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Yaskawa Electric Corporation (JP:6506)
:6506
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Yaskawa Electric (6506) AI Stock Analysis

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JP:6506

Yaskawa Electric

(6506)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
¥5,100.00
▲(3.05% Upside)
Action:Reiterated
Date:10/10/26
The score is primarily supported by solid underlying financial health (good margins and conservative leverage) but is held back by weaker cash conversion/volatility and a notable downshift in profitability versus prior peaks. Technicals are mixed with the stock below key longer-term moving averages, and valuation is a further headwind given the elevated P/E and modest yield.
Positive Factors
Healthy profitability
Healthy gross and operating margins show that Yaskawa retains meaningful earnings power in its automation businesses. This profitability provides resources to fund product development, support customers, and withstand normal manufacturing investment cycles over the next several quarters.
Negative Factors
Margin compression
The decline in net margin from the prior annual peak signals that recent revenue growth has not translated proportionately into bottom-line earnings. Persistent compression could reduce reinvestment capacity and weaken the durability of returns if operating conditions remain demanding.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy profitability
Healthy gross and operating margins show that Yaskawa retains meaningful earnings power in its automation businesses. This profitability provides resources to fund product development, support customers, and withstand normal manufacturing investment cycles over the next several quarters.
Read all positive factors

Yaskawa Electric (6506) vs. iShares MSCI Japan ETF (EWJ)

Yaskawa Electric Business Overview & Revenue Model

Company Description
Established in Kitakyushu, Japan, in 1915, YASKAWA Electric Corporation operates globally, focusing on motion control, robotics, and industrial system engineering. The company produces and distributes a comprehensive array of AC drives, encompassi...
How the Company Makes Money
Yaskawa makes money primarily by selling industrial automation hardware and associated systems to manufacturers and industrial customers. Key revenue streams typically include: (1) Industrial robots—revenue from sales of robot units (e.g., for wel...

Yaskawa Electric Financial Statement Overview

Summary
Financials are fundamentally solid with healthy profitability (TTM gross margin ~35%, EBIT ~9%) and low leverage (debt-to-equity ~0.25). However, profitability has stepped down versus prior peaks (TTM net margin ~6% vs ~10.6% in FY2025) and cash-flow quality is weaker/volatile (FCF ~26% of net income; negative OCF/FCF in FY2023), which tempers the overall strength.
Income Statement
74
Positive
Balance Sheet
77
Positive
Cash Flow
58
Neutral
BreakdownTTMFeb 2026Feb 2026Feb 2025Feb 2024Feb 2023
Income Statement
Total Revenue567.52B542.12B537.68B575.66B555.96B479.08B
Gross Profit199.55B191.24B191.48B209.10B192.01B168.65B
EBITDA72.58B73.72B103.07B92.35B93.20B74.07B
Net Income35.98B35.24B56.99B50.69B51.78B38.35B
Balance Sheet
Total Assets842.83B812.37B743.77B702.34B653.13B559.04B
Cash, Cash Equivalents and Short-Term Investments66.08B61.22B59.03B40.28B42.27B55.15B
Total Debt125.34B124.85B109.53B95.90B99.56B68.04B
Total Liabilities328.24B318.75B304.16B294.31B298.05B260.93B
Stockholders Equity504.10B483.54B431.19B399.34B347.50B291.23B
Cash Flow
Free Cash Flow26.43B5.93B19.20B23.59B-24.14B25.01B
Operating Cash Flow81.99B52.17B56.51B54.62B-2.21B49.23B
Investing Cash Flow-58.23B-44.22B-21.29B-29.35B-19.69B-24.16B
Financing Cash Flow-9.91B-8.63B-15.67B-29.42B7.20B-22.48B

Yaskawa Electric Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4949.00
Price Trends
50DMA
4790.21
Positive
100DMA
5649.32
Negative
200DMA
5326.95
Negative
Market Momentum
MACD
26.58
Negative
RSI
55.53
Neutral
STOCH
62.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6506, the sentiment is Neutral. The current price of 4949 is above the 20-day moving average (MA) of 4589.05, above the 50-day MA of 4790.21, and below the 200-day MA of 5326.95, indicating a neutral trend. The MACD of 26.58 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6506.

Yaskawa Electric Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥120.09B6.5412.49%4.62%40.52%147.61%
73
Outperform
¥2.14T19.9614.09%1.48%10.40%15.01%
69
Neutral
¥215.10B18.88―2.66%16.79%100.39%
68
Neutral
¥10.81T24.949.88%1.16%9.57%18.11%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥1.25T34.897.43%1.45%5.82%-37.13%
61
Neutral
¥58.49B-21.76―3.88%17.15%-463.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6506
Yaskawa Electric
4,840.00
833.32
20.80%
JP:6503
Mitsubishi Electric
5,177.00
1,427.03
38.05%
JP:6504
Fuji Electric Co
14,610.00
4,635.37
46.47%
JP:6804
Hosiden
2,423.00
247.29
11.37%
JP:6516
Sanyo Denki Co., Ltd.
5,640.00
2,419.27
75.12%
JP:6905
Cosel Co., Ltd.
1,416.00
283.73
25.06%

Yaskawa Electric Corporate Events

Yaskawa Lifts Full-Year Revenue Outlook as Weaker Yen Offsets ERP Drag
Oct 9, 2026
Yaskawa reported first-half fiscal 2027 revenue of ¥285.6 billion, up 9.8% year-on-year, while operating profit slipped 5.5% to ¥22.1 billion due to production and shipment effects from a new ERP system. Profit attributable to owners of ...
Yaskawa Electric Sees Q1 Profit Drop but Keeps Robust Full-Year Outlook and Higher Dividend
Jul 10, 2026
Yaskawa Electric reported a 10.6% year-on-year rise in first-quarter revenue to ¥138.98 billion, but operating profit fell 19.2% and profit attributable to owners of the parent dropped 21.7%, reflecting margin pressure despite firm demand. Th...
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: Oct 10, 2026