Shibaura Mechatronics Corp. (6590) AI Stock Analysis

• Market Cap: ¥280.84B
• Dividend Yield: 1.49%
• Average Volume (3M): 649.73K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.31
• Revenue Growth: 18.20%
• EPS Growth: 28.13%
• Country: JP
• Employees: 1,211
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 186.15
• Shares Outstanding: 13,971,900
• 10 Day Avg. Volume: 962,290
• 30 Day Avg. Volume: 649,733
• PEG Ratio: 0.49
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 22.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥24,472.00 ▲(29.21% Upside)

The score is driven primarily by strong financial performance (growth, expanding margins, improving balance sheet, and rising free cash flow) and supportive technical strength (clear uptrend with positive momentum). The main offset is valuation, with a mid-20s P/E and a modest dividend yield.

Positive Factors

Sustained Revenue Growth

Consistent revenue expansion from 44.79B to 80.92B over four years signals durable demand for its mechatronic products across customers and geographies. That scale growth supports reinvestment, broader product adoption, and positions the firm to capture share in automation markets over the next 2–6 months and beyond.

Improving Profitability

Material margin expansion — gross margin up ~820bps and net margin tripling — reflects better cost control, pricing power, and operational leverage. Sustained margin improvement enhances resilience to cost shocks, funds R&D and service offerings, and underpins long-term free cash flow generation.

Strong Free Cash Flow Generation

FCF rising nearly tenfold demonstrates robust cash conversion and operational strength. Reliable cash generation provides capacity for targeted capex, deleveraging, and incremental R&D or service investment, supporting durable competitiveness and strategic flexibility over multiple quarters.

Negative Factors

Legacy Debt Risk

Although debt metrics improved, the history of higher leverage implies lingering refinancing and covenant risk when cycles turn. Past debt burdens can constrain flexibility for M&A or cyclical downturns, making ongoing deleveraging and liquidity management key durable risk factors.

CapEx Volatility

Variable capex patterns can lead to uneven free cash flow and inconsistent capacity additions. Over- or under-investing in automation equipment affects long-term competitiveness and margin sustainability; disciplined, predictable investment programs are essential to preserve durable returns.

Cyclical End-Market Exposure

Concentration in cyclical industries like automotive and electronics makes revenues sensitive to macro cycles and capex timing. Structural demand swings in these sectors can produce prolonged order volatility, affecting utilisation, pricing leverage, and multi-quarter revenue visibility.

Shibaura Mechatronics Corp. Business Overview & Revenue Model

Company Description

Shibaura Mechatronics Corporation, together with its subsidiaries, produces and sells manufacturing equipment for flat panel displays (FPDs), semiconductors, electronic components, and optical thin films in Japan, Northeastern Asia, and internationally. It operates in four segments: Fine Mechatronics, Mechatronics Systems, Vending Machines & Systems, and Real Estate Leasing. The Fine Mechatronics segment offers FPD manufacturing equipment, such as wet cleaning, developing, etching, stripping, and cell assembly equipment, as well as PI inkjet coaters; semiconductor manufacturing equipment, including wafer inspection, etching, aching, and wet cleaning equipment; and railroad maintenance equipment and other items. The Mechatronics Systems segment provides FPD manufacturing equipment consisting of outer lead bonders; semiconductor manufacturing equipment, such as die, flip chip, and inner lead bonders; vacuum equipment comprising sputtering, vacuum bonding, and industrial vacuum evaporation equipment; and rechargeable battery manufacturing equipment, precision parts manufacturing equipment, other automation equipment, and other products. The Vending Machines & Systems segment offers vending machines, ticket vending machines, and others. The Real Estate Leasing segment provides real estate leasing and management services, and other businesses. The company was formerly known as Shibaura Engineering Works Co., Ltd. and changed its name to Shibaura Mechatronics Corporation in October 1998. Shibaura Mechatronics Corporation was founded in 1939 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Shibaura Mechatronics Corp. generates revenue through the sale of its mechatronic products and solutions, which include industrial robots and automated machinery. The company has diversified its revenue streams by offering maintenance services, software solutions, and customer support, ensuring recurring income from existing installations. Significant partnerships with major manufacturers and technology firms enhance its market presence and contribute to revenue growth. Additionally, the company invests in research and development to innovate and expand its product offerings, thereby attracting new clients and markets.

