Yokogawa Electric (6841) AI Stock Analysis

• Market Cap: ¥946.54B
• Dividend Yield: 1.56%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.23
• Revenue Growth: 4.12%
• EPS Growth: -14.50%
• Country: JP
• Employees: 17,365
• Sector: Industrials
• Sector Strength: 91
• Industry: Industrial - Machinery
• EPS (TTM): 51.67
• Shares Outstanding: 268,624,500
• 10 Day Avg. Volume: 1,163,860
• 30 Day Avg. Volume: 1,055,433
• PEG Ratio: -3.22
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,621.08
• Price Target Upside: 30.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: ¥4,023.00 ▲(13.45%Upside)

Yokogawa Electric's strong financial performance is the most significant strength, with robust revenue growth and financial health. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The valuation is reasonable, providing a balanced investment opportunity.

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 primarily through the sale of its industrial automation and control solutions, which include distributed control systems, safety instrumented systems, and various field instruments like flowmeters and analyzers. Another significant revenue stream comes from its advanced software solutions and services that enhance operational efficiency and safety for its clients. The company also earns through its test and measurement equipment used in research and development across various industries. Strategic partnerships and long-term service agreements with major industrial companies worldwide further bolster its earnings, along with investments in new technologies and markets that support sustainable growth.

Yokogawa Electric Financial Statement Overview

Summary

Yokogawa Electric is in a strong financial position, showcasing impressive revenue growth and profitability. The company maintains a stable balance sheet with low leverage. However, the absence of operating cash flow data in the TTM period raises concerns about cash management continuity.

Income Statement

Yokogawa Electric has demonstrated strong revenue growth, with a substantial increase in total revenue over recent years. The gross profit margin and EBIT margin are robust, indicating efficient cost management and operational profitability. The net profit margin is also commendable, showcasing effective bottom-line management. However, there is a slight decline in net income in the TTM period, which needs monitoring.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, suggesting prudent financial leverage. The return on equity is healthy, reflecting effective use of equity capital. The equity ratio is strong, indicating a stable financial structure. However, the overall liabilities remain significant, which could pose a risk if not managed carefully.

Cash Flow

Free cash flow has shown growth, reflecting efficient cash management and capital expenditure control. However, the operating cash flow to net income ratio is unavailable for the TTM period due to missing data. The cash flow from operations historically supports profitability, but the lack of operating cash flow data in the recent period is a concern.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
555.95B	540.15B	456.48B	389.90B	374.21B	404.43B
	Gross Profit
262.70B	254.89B	204.46B	172.81B	164.17B	176.51B
	EBIT
78.83B	78.80B	44.41B	30.68B	31.60B	35.59B
	EBITDA
97.11B	111.51B	64.08B	48.73B	49.16B	54.38B
	Net Income Common Stockholders
48.27B	61.69B	38.92B	21.27B	19.22B	14.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
173.54B	139.88B	121.44B	117.69B	102.92B	101.52B
	Total Assets
708.73B	672.87B	618.64B	555.82B	519.08B	489.68B
	Total Debt
24.13B	32.88B	57.07B	54.05B	54.65B	59.44B
	Net Debt
-149.41B	-101.55B	-64.36B	-63.64B	-48.27B	-42.08B
	Total Liabilities
229.08B	228.10B	231.81B	215.47B	204.31B	198.21B
	Stockholders Equity
468.89B	436.64B	379.63B	333.59B	308.32B	285.90B
Cash Flow		Free Cash Flow
0.00	39.70B	19.58B	33.52B	16.33B	14.12B
	Operating Cash Flow
0.00	63.83B	40.42B	51.64B	32.84B	31.13B
	Investing Cash Flow
0.00	2.65B	-32.94B	-28.33B	-18.62B	-18.18B
	Financing Cash Flow
0.00	-57.50B	-10.93B	-16.16B	-17.11B	4.58B

Yokogawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3546.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3546 is above the 20-day moving average (MA) of 3482.50, above the 50-day MA of 3177.68, and above the 200-day MA of 3334.24, indicating a bullish trend. The MACD of 103.77 indicates Positive momentum. The RSI at 65.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.41 is Neutral, 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
6845	80 Outperform	¥674.55B	16.22		1.90%	3.24%	36.34%
6383	78 Outperform	$1.43T	18.92	19.46%	2.43%	―	―
6841	77 Outperform	¥946.54B	17.69	11.39%	1.56%	4.12%	-14.50%
6361	76 Outperform	¥1.03T	14.21	16.07%	2.31%	15.14%	8.30%
6268	68 Neutral	¥279.84B	26.04	4.03%	3.28%	2.87%	2.48%
7012	66 Neutral	$1.80T	20.41	12.94%	1.33%	15.14%	246.85%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%