Azbil Corporation (6845) AI Stock Analysis

• Market Cap: ¥775.64B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 21.4
• 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): 18.14
• 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: ¥1,550.00
• Price Target Upside: 8.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 66.8
• Revenue Forecast (FY): ¥296.64B

• Rating: 68 Neutral
• Price Target: ¥1,552.00 ▲(9.03% Upside)
• Action: Downgraded Date: 02/10/26
• Date: Action: Downgraded 02/10/26

The score is driven primarily by strong financial performance (healthy margins, low leverage, and strong free-cash-flow growth). This is partially offset by weak technical conditions (price below major moving averages, negative MACD, and oversold RSI), while valuation is moderate with a modest dividend yield.

Positive Factors

High Profitability

Sustained high gross and EBITDA margins indicate durable operational efficiency and pricing power across automation and service lines. These margins support reinvestment and resilience to cost swings, underpinning medium-term cash generation and shareholder returns.

Very Low Leverage

Extremely low debt and a high equity ratio provide strong financial flexibility, reducing refinancing risk and enabling capital spending or acquisitions without stressing the balance sheet. High ROE shows efficient equity use, supporting sustainable shareholder value creation.

Strong Cash Generation

Large FCF growth and cash conversion ratios show the business consistently turns earnings into cash, enabling reliable funding for maintenance, service contracts, capex and dividends. Robust cash flow underpins long-term operational stability and investment capacity.

Negative Factors

Negative Reported Revenue Trend

A reported negative revenue growth metric signals potential demand weakness or cyclical exposure in sales across segments. If sustained, declining top-line pressures operating leverage, limits reinvestment capacity, and may challenge margin maintenance over the medium term.

Earnings (EPS) Decline

Nearly 10% EPS decline indicates profit per share contraction that could reflect margin pressure, pricing or volume headwinds, or one-off costs. Persistent EPS declines reduce retained earnings and weaken the signal of improving profitability for investors over coming quarters.

Limited Forward Visibility

Absence of guidance and limited public earnings commentary reduces near-term visibility into demand and capital allocation plans. For industrial automation, lack of forward metrics hampers stakeholder planning and can increase perceived execution risk over the medium term.

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

Strong overall fundamentals: steady revenue growth (+3.25% YoY), robust profitability (gross margin 43.9%, net margin 13.6%, EBITDA margin 20.0%), very low leverage (debt-to-equity 0.02), and strong cash generation with sharply higher free cash flow (+88.3%) and solid cash conversion (OCF/NI 1.07, FCF/NI 0.91).

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Positive
• Last Price: 1423.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6845, the sentiment is Positive. The current price of 1423.5 is above the 20-day moving average (MA) of 1339.27, above the 50-day MA of 1382.67, and above the 200-day MA of 1390.01, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 63.60 is Neutral, neither overbought nor oversold. The STOCH value of 94.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.67T	27.48	11.96%	1.21%	4.63%	12.32%
6465	77 Outperform	¥796.31B	20.38	11.14%	2.09%	13.48%	22.72%
5333	73 Outperform	¥1.28T	24.31	7.13%	2.01%	8.91%	12.03%
6845	68 Neutral	¥775.64B	21.36	―	1.81%	-1.44%	50.86%
6361	66 Neutral	$2.53T	33.32	16.00%	1.38%	13.96%	12.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5631	59 Neutral	¥752.32B	36.66	11.66%	1.03%	10.11%	41.98%

Azbil Corporation Corporate Events

Azbil Boosts Profitability Despite Lower Sales, Confirms FY2026 Outlook and Dividend Plan

Azbil Corporation reported consolidated net sales of ¥208.1 billion for the nine months ended December 31, 2025, down 4.5% year-on-year, while operating income rose 9.1% to ¥29.2 billion and ordinary income climbed 9.5% to ¥30.7 billion, indicating improved profitability despite softer top-line performance. Net income attributable to owners of the parent fell 21.0% to ¥22.7 billion, partly reflecting the absence of prior-year one-off benefits, although comprehensive income edged up 2.7%. The company maintained a strong financial position with a high shareholders’ equity ratio of 77.8%, and confirmed its full-year forecast, projecting slightly lower net sales of ¥298.0 billion but higher operating income of ¥45.5 billion and net income of ¥33.5 billion, implying an 18.2% decline in earnings versus the previous fiscal year on a full-year basis. Azbil kept its dividend forecast unchanged at a total of ¥26.00 per share for the fiscal year ending March 31, 2026, following a 4-for-1 stock split implemented in October 2024, and has completed its share buyback and cancellation while re-adopting a trust-type employee shareholding incentive plan, signaling continued emphasis on shareholder returns and employee equity participation. The scope of consolidation expanded with the addition of Azbil Information Technology Center (Dalian) Co., Ltd., which may support the group’s IT and digital capabilities going forward.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1544.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.