TSE:6324Machinery
Harmonic Drive Systems (TSE:6324) Stock Faces Margin Squeeze Despite Revenue Rebound
Harmonic Drive Systems walked into this earnings day priced for perfection after a volatile year and a rich P/S around 10.8x, well above the Japanese machinery peer group near 1x. The stock closed at ¥7,160 ahead of the release, with investors already paying up for growth that forecasts indicate should outpace the broader market.
The headline in the numbers is not revenue. It is the pressure on profitability. Trailing net margin has slipped to 4.7% from 6.6% a year earlier, which raises a...