Yaskawa Electric (YASKY) AI Stock Analysis

• Market Cap: $7.28B
• Dividend Yield: 1.21%
• Average Volume (3M): 500.00
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.91
• 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: 168.32
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 6.35
• Enterprise Value/Ebitda: 17.32
• 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: $59.00 ▼(-7.29% Downside)
• 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

Low leverage (~0.25 D/E) and consistent returns on equity (~13%) give the company durable financial flexibility. This reduces refinancing and solvency risk during cycles, supports continued R&D and targeted capex for automation products, and helps absorb demand volatility without forcing dilutive financing.

Diverse Industrial Automation Business

A broad product mix (drives, servos, controllers, industrial robots) plus engineering and aftermarket services creates multiple revenue streams. The installed base and recurring service/parts sales provide structural revenue attachment and reduce reliance on single end-market capex cycles, supporting long-term resilience.

Solid Underlying Margins

Sustained mid-30s gross margins and positive operating/EBITDA margins indicate inherent product and operational economics. Even with near-term weakness, these margins support reinvestment in product development, maintain competitiveness on automation solutions, and provide cushion against cyclical downturns.

Negative Factors

Sharp Revenue Decline

A substantial multi-period revenue drop reduces operating leverage benefits and may reflect weaker capital spending among core customers. If lower volumes persist, fixed-cost absorption will deteriorate, limiting margin recovery and shrinking the installed base that drives future parts and service revenues.

Volatile and Weak Free Cash Flow

Severely reduced FCF and historical volatility constrain the firm's ability to self-fund strategic investments, smooth cyclicality, and return capital. Prolonged weak cash conversion would force slower product rollouts, defer maintenance of installed systems, or require external financing under less favorable terms.

Net Margin Compression

A meaningful decline in net margin signals pricing, mix, or cost-pressure issues. Sustained margin erosion reduces profitability per sale, weakens ROE over time, and limits funds available for R&D, service expansion, and competitive investments, making it harder to defend long-term market position.

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 makes money primarily by selling industrial automation hardware and associated systems, supplemented by software/controls and services tied to installation and ongoing maintenance. Key revenue streams include: (1) Motion control sales—servo motors, servo drives, motion controllers, and related components that enable precise movement in machinery (e.g., machine tools, semiconductor/electronics equipment, packaging lines). (2) Drive products sales—AC drives/inverters and other power conversion/control products used to regulate motor speed and energy use in industrial equipment, HVAC, pumps, fans, and manufacturing processes. (3) Robotics and automation systems sales—industrial robots (manipulators) and complete robotic cells/automation solutions, where revenue can come from stand-alone robot units as well as higher-value integrated systems that include end-of-arm tooling, safety equipment, vision, and line integration/engineering. (4) Services and aftermarket—installation support, engineering services, preventive maintenance, repairs, spare parts, and upgrades; these generate recurring or repeat revenue over the deployed base of drives, servos, and robots. Earnings are influenced by capital spending cycles in manufacturing (especially automotive, electronics, and general industrial), project mix between standard products and integrated systems, geographic demand in major industrial regions, and the size of the installed base that drives parts and service demand. Specific material partnership details are null.

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: Negative
• Last Price: 63.64
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 63.64 is above the 20-day moving average (MA) of 61.07, below the 50-day MA of 64.08, and above the 200-day MA of 52.23, indicating a neutral trend. The MACD of -2.51 indicates Positive momentum. The RSI at 36.88 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$6.27B	23.32	30.64%	0.32%	9.08%	19.86%
ENS	77 Outperform	$6.09B	15.10	16.61%	0.67%	6.17%	20.86%
NVT	77 Outperform	$18.81B	23.32	19.60%	0.84%	5.31%	5.76%
AEIS	74 Outperform	$11.97B	53.05	11.51%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
YASKY	63 Neutral	$7.28B	35.00	13.26%	1.21%	-1.13%	30.96%
BE	56 Neutral	$42.12B	-234.84	-13.63%	―	44.53%	―