Keyence (6861) AI Stock Analysis

• Market Cap: ¥13.99T
• Dividend Yield: 0.78%
• Average Volume (3M): 684.14K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 1.07
• Revenue Growth: 7.09%
• EPS Growth: 7.51%
• Country: JP
• Employees: 12,286
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 243,207,690
• 10 Day Avg. Volume: 680,310
• 30 Day Avg. Volume: 684,136
• PEG Ratio: 4.53
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 13.39
• P/FCF Ratio: 35.89
• 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: ¥72,787.46
• Price Target Upside: 26.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ―

Keyence's strong financial performance and operational efficiency are the primary drivers of its high score. While technical indicators suggest caution due to potential resistance levels, the overall momentum remains favorable. The valuation appears high, reflecting market optimism about future growth, yet it is a point of concern for conservative investors. The company's robust balance sheet and cash flow generation support strategic initiatives and long-term shareholder value.

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 network communication units used for presence/absence and part differentiation applications. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, and CMM/laser trackers. In addition, the company offers safety products comprising safety laser scanners, light curtains, interlock switches, and controllers to protect operators from machine hazards; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it provides static eliminators/ionizers and electrostatic sensors which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors, and barcode scanners to perform automatic inspection and part identification; and programmable logic controllers and other controls that are used for machine control applications. Additionally, the company offers laser marking systems/laser markers and industrial continuous inkjet printers; digital, 3D laser scanning, and fluorescence microscopes, as well as wide-area 3D measuring systems for industrial and life science applications; and handheld mobile computers. It serves customers in automotive/chassis assembly, metals/machining, FPD/glass, semiconductor/ICS, plastic/molding, food/pharmaceutical, steel, and other industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.

How the Company Makes Money

Keyence makes money primarily through the sale of its automation and sensing solutions. The company's revenue model is centered on providing high-tech products that cater to the needs of industrial automation. The key revenue streams include sales of sensors, vision systems, measuring instruments, and laser markers. Keyence's earnings are bolstered by its commitment to innovation, which allows it to command a premium price for its advanced technology solutions. The company does not rely on significant partnerships for its revenue but focuses on direct sales to customers across various industries globally. Factors contributing to its earnings include its strong brand reputation, extensive product range, and its ability to provide tailored solutions that improve manufacturing efficiency and reduce operational costs for its clients.

Keyence Financial Statement Overview

Summary

Keyence exhibits exceptional financial health with strong growth, profitability, and a pristine balance sheet devoid of debt. High margins and robust cash flow generation capabilities underscore its market leadership. While cash flow growth could be further enhanced, the overall financial position remains robust.

Income Statement

Keyence has demonstrated impressive growth and profitability. The TTM revenue of ¥1,276 billion represents substantial growth from the previous fiscal year, indicating strong market demand and operational efficiency. The gross profit margin at 83.76% and net profit margin at 37.8% are exceptionally high, showcasing excellent cost management and profitability. EBIT and EBITDA margins at 51.26% and 52.79%, respectively, further underline operational strength. The consistent upward trajectory in revenue and profitability metrics reflects a robust financial position.

Balance Sheet

Keyence maintains an outstanding balance sheet with zero debt, resulting in a pristine debt-to-equity ratio. The equity ratio of 95.66% demonstrates a solid financial structure with minimal liabilities. The return on equity (ROE) at 16.02% reflects strong shareholder returns, bolstered by high net income. The company's substantial cash reserves further enhance liquidity, supporting strategic investments and operational resilience.

Cash Flow

The cash flow statement indicates robust cash generation capabilities, with a significant operating cash flow of ¥7.292 billion in the TTM period. The free cash flow to net income ratio is high, demonstrating effective cash conversion. However, while the free cash flow growth rate is solid, it could be improved further for higher scores. Overall, the company's cash flow position is strong, supporting continued investment and dividend potential.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	552.28B	1.06T	967.29B	922.42B	755.17B	538.13B
Gross Profit	462.95B	887.70B	802.51B	754.73B	621.19B	440.88B
EBITDA	294.51B	564.97B	508.78B	510.44B	426.67B	284.31B
Net Income	203.08B	398.66B	369.64B	362.96B	303.36B	197.29B
Balance Sheet
Total Assets	3.29T	3.29T	2.96T	2.65T	2.32T	2.01T
Cash, Cash Equivalents and Short-Term Investments	1.22T	1.22T	1.13T	940.46B	1.00T	930.00B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	180.67B	180.67B	158.60B	158.80B	150.45B	97.03B
Stockholders Equity	3.11T	3.11T	2.81T	2.49T	2.17T	1.91T
Cash Flow
Free Cash Flow	395.18B	395.18B	375.42B	263.28B	265.31B	188.29B
Operating Cash Flow	409.52B	409.52B	387.92B	302.63B	271.48B	192.65B
Investing Cash Flow	-280.61B	-280.61B	-242.79B	-283.49B	-11.13B	-177.49B
Financing Cash Flow	-83.43B	-83.43B	-76.31B	-63.67B	-49.82B	-48.53B

Keyence Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 57670.00
• 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:6861, the sentiment is Positive. The current price of 57670 is above the 20-day moving average (MA) of 56677.50, above the 50-day MA of 55681.80, and above the 200-day MA of 57383.43, indicating a bullish trend. The MACD of 366.27 indicates Positive momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 30.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	81 Outperform	¥13.99T	34.21	12.80%	0.78%	7.09%	7.51%
6981	77 Outperform	¥5.89T	25.08	8.95%	1.88%	2.88%	28.76%
7701	75 Outperform	¥1.27T	22.26	10.84%	1.46%	3.92%	9.99%
6965	74 Outperform	¥517.07B	35.37	4.19%	2.25%	3.97%	-41.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6762	61 Neutral	¥4.06T	23.51	―	1.41%	7.73%	-1.93%
6645	60 Neutral	¥789.88B	27.59	3.60%	2.62%	3.51%	―

Keyence Corporate Events

Keyence Announces Leadership Change to Strengthen Management

Keyence Corporation announced a change in its leadership, with Tetsuya Nakano set to become the new President and Representative Director, effective December 22, 2025. This decision is part of the company’s strategy to strengthen its management structure and enhance corporate value, reflecting its ongoing focus on innovation and profitability.

The most recent analyst rating on (JP:6861) stock is a Hold with a Yen64000.00 price target. To see the full list of analyst forecasts on Keyence stock, see the JP:6861 Stock Forecast page.

Keyence Corporation Announces Increased Interim Dividend and Revised Year-End Forecasts

Keyence Corporation announced an increase in its interim dividend and revised its year-end dividend forecasts, reflecting its policy of stable dividend payments while enhancing shareholder returns. The decision is based on the company’s steady earnings growth and aims to strengthen its financial foundation and improve capital efficiency.

The most recent analyst rating on (JP:6861) stock is a Hold with a Yen64000.00 price target. To see the full list of analyst forecasts on Keyence stock, see the JP:6861 Stock Forecast page.

Keyence Reports Strong Financial Performance and Increases Dividend Forecast

Keyence Corporation reported a 5.8% increase in net sales and a 5.4% rise in net income attributable to owners for the six months ending September 20, 2025, compared to the same period in the previous year. The company also announced a revision in its dividend forecast, indicating a significant increase in annual dividends per share, reflecting its strong financial performance and commitment to returning value to shareholders.

The most recent analyst rating on (JP:6861) stock is a Hold with a Yen64000.00 price target. To see the full list of analyst forecasts on Keyence stock, see the JP:6861 Stock Forecast page.