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Yaskawa Electric
(6506)
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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)
Market Cap
¥1.25T
Dividend Yield1.45%
Average Volume (3M)3.12M
Price to Earnings (P/E)34.9
Beta (1Y)2.01
Revenue Growth5.82%
EPS Growth-37.13%
CountryJP
Employees12,483
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)138.71
Shares Outstanding266,690,500
10 Day Avg. Volume3,637,860
30 Day Avg. Volume3,115,596
Financial Highlights & Ratios
PEG Ratio-1.07
Price to Book (P/B)2.96
Price to Sales (P/S)2.64
P/FCF Ratio241.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,976.00Price Target Upside20.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)171.21
Revenue Forecast (FY)¥592.17B
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
Income Statement
74
Positive
Balance Sheet
77
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 567.52B | 542.12B | 537.68B | 575.66B | 555.96B | 479.08B |
| Gross Profit | 199.55B | 191.24B | 191.48B | 209.10B | 192.01B | 168.65B |
| EBITDA | 72.58B | 73.72B | 103.07B | 92.35B | 93.20B | 74.07B |
| Net Income | 35.98B | 35.24B | 56.99B | 50.69B | 51.78B | 38.35B |
Balance Sheet | ||||||
| Total Assets | 842.83B | 812.37B | 743.77B | 702.34B | 653.13B | 559.04B |
| Cash, Cash Equivalents and Short-Term Investments | 66.08B | 61.22B | 59.03B | 40.28B | 42.27B | 55.15B |
| Total Debt | 125.34B | 124.85B | 109.53B | 95.90B | 99.56B | 68.04B |
| Total Liabilities | 328.24B | 318.75B | 304.16B | 294.31B | 298.05B | 260.93B |
| Stockholders Equity | 504.10B | 483.54B | 431.19B | 399.34B | 347.50B | 291.23B |
Cash Flow | ||||||
| Free Cash Flow | 26.43B | 5.93B | 19.20B | 23.59B | -24.14B | 25.01B |
| Operating Cash Flow | 81.99B | 52.17B | 56.51B | 54.62B | -2.21B | 49.23B |
| Investing Cash Flow | -58.23B | -44.22B | -21.29B | -29.35B | -19.69B | -24.16B |
| Financing Cash Flow | -9.91B | -8.63B | -15.67B | -29.42B | 7.20B | -22.48B |
Yaskawa Electric Technical Analysis
Neutral
4949.00
Price Trends
4790.21
Positive
5649.32
Negative
5326.95
Negative
Market Momentum
26.58
Negative
55.53
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥120.09B | 6.54 | 12.49% | 4.62% | 40.52% | 147.61% | |
73 Outperform | ¥2.14T | 19.96 | 14.09% | 1.48% | 10.40% | 15.01% | |
69 Neutral | ¥215.10B | 18.88 | ― | 2.66% | 16.79% | 100.39% | |
68 Neutral | ¥10.81T | 24.94 | 9.88% | 1.16% | 9.57% | 18.11% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥1.25T | 34.89 | 7.43% | 1.45% | 5.82% | -37.13% | |
61 Neutral | ¥58.49B | -21.76 | ― | 3.88% | 17.15% | -463.16% |
* Industrials Sector Average
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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.