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Harmonic Drive Systems
(6324)
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Rating:51Neutral
Price Target:
¥5,809.00
▼(-11.45% Downside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by very expensive valuation (extremely high P/E with low yield) and weakened cash-flow quality (sharp free-cash-flow decline and poor conversion). A solid, improving balance sheet and neutral technical conditions provide some support, but overall fundamentals and valuation limit upside confidence.
Positive Factors
Diversified precision-motion applications
Exposure to several precision-equipment applications supports durable relevance across robotics and automation markets. This breadth can reduce dependence on a single customer industry, although demand remains linked to capital-expenditure cycles.
Negative Factors
Thin and unstable profitability
Profitability remains well below prior peak levels despite the revenue recovery. Thin margins leave less protection against pricing pressure, utilization weakness or input-cost changes, making earnings recovery dependent on stronger operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified precision-motion applications
Exposure to several precision-equipment applications supports durable relevance across robotics and automation markets. This breadth can reduce dependence on a single customer industry, although demand remains linked to capital-expenditure cycles.
Read all positive factors
Harmonic Drive Systems (6324) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥554.48B
Dividend Yield0.34%
Average Volume (3M)1.26M
Price to Earnings (P/E)187.4
Beta (1Y)1.86
Revenue Growth11.76%
EPS Growth-21.18%
CountryJP
Employees1,419
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)30.85
Shares Outstanding96,315,400
10 Day Avg. Volume1,514,980
30 Day Avg. Volume1,259,070
Financial Highlights & Ratios
PEG Ratio-3.81
Price to Book (P/B)4.08
Price to Sales (P/S)5.51
P/FCF Ratio446.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,395.71Price Target Upside27.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)68.71
Revenue Forecast (FY)¥74.71B
Harmonic Drive Systems Business Overview & Revenue Model
Company Description
Operating globally, Harmonic Drive Systems Inc. specializes in the manufacture and distribution of high-precision control systems and their constituent parts. Their diverse product lineup encompasses various motion control elements such as speed r...
How the Company Makes Money
Harmonic Drive Systems makes money primarily by designing, manufacturing, and selling precision reduction gears and related motion-control components used by equipment manufacturers (OEMs). Its core revenue stream is product sales of strain-wave g...
Harmonic Drive Systems Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
74
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.74B | 59.56B | 55.65B | 55.80B | 71.53B | 57.09B |
| Gross Profit | 20.24B | 18.13B | 13.23B | 13.05B | 23.46B | 20.11B |
| EBITDA | 11.46B | 9.91B | 13.03B | -17.07B | 19.94B | 17.40B |
| Net Income | 2.92B | 1.61B | 3.47B | -24.81B | 7.60B | 6.64B |
Balance Sheet | ||||||
| Total Assets | 113.21B | 111.40B | 113.62B | 119.14B | 154.34B | 143.29B |
| Cash, Cash Equivalents and Short-Term Investments | 22.16B | 21.68B | 25.77B | 20.36B | 20.81B | 19.93B |
| Total Debt | 16.89B | 18.07B | 20.74B | 23.81B | 27.37B | 20.91B |
| Total Liabilities | 31.82B | 31.01B | 34.68B | 39.74B | 50.38B | 44.43B |
| Stockholders Equity | 81.39B | 80.39B | 78.94B | 79.40B | 103.96B | 98.86B |
Cash Flow | ||||||
| Free Cash Flow | 734.56M | 734.56M | 2.63B | 7.79B | 2.01B | 5.14B |
| Operating Cash Flow | 6.43B | 6.43B | 7.52B | 12.73B | 10.85B | 9.88B |
| Investing Cash Flow | -4.94B | -4.94B | 1.48B | -5.95B | -8.66B | -19.49B |
| Financing Cash Flow | -5.87B | -5.87B | -5.87B | -8.12B | -1.60B | 8.12B |
Harmonic Drive Systems Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥715.42B | 17.67 | 4.72% | 2.56% | 7.75% | ― | |
66 Neutral | ¥538.98B | 27.35 | 6.59% | 1.65% | -7.97% | 78.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥766.67B | 19.01 | -22.79% | 3.14% | 1.98% | -48.28% | |
57 Neutral | ¥372.60B | 22.13 | ― | 2.50% | 11.01% | 29.70% | |
54 Neutral | ¥295.48B | 20.94 | ― | 1.65% | 5.19% | 13.96% | |
51 Neutral | ¥554.48B | 187.36 | 2.07% | 0.30% | 11.76% | -21.18% |
* Industrials Sector Average
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Harmonic Drive Systems Corporate Events
Harmonic Drive Systems Swings Back to Profit and Lifts FY2027 Outlook
Aug 21, 2026
Harmonic Drive Systems reported a strong recovery for the three months ended June 30, 2026, with net sales up 23.6% to ¥16.68 billion and profit attributable to owners of the parent swinging to a ¥1.27 billion gain from a prior-year loss...
Harmonic Drive Systems Issues 1Q FY 2027 Results With Caution on Outlook
Aug 19, 2026
Harmonic Drive Systems released its financial results presentation for the first quarter of the fiscal year ending March 31, 2027, dated August 7, 2026. The announcement notes that management’s expectations for future performance are subject...
Harmonic Drive Systems Lifts Full-Year Earnings Forecast on Strong Automation Demand
Aug 7, 2026
Harmonic Drive Systems has sharply upgraded its consolidated forecast for the fiscal year ending March 31, 2027, citing stronger-than-expected demand for speed reducers and mechatronic products across industrial robot and semiconductor equipment a...
Harmonic Drive Systems Lifts Full-Year Outlook After Strong First Quarter
Aug 7, 2026
Harmonic Drive Systems reported a strong rebound for the quarter ended June 30, 2026, with net sales rising 23.6% year on year to ¥16.68 billion and profit attributable to owners of parent improving to ¥1.27 billion from a loss a year ea...
Harmonic Drive Systems Completes Treasury Share Disposal for Director Remuneration
Aug 5, 2026
Harmonic Drive Systems Inc. has completed the payment procedures for a disposal of treasury shares used as restricted share-based remuneration to its management. The transaction, approved by the board in mid-July, involved 9,929 common shares pric...
Harmonic Drive Systems to Grant Restricted Treasury Shares to Directors
Jul 15, 2026
Harmonic Drive Systems Inc. has approved the disposal of 9,929 treasury shares as restricted share‑based remuneration for five internal directors. The shares, valued at about ¥74.9 million at a price of ¥7,540 per share, will be al...
Harmonic Drive Systems Reaffirms Independence Despite KODEN Stake
Jun 18, 2026
Harmonic Drive Systems has clarified its relationship with other affiliate KODEN Holdings, which owns 35.4% of its voting rights but operates in different business domains through subsidiaries focused on electronics and instruments. The company em...
Harmonic Drive Systems Details Governance and Ownership Structure of Parent KODEN Holdings
Jun 18, 2026
Harmonic Drive Systems announced the finalized fiscal 2026 results and governance details of its unlisted parent, KODEN Holdings, which holds a 35.40% voting rights stake and functions as a strategic management entity for group companies. The disc...
Harmonic Drive Systems Books €11 Million Dividend from German Subsidiary
Jun 17, 2026
Harmonic Drive Systems Inc. has received dividends totaling 11 million euros, or approximately 2,144 million yen, from its German consolidated subsidiary Harmonic Drive SE. The payment, received on May 8, 2026, triggered a statutory extraordinary ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.