Want to see JP:6841 full AI Analyst Report?
Top Page
Yokogawa Electric
(6841)
Select Model
Select Model
Rating:71Outperform
Price Target:
¥5,266.00
▼(-6.88% Downside)
Action:Reiterated
Date:05/11/26
The score is primarily driven by strong financial quality—especially the very low leverage and resilient profitability—tempered by margin/cash-flow variability. Technicals are a secondary drag due to weakness versus short- and medium-term moving averages, while valuation is moderate with a modest dividend yield.
Positive Factors
Balance Sheet Strength
Exceptionally low leverage and improving debt/equity provide durable financial flexibility. This strengthens the firm's ability to fund capex, R&D, bolt-on M&A, and endure industry downturns without forcing asset sales or dilutive financing, supporting long-term stability.
Negative Factors
Margin Variability
Year-to-year swings in gross and operating margins suggest execution, cost pressure or mix shifts can materially affect profitability. Persistent variability reduces predictability of earnings and complicates long-term planning for investments and dividend policy.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Exceptionally low leverage and improving debt/equity provide durable financial flexibility. This strengthens the firm's ability to fund capex, R&D, bolt-on M&A, and endure industry downturns without forcing asset sales or dilutive financing, supporting long-term stability.
Read all positive factors
Yokogawa Electric (6841) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.48T
Dividend Yield1.35%
Average Volume (3M)775.53K
Price to Earnings (P/E)25.4
Beta (1Y)1.28
Revenue Growth7.54%
EPS Growth13.64%
CountryJP
Employees18,313
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)227.75
Shares Outstanding257,201,200
10 Day Avg. Volume913,580
30 Day Avg. Volume775,533
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)2.33
Price to Sales (P/S)2.00
P/FCF Ratio16.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,957.50Price Target Upside5.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)249.12
Revenue Forecast (FY)¥624.14B
Yokogawa Electric Business Overview & Revenue Model
Company Description
Yokogawa Electric Corporation operates as a global provider of industrial automation, alongside test and measurement solutions, across a wide geographical footprint including Japan, Southeast Asia, the Far East, China, India, Europe, Russia, North...
How the Company Makes Money
Yokogawa makes money by selling industrial automation and measurement solutions and then earning recurring and repeat revenue over the lifecycle of customer facilities.
1) Industrial automation systems (project-based revenue): A major revenue str...
Yokogawa Electric Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operating performance: sales, operating profit (both nominally and FX-adjusted), net income and backlog increased and there were strong wins in energy/CCUS and data-center-related measuring instruments. However, material headwinds remain—especially currency appreciation, a notable slowdown in the Materials business driven by China, higher SG&A, and tariff-related uncertainty—which temper the upside. Management kept the full-year forecast unchanged and emphasized timing risk for large projects. On balance, the positives (top-line and profit growth, backlog expansion, regional project wins) outweigh the negatives.Positive Updates
Revenue Growth (FX-adjusted)
Sales of JPY130.2 billion, up JPY9.2 billion or +7.1% excluding foreign exchange effects, driven by strong backlog conversion and project sales.
Negative Updates
Foreign Exchange Headwinds
Strong appreciation of the yen (from JPY158.15 to JPY144.11 vs. USD) exerted significant downward pressure on reported results; FX caused reported orders and some sales comparisons to appear weaker in nominal terms, and operating foreign-currency losses were recorded.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth (FX-adjusted)
Sales of JPY130.2 billion, up JPY9.2 billion or +7.1% excluding foreign exchange effects, driven by strong backlog conversion and project sales.
