Fanuc Corporation (6954) AI Stock Analysis

• Market Cap: ¥4.12T
• Dividend Yield: 2.02%
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.31
• Revenue Growth: 1.24%
• EPS Growth: 20.57%
• Country: JP
• Employees: 9,970
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 40.56
• Shares Outstanding: 982,383,500
• 10 Day Avg. Volume: 4,904,250
• 30 Day Avg. Volume: 3,693,200
• PEG Ratio: 2.12
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 17.76
• 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: ¥5,020.00
• Price Target Upside: 3.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: ¥5,390.00 ▲(11.46% Upside)

Fanuc Corporation's overall stock score is driven primarily by its strong financial performance and positive technical indicators. The company's robust profitability, low leverage, and effective cash management contribute significantly to its financial strength. The technical analysis supports a bullish outlook with the stock trading above key moving averages. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.

Positive Factors

Strong Cash Flow Management

Fanuc's ability to generate and manage cash effectively ensures financial stability and supports future investments, enhancing long-term growth prospects.

Low Leverage

Low leverage reduces financial risk, providing Fanuc with greater flexibility to navigate economic fluctuations and invest in growth opportunities.

Robust Profitability

Strong profitability and efficient operations enable Fanuc to reinvest in innovation and maintain competitive advantages in the automation industry.

Negative Factors

Moderate Equity Growth

Moderate equity growth may limit Fanuc's ability to expand its capital base, potentially affecting its capacity to fund large-scale projects or acquisitions.

Revenue Growth Fluctuations

Fluctuations in revenue growth could indicate market challenges or competitive pressures, potentially impacting Fanuc's long-term market position.

High P/E Ratio Concerns

A high P/E ratio may signal overvaluation, which could limit stock price appreciation and affect investor confidence in the long-term value proposition.

Fanuc Corporation Business Overview & Revenue Model

Company Description

Fanuc Corporation (6954) is a leading global manufacturer of automation equipment and robotics, headquartered in Japan. The company operates primarily in the fields of factory automation, industrial robotics, and computer numerical control (CNC) systems. Fanuc's core products include robotic arms, CNC machinery, and advanced software for factory automation, catering to a diverse range of industries such as automotive, electronics, and consumer goods. With a strong focus on innovation and efficiency, Fanuc aims to enhance productivity and streamline manufacturing processes for its clients worldwide.

How the Company Makes Money

Fanuc generates revenue through multiple streams, primarily from the sale of its automation equipment, including industrial robots and CNC systems. The company also earns significant income from providing maintenance services, software solutions, and technical support to its customers. Additionally, Fanuc benefits from recurring revenue through long-term service contracts and upgrades for existing systems. Strategic partnerships with various industries and companies help expand its market reach and diversify its offerings, further contributing to its earnings. The growing demand for automation and robotics in manufacturing sectors continues to drive Fanuc's revenue growth.

Fanuc Corporation Financial Statement Overview

Summary

Fanuc Corporation exhibits a strong financial position across all verticals. The income statement shows impressive profitability and growth, while the balance sheet highlights a conservative financial strategy with low leverage. The cash flow statement underscores the company's ability to generate and manage cash effectively. Despite some fluctuations in revenue growth, the overall financial health of the company is solid, positioning it well for future opportunities.

Income Statement

Fanuc Corporation shows strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The EBIT and EBITDA margins are also robust, indicating efficient operations. Revenue growth has been positive, although it experienced a slight dip in 2023. Overall, the income statement reflects a healthy financial performance with strong margins and growth potential.

Balance Sheet

The balance sheet of Fanuc Corporation is stable with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is solid, reflecting effective use of equity capital. The equity ratio is healthy, suggesting a strong capital structure. However, the growth in stockholders' equity has been moderate, which slightly tempers the overall score.

Cash Flow

Fanuc Corporation demonstrates strong cash flow management with significant growth in free cash flow, especially in the latest period. The operating cash flow to net income ratio is high, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting effective conversion of profits into cash. Overall, the cash flow statement reflects robust cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	798.39B	797.13B	795.27B	851.96B	733.01B	551.29B
Gross Profit	303.77B	294.93B	275.84B	325.41B	295.63B	201.96B
EBITDA	238.09B	243.19B	190.92B	240.55B	230.32B	157.62B
Net Income	156.60B	147.56B	133.16B	170.59B	155.27B	94.01B
Balance Sheet
Total Assets	1.90T	1.94T	1.93T	1.87T	1.78T	1.63T
Cash, Cash Equivalents and Short-Term Investments	602.96B	606.50B	539.08B	529.23B	601.22B	586.78B
Total Debt	7.67B	7.29B	6.42B	5.11B	2.44B	2.16B
Total Liabilities	177.45B	197.14B	206.84B	245.98B	234.09B	189.64B
Stockholders Equity	1.71T	1.72T	1.71T	1.62T	1.54T	1.43T
Cash Flow
Free Cash Flow	0.00	214.47B	117.88B	52.44B	91.22B	96.23B
Operating Cash Flow	0.00	255.27B	171.76B	99.50B	125.58B	118.00B
Investing Cash Flow	0.00	-134.08B	-13.56B	-78.00B	-53.93B	-16.77B
Financing Cash Flow	0.00	-136.62B	-122.51B	-127.92B	-89.15B	-53.13B

Fanuc Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4836.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4836 is above the 20-day moving average (MA) of 4589.60, above the 50-day MA of 4371.26, and above the 200-day MA of 4093.05, indicating a bullish trend. The MACD of 162.14 indicates Negative momentum. The RSI at 62.10 is Neutral, neither overbought nor oversold. The STOCH value of 82.22 is Negative, 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
6383	―	$1.84T	21.86	21.24%	1.32%	―	―
6954	―	¥4.12T	26.58	―	2.02%	1.24%	20.57%
6361	―	$1.77T	24.09	16.02%	1.26%	16.57%	6.63%
6273	―	$3.14T	22.51	7.46%	1.92%	1.13%	-17.99%
6594	―	$3.02T	18.61	―	1.93%	6.85%	31.48%
7012	―	$1.94T	25.24	11.02%	1.29%	15.11%	142.87%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%