Makita (MKTAY) AI Stock Analysis

• Market Cap: $8.33B
• Dividend Yield: 1.57%
• Average Volume (3M): 509.00
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.52
• Revenue Growth: -0.92%
• EPS Growth: 70.75%
• 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: 0.82
• 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

• Rating: 68 Neutral
• Price Target: $35.00 ▲(13.64% Upside)

Makita's overall stock score reflects strong financial stability and profitability, tempered by challenges in revenue growth and technical indicators suggesting potential bearish momentum. The valuation is fair, with a reasonable P/E ratio and modest dividend yield.

Makita Business Overview & Revenue Model

Company Description

Makita Corporation (MKTAY) is a leading global manufacturer of power tools, outdoor power equipment, and accessories. Based in Japan, the company operates primarily in the construction, woodworking, and gardening sectors, providing a wide range of high-quality products designed for professional and industrial applications. Makita's core offerings include electric tools, cordless tools, and various equipment for cutting, drilling, and fastening, catering to both professionals and DIY enthusiasts.

How the Company Makes Money

Makita generates revenue through the sale of its extensive lineup of power tools and outdoor equipment. The company's primary revenue streams include direct sales to distributors, retailers, and end-users, as well as international exports. The company also benefits from a strong brand reputation, which allows it to maintain premium pricing for its products. Additionally, Makita's ongoing investment in research and development enables the introduction of innovative technologies and products, further driving sales. Partnerships with construction companies and collaborations with retailers enhance its market reach and distribution capabilities, contributing to its overall earnings.

Makita Financial Statement Overview

Summary

Makita demonstrates strong financial health with robust revenue growth, efficient operations, and sound financial leverage. The company's profitability metrics are commendable, and its balance sheet reflects financial stability with a strong equity base. Cash flow generation is solid, though historical fluctuations suggest potential volatility.

Income Statement

Makita has shown strong revenue growth, with a 2.84% increase from 2024 to 2025, and an impressive gross profit margin of 36.04% for 2025. The net profit margin for 2025 stands at 10.53%, reflecting efficient cost management. EBIT and EBITDA margins are solid at 14.21% and 19.15% respectively, indicating robust operational performance. However, the slight decrease in revenue from 2023 to 2024 suggests some volatility in revenue growth.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 83.70% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.01, reflecting conservative leverage. Return on equity is healthy at 8.57%, though there is room for improvement. The balance sheet shows a consistent increase in total assets, supporting future growth potential.

Cash Flow

Makita has achieved a substantial operating cash flow to net income ratio of 1.64 in 2025, demonstrating strong cash generation capability. The free cash flow grew by 19.32% from 2024 to 2025, highlighting effective cash management. Free cash flow to net income ratio is impressive at 1.64, ensuring sufficient liquidity for operations and investments. However, fluctuations in cash flow from prior years indicate potential volatility in cash generation.

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	54.13B	112.73B	104.95B
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: 30.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 30.8 is below the 20-day moving average (MA) of 31.80, below the 50-day MA of 33.04, and below the 200-day MA of 31.51, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of 36.57 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	―	$5.52B	17.56	10.52%	1.79%	-2.01%	-9.95%
LECO	―	$12.94B	27.06	37.35%	1.25%	0.24%	0.05%
SNA	―	$17.53B	17.96	17.96%	2.54%	0.24%	-1.85%
MKTAY	―	$8.33B	15.51	9.22%	1.57%	-0.92%	70.75%
TTC	―	$7.32B	22.68	21.85%	2.02%	0.78%	-13.62%
SWK	―	$10.83B	22.79	5.38%	4.70%	-2.71%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%