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Azbil Corporation (JP:6845)
:6845
Japanese Market
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Azbil Corporation (6845) AI Stock Analysis

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JP:6845

Azbil Corporation

(6845)

Rating:73Outperform
Price Target:
¥1,542.00
▲(4.68% Upside)
Azbil Corporation's strong financial performance and positive technical indicators are the primary drivers of the stock score. The company's robust balance sheet and efficient cash generation enhance its stability and growth potential. However, the current overbought technical conditions and average valuation metrics temper the overall score, suggesting a balanced outlook with potential short-term volatility.
Positive Factors
Strong Balance Sheet
A low debt-to-equity ratio indicates financial stability and flexibility, allowing Azbil to invest in growth opportunities without significant financial strain.
Cash Generation Ability
Strong cash flow growth enhances liquidity and provides resources for reinvestment, dividends, or debt reduction, supporting long-term business sustainability.
Operational Efficiency
High margins indicate robust operational efficiency, allowing Azbil to maintain profitability and competitive pricing, which is crucial for sustained growth.
Negative Factors
Sales Decline
A decline in sales can indicate market challenges or reduced demand, potentially impacting revenue growth and requiring strategic adjustments to regain momentum.
Stock Repurchase Impact
While stock repurchases can enhance shareholder value, they may also limit cash available for other strategic investments, affecting long-term growth prospects.
Sales Dependency
Dependence on a specific product line can expose Azbil to sector-specific risks, necessitating diversification to mitigate potential downturns in the automation industry.

Azbil Corporation (6845) vs. iShares MSCI Japan ETF (EWJ)

Azbil Corporation Business Overview & Revenue Model

Company DescriptionAzbil Corporation, formerly known as Yamatake Corporation, is a Japanese company specializing in automation and control solutions. With a strong presence in the building automation, advanced automation, and life automation sectors, Azbil provides a wide range of products and services such as control systems, sensors, and valves. The company caters to various industries, including manufacturing, commercial, and residential sectors, ensuring optimal performance and efficiency through its innovative technologies.
How the Company Makes MoneyAzbil Corporation generates revenue primarily through the sale of its automation and control products and services. The company's key revenue streams include building automation systems, which optimize energy usage and environmental comfort in commercial and residential buildings, and advanced automation solutions that enhance the efficiency and productivity of industrial processes. Additionally, Azbil offers life automation products that focus on improving safety and comfort in daily life. Service contracts, installation, and maintenance services also contribute to the company's earnings. Strategic partnerships and a strong focus on research and development help Azbil maintain its competitive edge and expand its market presence.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue300.38B300.38B290.94B278.41B256.55B246.82B
Gross Profit131.86B131.86B122.97B111.94B105.71B99.37B
EBITDA34.19B60.02B42.93B37.22B35.01B30.21B
Net Income40.95B40.95B30.21B22.60B20.78B19.92B
Balance Sheet
Total Assets315.07B315.07B313.73B296.87B280.05B284.60B
Cash, Cash Equivalents and Short-Term Investments94.89B94.89B79.98B78.71B89.75B105.01B
Total Debt5.48B5.48B9.45B12.41B8.35B9.35B
Total Liabilities74.56B74.56B88.84B91.00B76.91B83.99B
Stockholders Equity237.20B237.20B221.52B202.82B200.31B198.19B
Cash Flow
Free Cash Flow0.0033.74B19.85B2.90B-5.20B9.98B
Operating Cash Flow0.0043.95B27.54B13.12B10.12B22.60B
Investing Cash Flow0.002.03B-2.36B-1.98B-3.99B283.00M
Financing Cash Flow0.00-29.77B-22.45B-19.69B-20.58B-7.00B

Azbil Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1473.00
Price Trends
50DMA
1436.39
Positive
100DMA
1350.71
Positive
200DMA
1263.10
Positive
Market Momentum
MACD
6.07
Positive
RSI
50.17
Neutral
STOCH
23.90
Neutral
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 1473 is above the 20-day moving average (MA) of 1472.72, above the 50-day MA of 1436.39, and above the 200-day MA of 1263.10, indicating a neutral trend. The MACD of 6.07 indicates Positive momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 23.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6845.

