Azbil Corporation (6845) AI Stock Analysis

• Market Cap: ¥718.56B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.69
• Revenue Growth: -1.44%
• EPS Growth: 50.86%
• Country: JP
• Employees: 9,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 16.29
• Shares Outstanding: 541,372,740
• 10 Day Avg. Volume: 1,351,300
• 30 Day Avg. Volume: 1,260,490
• PEG Ratio: 0.40
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 17.93
• 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: ¥1,675.00
• Price Target Upside: 24.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,522.00 ▲(12.99% Upside)

Azbil Corporation's strong financial performance, characterized by robust revenue and profit growth, efficient cash generation, and a solid balance sheet, is the primary driver of its stock score. The technical analysis supports a bullish outlook, although caution is advised due to overbought signals. The valuation is reasonable, offering a balanced risk-reward profile.

Positive Factors

Balance sheet strength

Azbil’s extremely low leverage and high equity ratio provide durable financial flexibility to fund capex, service network expansion, or opportunistic M&A without stressing liquidity. A 17.3% ROE shows efficient capital deployment, supporting resilience through cycles.

Strong cash generation

Substantial FCF growth and near-one cash conversion demonstrate durable operational cash conversion. Reliable free cash supports reinvestment in product development and service capabilities, funds working capital, and reduces dependence on external financing over months.

High and sustainable margins

Robust gross and EBITDA margins reflect pricing power and operational efficiency across products and lifecycle services. High margins provide a buffer against cost shocks, enable continued R&D and service investment, and support persistent profitability in the medium term.

Negative Factors

Revenue trend weakness

The reported negative revenue growth metric suggests recent topline pressure or timing variability in orders; if the decline persists it could reduce visibility for capacity planning and constrain investments. Revenue softness risks dampening near-term growth momentum.

Exposure to cyclical end markets

Azbil’s core businesses are capex-sensitive: system sales and plant automation tie closely to construction and industrial investment cycles. Macro slowdowns or delayed capital projects can materially reduce new-project revenue and delay upgrade/service demand.

Installed-base dependent recurring revenue

A large share of recurring revenue comes from maintenance and upgrades of installed systems. While stable, this reliance can limit top-line upside absent stronger new-system orders or market-share gains, constraining faster organic growth over months.

Azbil Corporation Business Overview & Revenue Model

Company Description

Azbil Corporation provides automation products and services worldwide. It operates through three segments: Building Automation Business, Advanced Automation Business, and Life Automation Business. The Building Automation Business segment supplies commercial buildings and production facilities with automatic heating ventilation; and air conditioning control and security systems, including products, engineering, and related services. This segment serves office buildings, research laboratories, factories, data centers, government offices, hotels, shopping centers, hospitals, schools, airports, etc. The Advance Automation Business segment supplies automation control systems, switches and sensors, and engineering and maintenance services to industrial plants and factories. This segment serves customers in the fields of petrochemicals and chemicals, oil refining, electric power and gas, iron and steel, waste management, water supply and sewerage, pulp and paper, ships, etc.; and food, automobiles, electrical and electronics, and semiconductors, as well as manufacturing equipment. The Life Automation Business segment supplies meters for lifelines, residential central air-conditioning systems, and life sciences research; and manufactures and sells manufacturing equipment and environmental equipment for the pharmaceutical and medical fields, as well as offers related services. This segment serves gas companies, local government, pharmaceutical manufacturer, and house builders. The company was formerly known as Yamatake Corporation and changed its name to Azbil Corporation in April 2012. Azbil Corporation was founded in 1906 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Azbil Corporation generates revenue through multiple streams, primarily from the sale of automation equipment and solutions, including building and industrial automation systems. The company earns money by providing integrated solutions that encompass hardware, software, and services, such as installation, maintenance, and support. Key revenue streams include the sale of proprietary products like sensors, actuators, and control systems, as well as recurring revenue from service contracts and system upgrades. Significant partnerships with various industries, including energy, pharmaceuticals, and manufacturing, contribute to its earnings by expanding its market reach and enabling tailored solutions for specific client needs. Additionally, Azbil focuses on R&D to innovate and adapt to changing market demands, which helps sustain its competitive edge and financial performance.

