Yokogawa Electric (6841) AI Stock Analysis

• Market Cap: $1.65T
• Dividend Yield: 1.21%
• Average Volume (3M): 775.53K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.19
• Revenue Growth: 4.63%
• EPS Growth: 12.32%
• Country: JP
• Employees: 17,365
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 268,624,500
• 10 Day Avg. Volume: 913,580
• 30 Day Avg. Volume: 775,533
• PEG Ratio: -0.98
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 10.43
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 12.27
• 1Y Price Target: $6,014.36
• Price Target Upside: -2.52% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥7,037.00 ▲(14.05% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Yokogawa Electric's strong financial performance is the most significant factor, supported by robust revenue growth, profitability, and financial stability. Technical analysis indicates positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics suggest moderate attractiveness, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Balance-sheet strength

Very low leverage and a high equity ratio give the company durable financial flexibility. This reduces refinancing risk, supports capex or M&A, and lets management fund multi-year projects or withstand cyclical downturns without compromising operations or service commitments.

Cash generation

Strong operating and free cash flow relative to earnings provides reliable internal funding for R&D, modernization of installed systems, and working capital. Robust cash conversion enhances resilience and reduces dependence on external financing over multi-quarter horizons.

Installed base & recurring services

A large installed base and lifecycle services create recurring revenue and high switching costs for mission-critical control and safety systems. This steady aftermarket stream cushions capital-project cyclicality and supports long-term margin stability and customer retention.

Negative Factors

End-market cyclicality

Heavy exposure to capital-intensive and cyclical process industries makes revenues sensitive to project timing and commodity cycles. Large project deferrals or capex slowdowns in these end markets can materially reduce order intake and revenue over multiple quarters.

Modest organic revenue growth

Single-digit top-line growth limits the pace of scale benefits and may constrain long-term margin expansion versus faster-growing peers. Sustaining higher growth will likely require either broader digital uptake, share gains or incremental product offerings.

EBITDA margin pressure

A declining EBITDA margin signals potential pressure from product mix, pricing, or higher operating costs. If sustained, it could weaken operating leverage, reduce free cash flow growth, and limit capacity to invest in strategic initiatives without margin recovery.

Yokogawa Electric Business Overview & Revenue Model

Company Description

Yokogawa Electric Corporation provides industrial automation, and test and measurement solutions in Japan, Southeast Asia, Far East, China, India, Europe, Russia, North America, the Middle East, Africa, and Middle and South America. It operates through three segments: Industrial Automation and Control, Test and Measurement, and Aviation and Other Businesses. The Industrial Automation and Control Business segment offers field instruments, such as flow meters, differential pressure/pressure transmitters, and process analyzers; control systems and programmable controllers; and various software products and services. The Test and Measurement Business segment provides waveform and optical communications measuring instruments, and signal generators; electric voltage, current, and power measuring instruments; LCD drivers; and confocal scanners. The Aviation and Other Businesses segment offers instruments for aviation industry. The company serves oil and gas, LNG supply chain, chemical, power, renewable energy, water and wastewater, mining and metal, pharmaceutical, pulp and paper, iron and steel, and food and beverage industries. The company was formerly known as Yokogawa Electric Works Ltd. and changed its name to Yokogawa Electric Corporation in 1986. Yokogawa Electric Corporation was founded in 1915 and is headquartered in Musashino, Japan.

How the Company Makes Money

Yokogawa Electric generates revenue through multiple streams, primarily from the sale of industrial automation products and systems, including control systems, field instruments, and software solutions. The company also earns income from maintenance services, consultancy, and training related to its products. Significant partnerships with large industrial firms enhance Yokogawa's market presence and contribute to its earnings. Additionally, revenue is bolstered by a focus on digital transformation and the Internet of Things (IoT), as industries increasingly seek to integrate smart technologies into their operations.

Yokogawa Electric Financial Statement Overview

Summary

Yokogawa Electric demonstrates strong financial health with consistent revenue growth, effective cost management, and robust cash flows. The company maintains a low-risk balance sheet with a solid debt-to-equity ratio and high equity ratio, indicating financial stability and a strong asset base.

Income Statement

Yokogawa Electric shows strong financial performance with consistent revenue growth, evident from a 5.3% revenue growth in the most recent year. The company maintains healthy gross and net profit margins at 47.5% and 9.3% respectively, indicating effective cost management. The EBIT margin improved to 14.9%, reflecting operational efficiency, though the EBITDA margin slightly declined. These results highlight profitability and positive growth trends.

Balance Sheet

The balance sheet is robust with a solid debt-to-equity ratio of 0.07, indicating low leverage and strong financial health. The equity ratio stands at 65.1%, underscoring financial stability and a strong asset base. The return on equity is 11.1%, showcasing effective utilization of shareholder funds. These metrics suggest solid fiscal management and a low-risk financial position.

Cash Flow

Cash flow performance is commendable, with a strong operating cash flow to net income ratio of 1.9, highlighting excellent cash generation capabilities. The free cash flow grew significantly, reflecting efficient capital management. A robust free cash flow to net income ratio of 1.7 further indicates strong cash flow relative to earnings, providing flexibility for future investments or debt reduction.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	563.69B	562.40B	540.15B	456.48B	389.90B	374.21B
Gross Profit	269.13B	267.44B	254.89B	204.46B	172.81B	164.17B
EBITDA	107.54B	102.61B	111.51B	70.59B	48.73B	49.65B
Net Income	57.22B	52.12B	61.69B	38.92B	21.27B	19.22B
Balance Sheet
Total Assets	701.71B	718.28B	672.87B	618.64B	555.82B	519.08B
Cash, Cash Equivalents and Short-Term Investments	176.10B	188.75B	139.88B	121.44B	117.69B	102.92B
Total Debt	24.13B	34.05B	32.88B	57.07B	54.05B	54.65B
Total Liabilities	229.46B	242.56B	228.10B	231.81B	215.47B	204.31B
Stockholders Equity	463.50B	467.86B	436.64B	379.63B	333.59B	308.32B
Cash Flow
Free Cash Flow	0.00	72.11B	39.70B	19.58B	33.52B	16.33B
Operating Cash Flow	0.00	99.03B	63.83B	40.42B	51.64B	32.84B
Investing Cash Flow	0.00	-28.64B	2.65B	-32.94B	-28.33B	-18.62B
Financing Cash Flow	0.00	-26.24B	-57.50B	-10.93B	-16.16B	-17.11B

Yokogawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6170.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6841, the sentiment is Positive. The current price of 6170 is above the 20-day moving average (MA) of 5372.50, above the 50-day MA of 5237.32, and above the 200-day MA of 4460.17, indicating a bullish trend. The MACD of 256.66 indicates Negative momentum. The RSI at 77.56 is Negative, neither overbought nor oversold. The STOCH value of 92.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6841.

Yokogawa Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6841	78 Outperform	$1.65T	27.48	11.96%	1.21%	4.63%	12.32%
6407	75 Outperform	¥375.21B	28.83	―	2.50%	6.16%	17.11%
6622	73 Outperform	¥331.00B	25.60	―	1.65%	14.49%	-21.17%
6268	71 Outperform	$591.54B	38.64	5.25%	2.13%	-2.23%	130.96%
6508	71 Outperform	¥360.23B	15.98	14.28%	2.40%	8.03%	23.50%
6845	68 Neutral	¥770.57B	21.36	―	1.81%	-1.44%	50.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%