Makita (MKTAY) AI Stock Analysis

• Market Cap: $8.05B
• Dividend Yield: 1.71%
• Average Volume (3M): 509.00
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.55
• Revenue Growth: -0.88%
• EPS Growth: 32.73%
• Country: US
• Employees: 17,641
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.48
• Shares Outstanding: 280,017,550
• 10 Day Avg. Volume: 907
• 30 Day Avg. Volume: 509
• PEG Ratio: 0.21
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 10.31
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $29.00 ▲(2.73% Upside)

Makita's stock score is primarily influenced by its strong financial stability and profitability, despite challenges in revenue growth and cash flow. The technical analysis indicates bearish momentum, which weighs down the overall score. Valuation is reasonable, but not compelling enough to offset the technical weaknesses.

Makita Business Overview & Revenue Model

Company Description

Makita Corporation (MKTAY) is a leading global manufacturer of power tools and outdoor power equipment based in Japan. Established in 1915, the company operates primarily in the industrial and consumer sectors, offering a diverse range of products including cordless and electric power tools, garden tools, and accessories. Makita is renowned for its innovation and quality, serving professionals in construction, woodworking, and landscaping, as well as DIY enthusiasts.

How the Company Makes Money

Makita generates revenue primarily through the sale of its power tools and outdoor equipment, which includes a wide array of products such as drills, saws, grinders, and lawn care tools. The company's revenue model is built on both direct sales to retailers and distributors, as well as online sales through various platforms. Key revenue streams include the sales of new tools, replacement parts, and accessories, which contribute significantly to recurring revenues. Additionally, Makita benefits from strategic partnerships with distributors and retailers worldwide, enabling them to expand their market reach. The company also invests in research and development to innovate and improve its product offerings, which helps maintain a competitive edge and drives sales growth. Factors such as brand loyalty, high demand for electric and cordless tools, and expansion into emerging markets further contribute to Makita's earnings.

Makita Financial Statement Overview

Summary

Makita's financial performance is strong, with a robust balance sheet and effective cost management. The company maintains a healthy net profit margin and low leverage, but faces challenges in revenue growth and declining free cash flow growth.

Income Statement

Makita's income statement shows a strong gross profit margin of 36% TTM, indicating effective cost management. However, the revenue growth rate has declined by 0.97% TTM, reflecting potential market challenges. The net profit margin remains healthy at 10.53% TTM, showcasing profitability despite revenue contraction.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.011 TTM, indicating minimal leverage and strong financial stability. The return on equity is solid at 8.73% TTM, reflecting efficient use of equity capital. The equity ratio is strong, suggesting a well-capitalized position.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 13.95% TTM, indicating potential cash generation issues. However, the operating cash flow to net income ratio is strong at 0.93 TTM, suggesting good cash conversion from earnings. The free cash flow to net income ratio is also healthy at 0.86 TTM.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	744.58B	753.13B	741.39B	764.70B	739.26B	608.33B
Gross Profit	278.75B	271.43B	223.94B	188.75B	228.32B	203.05B
EBITDA	144.29B	144.25B	99.74B	57.45B	114.67B	106.77B
Net Income	85.68B	79.34B	43.69B	11.71B	64.77B	62.02B
Balance Sheet
Total Assets	1.09T	1.11T	1.06T	1.10T	1.01T	812.88B
Cash, Cash Equivalents and Short-Term Investments	236.55B	292.94B	215.21B	162.72B	71.06B	148.64B
Total Debt	22.91B	10.15B	19.89B	186.39B	79.67B	2.61B
Total Liabilities	169.80B	174.03B	180.60B	323.65B	254.97B	149.55B
Stockholders Equity	913.17B	926.01B	868.16B	769.25B	746.34B	657.86B
Cash Flow
Free Cash Flow	104.17B	129.87B	219.24B	5.34B	-163.60B	14.68B
Operating Cash Flow	123.76B	129.87B	237.09B	44.43B	-103.66B	64.54B
Investing Cash Flow	-7.93B	-37.87B	-25.62B	-37.68B	-27.89B	-42.91B
Financing Cash Flow	-56.17B	-33.55B	-191.28B	80.97B	52.63B	-23.04B

Makita Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTAY, the sentiment is Negative. The current price of 28.23 is below the 20-day moving average (MA) of 29.32, below the 50-day MA of 31.15, and below the 200-day MA of 31.49, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKTAY.

Makita Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKR	76 Outperform	$5.21B	17.70	9.80%	1.81%	-1.01%	-12.13%
LECO	75 Outperform	$12.60B	24.54	38.11%	1.33%	3.27%	10.89%
SNA	75 Outperform	$17.47B	17.61	17.96%	2.64%	0.24%	-1.85%
TTC	66 Neutral	$6.85B	21.23	21.85%	2.17%	0.78%	-13.62%
SWK	64 Neutral	$9.62B	21.49	4.92%	4.86%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MKTAY	61 Neutral	$8.05B	14.79	9.22%	1.71%	-0.88%	32.73%