Keyence (6861) AI Stock Analysis

• Market Cap: $14.09T
• Dividend Yield: 0.6%
• Average Volume (3M): 622.96K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 1.17
• Revenue Growth: 9.50%
• EPS Growth: 7.85%
• Country: JP
• Employees: 12,286
• Sector: Technology
• Sector Strength: 95
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 396.60
• Shares Outstanding: 243,207,690
• 10 Day Avg. Volume: 683,190
• 30 Day Avg. Volume: 622,960
• PEG Ratio: 39.00
• Price to Book (P/B): 4.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $69,599.34
• Price Target Upside: 27.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• 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.

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 Expansion

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%.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06T	967.29B	922.42B	755.17B	538.13B
Gross Profit	887.70B	802.51B	754.73B	621.19B	440.88B
EBITDA	576.20B	508.78B	510.44B	426.67B	284.31B
Net Income	398.66B	369.64B	362.96B	303.36B	197.29B
Balance Sheet
Total Assets	3.29T	2.96T	2.65T	2.32T	2.01T
Cash, Cash Equivalents and Short-Term Investments	1.22T	1.13T	940.46B	1.00T	930.00B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	180.67B	158.60B	158.80B	150.45B	97.03B
Stockholders Equity	3.11T	2.81T	2.49T	2.17T	1.91T
Cash Flow
Free Cash Flow	395.18B	375.42B	263.28B	265.31B	188.29B
Operating Cash Flow	409.52B	387.92B	302.63B	271.48B	192.65B
Investing Cash Flow	-280.61B	-242.79B	-283.49B	-11.13B	-177.49B
Financing Cash Flow	-83.43B	-76.31B	-63.67B	-49.82B	-48.53B

Keyence Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54600.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 54600 is below the 20-day moving average (MA) of 56368.50, below the 50-day MA of 57887.40, and below the 200-day MA of 61999.05, indicating a bearish trend. The MACD of -216.59 indicates Negative momentum. The RSI at 41.44 is Neutral, neither overbought nor oversold. The STOCH value of 40.49 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	81 Outperform	$14.09T	35.48	13.35%	0.60%	9.50%	7.85%
Sector *	57 Neutral	HK$14.05B	5.48	-5.77%	5.19%	9.65%	-43.80%
HPHTF	―	$3.80B	31.37	5.58%	3.17%	―	―
MRAAF	―	$27.55B	18.18	8.98%	2.51%	―	―
OMRNF	―	$5.24B	48.76	2.10%	2.70%	―	―
SHMZF	―	$6.64B	18.82	10.72%	0.76%	―	―
6762	75 Outperform	¥3.57T	20.95		0.89%	4.80%	34.02%

Keyence Corporate Events

Keyence Reports Strong Financial Growth and Increased Dividends for FY 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.