Fanuc Corporation (6954) AI Stock Analysis

• Market Cap: ¥6.44T
• Dividend Yield: 1.72%
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 1.35
• Revenue Growth: 4.10%
• EPS Growth: 14.54%
• Country: JP
• Employees: 9,970
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• 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: ¥6,975.00
• Price Target Upside: 0.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥7,801.00 ▲(12.00% Upside)
• Action: Reiterated Date: 12/05/25
• Date: Action: Reiterated 12/05/25

Fanuc Corporation's strong financial performance is the most significant factor driving its stock score, supported by robust profitability, low leverage, and effective cash management. Technical analysis indicates strong momentum, although overbought signals suggest caution. The valuation metrics highlight a high P/E ratio, indicating potential overvaluation. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong free cash flow generation

Consistent growth in free cash flow and a high operating-cash-flow-to-net-income ratio indicate durable cash conversion. That cash generation supports sustained R&D, spare-parts/service investments, dividends or buybacks, and provides a buffer through manufacturing cycles.

Robust profitability and margins

Rising gross and net margins and healthy EBIT/EBITDA margins reflect structural operational efficiency and pricing power across CNC, robots and systems. Durable margins support reinvestment in product development and high-margin aftermarket services.

Conservative balance sheet with low leverage

Very low leverage and a healthy equity ratio give long-term financial flexibility: capacity to fund capex, service the installed base, pursue selective M&A or return cash to shareholders while limiting refinancing and solvency risk in downturns.

Negative Factors

Cyclicality of end markets

Revenue and order flows depend on capital spending patterns in automotive, semiconductors and general manufacturing. This structural exposure means equipment sales and near-term revenue can swing materially on macro capex decisions, limiting revenue predictability.

Moderate growth in stockholders' equity

Only moderate equity growth suggests slower internal capital accumulation versus peers. That dynamic can restrain aggressive scaling or large strategic investments without sacrificing returns or increasing leverage, limiting faster long-term expansion.

Recent revenue fluctuation

A recent dip in revenue despite overall growth highlights sensitivity to demand shifts and potential volatility in equipment sales. Even with strong margins and services, top-line fluctuations can pressure investment timing and near-term resource allocation.

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 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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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	205.29B	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	12.01B	10.56B	8.50B	3.92B	4.05B
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: 6965.00
• 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 6965 is above the 20-day moving average (MA) of 6648.70, above the 50-day MA of 6452.34, and above the 200-day MA of 4919.44, indicating a bullish trend. The MACD of 133.61 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 82.42 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
6273	78 Outperform	¥4.69T	30.40	7.96%	1.86%	2.43%	-1.86%
6954	74 Outperform	¥6.44T	41.07	―	1.72%	4.10%	14.54%
6383	70 Outperform	¥2.37T	30.47	16.30%	1.30%	―	―
6594	69 Neutral	¥2.68T	23.56	6.88%	0.97%	5.35%	26.51%
6361	66 Neutral	¥2.55T	33.32	16.00%	1.38%	13.96%	12.97%
7012	64 Neutral	¥3.08T	27.84	13.25%	1.40%	14.12%	54.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%