Fanuc Corporation (6954) AI Stock Analysis

• Market Cap: ¥4.19T
• Dividend Yield: 2.17%
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.25
• Revenue Growth: 1.24%
• EPS Growth: 20.57%
• Country: JP
• Employees: 9,970
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 40.56
• Shares Outstanding: 982,383,500
• 10 Day Avg. Volume: 3,590,860
• 30 Day Avg. Volume: 3,215,396
• PEG Ratio: 2.12
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 4.78
• P/FCF Ratio: 17.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥4,960.00
• Price Target Upside: 9.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: ¥4,868.00 ▲(7.37% Upside)

Fanuc Corporation's strong financial performance is the most significant factor driving the overall score, supported by robust profitability, low leverage, and effective cash management. Technical analysis indicates a positive short-term trend, although valuation metrics suggest the stock may be slightly overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Cash Flow Management

Effective cash flow management ensures Fanuc can fund operations, invest in growth, and weather economic downturns, supporting long-term stability.

Low Leverage

Low leverage reduces financial risk and interest burden, allowing Fanuc to maintain financial flexibility and invest in strategic opportunities.

Strong Profit Margins

Robust profit margins indicate efficient operations and pricing power, enhancing Fanuc's ability to reinvest in innovation and growth.

Negative Factors

Moderate Equity Growth

Moderate equity growth may limit Fanuc's ability to rapidly expand or invest in new projects, potentially impacting long-term competitive positioning.

Fluctuating Revenue Growth

Fluctuating revenue growth could signal challenges in market expansion or product adoption, affecting Fanuc's ability to sustain long-term growth.

Valuation Concerns

High valuation ratios may limit stock price appreciation potential and reflect market expectations that could be challenging to meet.

Fanuc Corporation Business Overview & Revenue Model

Company Description

Fanuc Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive systems, an open platform for the manufacturing industry. The company was incorporated in 1950 and is headquartered in Yamanashi, Japan.

How the Company Makes Money

Fanuc Corporation generates revenue through the sale of its industrial automation products and services, including robotics, CNC systems, and factory automation solutions. The company's key revenue streams include direct sales of these products to manufacturing and industrial clients across diverse sectors such as automotive, electronics, and aerospace. Additionally, Fanuc earns income from providing maintenance and support services, as well as from training programs for its technologies. The company has established significant partnerships with major global manufacturers, enhancing its market reach and customer base. Fanuc's focus on innovation and quality in automation technologies contributes to its competitive advantage and revenue growth.

Fanuc Corporation Financial Statement Overview

Summary

Fanuc Corporation exhibits a strong financial position across all verticals. The income statement shows impressive profitability and growth, while the balance sheet highlights a conservative financial strategy with low leverage. The cash flow statement underscores the company's ability to generate and manage cash effectively. Despite some fluctuations in revenue growth, the overall financial health of the company is solid, positioning it well for future opportunities.

Income Statement

Fanuc Corporation shows strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The EBIT and EBITDA margins are also robust, indicating efficient operations. Revenue growth has been positive, although it experienced a slight dip in 2023. Overall, the income statement reflects a healthy financial performance with strong margins and growth potential.

Balance Sheet

The balance sheet of Fanuc Corporation is stable with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is solid, reflecting effective use of equity capital. The equity ratio is healthy, suggesting a strong capital structure. However, the growth in stockholders' equity has been moderate, which slightly tempers the overall score.

Cash Flow

Fanuc Corporation demonstrates strong cash flow management with significant growth in free cash flow, especially in the latest period. The operating cash flow to net income ratio is high, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting effective conversion of profits into cash. Overall, the cash flow statement reflects robust cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	798.39B	797.13B	795.27B	851.96B	733.01B	551.29B
Gross Profit	303.77B	294.93B	275.84B	325.41B	295.63B	201.96B
EBITDA	238.09B	243.19B	190.92B	240.55B	230.32B	157.62B
Net Income	156.60B	147.56B	133.16B	170.59B	155.27B	94.01B
Balance Sheet
Total Assets	1.90T	1.94T	1.93T	1.87T	1.78T	1.63T
Cash, Cash Equivalents and Short-Term Investments	602.96B	606.50B	539.08B	529.23B	601.22B	586.78B
Total Debt	7.67B	7.29B	6.42B	5.11B	2.44B	2.16B
Total Liabilities	177.45B	197.14B	206.84B	245.98B	234.09B	189.64B
Stockholders Equity	1.71T	1.72T	1.71T	1.62T	1.54T	1.43T
Cash Flow
Free Cash Flow	0.00	214.47B	117.88B	52.44B	91.22B	96.23B
Operating Cash Flow	0.00	255.27B	171.76B	99.50B	125.58B	118.00B
Investing Cash Flow	0.00	-134.08B	-13.56B	-78.00B	-53.93B	-16.77B
Financing Cash Flow	0.00	-136.62B	-122.51B	-127.92B	-89.15B	-53.13B

Fanuc Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4534.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6954, the sentiment is Positive. The current price of 4534 is above the 20-day moving average (MA) of 4232.28, above the 50-day MA of 4265.13, and above the 200-day MA of 4042.35, indicating a bullish trend. The MACD of 49.74 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 74.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6954.

Fanuc Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6361	78 Outperform	¥1.75T	23.77	16.02%	1.35%	16.57%	6.63%
6383	78 Outperform	$1.84T	20.98	21.24%	1.31%	―	―
6954	78 Outperform	¥4.19T	27.08	―	2.17%	1.24%	20.57%
6273	72 Outperform	$3.22T	21.68	7.46%	2.07%	1.13%	-17.99%
7012	71 Outperform	$1.69T	20.05	11.02%	1.68%	15.11%	142.87%
6594	64 Neutral	$3.10T	19.50	9.86%	1.52%	6.85%	31.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%