Fanuc Corporation (6954) AI Stock Analysis

• Market Cap: ¥4.16T
• Dividend Yield: 2.15%
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.21
• Revenue Growth: 1.24%
• EPS Growth: 20.57%
• Country: JP
• Employees: 9,970
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 40.56
• Shares Outstanding: 982,383,500
• 10 Day Avg. Volume: 3,258,200
• 30 Day Avg. Volume: 3,742,866
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥4,900.00
• Price Target Upside: 11.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: ―

Fanuc Corporation's strong financial performance, highlighted by its robust balance sheet and profitability, significantly supports its stock score. While technical analysis indicates bearish trends, the company's valuation metrics, including a high P/E ratio and reasonable dividend yield, offer a mixed picture. The absence of recent earnings call data and corporate events leaves the financial health and valuation as primary factors influencing the score.

Positive Factors

Financial Performance

FANUC's results exceeded expectations, especially in margins.

Market Position

FANUC is seen as the best prepared robot company for long-term growth and most resilient to Chinese competition.

Negative Factors

Valuation Concerns

Reservations exist regarding its less compelling valuation and not too conservative consensus estimates.

Fanuc Corporation Business Overview & Revenue Model

Company Description

Fanuc Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive systems, an open platform for the manufacturing industry. The company was incorporated in 1950 and is headquartered in Yamanashi, Japan.

How the Company Makes Money

Fanuc Corporation generates revenue through the sale of its industrial automation products and services, including robotics, CNC systems, and factory automation solutions. The company's key revenue streams include direct sales of these products to manufacturing and industrial clients across diverse sectors such as automotive, electronics, and aerospace. Additionally, Fanuc earns income from providing maintenance and support services, as well as from training programs for its technologies. The company has established significant partnerships with major global manufacturers, enhancing its market reach and customer base. Fanuc's focus on innovation and quality in automation technologies contributes to its competitive advantage and revenue growth.

Fanuc Corporation Financial Statement Overview

Summary

Fanuc Corporation showcases strong financial health with high profitability, a robust balance sheet, and effective cash flow management. Despite a decrease in revenue and free cash flow, the company's zero-debt position and significant equity provide a strong foundation for future growth and resilience against economic fluctuations.

Income Statement

Fanuc Corporation's income statement is strong with a high gross profit margin and consistent profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 35.9%, and the net profit margin is 17.6%, indicating effective cost control and profitability. However, there is a decline in revenue from the previous annual period to TTM, signaling a potential challenge in achieving revenue growth.

Balance Sheet

The balance sheet is exceptionally robust, with zero total debt, resulting in a debt-to-equity ratio of 0. The equity ratio is high at 88.1%, showcasing financial stability and low leverage. The company maintains a substantial cash reserve, further strengthening its financial position. This strong balance sheet positions Fanuc Corporation well for future investments and growth opportunities.

Cash Flow

Cash flow generation is healthy, with a strong operating cash flow to net income ratio of 0.35 in the TTM. The free cash flow to net income ratio also supports solid cash flow management, although the free cash flow has decreased from the previous annual period. This indicates a potential need for efficiency improvements in cash flow generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	797.13B	795.27B	851.96B	733.01B	551.29B
Gross Profit	294.93B	266.30B	325.41B	295.63B	201.96B
EBITDA	243.19B	190.92B	240.55B	230.32B	157.62B
Net Income	147.56B	133.16B	170.59B	155.27B	94.01B
Balance Sheet
Total Assets	1.94T	1.93T	1.87T	1.78T	1.63T
Cash, Cash Equivalents and Short-Term Investments	606.50B	539.08B	529.23B	601.22B	586.78B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	197.14B	206.84B	245.98B	234.09B	189.64B
Stockholders Equity	1.72T	1.71T	1.62T	1.54T	1.43T
Cash Flow
Free Cash Flow	214.47B	117.88B	52.44B	91.22B	96.23B
Operating Cash Flow	255.27B	171.76B	99.50B	125.58B	118.00B
Investing Cash Flow	-134.08B	-13.56B	-78.00B	-53.93B	-16.77B
Financing Cash Flow	-136.62B	-122.51B	-127.92B	-89.15B	-53.13B

Fanuc Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4398.00
• 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:6954, the sentiment is Positive. The current price of 4398 is below the 20-day moving average (MA) of 4402.85, above the 50-day MA of 4046.16, and above the 200-day MA of 4051.64, indicating a neutral trend. The MACD of 138.73 indicates Positive momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 64.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6954.

Fanuc Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6954	73 Outperform	¥4.16T	26.87		2.15%	1.24%	20.57%
Sector *	63 Neutral	$10.76B	16.24	6.80%	2.07%	2.60%	-16.34%
SMECF	―	$19.78B	21.16	7.46%	2.16%	―	―
DAIUF	―	$11.75B	19.16	21.24%	1.47%	―	―
EBCOF	―	$10.32B	15.77	16.02%	4.92%	―	―
KWHIF	―	$11.23B	22.12	11.02%	2.12%	―	―
NNDNF	―	$23.92B	21.94	9.86%	1.26%	―	―