric...
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 sa...
Makita Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
91
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 753.35B | 753.13B | 741.39B | 764.70B | 739.26B | 608.33B |
| Gross Profit | 275.45B | 271.43B | 223.94B | 188.75B | 228.32B | 203.05B |
| EBITDA | 130.78B | 136.79B | 95.09B | 54.13B | 112.73B | 104.95B |
| Net Income | 75.01B | 79.34B | 43.69B | 11.71B | 64.77B | 62.02B |
Balance Sheet | ||||||
| Total Assets | 1.19T | 1.11T | 1.06T | 1.10T | 1.01T | 812.88B |
| Cash, Cash Equivalents and Short-Term Investments | 285.11B | 253.28B | 196.65B | 162.72B | 71.06B | 148.64B |
| Total Debt | 19.13B | 30.10B | 40.32B | 203.62B | 96.46B | 16.45B |
| Total Liabilities | 181.42B | 174.03B | 180.60B | 323.65B | 254.97B | 149.55B |
| Stockholders Equity | 1.01T | 926.00B | 868.16B | 769.25B | 746.34B | 657.86B |
Cash Flow | ||||||
| Free Cash Flow | 76.05B | 112.28B | 219.24B | 5.34B | -163.60B | 14.68B |
| Operating Cash Flow | 94.46B | 129.87B | 237.09B | 44.43B | -103.66B | 64.54B |
| Investing Cash Flow | -22.30B | -37.87B | -25.62B | -37.68B | -27.89B | -42.91B |
| Financing Cash Flow | -64.03B | -33.55B | -191.28B | 80.97B | 52.63B | -23.04B |
Makita Corporation Technical Analysis
Positive
5607.00
Price Trends
5494.36
Positive
5051.92
Positive
4865.63
Positive
Market Momentum
13.54
Negative
60.68
Neutral
95.03
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 5607 is above the 20-day moving average (MA) of 5264.61, above the 50-day MA of 5494.36, and above the 200-day MA of 4865.63, indicating a bullish trend. The MACD of 13.54 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 95.03 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥288.85B | 24.11 | ― | 1.17% | 29.51% | 48.81% | |
77 Outperform | ¥1.52T | 16.74 | ― | 2.18% | -1.72% | 31.58% | |
72 Outperform | ¥79.37B | 7.91 | 6.66% | 3.36% | 3.80% | -15.46% | |
72 Outperform | ¥254.64B | 11.92 | 7.86% | 2.55% | 0.57% | 4.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥117.97B | 26.06 | 2.64% | 2.30% | -4.11% | 46.76% | |
57 Neutral | ¥383.26B | 15.50 | 11.46% | 3.77% | -9.34% | 164.21% |
* Industrials Sector Average
JP:6586
Makita Corporation
5,607.00
1,699.36
43.49%
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Makita Corporation Corporate Events
Makita Begins Execution of Multi-Billion-Yen Share Buyback Program
Feb 9, 2026
Makita Corporation has disclosed the initial status of its new share buyback program, repurchasing 174,300 common shares for a total of 931,168,500 yen on January 30, 2026. The move is part of a broader board-approved authorization allowing buybac...
Makita Lifts Full-Year Earnings Forecast on Resilient Sales and Weaker Yen
Jan 29, 2026
Makita Corporation has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing resilient sales and more favorable foreign exchange assumptions despite a challenging demand environment. The company now expects re...
Makita Approves Up to ¥40 Billion Share Buyback to Boost Shareholder Returns
Jan 29, 2026
Makita Corporation’s board of directors has approved a share buyback program authorizing the repurchase of up to 10 million common shares, representing about 3.78% of its outstanding stock, for a total expenditure of up to 40 billion yen bet...
Makita Lifts Operating Profit on Modest Sales Growth, Keeps Dividend Outlook Steady
Jan 29, 2026
Makita Corporation reported consolidated results for the nine months ended December 31, 2025, showing modest revenue growth to ¥568.6 billion, up 3.3% year-on-year, while operating profit surged 76.6% to ¥76.2 billion as profitability re...
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.