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Yokogawa Electric Corp. (JP:6841)
:6841

Yokogawa Electric (6841) AI Stock Analysis

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JP

Yokogawa Electric

(OTC:6841)

Rating:77Outperform
Price Target:
¥4,023.00
▲(10.34%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 (6841) vs. iShares MSCI Japan ETF (EWJ)

Yokogawa Electric Business Overview & Revenue Model

Company DescriptionYokogawa 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 MoneyYokogawa 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 shows strong financial performance with consistent revenue growth, healthy profit margins, and robust cash flow. The balance sheet is solid with low leverage and high equity ratio, positioning the company well for future growth and stability.
Income Statement
85
Very Positive
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
88
Very Positive
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
90
Very Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
555.95B562.40B540.15B456.48B389.90B374.21B
Gross Profit
262.70B267.44B254.89B204.46B172.81B164.17B
EBIT
78.83B83.52B78.80B44.41B30.68B31.60B
EBITDA
97.35B102.61B111.51B64.08B48.73B49.16B
Net Income Common Stockholders
48.27B52.12B61.69B38.92B21.27B19.22B
Balance SheetCash, Cash Equivalents and Short-Term Investments
173.54B188.75B139.88B121.44B117.69B102.92B
Total Assets
708.73B718.28B672.87B618.64B555.82B519.08B
Total Debt
24.13B34.05B32.88B57.07B54.05B54.65B
Net Debt
-149.41B-154.70B-101.55B-64.36B-63.64B-48.27B
Total Liabilities
229.08B242.56B228.10B231.81B215.47B204.31B
Stockholders Equity
468.89B467.86B436.64B379.63B333.59B308.32B
Cash FlowFree Cash Flow
0.0088.18B39.70B19.58B33.52B16.33B
Operating Cash Flow
0.0099.03B63.83B40.42B51.64B32.84B
Investing Cash Flow
0.00-28.64B2.65B-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 Price3646.00
Price Trends
50DMA
3201.58
Positive
100DMA
3132.54
Positive
200DMA
3336.30
Positive
Market Momentum
MACD
105.16
Positive
RSI
70.84
Negative
STOCH
77.68
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 3646 is above the 20-day moving average (MA) of 3506.25, above the 50-day MA of 3201.58, and above the 200-day MA of 3336.30, indicating a bullish trend. The MACD of 105.16 indicates Positive momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 77.68 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$964.16B18.0211.39%1.60%4.12%-14.50%
66
Neutral
$4.51B12.295.40%3.67%4.15%-12.21%
$9.70B19.5919.46%2.42%
$7.22B15.2416.07%2.30%
$12.30B21.2912.94%1.45%
$1.93B26.894.03%3.21%
80
Outperform
¥676.41B16.26
2.05%3.24%36.34%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6841
Yokogawa Electric
3,646.00
-184.82
-4.82%
DAIUF
Daifuku Co
25.50
7.37
40.65%
EBCOF
Ebara
15.84
0.60
3.94%
KWHIF
Kawasaki Heavy Industries
69.39
33.67
94.26%
NCTKF
Nabtesco
15.80
-0.66
-4.01%
JP:6845
Azbil Corporation
1,284.00
233.54
22.23%
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.