Azbil Corporation (6845) AI Stock Analysis

• Market Cap: ¥807.91B
• Dividend Yield: 1.8%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.76
• 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: ¥1,620.00
• Price Target Upside: 11.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,720.00 ▲(18.91% 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

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances liquidity and financial flexibility, enabling strategic investments and debt reduction.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk and supports long-term stability and growth potential.

Negative Factors

Market Saturation

Market saturation in core sectors could limit growth opportunities, necessitating innovation or diversification for sustained expansion.

R&D Dependency

Heavy reliance on R&D for competitive edge requires continuous investment, which can strain resources if not managed effectively.

Industry Competition

Intense competition in automation technologies may pressure margins and require constant innovation to maintain market position.

Azbil Corporation Business Overview & Revenue Model

Company Description

Azbil Corporation (6845) is a Japanese multinational company specializing in automation and control technologies. The company operates primarily in the fields of building automation, industrial automation, and advanced measurement and control solutions. Azbil is known for its innovative products and services that enhance safety, energy efficiency, and operational productivity across various sectors, including manufacturing, healthcare, and urban infrastructure. Its core offerings include HVAC controls, process automation systems, and various sensors and instruments.

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: Neutral
• Last Price: 1446.50
• 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:6845, the sentiment is Neutral. The current price of 1446.5 is below the 20-day moving average (MA) of 1459.25, above the 50-day MA of 1436.82, and above the 200-day MA of 1325.68, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6845.

Azbil Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6465	80 Outperform	$774.14B	18.53	11.14%	2.17%	13.48%	22.72%
6841	78 Outperform	$1.30T	22.01	11.96%	1.22%	4.63%	12.32%
6845	76 Outperform	¥807.91B	19.22	―	1.80%	-1.44%	50.86%
5333	73 Outperform	$788.35B	15.38	7.13%	2.03%	8.91%	12.03%
6361	69 Neutral	$1.74T	23.19	16.00%	1.31%	13.96%	12.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5631	59 Neutral	€724.49B	38.70	11.66%	0.87%	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.

Azbil Corporation Revises Financial Forecasts Upward Amid Strong Market Demand

Azbil Corporation has revised its financial forecasts for the six months ended September 30, 2025, and the full year ending March 31, 2026, due to improved profitability in its Building Automation and Advanced Automation businesses. Despite challenges such as inflation and economic uncertainties, demand for their HVAC systems remains strong, leading to an upward revision of their financial outlook. The company expects higher operating, ordinary, and net income than previously forecasted, reflecting robust market conditions and strategic measures to enhance profitability.

Azbil Corporation Completes Share Repurchase

Azbil Corporation has concluded the repurchase of its own shares, acquiring 1,435,300 common shares for approximately 2.03 billion yen through market transactions on the Tokyo Stock Exchange. This move is part of a larger resolution to repurchase up to 24 million shares, indicating a strategic effort to enhance shareholder value and optimize capital structure.

Azbil Corporation Updates on Stock Repurchase Progress

Azbil Corporation has announced the progress of its stock repurchase program, which was resolved by the Board of Directors in May 2025. As of September 30, 2025, the company has repurchased 9,403,400 shares for approximately 12.96 billion yen, with the repurchase period set to continue until October 29, 2025. This move is part of Azbil’s strategy to enhance shareholder value and optimize its capital structure.