Keyence (JP:6861)
:6861
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Keyence
(6861)
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Rating:83Outperform
Price Target:
¥87,585.00
▲(39.44% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by exceptional financial strength—elite margins, debt-free balance sheet, and high-quality cash generation. Technicals are supportive but tempered by overbought signals, while valuation is a modest headwind due to a premium P/E and low dividend yield.
Positive Factors
Profitability
Keyence's exceptionally high gross, operating and net margins reflect durable pricing power and operating discipline across its hardware and machine-vision businesses. These margins create a structural cash-generation advantage, insulating profitability through cycles and funding R&D, capex, or shareholder returns over the medium term.
Negative Factors
Uneven Revenue Growth
Revenue has expanded over the cycle but growth has been inconsistent, with a slower stretch in 2024–2025 and a spike in the latest year. This uneven pattern complicates forecasting and capital allocation, making investment planning and margin sustainability harder to predict over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
Keyence's exceptionally high gross, operating and net margins reflect durable pricing power and operating discipline across its hardware and machine-vision businesses. These margins create a structural cash-generation advantage, insulating profitability through cycles and funding R&D, capex, or shareholder returns over the medium term.
Read all positive factors
Keyence (6861) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥19.43T
Dividend Yield0.78%
Average Volume (3M)684.14K
Price to Earnings (P/E)43.6
Beta (1Y)1.02
Revenue Growth10.40%
EPS Growth11.67%
CountryJP
Employees12,286
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)885.41
Shares Outstanding243,207,690
10 Day Avg. Volume680,310
30 Day Avg. Volume684,136
Financial Highlights & Ratios
PEG Ratio2.56
Price to Book (P/B)3.83
Price to Sales (P/S)11.38
P/FCF Ratio33.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥90,766.67Price Target Upside44.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2,077.82
Revenue Forecast (FY)¥1.32T
Keyence Business Overview & Revenue Model
Company Description
Keyence Corporation, together with its subsidiaries, develops, manufactures, and sells factory automation solutions worldwide. The company offers photoelectric, fiber optic, laser, positioning, vision, and inductive proximity sensors, as well as n...
How the Company Makes Money
Keyence primarily makes money by selling its proprietary factory automation hardware and related systems directly to business customers (B2B), generating revenue from product sales across several categories: (1) Sensors (e.g., photoelectric, proxi...
Keyence Financial Statement Overview
Summary
Income Statement
96
Very Positive
Balance Sheet
98
Very Positive
Cash Flow
93
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 568.18B | 1.17T | 1.06T | 967.29B | 922.42B | 755.17B |
| Gross Profit | 472.31B | 970.74B | 887.70B | 802.51B | 754.73B | 621.19B |
| EBITDA | 312.08B | 612.99B | 564.97B | 508.78B | 510.44B | 426.67B |
| Net Income | 214.73B | 445.19B | 398.66B | 369.64B | 362.96B | 303.36B |
Balance Sheet | ||||||
| Total Assets | 3.45T | 3.67T | 3.29T | 2.96T | 2.65T | 2.32T |
| Cash, Cash Equivalents and Short-Term Investments | 1.32T | 1.49T | 1.22T | 1.13T | 940.46B | 1.00T |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 171.79B | 199.18B | 180.67B | 158.60B | 158.80B | 150.45B |
| Stockholders Equity | 3.28T | 3.47T | 3.11T | 2.81T | 2.49T | 2.17T |
Cash Flow | ||||||
| Free Cash Flow | 378.13B | 402.31B | 395.18B | 375.42B | 263.28B | 265.31B |
| Operating Cash Flow | 396.78B | 430.68B | 409.52B | 387.92B | 302.63B | 271.48B |
| Investing Cash Flow | -292.40B | -312.39B | -280.61B | -242.79B | -283.49B | -11.13B |
| Financing Cash Flow | -90.03B | -113.72B | -83.43B | -76.31B | -63.67B | -49.82B |
Keyence Technical Analysis
Positive
62810.00
Price Trends
67253.39
Positive
63061.04
Positive
59606.58
Positive
Market Momentum
2769.20
Positive
62.08
Neutral
55.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6861, the sentiment is Positive. The current price of 62810 is below the 20-day moving average (MA) of 77434.50, below the 50-day MA of 67253.39, and above the 200-day MA of 59606.58, indicating a bullish trend. The MACD of 2769.20 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6861.
Keyence Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥19.43T | 43.64 | 12.80% | 0.78% | 10.40% | 11.67% | |
79 Outperform | ¥1.10T | 29.31 | 11.99% | 0.65% | 8.38% | 8.43% | |
78 Outperform | ¥154.03B | 21.50 | ― | 1.68% | 9.88% | 14.45% | |
72 Outperform | ¥884.79B | 62.33 | 4.03% | 2.25% | 5.36% | -24.06% | |
68 Neutral | ¥17.75T | 75.03 | 8.95% | 1.88% | 5.02% | 2.02% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | ¥1.13T | 39.66 | 2.99% | 2.62% | -4.29% | 75.25% |
* Technology Sector Average
JP:6861
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Keyence Corporate Events
Keyence Founder to Retire from Board, Remain Honorary Chairman
Apr 24, 2026
Keyence announced a change in its board structure following a resolution passed at its April 24, 2026 directors’ meeting, confirming that founder Takemitsu Takizaki will step down from his role as Director while retaining the title of Honora...
Keyence Seeks Shareholder Approval to Add Treasury Share Acquisition Clause
Apr 24, 2026
Keyence plans to amend its Articles of Incorporation to allow the company to acquire its own shares by resolution of the Board of Directors, under provisions of Japan’s Companies Act. The proposal, approved by the board on April 24, 2026, wi...
Keyence Posts Double-Digit Profit Growth on New Products and Stronger Sales Network
Apr 24, 2026
Keyence Corporation, a major player in industrial automation equipment and factory control systems, supplies sensors, measurement devices, and related solutions to manufacturers across a range of sectors. Its products are designed to enhance produ...
Keyence Delivers Double-Digit Profit Growth and Hikes Dividend on Strong FY2026 Results
Apr 24, 2026
Keyence reported solid results for the year ended March 20, 2026, with net sales rising 10.4% to ¥1.17 trillion and net income attributable to owners of the parent up 11.7% to ¥445.2 billion, driven by higher ordinary income and robust m...
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.