Yaskawa Electric (YASKY) AI Stock Analysis

• Market Cap: $8.55B
• Dividend Yield: 1.21%
• Average Volume (3M): 500.00
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.86
• Revenue Growth: -1.13%
• EPS Growth: 30.96%
• Country: US
• Employees: 13,010
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.37
• Shares Outstanding: 133,345,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 500
• PEG Ratio: 1.46
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 55.51
• Enterprise Value/Market Cap: 175.88
• Enterprise Value/Revenue: 2.77
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 21.27
• 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: 63 Neutral
• Price Target: $75.00 ▲(17.85% Upside)
• Action: Downgraded Date: 01/11/26
• Date: Action: Downgraded 01/11/26

The score is driven primarily by mixed fundamentals: a strong, conservatively levered balance sheet is offset by a sharp TTM revenue decline, margin compression, and notably weaker/volatile free cash flow. Technicals are supportive with a clear uptrend and positive momentum, but valuation is a headwind due to the high P/E and modest yield.

Positive Factors

Conservative balance sheet & solid ROE

Low leverage (debt/equity ~0.25) and a ~13% ROE give the company durable financial flexibility. This conservative balance sheet supports capital spending, R&D and dividend continuity during downturns, and reduces refinancing risk versus more leveraged peers over the medium term.

Broad industrial product portfolio

A wide product set—servo drives, AC drives, motion controllers and robots—creates multiple addressable markets. This diversification supports steadier revenue as different end-markets (automotive, electronics, logistics) cycle differently and enables cross-selling of hardware and systems over time.

Aftermarket services and lifecycle revenue

Lifecycle services and spare-parts follow-on revenue are sticky and higher margin, smoothing cyclicality from project-driven hardware sales. A sizable installed base creates recurring service demand, supporting long-term cash flow and margin resilience as new unit sales fluctuate.

Negative Factors

Sharp TTM revenue decline

A ~24.5% TTM revenue decline materially weakens operating leverage and compresses margins. If demand weakness persists, margins and returns could deteriorate further, reducing reinvestment capacity and testing the company’s ability to maintain profitability across cycles.

Weak and volatile free cash flow

An ~81% drop in recent FCF and historically choppy cash conversion reduce financial flexibility for capex, buybacks, or dividends. Volatile cash flow raises the risk that operating swings or inventory/capex timing will force external financing or deferred investments over the medium term.

High exposure to industrial capex cycles

Revenue and order timing are tied to cyclical capital expenditures in key end markets. Prolonged weakness in automotive or electronics capex can depress new equipment orders, making recovery uneven and extending pressure on revenue, utilization and margin sustainability.

Yaskawa Electric Business Overview & Revenue Model

Company Description

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, specific purpose AC drives, AC Drive for systems, regenerative energy saving units, and PM motors for use in household appliances, such as air conditioners and refrigerators; social infrastructures comprising elevators, escalators, trains, cranes, fans, and pumps; and factories that manufacture printing machinery, textile machinery, rubber machinery, and other materials. The company also offers rotary servo motors, direct drive servo motors, linear motors/linear sliders, machine controllers, positioning sensor encoders, and servo amplifiers for use in industrial robots, semiconductor manufacturing apparatus, machine tools, flat panel display manufacturing equipment, and metal working machines; and arc and spot welding, handling/assembling, collaborative, biomedical, palletizing, press handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor wafer conveyance, arc welding, spot welding, handling, assembly, and palletizing applications. In addition, it provides industrial system electrical products, such as medium-voltage AC drives, system use AC drives, and system controllers for use in iron and steel systems, water and wastewater treatment, crane, and paper-making/film/port cargo handling/fiber/printing applications. Further, the company offers equipment for energy saving and creation comprising PV inverters, systems for large wind turbines, control equipment for small-scale power generation, and motor drive systems for use in photovoltaic power generation, large-scale wind power generation, small-scale power generation, and electric vehicles. YASKAWA Electric Corporation was founded in 1915 and is headquartered in Kitakyushu, Japan.

