TSE:6861

Stock Analysis Report

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Executive Summary

Keyence Corporation, together with its subsidiaries, develops, manufactures, and sells factory automation solutions worldwide. More Details

Rewards

Earnings are forecast to grow 17.07% per year

Risk Analysis

No risks detected for 6861 from our risk checks.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6861 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6861's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-11.8%

6861

-7.2%

JP Electronic

-3.2%

JP Market


1 Year Return

46.9%

6861

37.3%

JP Electronic

24.1%

JP Market

Return vs Industry: 6861 exceeded the JP Electronic industry which returned 37.3% over the past year.

Return vs Market: 6861 exceeded the JP Market which returned 24.1% over the past year.


Shareholder returns

6861IndustryMarket
7 Day-11.8%-7.2%-3.2%
30 Day-11.5%-9.3%0.2%
90 Day-5.6%1.1%4.5%
1 Year47.7%46.9%39.5%37.3%27.2%24.1%
3 Year63.9%62.2%37.6%31.3%17.2%9.1%
5 Year238.4%232.8%112.7%96.1%52.7%35.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

67.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6861 (¥50560) is trading above our estimate of fair value (¥17369.81)

Significantly Below Fair Value: 6861 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6861 is poor value based on its PE Ratio (67.1x) compared to the JP Electronic industry average (16.7x).

PE vs Market: 6861 is poor value based on its PE Ratio (67.1x) compared to the JP market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6861 is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: 6861 is overvalued based on its PB Ratio (6.6x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

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

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6861's forecast earnings growth (17.1% per year) is above the savings rate (0%).

Earnings vs Market: 6861's earnings (17.1% per year) are forecast to grow slower than the JP market (17.5% per year).

High Growth Earnings: 6861's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6861's revenue (12.6% per year) is forecast to grow faster than the JP market (5.7% per year).

High Growth Revenue: 6861's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6861's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Keyence performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6861 has high quality earnings.

Growing Profit Margin: 6861's current net profit margins (35.3%) are lower than last year (36.6%).


Past Earnings Growth Analysis

Earnings Trend: 6861's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: 6861's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6861 had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Electronic industry average (-5.3%).


Return on Equity

High ROE: 6861's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Keyence's financial position?


Financial Position Analysis

Short Term Liabilities: 6861's short term assets (¥1,180.8B) exceed its short term liabilities (¥60.2B).

Long Term Liabilities: 6861's short term assets (¥1,180.8B) exceed its long term liabilities (¥2.6B).


Debt to Equity History and Analysis

Debt Level: 6861 is debt free.

Reducing Debt: 6861 has not had any debt for past 5 years.

Debt Coverage: 6861 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6861 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.40%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6861's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.26%).

High Dividend: 6861's dividend (0.4%) is low compared to the top 25% of dividend payers in the JP market (2.91%).


Stability and Growth of Payments

Stable Dividend: 6861 is not paying a notable dividend for the JP market, therefore no need to check if payments are stable.

Growing Dividend: 6861 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: 6861 is not paying a notable dividend for the JP market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6861'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?

6.7yrs

Average board tenure


CEO

Yu Nakata

no data

Tenure

Yu Nakata serves as the President and Director of Keyence Corporation.


Board Members

NamePositionTenureCompensationOwnership
Yu Nakata
President & Directorno datano datano data
Akira Kanzawa
Manager of Development Promotion Department & Director11.67yrsno datano data
Keiichi Kimura
Manager of Mgmt Information Office6.67yrsno data0.00082%
¥ 100.5m
Takemitsu Takizaki
Honorary Chairman5.92yrsno data6.23%
¥ 763.7b
Akinori Yamamoto
Director10.17yrsno data0.0011%
¥ 138.6m
Masayuki Miki
Director6.67yrsno datano data
Yoichi Tanabe
Independent Outside Director4.67yrsno datano data
Hidehiko Takeda
Outside Auditorno datano datano data
Akiji Yamaguchi
Directorno datano datano data
Seiichi Taniguchi
Independent Outside Directorno datano datano data
Koichiro Komura
Outside Auditorno datano datano data
Hiroji Indoh
Outside Auditorno datano datano data

6.7yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 6861's board of directors are considered experienced (6.7 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

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


Key Information

  • Name: Keyence Corporation
  • Ticker: 6861
  • Exchange: TSE
  • Founded: 1972
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: JP¥12.262t
  • Shares outstanding: 242.53m
  • Website: https://www.keyence.com

Number of Employees


Location

  • Keyence Corporation
  • 1-3-14, Higashi-Nakajima
  • Higashi-Yodogawa-ku
  • Osaka
  • 533-8555
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KYCC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
KEEDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
6861TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
KEY NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992

Biography

Keyence Corporation, together with its subsidiaries, develops, manufactures, and sells factory automation solutions worldwide. The company offers photoelectric, fiber optic, laser, positioning, vision, and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 08:17
End of Day Share Price2021/02/26 00:00
Earnings2020/12/20
Annual Earnings2020/03/20


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.