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Yokogawa Electric
(6841)
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Rating:73Outperform
Price Target:
¥6,080.00
▲(7.52% Upside)
Action:Reiterated
Date:08/11/26
The score is primarily driven by strong financial performance—especially the very conservative balance sheet and solid multi-year growth—tempered by margin variability and some cash-flow volatility. Technical indicators are mixed/soft in the near term, and valuation (P/E 25.14) plus a modest dividend yield (1.43%) are not especially compelling, keeping the overall score in the mid-range.
Positive Factors
Sustained Revenue Growth
Multi-year revenue expansion indicates durable demand for Yokogawa’s automation, instrumentation and lifecycle services. Its exposure to process industries and installed-base upgrades can support continued growth across new projects and recurring customer needs.
Negative Factors
Margin Variability
The decline in profitability versus prior years suggests that project mix, execution costs or input pressures can affect earnings conversion. Persistent margin variability could limit the benefit of revenue growth and make medium-term profit expansion less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year revenue expansion indicates durable demand for Yokogawa’s automation, instrumentation and lifecycle services. Its exposure to process industries and installed-base upgrades can support continued growth across new projects and recurring customer needs.
Read all positive factors
Yokogawa Electric (6841) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.32T
Dividend Yield1.52%
Average Volume (3M)775.53K
Price to Earnings (P/E)23.7
Beta (1Y)1.29
Revenue Growth9.27%
EPS Growth-1.77%
CountryJP
Employees18,313
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)216.94
Shares Outstanding257,201,200
10 Day Avg. Volume913,580
30 Day Avg. Volume775,533
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)2.33
Price to Sales (P/S)2.00
P/FCF Ratio16.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,032.50Price Target Upside6.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)250.67
Revenue Forecast (FY)¥626.29B
Yokogawa Electric Business Overview & Revenue Model
Company Description
Yokogawa Electric Corporation operates as a global provider of industrial automation, alongside test and measurement solutions, across a wide geographical footprint including Japan, Southeast Asia, the Far East, China, India, Europe, Russia, North...
How the Company Makes Money
Yokogawa makes money primarily by selling industrial automation systems and field instrumentation, and by providing engineering and lifecycle services tied to those installed systems. Key revenue streams typically include: (1) Systems and project ...
Yokogawa Electric Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operating performance: sales, operating profit (both nominally and FX-adjusted), net income and backlog increased and there were strong wins in energy/CCUS and data-center-related measuring instruments. However, material headwinds remain—especially currency appreciation, a notable slowdown in the Materials business driven by China, higher SG&A, and tariff-related uncertainty—which temper the upside. Management kept the full-year forecast unchanged and emphasized timing risk for large projects. On balance, the positives (top-line and profit growth, backlog expansion, regional project wins) outweigh the negatives.Positive Updates
Revenue Growth (FX-adjusted)
Sales of JPY130.2 billion, up JPY9.2 billion or +7.1% excluding foreign exchange effects, driven by strong backlog conversion and project sales.
Negative Updates
Foreign Exchange Headwinds
Strong appreciation of the yen (from JPY158.15 to JPY144.11 vs. USD) exerted significant downward pressure on reported results; FX caused reported orders and some sales comparisons to appear weaker in nominal terms, and operating foreign-currency losses were recorded.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth (FX-adjusted)
Sales of JPY130.2 billion, up JPY9.2 billion or +7.1% excluding foreign exchange effects, driven by strong backlog conversion and project sales.
Read all positive updates
Company Guidance
Management reiterated no change to the full-year earnings forecast announced in May, noting a stronger-than-expected Q1 start with orders of JPY149.1bn (up JPY1.6bn, +1% excl. FX), sales JPY130.2bn (up JPY9.2bn, +7.1% excl. FX), operating profit JPY16.2bn (up JPY1.4bn YoY; +JPY2.7bn excl. FX from JPY14.8bn), and net income JPY15.2bn (up JPY5.1bn); backlog exceeded JPY15bn over the past three months. They reported gross profit +JPY4.3bn and a modest gross-margin improvement (~JPY0.5bn), offset in part by SG&A headwinds of JPY2.1bn; Q1 import duties were about JPY0.3bn while the May plan assumed ~JPY3.0bn of tariffs for the year with roughly JPY1.5bn borne by customers (actual tariff payments to date have exceeded JPY1.5bn), but management judged the overall annual operating‑profit impact not large and expects tariff uncertainty to ease from Q2 onward. Segment/regional datapoints used to support guidance included control sales +7.2% excl. FX, measuring instruments sales +4.8% excl. FX, Energy & Sustainability −JPY2.8bn but +3.8% excl. FX, Materials −JPY5.8bn (−6.2% excl. FX), Life +JPY0.3bn (+6.1% excl. FX), and regional sales growth generally +5–10% excl. FX (Southeast Asia/Far East ~+10%).Yokogawa Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 615.97B | 604.83B | 562.40B | 540.15B | 456.48B | 389.90B |
| Gross Profit | 282.39B | 276.39B | 267.53B | 254.96B | 204.78B | 173.01B |
| EBITDA | 106.19B | 105.03B | 102.61B | 111.51B | 70.59B | 48.73B |
| Net Income | 55.18B | 58.11B | 52.12B | 61.69B | 38.92B | 21.27B |
Balance Sheet | ||||||
| Total Assets | 773.44B | 795.62B | 718.28B | 672.87B | 618.64B | 555.97B |
| Cash, Cash Equivalents and Short-Term Investments | 195.78B | 217.55B | 188.75B | 139.88B | 121.44B | 117.69B |
| Total Debt | 24.19B | 34.24B | 34.05B | 32.88B | 57.07B | 54.05B |
| Total Liabilities | 256.69B | 265.72B | 242.56B | 228.10B | 231.81B | 215.63B |
| Stockholders Equity | 505.96B | 520.02B | 467.86B | 436.64B | 379.63B | 333.57B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 74.83B | 88.18B | 55.12B | 31.79B | 43.36B |
| Operating Cash Flow | 0.00 | 85.95B | 99.03B | 63.83B | 40.42B | 51.64B |
| Investing Cash Flow | 0.00 | -33.13B | -28.64B | 2.65B | -32.94B | -28.33B |
| Financing Cash Flow | 0.00 | -35.17B | -26.24B | -57.50B | -10.93B | -16.16B |
Yokogawa Electric Technical Analysis
Negative
5655.00
Price Trends
5524.30
Negative
5352.26
Negative
5220.29
Negative
Market Momentum
-121.66
Positive
41.89
Neutral
25.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6841, the sentiment is Negative. The current price of 5655 is above the 20-day moving average (MA) of 5395.85, above the 50-day MA of 5524.30, and above the 200-day MA of 5220.29, indicating a bearish trend. The MACD of -121.66 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 25.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6841.
Yokogawa Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥1.32T | 23.74 | 11.78% | 1.38% | 9.27% | -1.77% | |
68 Neutral | ¥533.09B | 19.23 | 15.55% | 2.40% | 12.05% | 57.34% | |
68 Neutral | ¥812.71B | 20.31 | ― | 1.81% | 1.24% | -3.82% | |
66 Neutral | ¥372.60B | 22.13 | ― | 2.50% | 11.01% | 29.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥538.98B | 27.35 | 6.59% | 1.65% | -7.97% | 78.01% | |
55 Neutral | ¥295.48B | 20.94 | ― | 1.65% | 5.19% | 13.96% |
* Industrials Sector Average
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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.