TSE:6506

Stock Analysis Report

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Executive Summary

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. More Details

Rewards

Earnings are forecast to grow 26.27% per year

Risk Analysis

No risks detected for 6506 from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has YASKAWA Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6506 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 6506's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

7.3%

6506

4.3%

JP Machinery

3.2%

JP Market


1 Year Return

24.7%

6506

10.9%

JP Machinery

5.3%

JP Market

Return vs Industry: 6506 exceeded the JP Machinery industry which returned 10.9% over the past year.

Return vs Market: 6506 exceeded the JP Market which returned 5.3% over the past year.


Shareholder returns

6506IndustryMarket
7 Day7.3%4.3%3.2%
30 Day25.7%15.6%12.2%
90 Day32.2%17.8%10.1%
1 Year26.0%24.7%12.9%10.9%7.9%5.3%
3 Year6.3%2.4%-4.6%-10.5%7.9%0.4%
5 Year225.4%206.0%33.0%19.7%29.3%14.8%

Long-Term Price Volatility Vs. Market

How volatile is YASKAWA Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is YASKAWA Electric undervalued compared to its fair value and its price relative to the market?

81.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6506 (¥5070) is trading above our estimate of fair value (¥2054.75)

Significantly Below Fair Value: 6506 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6506 is poor value based on its PE Ratio (81.4x) compared to the JP Machinery industry average (15.8x).

PE vs Market: 6506 is poor value based on its PE Ratio (81.4x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6506 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: 6506 is overvalued based on its PB Ratio (5.8x) compared to the JP Machinery industry average (0.8x).


Next Steps

Future Growth

How is YASKAWA Electric forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6506's forecast earnings growth (26.3% per year) is above the savings rate (0.05%).

Earnings vs Market: 6506's earnings (26.3% per year) are forecast to grow faster than the JP market (17.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6506's revenue (6.4% per year) is forecast to grow faster than the JP market (5.5% per year).

High Growth Revenue: 6506's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6506's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has YASKAWA Electric performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6506 has high quality earnings.

Growing Profit Margin: 6506's current net profit margins (4.2%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: 6506's earnings have declined by 3% per year over the past 5 years.

Accelerating Growth: 6506's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6506 had negative earnings growth (-31.5%) over the past year, making it difficult to compare to the Machinery industry average (-28%).


Return on Equity

High ROE: 6506's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is YASKAWA Electric's financial position?


Financial Position Analysis

Short Term Liabilities: 6506's short term assets (¥278.0B) exceed its short term liabilities (¥139.5B).

Long Term Liabilities: 6506's short term assets (¥278.0B) exceed its long term liabilities (¥75.1B).


Debt to Equity History and Analysis

Debt Level: 6506's debt to equity ratio (28.9%) is considered satisfactory.

Reducing Debt: 6506's debt to equity ratio has increased from 26.6% to 28.9% over the past 5 years.

Debt Coverage: 6506's debt is well covered by operating cash flow (56.7%).

Interest Coverage: 6506's interest payments on its debt are well covered by EBIT (32.8x coverage).


Balance Sheet


Next Steps

Dividend

What is YASKAWA Electric current dividend yield, its reliability and sustainability?

0.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6506's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.26%).

High Dividend: 6506's dividend (0.47%) is low compared to the top 25% of dividend payers in the JP market (3.03%).


Stability and Growth of Payments

Stable Dividend: 6506 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6506 is not paying a notable dividend for the JP market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6506 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6506's dividend in 3 years as they are not forecast to pay a notable one for the JP market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Hiroshi Ogasawara (65 yo)

4.67yrs

Tenure

JP¥130,000,000

Compensation

Mr. Hiroshi Ogasawara has been President of Yaskawa Electric Corp. since March 21, 2016 and also serves as its Representative Director since June 2006. Mr. Ogasawara has been In charge of Human Resources D...


CEO Compensation Analysis

Compensation vs Market: Hiroshi's total compensation ($USD1.25M) is below average for companies of similar size in the JP market ($USD1.97M).

Compensation vs Earnings: Insufficient data to compare Hiroshi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Hiroshi Ogasawara
President4.67yrsJP¥130.00m0.016%
¥ 217.5m
Yoshikatsu Minami
Corporate SVP12.42yrsno data0.012%
¥ 156.1m
Shuji Murakami
Corporate Executive VP12.42yrsno data0.015%
¥ 203.3m
Michihiko Zenke
Managing Executive Officerno datano datano data
Masahiro Ogawa
Corporate Senior VP1.5yrsno data0.0041%
¥ 54.2m
Akira Kumagae
Managing Executive Officer & GM of Motion Controlno datano datano data
Michael Knapek
Managing Executive Officerno datano datano data
Yasuhiko Morikawa
Managing Executive Officer4.67yrsno datano data
Junichi Nakano
Executive Officer3.67yrsno datano data
Nobuaki Jinnouchi
Executive Officer & GM of Drives Div.no datano datano data
Kenji Ueyama
Executive Officer1.67yrsno datano data
Bruno Schnekenburger
Executive Officerno datano datano data

4.7yrs

Average Tenure

61yo

Average Age

Experienced Management: 6506's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hiroshi Ogasawara
President4.67yrsJP¥130.00m0.016%
¥ 217.5m
Yoshikatsu Minami
Corporate SVP12.42yrsno data0.012%
¥ 156.1m
Shuji Murakami
Corporate Executive VP12.42yrsno data0.015%
¥ 203.3m
Masahiro Ogawa
Corporate Senior VP1.5yrsno data0.0041%
¥ 54.2m
Junji Tsuda
Chairman of the Board7.42yrsJP¥129.00m0.023%
¥ 300.7m
Yuji Nakayama
Director7.42yrsno data0.011%
¥ 140.0m
Yoshiki Akita
Independent Outside Director8.42yrsno data0.0059%
¥ 78.6m
Koichi Tsukahata
Director2.5yrsno data0.0032%
¥ 43.1m
Junko Sasaki
Independent Outside Director2.5yrsno data0.00050%
¥ 6.6m
Hideomi Tsukamoto
Independent Outside Director1.5yrsno datano data
Yuichiro Kato
Independent Outside Director0.50yrno datano data

7.4yrs

Average Tenure

60yo

Average Age

Experienced Board: 6506's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

YASKAWA Electric Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: YASKAWA Electric Corporation
  • Ticker: 6506
  • Exchange: TSE
  • Founded: 1915
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥1.325t
  • Shares outstanding: 261.40m
  • Website: https://www.yaskawa.co.jp

Number of Employees


Location

  • YASKAWA Electric Corporation
  • 2-1 Kurosakishiroishi
  • Yahatanishi-ku
  • Kitakyushu
  • Fukuoka
  • 806-0004
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6506TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
YECDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
YASK.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
YASKY NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
YASK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2012

Biography

YASKAWA Electric Corporation engages in motion control, robotics, system engineering, and other businesses worldwide. It manufactures and sells various AC drives, including general purpose AC drives, mediu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 08:10
End of Day Share Price2020/11/27 00:00
Earnings2020/08/31
Annual Earnings2020/02/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.