Keyence (6861) AI Stock Analysis

• Market Cap: $13.69T
• Dividend Yield: 0.78%
• Average Volume (3M): 684.14K
• Price to Earnings (P/E): 32.7
• 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): 458.54
• 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: 0.97
• Enterprise Value/Revenue: 23.40
• Enterprise Value/Gross Profit: 28.15
• Enterprise Value/Ebitda: 42.60
• 1Y Price Target: $80,999.38
• Price Target Upside: 42.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥66,899.00 ▲(17.55% Upside)

The score is driven primarily by exceptional financial quality—elite margins, strong cash generation, and a debt-free balance sheet. Technicals are moderately supportive with neutral momentum signals, while the premium valuation (high P/E and low yield) meaningfully tempers the overall score.

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

Elite profitability (gross margin ~82–84%, EBIT margin ~51–57%, net margin ~37–40%), fortress-like debt-free balance sheet, and strong cash conversion (FCF closely tracks net income). Main risk is uneven historical growth, despite strong recent momentum.

Income Statement

Keyence shows exceptional profitability with consistently very high gross and operating margins (gross margin ~82–84% and EBIT margin ~51–57% across the period) and strong net margins (~37–40%), indicating strong pricing power and cost discipline. Revenue growth has been positive overall, with a sharp acceleration in the latest annual period (2025), though the growth profile has been somewhat uneven (including a decline in 2020 and slower growth in some later years). Overall, the income statement reflects a highly profitable business with strong momentum recently, offset by some historical volatility in growth rates.

Balance Sheet

The balance sheet is extremely conservative: total debt is reported at zero across all periods, resulting in no leverage pressure and high financial flexibility. Equity and total assets have steadily expanded over time, supporting balance sheet strength. Returns on equity are solid (roughly ~10–15%), though not unusually high given the large equity base and debt-free structure. Overall, the company appears very resilient with minimal balance sheet risk.

Cash Flow

Cash generation is strong, with free cash flow consistently high and closely tracking net income (free cash flow to net income roughly ~0.87–0.98), suggesting good earnings quality and limited cash leakage. Operating cash flow comfortably covers net income (coverage above ~1.8x in the provided periods), reinforcing conversion strength. Free cash flow growth is generally positive and surged in the latest annual period, although there were years with modest declines/soft patches, indicating some cyclicality in cash flow growth despite overall strength.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	568.18B	1.06T	967.29B	922.42B	755.17B	538.13B
Gross Profit	472.31B	887.70B	802.51B	754.73B	621.19B	440.88B
EBITDA	312.08B	564.97B	508.78B	510.44B	426.67B	284.31B
Net Income	214.73B	398.66B	369.64B	362.96B	303.36B	197.29B
Balance Sheet
Total Assets	3.45T	3.29T	2.96T	2.65T	2.32T	2.01T
Cash, Cash Equivalents and Short-Term Investments	1.32T	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	171.79B	180.67B	158.60B	158.80B	150.45B	97.03B
Stockholders Equity	3.28T	3.11T	2.81T	2.49T	2.17T	1.91T
Cash Flow
Free Cash Flow	378.13B	395.18B	375.42B	263.28B	265.31B	188.29B
Operating Cash Flow	396.78B	409.52B	387.92B	302.63B	271.48B	192.65B
Investing Cash Flow	-292.40B	-280.61B	-242.79B	-283.49B	-11.13B	-177.49B
Financing Cash Flow	-90.03B	-83.43B	-76.31B	-63.67B	-49.82B	-48.53B

Keyence Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56910.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 56910 is below the 20-day moving average (MA) of 58564.50, above the 50-day MA of 56707.00, and below the 200-day MA of 57511.26, indicating a neutral trend. The MACD of 19.17 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6861.

Keyence Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	80 Outperform	$13.69T	32.74	12.80%	0.78%	7.09%	7.51%
6981	77 Outperform	$5.78T	30.45	8.95%	1.88%	2.88%	28.76%
7701	75 Outperform	¥1.23T	21.53	10.84%	1.46%	3.92%	9.99%
6965	74 Outperform	¥529.08B	36.18	4.19%	2.25%	3.97%	-41.76%
6762	63 Neutral	¥3.76T	20.05	―	1.41%	7.73%	-1.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6645	60 Neutral	¥770.98B	26.93	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.