YASKAWA Electric Corp 6506

Morningstar Rating
¥‎4,932.00 +150.00 (3.14%)
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Company Report

Wide-Moat Yaskawa Electric to Face Hurdles as It Attempts to Increase Exposure Outside China

As the global market leader in high-end servo motors and one of the big four industrial robotics companies, Yaskawa Electric has a long-term record of providing its servo control-based solutions to high-end applications for precision machinery. Although other industrial robot companies also produce servo motors for their robots in-house, Yaskawa’s strategy has differed in that external sales of its servo technology to customers across various applications have served a central role for the company. As the company continues to take measures to adapt to the "Industry 4.0" trend and accentuates its strengths in its servo technology, we expect Yaskawa will continue to build on this approach to strengthen its motion-control/robotics businesses and its customization capability comprising its key products going forward.

Price vs Fair Value

6506 is trading at a 352% premium.
Price
¥‎4,932.00
Fair Value
¥‎5,866.00
Uncertainty
High
1-Star Price
¥‎5,955.00
5-Star Price
¥‎8,824.00
Economic Moat
Rtfs
Capital Allocation
Hnhwhvrf

Bulls Say, Bears Say

Bulls

Yaskawa should outgrow the other big four industrial robotics players due to its relatively higher exposure to the semiconductor industry.

Bears

Market share for robots/servo motors will deteriorate in China, where government policies will strongly favor the local factory automation players and local players like Inovance have been gaining share.

Trading Information

Previous Close Price
¥‎4,782.00
Day Range
¥‎4,740.004,957.00
52-Week Range
¥‎4,083.006,877.00
Bid/Ask
¥‎5,079.00 / ¥‎5,080.00
Market Cap
¥‎1.29 Tril
Volume/Avg
2.6 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
26.04
Price/Sales
2.28
Dividend Yield (Trailing)
1.34%
Dividend Yield (Forward)
1.38%
Total Yield
1.38%

Company Profile

Yaskawa Electric manufactures and sells servo motors, AC drives (inverters), industrial robots, and other motor-based products. It operates mainly in Asia, the Americas, and Europe, the Middle East, and Africa. According to the company, it has the leading global share with AC servo motors/controllers—its cumulative AC servo motor shipments reached 20 million units in 2020—and it is also considered as one of the big four industrial robotics companies. The company was founded in 1915, and its head office is in Kitakyushu, Fukuoka Prefecture, Japan.
Sector
Industrials
Industry
Electrical Equipment & Parts
Stock Style Box
Large Core
Total Number of Employees
14,990

Competitors

Valuation

Metric
6506
6954
ABBN
Price/Earnings (Normalized)
26.0429.9025.05
Price/Book Value
3.142.317.67
Price/Sales
2.285.103.25
Price/Cash Flow
20.6724.7123.32
Price/Earnings
6506
6954
ABBN

Financial Strength

Metric
6506
6954
ABBN
Quick Ratio
1.084.430.85
Current Ratio
2.316.861.32
Interest Coverage
19.7824.86
Quick Ratio
6506
6954
ABBN

Profitability

Metric
6506
6954
ABBN
Return on Assets (Normalized)
7.03%9.61%9.20%
Return on Equity (Normalized)
12.78%10.99%28.22%
Return on Invested Capital (Normalized)
10.02%10.61%16.50%
Return on Assets
6506
6954
ABBN

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