Azbil Corporation Financial Statement Overview

Summary

Azbil Corporation demonstrates overall financial strength with steady revenue and profit growth, efficient cash generation, and a strong balance sheet. The company's low leverage and high profitability ratios underscore its stability and growth potential, making it well-positioned in the industrial machinery sector.

Income Statement

Azbil Corporation has shown consistent revenue growth with a 3.25% increase from 2024 to 2025. The company maintains strong profitability with a gross profit margin of 43.9%, net profit margin of 13.6%, and EBITDA margin of 20.0% for 2025. These metrics indicate robust operational efficiency and a positive growth trajectory.

Balance Sheet

The company's debt-to-equity ratio is low at 0.02, reflecting a strong balance sheet with minimal leverage, enhancing financial stability. Return on equity is impressive at 17.3%, indicating effective use of shareholders' equity to generate profits. The equity ratio stands at 75.3%, showcasing a solid capital structure with high equity financing.

Cash Flow

Azbil Corporation has achieved a substantial free cash flow growth of 88.3% from 2024 to 2025, reflecting efficient cash generation. The operating cash flow to net income ratio is 1.07, and the free cash flow to net income ratio is 0.91, indicating strong cash conversion and liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	296.88B	300.38B	290.94B	278.41B	256.55B	246.82B
Gross Profit	132.93B	131.86B	122.97B	111.94B	105.71B	99.37B
EBITDA	35.96B	60.02B	42.93B	37.22B	35.01B	30.21B
Net Income	41.26B	40.95B	30.21B	22.60B	20.78B	19.92B
Balance Sheet
Total Assets	295.88B	315.07B	313.73B	296.87B	280.05B	284.60B
Cash, Cash Equivalents and Short-Term Investments	92.44B	94.89B	79.98B	78.71B	89.75B	105.01B
Total Debt	11.88B	5.48B	9.45B	12.41B	8.35B	9.35B
Total Liabilities	66.64B	74.56B	88.84B	91.00B	76.91B	83.99B
Stockholders Equity	226.40B	237.20B	221.52B	202.82B	200.31B	198.19B
Cash Flow
Free Cash Flow	0.00	33.74B	19.85B	2.90B	-5.20B	9.98B
Operating Cash Flow	0.00	43.95B	27.54B	13.12B	10.12B	22.60B
Investing Cash Flow	0.00	2.03B	-2.36B	-1.98B	-3.99B	283.00M
Financing Cash Flow	0.00	-29.77B	-22.45B	-19.69B	-20.58B	-7.00B

Azbil Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1347.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6845, the sentiment is Negative. The current price of 1347 is below the 20-day moving average (MA) of 1398.83, below the 50-day MA of 1422.93, and below the 200-day MA of 1375.87, indicating a bearish trend. The MACD of -21.32 indicates Positive momentum. The RSI at 36.32 is Neutral, neither overbought nor oversold. The STOCH value of 19.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6845.

Azbil Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6841	78 Outperform	¥1.37T	23.22	11.96%	1.21%	4.63%	12.32%
6845	76 Outperform	¥718.56B	16.11	―	1.81%	-1.44%	50.86%
5333	73 Outperform	¥1.05T	19.55	7.13%	2.01%	8.91%	12.03%
6361	71 Outperform	$2.15T	28.65	16.00%	1.38%	13.96%	12.97%
6465	71 Outperform	¥737.63B	17.91	11.14%	2.09%	13.48%	22.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5631	59 Neutral	¥628.28B	28.50	11.66%	1.03%	10.11%	41.98%

Azbil Corporation Corporate Events

Azbil Corporation Reports Q2 Financial Results with Increased Profitability

Azbil Corporation reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2026, showing a decline in net sales by 4.6% compared to the previous year. However, the company experienced significant growth in operating income, ordinary income, and net income attributable to owners, with increases of 21.0%, 24.9%, and 23.0%, respectively, indicating improved profitability despite reduced sales. The company also implemented a 4-for-1 stock split and is actively managing its stock through repurchases and a Trust-Type Employee Shareholding Incentive Plan.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1720.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.