Yuken Kogyo Co., Ltd. (6393) AI Stock Analysis

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Yuken Kogyo Co., Ltd.

(TSE/TYO:6393)

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Rating:55Neutral

Price Target:JPY 3,064.00▲(2.51% Upside)

Action:reiterated

Date:11/14/26

The overall score of 55 reflects a company with a very attractive valuation and high dividend yield, balanced against weak and volatile financial performance. The primary risk is the poor cash flow generation, which threatens the sustainability of the dividend and future growth. The stable balance sheet and neutral technicals provide some support, but the inability to consistently convert profits to free cash flow is a significant concern that caps the score.

Positive Factors

Specialized hydraulic systems businessThe company operates in a specialized industrial niche spanning hydraulic equipment, control components, and system engineering. This breadth can support customer integration and recurring technical relationships, helping preserve its competitive relevance across industrial machinery applications over coming quarters.

Negative Factors

Modest growth and thin net marginRevenue is growing only modestly, while the thin net margin leaves limited protection if operating costs increase or demand weakens. This combination constrains the pace at which profits can compound and makes sustained earnings improvement dependent on better growth or operating efficiency.

Yuken Kogyo Co., Ltd. (6393) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 10.63B
Dividend Yield: 5.02%
Average Volume (3M): 2,400
Price to Earnings (P/E): 8.8
Beta (1Y): 0.53
Revenue Growth: 0.61%
EPS Growth: 3.85%
Country: Japan
Employees: 1,401
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Yuken Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Yuken Kogyo Co., Ltd. specializes in the development, manufacturing, and global sale of hydrostatic equipment and systems, as well as ecological machinery, serving both domestic Japanese and international markets. The company's comprehensive hydrauli...

Yuken Kogyo Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is stable with manageable leverage (D/E 0.43) and growing equity, but income statement shows thin, volatile margins and inconsistent revenue growth. Critically, cash flow is weak and erratic, with very low free cash flow conversion (FCF/NI ratio of 0.04 TTM), introducing significant risk.

Income Statement

45Neutral

Balance Sheet

65Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.99B	32.86B	33.50B	29.51B	28.68B	29.18B
Gross Profit	8.73B	8.36B	8.71B	7.60B	7.04B	7.13B
EBITDA	3.25B	3.08B	3.60B	2.83B	4.18B	3.62B
Net Income	1.22B	1.04B	1.25B	785.63M	1.37B	1.32B
Balance Sheet
Total Assets	50.11B	48.63B	47.01B	43.95B	40.80B	40.53B
Cash, Cash Equivalents and Short-Term Investments	7.55B	7.95B	6.51B	6.21B	5.09B	6.11B
Total Debt	10.54B	11.02B	7.23B	6.76B	6.08B	5.88B
Total Liabilities	21.21B	20.94B	19.49B	18.11B	16.40B	18.93B
Stockholders Equity	24.71B	23.48B	23.80B	22.28B	21.45B	19.49B
Cash Flow
Free Cash Flow	134.63M	-534.10M	480.35M	1.34B	-1.44B	651.23M
Operating Cash Flow	3.04B	2.04B	2.08B	3.23B	162.21M	1.63B
Investing Cash Flow	-3.14B	-2.58B	-1.40B	-1.53B	-1.10B	-366.57M
Financing Cash Flow	-61.67M	1.93B	-578.51M	-535.51M	-399.08M	-732.64M

Yuken Kogyo Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2989.00

Price Trends

50DMA2984.14Positive

100DMA2962.77Positive

200DMA2972.48Positive

Market Momentum

MACD-2.25Negative

RSI52.94Neutral

STOCH61.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6393, the sentiment is Positive. The current price of 2989.00 is above the 20-day moving average (MA) of 2956.55, above the 50-day MA of 2984.14, and above the 200-day MA of 2972.48, indicating a bullish trend. The MACD of -2.25 indicates Negative momentum. The RSI at 52.94 is Neutral, neither overbought nor oversold. The STOCH value of 61.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6393.

Yuken Kogyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6393 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6488	81Outperform	JPY 12.11B	7.46	―	3.51%	8.79%	58.86%
JP:6363	74Outperform	JPY 65.66B	6.05	―	2.59%	-1.87%	215.36%
JP:6492	72Outperform	JPY 16.65B	8.03	―	1.32%	―	―
JP:6376	65Neutral	JPY 168.44B	10.68	10.86%	1.88%	12.76%	63.89%
JP:6498	64Neutral	JPY 157.74B	12.33	10.55%	3.36%	14.51%	10.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6393	55Neutral	JPY 12.26B	8.81	―	5.02%	0.61%	3.85%

* General Sector Average

Performance Comparison

JP:6393 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6393	Yuken Kogyo Co., Ltd.	2989.00	174.21	6.19%
JP:6498	Kitz Corporation	1817.00	185.48	11.37%
JP:6376	Nikkiso Co., Ltd.	2759.00	1190.41	75.89%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2550.00	710.52	38.63%
JP:6488	Yoshitake Inc.	996.00	89.07	9.82%
JP:6492	Okano Valve Mfg. Co., Ltd.	9830.00	1780.20	22.11%

Yuken Kogyo Co., Ltd. Corporate Events

Yuken Kogyo Reports Higher Six-Month Sales and Profits

Nov 12, 2026

Yuken Kogyo Co., Ltd., listed on the Tokyo Stock Exchange under securities code 6393, reported consolidated net sales of ¥17.072 billion for the six months ended September 30, 2026, up 7.1% year on year. Operating profit rose 7.2% to ¥947 million, wh...

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.

Date of analysis: Nov 14, 2026

Yuken Kogyo Co., Ltd. AI Stock Analysis