TSE:6954

Stock Analysis Report

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Executive Summary

Fanuc Corporation provides factory automation products in Japan, the United States, Europe, Asia, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6954 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 6954's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.4%

6954

0.1%

JP Machinery

-0.05%

JP Market


1 Year Return

32.3%

6954

14.6%

JP Machinery

7.3%

JP Market

Return vs Industry: 6954 exceeded the JP Machinery industry which returned 14.5% over the past year.

Return vs Market: 6954 exceeded the JP Market which returned 7.4% over the past year.


Shareholder returns

6954IndustryMarket
7 Day1.4%0.1%-0.05%
30 Day6.1%5.3%3.3%
90 Day37.1%22.1%13.8%
1 Year34.4%32.3%16.6%14.6%9.9%7.3%
3 Year-5.8%-13.2%-8.5%-14.2%6.5%-0.9%
5 Year66.2%46.6%70.5%53.5%53.2%36.0%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

86.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6954 (¥27525) is trading above our estimate of fair value (¥10208.18)

Significantly Below Fair Value: 6954 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6954 is poor value based on its PE Ratio (86.2x) compared to the JP Machinery industry average (16x).

PE vs Market: 6954 is poor value based on its PE Ratio (86.2x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6954 is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: 6954 is overvalued based on its PB Ratio (3.9x) compared to the JP Machinery industry average (0.8x).


Next Steps

Future Growth

How is Fanuc forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6954's forecast earnings growth (18.9% per year) is above the savings rate (0%).

Earnings vs Market: 6954's earnings (18.9% per year) are forecast to grow faster than the JP market (17.6% per year).

High Growth Earnings: 6954's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6954's revenue (8.6% per year) is forecast to grow faster than the JP market (5.6% per year).

High Growth Revenue: 6954's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6954's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Fanuc performed over the past 5 years?

-12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6954 has high quality earnings.

Growing Profit Margin: 6954's current net profit margins (12.8%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: 6954's earnings have declined by 12.8% per year over the past 5 years.

Accelerating Growth: 6954's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6954 had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Machinery industry average (-25.2%).


Return on Equity

High ROE: 6954's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Fanuc's financial position?


Financial Position Analysis

Short Term Liabilities: 6954's short term assets (¥766.8B) exceed its short term liabilities (¥89.8B).

Long Term Liabilities: 6954's short term assets (¥766.8B) exceed its long term liabilities (¥49.6B).


Debt to Equity History and Analysis

Debt Level: 6954 is debt free.

Reducing Debt: 6954 has not had any debt for past 5 years.

Debt Coverage: 6954 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6954 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Fanuc current dividend yield, its reliability and sustainability?

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6954's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.22%).

High Dividend: 6954's dividend (0.64%) is low compared to the top 25% of dividend payers in the JP market (2.97%).


Stability and Growth of Payments

Stable Dividend: 6954 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6954 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: 6954 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6954'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?

4.6yrs

Average management tenure


CEO

Kenji Yamaguchi (52 yo)

2yrs

Tenure

JP¥623,000,000

Compensation

Mr. Kenji Yamaguchi serves as the President, Chief Executive Officer and Director of Fanuc Corporation since 2019 and serves as CIO since 2020. Mr. Yamaguchi had been Chief Operating Officer and General Ma...


CEO Compensation Analysis

Compensation vs Market: Kenji's total compensation ($USD0.00) is below average for companies of similar size in the JP market ($USD2.02M).

Compensation vs Earnings: Kenji's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kenji Yamaguchi
President2yrsJP¥623.00m0.0010%
¥ 54.9m
Yoshihiro Gonda
CFO, Senior EVP19.58yrsJP¥413.00m0.0010%
¥ 54.9m
Hiroyuki Uchida
CTO, Senior EVP23.58yrsJP¥413.00m0.00099%
¥ 52.3m
Hiroshi Noda
Executive Managing Officer17.58yrsJP¥255.00m0.00052%
¥ 27.5m
Kiyonori Inaba
Executive Managing Officer7.58yrsJP¥255.00m0.00052%
¥ 27.5m
Yutaka Saito
Senior EVP2yrsno data0.00052%
¥ 27.5m

4.6yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 6954's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenji Yamaguchi
President2yrsJP¥623.00m0.0010%
¥ 54.9m
Yoshihiro Gonda
CFO, Senior EVP19.58yrsJP¥413.00m0.0010%
¥ 54.9m
Hiroyuki Uchida
CTO, Senior EVP23.58yrsJP¥413.00m0.00099%
¥ 52.3m
Hiroshi Noda
Executive Managing Officer17.58yrsJP¥255.00m0.00052%
¥ 27.5m
Kiyonori Inaba
Executive Managing Officer7.58yrsJP¥255.00m0.00052%
¥ 27.5m
Yutaka Saito
Senior EVP2yrsno data0.00052%
¥ 27.5m
Yoshiharu Inaba
Chairman of the Board4.58yrsJP¥623.00m0.0026%
¥ 137.8m
Kazuo Tsukuda
Independent Outside Director5.58yrsno datano data
Yasuo Imai
Independent Outside Director5.58yrsno datano data
Masato Ono
Independent Outside Director8.58yrsno datano data
Michael J. Cicco
Director1yrno datano data
Naoko Yamazaki
Independent Outside Director1yrno datano data

6.6yrs

Average Tenure

64yo

Average Age

Experienced Board: 6954's board of directors are considered experienced (6.6 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

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


Key Information

  • Name: Fanuc Corporation
  • Ticker: 6954
  • Exchange: TSE
  • Founded: 1950
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥5.280t
  • Shares outstanding: 191.82m
  • Website: https://www.fanuc.co.jp

Number of Employees


Location

  • Fanuc Corporation
  • Oshino-mura
  • Yamanashi
  • 401-0597
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FANU.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6954TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
FUCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
FANU NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992
FANU.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REP 0.10 ORD NPVUSUSDOct 2008
FUCADB (Deutsche Boerse AG)UNSP ADR EACH REP 0.10 ORD NPVDEEUROct 2008
0TIVLSE (London Stock Exchange)UNSP ADR EACH REP 0.10 ORD NPVGBUSDOct 2008

Biography

Fanuc Corporation provides factory automation products in Japan, the United States, Europe, Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machinin...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 08:03
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.