Yokogawa Electric (6841) AI Stock Analysis

• Market Cap: $1.34T
• Dividend Yield: 1.21%
• Average Volume (3M): 775.53K
• Price to Earnings (P/E): 20.6
• 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: 257,201,200
• 10 Day Avg. Volume: 913,580
• 30 Day Avg. Volume: 775,533
• PEG Ratio: -0.99
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 8.53
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 10.57
• 1Y Price Target: $6,271.32
• Price Target Upside: 19.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥6,348.00 ▲(21.31% 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

Low leverage, strong balance sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility. This supports capital spending for long-cycle automation projects, cushions downturns in cyclical end markets, preserves investment-grade credit options, and underpins sustained R&D and services support.

Strong cash generation and FCF

Robust operating and free cash flow relative to reported earnings indicates high cash conversion. That persistent cash generation funds lifecycle services, product development, targeted capex and potential shareholder returns without reliance on external financing, improving long-term resiliency.

Healthy profit margins and operational efficiency

High gross margins and an improving EBIT margin signal pricing power on instruments and control systems plus operational leverage on projects. Sustainable margins support reinvestment into software, services and global support infrastructure that drive recurring installed-base revenue.

Negative Factors

Moderate revenue growth pace

A mid-single-digit revenue growth rate suggests steady but limited top-line expansion. For long-term value creation, sustaining higher organic growth would require new product uptake, geographic expansion or increased recurring software/service penetration, otherwise upside may remain constrained.

Exposure to cyclical end markets

Heavy exposure to capital-intensive process sectors links revenue to investment cycles and commodity prices. Large project timing and capex fluctuations can produce lumpy bookings and revenue volatility over multi-quarter periods despite stable installed-base services.

Signs of margin pressure

A declining EBITDA margin suggests potential cost, mix, or efficiency headwinds that could compress operating cash flow if sustained. Given moderate net margins and growth, persistent margin deterioration would reduce reinvestment capacity and weaken long-term profitability.

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 primarily makes money by selling and supporting industrial automation systems and field instrumentation to process-industry customers. Key revenue streams typically include: (1) Control and safety systems projects: revenue from the design, engineering, supply, and integration of automation platforms such as DCS and safety systems for new plants, expansions, and major upgrades. These projects often bundle hardware, system software, and engineering services, with revenue recognized as equipment is delivered and project milestones are met. (2) Field instruments and analyzers: product sales of measurement devices (e.g., pressure/temperature/flow instruments) and process analyzers used across plant operations; these sales can be driven by both new capital investment and replacement/standardization cycles. (3) Software and digital solutions: revenue from industrial software, applications that support operations and asset performance, and associated licenses/subscriptions where applicable. (4) Services and lifecycle support: recurring income from maintenance contracts, calibration/inspection, repairs, spare parts, on-site support, system migrations, and modernization services that extend installed-base life and improve performance; this installed base can provide repeat business beyond initial equipment sales. (5) Engineering and consulting: fees for front-end engineering support, system design, commissioning, training, and operational improvement engagements. Significant factors supporting earnings typically include long customer relationships and switching costs in mission-critical control/safety systems, a large installed base that drives ongoing service and replacement demand, and participation in large-scale capital projects in energy and process industries. Specific named partnerships or customer contracts are not provided here and are therefore null.

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	587.83B	562.40B	540.15B	456.48B	389.90B	374.21B
Gross Profit	274.47B	267.53B	254.96B	204.78B	173.01B	164.59B
EBITDA	110.13B	106.39B	101.32B	64.08B	48.33B	49.16B
Net Income	58.26B	52.12B	61.69B	38.92B	21.27B	19.22B
Balance Sheet
Total Assets	760.06B	718.28B	672.87B	618.64B	555.97B	519.08B
Cash, Cash Equivalents and Short-Term Investments	192.98B	188.75B	139.88B	121.44B	117.69B	102.92B
Total Debt	24.24B	34.05B	32.88B	57.07B	54.05B	54.65B
Total Liabilities	244.64B	242.56B	228.10B	231.81B	215.63B	204.31B
Stockholders Equity	505.30B	467.86B	436.64B	379.63B	333.57B	308.32B
Cash Flow
Free Cash Flow	0.00	88.18B	55.12B	31.79B	43.36B	24.15B
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: Negative
• Last Price: 5233.00
• 50DMA: Negative
• 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 Negative. The current price of 5233 is below the 20-day moving average (MA) of 5667.05, below the 50-day MA of 5363.24, and above the 200-day MA of 4596.95, indicating a neutral trend. The MACD of 22.48 indicates Positive momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 40.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6841	78 Outperform	$1.34T	20.64	12.13%	1.21%	4.63%	12.32%
6407	75 Outperform	¥301.90B	14.76	―	2.50%	6.16%	17.11%
6622	73 Outperform	¥278.16B	14.24	―	1.65%	14.49%	-21.17%
6268	71 Outperform	¥507.32B	28.49	5.25%	2.13%	-2.23%	130.96%
6508	71 Outperform	¥345.26B	8.30	14.28%	2.40%	8.03%	23.50%
6845	68 Neutral	¥754.30B	19.60	―	1.81%	-1.44%	50.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%