Shibaura Mechatronics Corp. (6590) AI Stock Analysis

• Market Cap: ¥399.31B
• Dividend Yield: 1.49%
• Average Volume (3M): 649.73K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.43
• Revenue Growth: 18.20%
• EPS Growth: 28.13%
• Country: JP
• Employees: 1,211
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 53.88
• Shares Outstanding: 69,859,500
• 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: ¥34,000.00
• Price Target Upside: 488.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 172.54
• Revenue Forecast (FY): ¥88.97B

• Rating: 77 Outperform
• Price Target: ¥6,568.00 ▲(13.63% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial performance (revenue/margin expansion, improved leverage, and rising free cash flow) and a technically bullish trend (price above major moving averages with positive MACD). Valuation is the main offset due to a higher P/E and modest dividend yield.

Positive Factors

Sustained revenue and margin expansion

The company has demonstrated multi-year top-line expansion alongside meaningful margin improvement, indicating structural gains in pricing, cost control, or product mix. These durable profitability trends support reinvestment in R&D and product lines and provide earnings resilience across the next several quarters.

Strong free cash flow generation

Material and rising free cash flow strengthens financial flexibility, funds ongoing capex and maintenance, and reduces reliance on external financing. This cash generation profile supports durable investment in installed-base services and cushions the business through cyclical downturns over the medium term.

Improved balance sheet and lower leverage

Significantly reduced leverage and a stronger equity buffer increase financial resilience and decrease interest burden risk. Improved balance sheet capacity gives management durable optionality to pursue selective M&A, R&D, or capex without materially increasing financial stress in the near-to-medium term.

Negative Factors

Legacy higher debt history

Although leverage has improved, the company's history of materially higher debt suggests potential legacy contractual obligations or refinancing stigmas. If demand softens, prior debt patterns could constrain free cash flow flexibility and limit the company's ability to invest or return capital over upcoming quarters.

Volatile capital expenditure profile

Irregular capex creates variability in free cash flow and can reflect lumpy investment cycles tied to customer projects. This increases execution risk: underinvestment harms competitiveness, while overinvestment can stress liquidity. Consistent capex discipline is needed to preserve durable cash generation.

Revenue concentration in upfront equipment sales

Heavy reliance on capital equipment sales makes revenue lumpy and tightly linked to industrial capex cycles, reducing predictability. Limited transparency on recurring service or parts revenue weakens visibility into stable, long-term cash flows and recurring margin contribution across multiple quarters.

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

Strong operating performance with consistent revenue growth (44.79B in 2021 to 80.92B in 2025), expanding margins (gross margin up to 38.89% and net margin up to 12.76%), improving leverage (debt-to-equity down to 0.18), and solid free cash flow growth (to 4.07B in 2025). Some risk remains from historical higher debt levels and capex fluctuations.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 5780.00
• 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:6590, the sentiment is Positive. The current price of 5780 is above the 20-day moving average (MA) of 5224.80, above the 50-day MA of 4736.12, and above the 200-day MA of 3036.60, indicating a bullish trend. The MACD of 276.20 indicates Negative momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.05 is Negative, 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	79 Outperform	¥105.76B	19.22	―	3.23%	7.28%	4.16%
6590	77 Outperform	¥399.31B	31.00	―	1.49%	18.20%	28.13%
6814	76 Outperform	¥250.13B	15.44	―	1.88%	6.56%	106.55%
6908	70 Outperform	¥89.86B	23.76	―	3.05%	10.79%	12.28%
6787	67 Neutral	¥565.07B	32.87	―	0.76%	15.02%	46.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shibaura Mechatronics Corp. Corporate Events

Shibaura Mechatronics Lifts Earnings and Forecast, Announces 5-for-1 Stock Split

Shibaura Mechatronics reported strong results for the nine months ended December 31, 2025, with net sales rising 17.0% year on year to ¥66.16 billion and net income attributable to owners of the parent climbing 27.4% to ¥8.85 billion, alongside a higher equity ratio of 55.1%, signaling improved profitability and a stronger balance sheet. The company revised its full-year forecast upward to net sales of ¥88.0 billion and net income of ¥10.8 billion and approved a 5-for-1 stock split effective March 1, 2026, adjusting its dividend forecast accordingly, moves that aim to enhance share liquidity and return value to shareholders while underlining confidence in continued earnings growth.

The most recent analyst rating on (JP:6590) stock is a Hold with a Yen24850.00 price target. To see the full list of analyst forecasts on Shibaura Mechatronics Corp. stock, see the JP:6590 Stock Forecast page.