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Keyence (JP:6861)
:6861

Keyence (6861) AI Stock Analysis

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JP

Keyence

(OTC:6861)

Rating:81Outperform
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.
Positive Factors
Financial Performance
Keyence delivered solid results, with revenue, operating profit, and net profit up 7.7%, 9.2%, and 16.8% YoY, respectively.
International Growth
Overseas growth in local currency accelerated to 6.5% year over year from 3% a quarter ago, indicating strong international performance.
Valuation
Keyence’s stock price multiples stay below the last 5-year and 10-year average, indicating potential for value.
Negative Factors
Leadership Approval
The approval ratio for President Yu Nakata went down from 82.7% to 77.1%.
Shareholder Returns
The results of this year's shareholder meeting are unlikely to trigger a change in the company's shareholder returns.

Keyence (6861) vs. iShares MSCI Japan ETF (EWJ)

Keyence Business Overview & Revenue Model

Company DescriptionKeyence 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 MoneyKeyence 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
94
Very Positive
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
97
Very Positive
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
85
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.28T1.06T967.29B922.42B755.17B538.13B
Gross Profit1.07T887.70B802.51B754.73B621.19B440.88B
EBITDA673.59B576.20B508.78B510.44B426.67B284.31B
Net Income482.37B398.66B369.64B362.96B303.36B197.29B
Balance Sheet
Total Assets3.15T3.29T2.96T2.65T2.32T2.01T
Cash, Cash Equivalents and Short-Term Investments1.17T1.22T1.13T940.46B1.00T930.00B
Total Debt0.000.000.000.000.000.00
Total Liabilities136.73B180.67B158.60B158.80B150.45B97.03B
Stockholders Equity3.01T3.11T2.81T2.49T2.17T1.91T
Cash Flow
Free Cash Flow7.29B395.18B375.42B263.28B265.31B188.29B
Operating Cash Flow7.29B409.52B387.92B302.63B271.48B192.65B
Investing Cash Flow0.00-280.61B-242.79B-283.49B-11.13B-177.49B
Financing Cash Flow0.00-83.43B-76.31B-63.67B-49.82B-48.53B

Keyence Technical Analysis

Technical Analysis Sentiment
Negative
Last Price56800.00
Price Trends
50DMA
59896.40
Negative
100DMA
59823.52
Negative
200DMA
62876.34
Negative
Market Momentum
MACD
-842.26
Negative
RSI
44.64
Neutral
STOCH
41.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6861, the sentiment is Negative. The current price of 56800 is below the 20-day moving average (MA) of 57314.00, below the 50-day MA of 59896.40, and below the 200-day MA of 62876.34, indicating a bearish trend. The MACD of -842.26 indicates Negative momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6861.

Keyence Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$13.78T34.5513.30%0.61%9.50%7.85%
56
Neutral
HK$13.71B5.07-5.77%5.42%9.48%-42.73%
$3.69B30.435.58%2.11%
$26.03B18.728.98%2.97%
$4.72B46.242.10%0.02%
$7.02B20.2510.72%0.01%
74
Outperform
¥3.13T18.38
1.98%4.80%34.02%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6861
Keyence
56,800.00
-18,611.64
-24.68%
HPHTF
Hamamatsu Photonics KK
12.00
-1.17
-8.88%
MRAAF
Murata Manufacturing Co
15.36
-5.94
-27.89%
OMRNF
OMRON
25.06
-10.18
-28.89%
SHMZF
Shimadzu
23.26
-2.78
-10.68%
JP:6762
TDK Corporation
1,586.00
-580.17
-26.78%

Keyence Corporate Events

Keyence Reports Strong Financial Growth and Increased Dividends for FY 2025
Apr 25, 2025

Keyence Corporation reported a significant increase in its consolidated financial results for the fiscal year ending March 20, 2025, with net sales rising by 9.5% and operating income by 11.1% compared to the previous year. The company also announced an increase in annual dividends per share, reflecting its strong financial performance and commitment to returning value to shareholders.

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: May 02, 2025