Azbil Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥778.84B18.53
1.64%0.54%32.45%
63
Neutral
$10.84B15.527.44%2.00%2.86%-14.57%
$9.69B15.7716.02%5.00%
$5.60B20.9111.23%1.98%
€3.83B32.8810.57%
$4.73B12.758.68%2.26%
$7.93B16.6412.72%1.64%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6845
Azbil Corporation
1,473.00
339.23
29.92%
EBCOF
Ebara
16.72
3.57
27.15%
HSHIF
HOSHIZAKI
38.44
7.27
23.32%
DE:J9R
Japan Steel Works
52.50
25.93
97.59%
NGKIF
NGK Insulators
17.96
6.30
54.03%
YOKEF
Yokogawa Electric
24.60
-0.15
-0.61%

Azbil Corporation Corporate Events

Azbil Corporation Enhances Stock Compensation Plan to Drive Performance
Aug 5, 2025

Azbil Corporation has announced an additional monetary contribution to its stock compensation plan, aimed at motivating directors and executives to achieve medium- to long-term performance targets. This move is part of a revised executive remuneration system under the company’s new medium-term plan, which increases the performance-linked component of compensation and revises key performance indicators, potentially impacting the company’s operations and stakeholder interests.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Reports Q1 Financial Results with Operational Gains Despite Sales Decline
Aug 5, 2025

Azbil Corporation reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, showing a decline in net sales by 5.3% compared to the previous year. Despite this, the company experienced growth in operating income and net income attributable to owners of the parent, indicating improved operational efficiency. The company also implemented a 4-for-1 common stock split and continues to repurchase its own stock, which may influence shareholder value and market perception.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Updates on Stock Repurchase Progress
Aug 1, 2025

Azbil Corporation has announced the progress of its stock repurchase program, which was initially resolved by the Board of Directors in May 2025. The company has repurchased 2,309,000 shares for approximately 3.2 billion yen between July 1 and July 31, 2025, as part of a larger plan to buy back up to 24 million shares by October 2025. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1500.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Updates on Stock Repurchase Progress
Jul 1, 2025

Azbil Corporation announced the progress of its stock repurchase program, which was resolved at a Board of Directors meeting in May 2025. As of June 30, 2025, the company repurchased 3,328,800 shares for approximately 4.22 billion yen, as part of a larger plan to repurchase up to 24 million shares by October 2025. This move is likely aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Advances Stock Repurchase Program
Jun 2, 2025

Azbil Corporation has announced the progress of its stock repurchase program, as resolved in the Board of Directors meeting on May 13, 2025. The company has repurchased 1,712,100 shares for approximately 2.16 billion yen through market transactions on the Tokyo Stock Exchange, as part of a broader plan to repurchase up to 24 million shares by October 29, 2025, with a total budget of 15 billion yen. This move is likely aimed at enhancing shareholder value and optimizing the capital structure.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Completes Treasury Share Cancellation
May 30, 2025

Azbil Corporation has completed the cancellation of 19,300,000 treasury shares, which represents 3.4% of its total issued shares, as per Article 178 of the Companies Act of Japan. This move reduces the total number of issued shares to 541,372,736, potentially impacting shareholder value and reflecting the company’s strategic financial management.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Reports Strong Financial Performance for FY 2025
May 13, 2025

Azbil Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 3.2% increase in net sales and a significant 35.6% rise in net income attributable to owners of the parent. The company also implemented a 4-for-1 stock split in October 2024, which affected the calculation of net income per share and net assets per share. The financial results indicate a strong performance with improved profitability and a robust financial position, reflecting positively on Azbil’s market standing and shareholder value.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Reintroduces Employee Shareholding Incentive Plan to Boost Enterprise Value
May 13, 2025

Azbil Corporation has decided to readopt its Trust-Type Employee Shareholding Incentive Plan to motivate employees to enhance the company’s enterprise value over the medium to long term. This plan is part of Azbil’s strategy to address emerging social issues and align with its medium-term goals, ultimately aiming to increase the company’s stock value and benefit its employees.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Announces Share Repurchase and Treasury Share Cancellation
May 13, 2025

Azbil Corporation has announced a strategic decision to repurchase up to 24 million of its own shares and cancel 19.3 million treasury shares. This move is aimed at improving capital efficiency and enhancing shareholder returns, reflecting the company’s adaptive capital policies in response to evolving corporate environments.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Announces Increased Dividends Amid Record Profits
May 13, 2025

Azbil Corporation announced an increase in cash dividends from retained earnings, reflecting its commitment to returning profits to shareholders. The decision follows a record profit for the fourth consecutive fiscal year, driven by higher operating income and strategic measures to enhance profitability. The company aims to maintain stable dividends while considering future business operations and financial performance.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

Azbil Corporation Reports Significant Financial Gains in FY2025
May 13, 2025

Azbil Corporation reported significant differences in its non-consolidated financial results for the fiscal year ending March 31, 2025, compared to the previous year. The company experienced a notable increase in net income, primarily due to the sale of its equity interests in Azbil Telstar, S.L.U., which resulted in an extraordinary income gain of 8,896 million yen. This financial improvement reflects positively on Azbil’s operational efficiency and strategic financial decisions.

The most recent analyst rating on (JP:6845) stock is a Buy with a Yen1450.00 price target. To see the full list of analyst forecasts on Azbil Corporation stock, see the JP:6845 Stock Forecast page.

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.Date of analysis: Jul 02, 2025