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Harmonic Drive Systems
(6324)
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Rating:51Neutral
Price Target:
¥6,251.00
▲(8.15% Upside)
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
Revenue Recovery
Revenue growth has returned to positive territory after the 2024 contraction, indicating that demand for the company’s precision motion products has not structurally disappeared. Continued expansion would support operating leverage and provide a foundation for rebuilding earnings, although the current rebound remains modest.
Negative Factors
Thin and Volatile Profitability
Profitability has recovered from the 2024 loss but remains well below prior peak levels, leaving limited earnings cushion if demand or costs move unfavorably. The sharp margin gap also suggests that the current recovery has not yet restored the company’s historical earnings power or operating efficiency.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
Revenue growth has returned to positive territory after the 2024 contraction, indicating that demand for the company’s precision motion products has not structurally disappeared. Continued expansion would support operating leverage and provide a foundation for rebuilding earnings, although the current rebound remains modest.
Read all positive factors
Harmonic Drive Systems (6324) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥598.76B
Dividend Yield0.32%
Average Volume (3M)857.30K
Price to Earnings (P/E)201.6
Beta (1Y)1.74
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. Volume803,450
30 Day Avg. Volume857,303
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
¥7,814.00Price Target Upside35.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)68.61
Revenue Forecast (FY)¥74.81B
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 Technical Analysis
Negative
5780.00
Price Trends
6122.64
Positive
6719.70
Negative
5422.96
Positive
Market Momentum
103.84
Negative
49.08
Neutral
38.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6324, the sentiment is Negative. The current price of 5780 is below the 20-day moving average (MA) of 6233.81, below the 50-day MA of 6122.64, and above the 200-day MA of 5422.96, indicating a neutral trend. The MACD of 103.84 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 38.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6324.
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 | ¥715.05B | 17.97 | 5.80% | 2.31% | 7.75% | ― | |
66 Neutral | ¥569.45B | 28.60 | 7.86% | 1.67% | -7.97% | 70.99% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥751.66B | 18.41 | -14.41% | 3.26% | ― | ― | |
57 Neutral | ¥390.69B | 23.21 | ― | 1.66% | 11.01% | 29.70% | |
57 Neutral | ¥366.91B | 23.28 | ― | 4.13% | 5.19% | 13.96% | |
51 Neutral | ¥598.76B | 201.62 | 3.70% | 0.32% | 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...
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.