Shibaura Mechatronics Corp. Financial Statement Overview

Summary

Shibaura Mechatronics Corp. exhibits a strong financial position with impressive revenue and profit growth, effective debt management, and robust cash flow generation. The company benefits from a solid improvement in profitability margins and a growing equity base. While past high debt levels and capital expenditure fluctuations pose potential risks, the overall trajectory is positive, highlighting the company's capacity to sustain growth and financial stability.

Income Statement

Shibaura Mechatronics Corp. showcases strong income statement metrics with consistent revenue growth from 44.79 billion in 2021 to 80.92 billion in 2025, reflecting a robust revenue growth trajectory. The Gross Profit Margin improved from 30.56% in 2021 to 38.89% in 2025, indicating enhanced cost management and profitability. Net Profit Margin increased significantly from 4.39% to 12.76%, underlining efficient operations and profitability. EBIT and EBITDA margins also showed positive trends, highlighting operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with Stockholders' Equity rising from 21.86 billion in 2021 to 47.32 billion in 2025. The Debt-to-Equity Ratio improved from 0.50 in 2021 to 0.18 by 2025, showcasing effective debt management. The Equity Ratio increased from 37.48% to 49.67%, indicating a stronger equity buffer. However, the relatively high levels of debt in previous years suggest potential risk if not managed carefully.

Cash Flow

Shibaura Mechatronics Corp. demonstrates strong cash flow management with consistent Free Cash Flow growth, notably increasing from 0.44 billion in 2020 to 4.07 billion in 2025. The Operating Cash Flow to Net Income ratio improved, indicating efficient conversion of net income into cash flow. The Free Cash Flow to Net Income ratio is healthy, reflecting robust cash generation capability. However, fluctuations in capital expenditures suggest the need for careful investment management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.30B	80.92B	67.56B	61.00B	49.27B	44.79B
Gross Profit	33.31B	31.46B	27.13B	24.43B	16.81B	13.69B
EBITDA	17.70B	16.74B	14.21B	12.42B	6.25B	4.63B
Net Income	10.91B	10.33B	8.79B	9.20B	2.98B	1.97B
Balance Sheet
Total Assets	90.05B	95.24B	91.25B	81.89B	68.85B	58.29B
Cash, Cash Equivalents and Short-Term Investments	21.91B	28.48B	27.21B	27.18B	26.32B	19.60B
Total Debt	8.73B	8.74B	8.76B	8.79B	10.20B	10.91B
Total Liabilities	43.77B	47.92B	52.52B	48.88B	44.24B	36.44B
Stockholders Equity	46.28B	47.32B	38.73B	33.01B	24.61B	21.86B
Cash Flow
Free Cash Flow	0.00	4.07B	3.89B	3.38B	7.89B	7.54B
Operating Cash Flow	0.00	6.99B	5.99B	4.57B	8.30B	7.67B
Investing Cash Flow	0.00	-3.22B	-2.31B	-1.38B	-507.00M	-258.00M
Financing Cash Flow	0.00	-2.67B	-3.75B	-2.44B	-1.21B	-553.00M

Shibaura Mechatronics Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18940.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6590, the sentiment is Positive. The current price of 18940 is above the 20-day moving average (MA) of 18803.50, above the 50-day MA of 17634.80, and above the 200-day MA of 11874.50, indicating a bullish trend. The MACD of 950.33 indicates Negative momentum. The RSI at 69.42 is Neutral, neither overbought nor oversold. The STOCH value of 73.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6590.

Shibaura Mechatronics Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	82 Outperform	¥83.38B	14.46	―	3.23%	7.28%	4.16%
6590	80 Outperform	¥280.84B	24.18	―	1.49%	18.20%	28.13%
6787	76 Outperform	¥259.89B	14.41	―	0.76%	15.02%	46.62%
6814	76 Outperform	¥266.84B	16.47	―	1.88%	6.56%	106.55%
6957	75 Outperform	¥109.98B	33.78	―	2.12%	3.95%	-32.30%
6908	70 Outperform	¥75.23B	19.06	―	3.05%	10.79%	12.28%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shibaura Mechatronics Corp. Corporate Events

Shibaura Mechatronics Reports Strong Half-Year Results but Lowers Full-Year Forecast

Shibaura Mechatronics Corporation reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 16.2% and operating income increasing by 31.7% compared to the previous year. Despite the positive performance, the company has revised its forecast for the fiscal year ending March 31, 2026, anticipating a modest growth in net sales but a decline in operating and ordinary income, indicating potential challenges ahead.

The most recent analyst rating on (JP:6590) stock is a Buy with a Yen17975.00 price target. To see the full list of analyst forecasts on Shibaura Mechatronics Corp. stock, see the JP:6590 Stock Forecast page.