Makita Corporation (JP:6586)
:6586
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Makita Corporation
(6586)
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Rating:79Outperform
Price Target:
¥6,719.00
▲(20.24% Upside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by strong financial fundamentals—especially an excellent, low-leverage balance sheet and an earnings rebound since FY2023—partly tempered by historical volatility in revenue, margins, and cash generation. Technicals are supportive with the stock trading above major moving averages, and valuation is fair with a reasonable P/E and a mid-2% dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and steadily growing equity give Makita long-term financial resilience. This durable strength supports funding for capex, R&D, and inventory through cycles, cushions downturns, and preserves strategic optionality for M&A or shareholder returns without stressing cash flows.
Negative Factors
Modest, uneven revenue growth
Weak and lumpy top-line growth constrains the company’s ability to scale operating leverage and dilute fixed costs. Persistent modest revenue expansion leaves results sensitive to construction cycles and limits the runway for sustainably higher returns without market-share gains or new products.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily growing equity give Makita long-term financial resilience. This durable strength supports funding for capex, R&D, and inventory through cycles, cushions downturns, and preserves strategic optionality for M&A or shareholder returns without stressing cash flows.
Read all positive factors
Makita Corporation (6586) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.56T
Dividend Yield2.18%
Average Volume (3M)640.20K
Price to Earnings (P/E)16.9
Beta (1Y)1.16
Revenue Growth3.25%
EPS Growth1.71%
CountryJP
Employees17,641
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)299.95
Shares Outstanding280,017,550
10 Day Avg. Volume753,990
30 Day Avg. Volume640,196
Financial Highlights & Ratios
PEG Ratio9.88
Price to Book (P/B)1.35
Price to Sales (P/S)1.73
P/FCF Ratio16.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,150.00Price Target Upside10.06% 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 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
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 777.60B | 753.13B | 741.39B | 764.70B | 739.26B |
| Gross Profit | 283.97B | 271.43B | 223.94B | 188.75B | 228.32B |
| EBITDA | 135.17B | 136.79B | 95.09B | 54.13B | 112.73B |
| Net Income | 79.41B | 79.34B | 43.69B | 11.71B | 64.77B |
Balance Sheet | |||||
| Total Assets | 1.18T | 1.11T | 1.06T | 1.10T | 1.01T |
| Cash, Cash Equivalents and Short-Term Investments | 257.38B | 253.28B | 196.65B | 162.72B | 71.06B |
| Total Debt | 2.38B | 30.10B | 40.32B | 203.62B | 96.46B |
| Total Liabilities | 176.64B | 174.03B | 180.60B | 323.65B | 254.97B |
| Stockholders Equity | 997.34B | 926.00B | 868.16B | 769.25B | 746.34B |
Cash Flow | |||||
| Free Cash Flow | 80.80B | 112.28B | 219.24B | 5.34B | -163.60B |
| Operating Cash Flow | 102.34B | 129.87B | 237.09B | 44.43B | -103.66B |
| Investing Cash Flow | -17.63B | -37.87B | -25.62B | -37.68B | -27.89B |
| Financing Cash Flow | -99.17B | -33.55B | -191.28B | 80.97B | 52.63B |
Makita Corporation Technical Analysis
Positive
5588.00
Price Trends
5541.82
Positive
5112.83
Positive
4900.09
Positive
Market Momentum
59.83
Negative
57.72
Neutral
86.04
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 5588 is above the 20-day moving average (MA) of 5343.84, above the 50-day MA of 5541.82, and above the 200-day MA of 4900.09, indicating a bullish trend. The MACD of 59.83 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥1.56T | 16.93 | ― | 2.18% | 3.25% | 1.71% | |
78 Outperform | ¥271.75B | 24.11 | ― | 1.17% | 23.18% | 15.70% | |
74 Outperform | ¥301.50B | 11.92 | 7.86% | 2.55% | 5.68% | 41.20% | |
72 Outperform | ¥79.68B | 7.91 | 6.66% | 3.36% | 5.39% | 61.68% | |
66 Neutral | ¥425.38B | 55.37 | 11.46% | 3.77% | 2.76% | 56.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥120.11B | 26.06 | 2.64% | 2.30% | 0.90% | 15.74% |
* Industrials Sector Average
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Makita Corporation Corporate Events
Makita Overhauls Management to Strengthen Global Operations
Apr 28, 2026
Makita Corporation has announced a broad reshuffle of its leadership, with changes to directors and corporate officers to be finalized after shareholder approval on June 24, 2026. The new structure confirms Munetoshi Goto as president and represen...
Makita lifts payout policy and proposes sharp dividend increase
Apr 28, 2026
Makita Corporation has revised its profit distribution policy to commit to a consolidated dividend payout ratio of at least 50%, up from a previous total return ratio of 35%, as part of efforts to strengthen shareholder returns and improve capital...
Makita Delivers Strong Profit Rebound on Modest Revenue Growth in FY2026
Apr 28, 2026
Makita Corporation reported consolidated financial results for the year ended March 31, 2026, showing revenue of ¥777.6 billion, a modest 1.6% increase from the prior year. Operating profit rose sharply to ¥104.7 billion, while profit be...
Makita Nears ¥40 Billion Share Buyback Cap After Accelerated Repurchases
Apr 14, 2026
Makita Corporation has completed a tranche of its share repurchase program authorized under Japan’s Companies Act, buying back 758,500 common shares for approximately 4.07 billion yen between April 1 and April 9, 2026. This latest transactio...
Makita Nears Cap on Aggressive Share Buyback Program
Apr 9, 2026
Makita Corporation has reported the latest progress in its ongoing share buyback program, repurchasing 2,194,200 common shares for a total of about ¥12.0 billion between March 1 and March 31, 2026. This activity is part of a previously author...
Makita Cuts Size of Employee Restricted-Stock Disposal After Partial Forfeiture
Mar 19, 2026
Makita Corporation has completed the disposal of a portion of its treasury shares as restricted stock to employees of the company and its subsidiaries through the Makita Employee Shareholding Association, under an incentive plan approved in Novemb...
Makita Advances Share Buyback, Repurchasing Over 4 Million Shares by February End
Mar 9, 2026
Makita Corporation has disclosed the status of its ongoing share buyback program authorized under Japan’s Companies Act and its Articles of Incorporation. Between February 1 and February 28, 2026, the company repurchased 3,909,700 common sha...
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...
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.