Makita (MKTAY) AI Stock Analysis

• Market Cap: $8.12B
• Dividend Yield: 2.66%
• Average Volume (3M): 313.00
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.52
• Revenue Growth: -3.70%
• EPS Growth: 72.77%
• Country: US
• Employees: 17,641
• Sector: Industrials
• Sector Strength: 83
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.46
• Shares Outstanding: 280,017,550
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 313
• PEG Ratio: -0.93
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 167.59
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

Makita's strong financial performance, including robust profitability and cash flow management, is a key strength. However, technical indicators suggest a cautious outlook with potential for further downside. The valuation is reasonable, providing some support to the stock price. Overall, while Makita is financially solid, current market trends may pose short-term challenges.

Makita Business Overview & Revenue Model

Company Description

Makita Corporation engages in the manufacture and sale of electric power tools, pneumatic tools, and gardening and household equipment in Japan, Europe, North America, rest of Asia, Central and South America, Oceania, and the Middle East and Africa. The company offers cordless, drilling/fastening, impact drilling/demolition, grinding/sanding, sawing, planning/routering, pneumatic, outdoor power, and dust extraction/other equipment, as well as accessories; and cutting equipment for new materials, masonry, and metals. It provides its products under the Makita brand. The company was formerly known as Makita Electric Works, Ltd. and changed its name to Makita Corporation in April 1991. Makita Corporation was founded in 1915 and is headquartered in Anjo, Japan.

How the Company Makes Money

Makita makes money primarily through the sale of its power tools and equipment, which are distributed worldwide. The company's revenue model is driven by its diverse product offerings, catering to various industries such as construction, woodworking, and gardening. Makita's key revenue streams include the sale of cordless and corded power tools, outdoor power equipment, and accessories. Additionally, Makita benefits from its strong brand reputation and global distribution network, which includes partnerships with retailers, distributors, and online platforms. The company's focus on innovation and quality ensures a competitive edge, contributing to its sustained earnings growth in the highly competitive power tools market.

Makita Financial Statement Overview

Summary

Makita demonstrates strong financial health with a solid income statement, robust balance sheet, and effective cash flow management. The company's profitability metrics are impressive, with a high gross profit margin and effective cost management. The low debt-to-equity ratio minimizes financial risk, although there is room for improvement in return on equity.

Income Statement

Makita's income statement reveals solid performance with a strong TTM gross profit margin of 34.3% and a net profit margin of 9.6%. The revenue growth rate shows a positive trend, with a 2.4% increase in TTM revenue compared to the previous period. Additionally, the EBIT margin of 24.1% and EBITDA margin of 17.1% indicate effective cost management and operational efficiency. The company's profitability metrics are robust, reflecting a healthy financial position in its industry.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.01, indicating conservative leverage. The return on equity (ROE) is 7.9%, which is moderate but stable. The equity ratio is high at 83.6%, suggesting a solid capital structure with a significant portion of assets financed by equity. While the low debt levels minimize financial risk, there is room for improvement in increasing the ROE.

Cash Flow

Makita's cash flow statement shows a robust operating cash flow to net income ratio of 2.2, highlighting strong cash generation relative to net income. The free cash flow to net income ratio is 1.9, indicating effective cash management and reinvestment capabilities. The free cash flow growth rate is substantial, showcasing the company's ability to generate excess cash consistently. Overall, cash flow metrics are strong, supporting long-term financial stability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	759.33B	741.39B	764.70B	739.26B	608.33B	492.62B
Gross Profit	260.55B	223.94B	188.75B	228.32B	203.05B	168.84B
EBITDA	130.03B	99.74B	54.13B	112.73B	104.95B	78.39B
Net Income	72.90B	43.69B	11.71B	64.77B	62.02B	47.73B
Balance Sheet
Total Assets	1.10T	1.06T	1.10T	1.01T	812.88B	674.56B
Cash, Cash Equivalents and Short-Term Investments	262.23B	215.21B	162.72B	71.06B	148.64B	143.44B
Total Debt	11.27B	19.89B	203.62B	96.46B	16.45B	19.74B
Total Liabilities	173.81B	180.60B	323.65B	254.97B	149.55B	98.82B
Stockholders Equity	923.77B	868.16B	769.25B	746.34B	657.86B	571.27B
Cash Flow
Free Cash Flow	139.79B	219.24B	5.34B	-163.60B	14.68B	12.90B
Operating Cash Flow	157.15B	237.09B	44.43B	-103.66B	64.54B	57.31B
Investing Cash Flow	-18.93B	-25.62B	-37.68B	-27.89B	-42.91B	-30.51B
Financing Cash Flow	-37.04B	-191.28B	80.97B	52.63B	-23.04B	-22.93B

Makita Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 29.86 is below the 20-day moving average (MA) of 29.89, below the 50-day MA of 29.98, and below the 200-day MA of 30.94, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 83.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MKTAY.

Makita Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LECO	77 Outperform	$11.68B	25.83	34.83%	1.42%	-2.29%	-14.49%
SNA	74 Outperform	$16.26B	16.28	19.15%	2.77%	-0.88%	0.04%
TKR	74 Outperform	$5.12B	15.80	11.85%	1.89%	-3.69%	-11.76%
MKTAY	71 Outperform	$8.12B	15.44	8.74%	2.66%	-3.70%	72.77%
SWK	68 Neutral	$10.25B	28.14	4.03%	4.85%	-3.04%	―
Sector *	67 Neutral	€8.43B	18.51	6.19%	2.70%	2.33%	-39.06%
TTC	64 Neutral	$6.94B	18.02	25.50%	2.14%	2.98%	54.13%