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Keyence
(6861)
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Rating:80Outperform
Price Target:
¥100,487
▲(39.92% Upside)
Action:Reiterated
Date:07/30/26
The score is primarily supported by outstanding financial strength (elite margins, debt-free balance sheet, and strong cash generation). Technicals add support via a clear uptrend versus major moving averages, while the overall score is moderated by a relatively expensive valuation (high P/E and low dividend yield).
Positive Factors
Debt-free balance sheet
A zero-debt balance sheet and rising equity provide durable financial flexibility for funding R&D, capex, buybacks or M&A without refinancing risk. Stable ROE (~10–15%) shows steady capital returns potential and low solvency risk, supporting resilience across cycles.
Negative Factors
Volatile revenue and FCF growth
Uneven top-line and free-cash-flow growth complicate medium-term planning and suggest exposure to cyclical industrial demand or project timing. This volatility can impede predictable reinvestment pacing, forecasting accuracy, and the ability to steadily scale recurring income streams over 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt balance sheet and rising equity provide durable financial flexibility for funding R&D, capex, buybacks or M&A without refinancing risk. Stable ROE (~10–15%) shows steady capital returns potential and low solvency risk, supporting resilience across cycles.
Read all positive factors
Keyence (6861) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥20.64T
Dividend Yield0.65%
Average Volume (3M)684.14K
Price to Earnings (P/E)41.9
Beta (1Y)1.04
Revenue Growth16.95%
EPS Growth23.91%
CountryJP
Employees12,784
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)2029.48
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
¥93,666.67Price Target Upside30.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2,267.18
Revenue Forecast (FY)¥1.42T
Keyence Business Overview & Revenue Model
Company Description
Keyence Corporation, together with its subsidiaries, manufactures and sells electronic application equipment. It offers photoelectric, fiber optic, laser, positioning, vision, and inductive proximity sensors; network communication units; measureme...
How the Company Makes Money
Keyence primarily makes money by selling factory automation hardware and related solutions directly to industrial customers. Its key revenue streams are product sales across major categories including: (1) sensors used for detection and process co...
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 | 1.25T | 1.17T | 1.06T | 967.29B | 922.42B | 755.17B |
| Gross Profit | 1.05T | 970.74B | 887.70B | 802.51B | 754.73B | 621.19B |
| EBITDA | 709.39B | 652.98B | 576.20B | 533.06B | 510.44B | 439.86B |
| Net Income | 492.20B | 445.19B | 398.66B | 369.64B | 362.96B | 303.36B |
Balance Sheet | ||||||
| Total Assets | 3.72T | 3.67T | 3.29T | 2.96T | 2.65T | 2.32T |
| Cash, Cash Equivalents and Short-Term Investments | 1.43T | 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 | 176.15B | 199.18B | 180.67B | 158.60B | 158.80B | 150.45B |
| Stockholders Equity | 3.55T | 3.47T | 3.11T | 2.81T | 2.49T | 2.17T |
Cash Flow | ||||||
| Free Cash Flow | 185.28B | 402.31B | 395.18B | 375.42B | 263.28B | 265.31B |
| Operating Cash Flow | 196.88B | 430.68B | 409.52B | 387.92B | 302.63B | 271.48B |
| Investing Cash Flow | -155.05B | -312.39B | -280.61B | -242.79B | -283.49B | -11.13B |
| Financing Cash Flow | -45.19B | -113.72B | -83.43B | -76.31B | -63.67B | -49.82B |
Keyence Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥20.64T | 41.88 | 13.44% | 0.77% | 16.95% | 23.91% | |
78 Outperform | ¥129.62B | 18.07 | ― | 1.68% | 9.88% | 14.45% | |
72 Outperform | ¥717.75B | 41.04 | 4.24% | 1.61% | 9.93% | 23.82% | |
72 Outperform | ¥1.08T | 24.28 | 11.31% | 2.11% | 12.48% | 18.44% | |
67 Neutral | ¥1.31T | 41.84 | 3.56% | 1.90% | -2.45% | -1.11% | |
65 Neutral | ¥13.40T | 50.22 | 8.95% | 0.78% | 10.31% | 24.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Keyence Corporate Events
Keyence Delivers 33% Sales Surge and 51% Profit Jump in First Quarter
Jul 28, 2026
Keyence reported strong first-quarter results for the three months ended June 20, 2026, with net sales rising 32.8% year on year to ¥346.6 billion and net income attributable to owners of the parent jumping 51.0% to ¥139.1 billion. Earni...
Keyence Weighs Reduction of Investment Unit to Broaden Investor Access
Jun 18, 2026
Keyence has outlined its stance on potentially reducing the minimum investment unit for its shares, emphasizing that such a move can enhance stock liquidity and make it easier for a wider range of investors, including individuals, to participate i...
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.