Read all positive updates
Company Guidance
Management reiterated no change to the full-year earnings forecast announced in May, noting a stronger-than-expected Q1 start with orders of JPY149.1bn (up JPY1.6bn, +1% excl. FX), sales JPY130.2bn (up JPY9.2bn, +7.1% excl. FX), operating profit JPY16.2bn (up JPY1.4bn YoY; +JPY2.7bn excl. FX from JPY14.8bn), and net income JPY15.2bn (up JPY5.1bn); backlog exceeded JPY15bn over the past three months. They reported gross profit +JPY4.3bn and a modest gross-margin improvement (~JPY0.5bn), offset in part by SG&A headwinds of JPY2.1bn; Q1 import duties were about JPY0.3bn while the May plan assumed ~JPY3.0bn of tariffs for the year with roughly JPY1.5bn borne by customers (actual tariff payments to date have exceeded JPY1.5bn), but management judged the overall annual operating‑profit impact not large and expects tariff uncertainty to ease from Q2 onward. Segment/regional datapoints used to support guidance included control sales +7.2% excl. FX, measuring instruments sales +4.8% excl. FX, Energy & Sustainability −JPY2.8bn but +3.8% excl. FX, Materials −JPY5.8bn (−6.2% excl. FX), Life +JPY0.3bn (+6.1% excl. FX), and regional sales growth generally +5–10% excl. FX (Southeast Asia/Far East ~+10%).Yokogawa Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 604.83B | 562.40B | 540.15B | 456.48B | 389.90B |
| Gross Profit | 276.39B | 267.53B | 254.96B | 204.78B | 173.01B |
| EBITDA | 105.03B | 102.61B | 111.51B | 70.59B | 48.73B |
| Net Income | 58.11B | 52.12B | 61.69B | 38.92B | 21.27B |
Balance Sheet | |||||
| Total Assets | 795.62B | 718.28B | 672.87B | 618.64B | 555.97B |
| Cash, Cash Equivalents and Short-Term Investments | 217.55B | 188.75B | 139.88B | 121.44B | 117.69B |
| Total Debt | 34.24B | 34.05B | 32.88B | 57.07B | 54.05B |
| Total Liabilities | 265.72B | 242.56B | 228.10B | 231.81B | 215.63B |
| Stockholders Equity | 520.02B | 467.86B | 436.64B | 379.63B | 333.57B |
Cash Flow | |||||
| Free Cash Flow | 74.83B | 88.18B | 55.12B | 31.79B | 43.36B |
| Operating Cash Flow | 85.95B | 99.03B | 63.83B | 40.42B | 51.64B |
| Investing Cash Flow | -33.13B | -28.64B | 2.65B | -32.94B | -28.33B |
| Financing Cash Flow | -35.17B | -26.24B | -57.50B | -10.93B | -16.16B |
Yokogawa Electric Technical Analysis
Negative
5655.00
Price Trends
5443.22
Negative
5336.74
Negative
5155.18
Positive
Market Momentum
45.22
Positive
42.54
Neutral
41.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6841, the sentiment is Negative. The current price of 5655 is above the 20-day moving average (MA) of 5628.20, above the 50-day MA of 5443.22, and above the 200-day MA of 5155.18, indicating a neutral trend. The MACD of 45.22 indicates Positive momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6841.
Yokogawa Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥888.46B | 21.97 | ― | 1.81% | -0.48% | -2.79% | |
71 Outperform | ¥1.48T | 25.39 | 11.78% | 1.38% | 7.54% | 13.64% | |
68 Neutral | ¥436.45B | 15.46 | 15.55% | 2.40% | 12.05% | 57.34% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥549.99B | 28.02 | 6.59% | 1.65% | -7.97% | 77.19% | |
57 Neutral | ¥402.08B | 29.52 | ― | 2.50% | 1.45% | 0.37% | |
54 Neutral | ¥310.09B | 23.32 | ― | 1.65% | 5.02% | 19.84% |
* Industrials Sector Average
JP:6841
Yokogawa Electric
5,335.00
1,240.39
30.29%
JP:6268
Nabtesco
4,918.00
1,931.83
64.69%
JP:6508
Meidensha Corporation
11,140.00
5,213.23
87.96%
JP:6407
CKD Corporation
6,500.00
4,016.56
161.73%
JP:6622
Daihen Corporation
14,130.00
6,182.86
77.80%
JP:6845
Azbil Corporation
1,731.00
271.58
18.61%
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.