Makita (MKTAY) AI Stock Analysis

• Market Cap: $8.56B
• Dividend Yield: 1.58%
• Average Volume (3M): 509.00
• Price to Earnings (P/E): 15.8
• 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: 119.07
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 4.85
• Enterprise Value/Ebitda: 9.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $33.00 ▲(8.62% Upside)

Makita's overall stock score is driven by strong financial performance, particularly its profitability and robust balance sheet. However, challenges such as revenue decline and reduced cash flow generation weigh on the score. Technical analysis suggests mixed signals with short-term bullish momentum but potential overbought conditions. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Balance Sheet Strength

Makita's minimal leverage and high equity ratio indicate financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Profitability

High profit margins reflect operational efficiency and pricing power, supporting sustainable earnings and potential reinvestment into growth initiatives.

Competitive Advantage

Strong distribution networks enhance market reach and customer access, reinforcing Makita's competitive position and supporting long-term revenue streams.

Negative Factors

Revenue Decline

A substantial drop in revenue can signal market share loss or demand issues, potentially impacting future growth and necessitating strategic adjustments.

Cash Flow Challenges

Reduced cash flow generation may constrain liquidity and limit the company's ability to fund operations and investments, affecting long-term financial health.

Revenue Growth Trend

Negative revenue growth trend indicates potential structural challenges in market demand or competitive positioning, requiring strategic intervention to reverse.

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 demonstrates strong profitability and a solid balance sheet with minimal leverage, providing financial stability. However, the significant revenue decline and reduced cash flow generation in the TTM pose challenges that need to be addressed to sustain growth and liquidity in the future.

Income Statement

Makita's income statement shows strong profitability with a Gross Profit Margin of 37.19% and a Net Profit Margin of 10.73% for the TTM. However, the company experienced a significant revenue decline of 25.68% in the TTM, indicating potential challenges in maintaining growth. Despite this, the EBIT and EBITDA margins remain healthy at 14.87% and 18.82% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is robust with a very low Debt-to-Equity Ratio of 0.0033, indicating minimal leverage and financial risk. The Return on Equity is solid at 8.62%, reflecting effective use of equity to generate profits. The Equity Ratio stands at 83.92%, highlighting a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a decline in Free Cash Flow by 33.45% in the TTM, which could impact future liquidity. The Operating Cash Flow to Net Income Ratio is 0.73, suggesting that cash generation from operations is lower than net income. However, the Free Cash Flow to Net Income Ratio of 0.81 indicates a reasonable conversion of net income into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	553.37B	753.13B	741.39B	764.70B	739.26B	608.33B
Gross Profit	210.45B	271.43B	223.94B	188.75B	228.32B	203.05B
EBITDA	106.94B	144.25B	99.74B	57.45B	114.67B	106.77B
Net Income	63.63B	79.34B	43.69B	11.71B	64.77B	62.02B
Balance Sheet
Total Assets	1.13T	1.11T	1.06T	1.10T	1.01T	812.88B
Cash, Cash Equivalents and Short-Term Investments	278.92B	292.94B	215.21B	162.72B	71.06B	148.64B
Total Debt	3.14B	10.15B	19.89B	186.39B	79.67B	2.61B
Total Liabilities	174.81B	174.03B	180.60B	323.65B	254.97B	149.55B
Stockholders Equity	948.43B	926.01B	868.16B	769.25B	746.34B	657.86B
Cash Flow
Free Cash Flow	69.33B	129.87B	219.24B	5.34B	-163.60B	14.68B
Operating Cash Flow	84.02B	129.87B	237.09B	44.43B	-103.66B	64.54B
Investing Cash Flow	-20.77B	-37.87B	-25.62B	-37.68B	-27.89B	-42.91B
Financing Cash Flow	-14.93B	-33.55B	-191.28B	80.97B	52.63B	-23.04B

Makita Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.38
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKTAY, the sentiment is Positive. The current price of 30.38 is below the 20-day moving average (MA) of 30.51, above the 50-day MA of 29.61, and below the 200-day MA of 31.04, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 95.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKTAY.

Makita Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNA	78 Outperform	$18.79B	18.98	17.96%	2.52%	0.24%	-1.85%
LECO	77 Outperform	$13.81B	27.04	38.11%	1.22%	3.27%	10.89%
TKR	76 Outperform	$6.31B	21.57	9.80%	1.61%	-1.01%	-12.13%
MKTAY	70 Outperform	$8.56B	15.76	9.22%	1.58%	-0.88%	32.73%
TTC	69 Neutral	$8.60B	28.12	21.04%	1.95%	-1.53%	-21.19%
SWK	67 Neutral	$12.62B	28.49	4.92%	4.42%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%