How the Company Makes Money

Yaskawa Electric generates revenue through multiple key streams, primarily from the sales of its industrial robots and motion control systems. The company sells its products directly to manufacturers and industrial clients, as well as through a network of distributors and partners worldwide. Additionally, Yaskawa earns income from providing maintenance, repair, and support services for its equipment, which creates a recurring revenue model. Significant partnerships with other technology firms and collaborations in automation projects also contribute to its earnings, as they expand Yaskawa's market reach and enhance its product offerings. The company further benefits from the growing demand for automation solutions driven by trends such as Industry 4.0 and the increasing focus on operational efficiency in manufacturing.

Yaskawa Electric Financial Statement Overview

Summary

Balance sheet strength is a key positive (low leverage ~0.25 debt/equity and healthy ~13% ROE), but the income statement has weakened with TTM revenue down ~24.5% and net margin compressed (~6.9%). Cash flow quality is the main drag, with very low and sharply lower TTM free cash flow (down ~80.9%) and historical volatility.

Income Statement

Profitability remains solid, with TTM (Trailing-Twelve-Months) gross margin ~35% and operating margin ~9% (EBITDA margin ~13%). However, the earnings profile has weakened versus the last few annual periods: TTM revenue is down sharply (-24.5%) and net margin has compressed to ~6.9% from ~10.6% in FY2025. The multi-year backdrop still shows decent profitability and improved margins versus FY2021, but the current demand/volume downturn is a clear near-term headwind.

Balance Sheet

Leverage looks conservative and stable, with debt-to-equity around ~0.25 across periods (TTM and recent annuals), suggesting manageable balance-sheet risk. Returns on equity are consistently healthy (~13% TTM and ~13% in FY2025), indicating the company is still generating respectable profit relative to shareholder capital. The main watch-out is not leverage, but whether profitability continues to soften, which could pressure returns if the revenue decline persists.

Cash Flow

Cash generation has turned choppier. TTM (Trailing-Twelve-Months) operating cash flow is positive, but free cash flow is very low (~2.3B) and down sharply (-80.9%), indicating weaker cash conversion in the most recent period. While FY2024–FY2025 showed meaningful free cash flow generation (roughly 19–24B), FY2023 had negative operating and free cash flow, highlighting volatility. Overall, cash flow quality is the weakest of the three statements due to inconsistent conversion and the recent drop in free cash flow.

Breakdown	TTM	Feb 2025	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	543.40B	537.68B	575.66B	555.96B	479.08B	389.71B
Gross Profit	192.77B	191.48B	209.10B	192.01B	168.65B	116.37B
EBITDA	70.71B	103.07B	86.55B	83.17B	70.19B	44.62B
Net Income	37.27B	56.99B	50.69B	51.78B	38.35B	18.93B
Balance Sheet
Total Assets	795.81B	743.77B	702.34B	653.13B	559.04B	487.43B
Cash, Cash Equivalents and Short-Term Investments	43.68B	63.31B	44.69B	46.74B	57.23B	52.91B
Total Debt	117.59B	109.53B	95.90B	99.56B	68.04B	76.54B
Total Liabilities	323.56B	304.17B	294.32B	298.06B	260.94B	237.87B
Stockholders Equity	462.78B	431.19B	399.34B	347.50B	291.23B	246.27B
Cash Flow
Free Cash Flow	-1.45B	19.20B	23.59B	-24.14B	25.01B	30.99B
Operating Cash Flow	48.35B	56.51B	54.62B	-2.21B	49.23B	39.60B
Investing Cash Flow	-49.07B	-21.29B	-29.35B	-19.69B	-24.16B	-9.60B
Financing Cash Flow	-1.14B	-15.67B	-29.42B	7.20B	-22.48B	-20.28B

Yaskawa Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YASKY, the sentiment is Positive. The current price of 63.64 is below the 20-day moving average (MA) of 67.21, below the 50-day MA of 64.35, and above the 200-day MA of 51.17, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 59.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YASKY.

Yaskawa Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWL	81 Outperform	$6.79B	36.32	32.16%	0.32%	9.08%	19.86%
ENS	77 Outperform	$6.36B	21.37	16.74%	0.67%	6.17%	20.86%
NVT	77 Outperform	$19.12B	45.41	12.30%	0.84%	5.31%	5.76%
AEIS	74 Outperform	$12.67B	87.33	11.64%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
YASKY	63 Neutral	$8.55B	34.21	13.26%	1.21%	-1.13%	30.96%
BE	56 Neutral	$46.63B	-458.83	-13.29%	―	44.53%	―