Skip to Content

YASKAWA Electric Corp 6506

Rating as of

Morningstar’s Analysis

Valuation
Currency in JPY
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Record First-Quarter Orders for Yaskawa Likely To Lead To Peak Sales Next Quarter; Raising FVE

Jason Kondo Equity Analyst

Analyst Note

| Jason Kondo |

Wide-moat Yaskawa Electric’s fiscal 2021 first-quarter earnings ending in May were in line with our expectations, but we were particularly surprised at the record orders worldwide, which we believe will lead to peak quarterly sales in the second quarter. We raise our fair value estimate to JPY 4,800 from JPY 4,600, from mainly adjusting our near-term revenue and operating margin estimates to account for higher sales of AC servo motors and robots in fiscal 2021, from record quarterly orders. Despite this, our revised fair value estimate continues to imply that Yaskawa Electric’s shares are overvalued. While high quarterly orders in China likely alleviated some market concerns over slowdown in the region, we continue to maintain our assumption that the current momentum of orders/sales will slow down in the second half of current fiscal year. Considering this factor as well as our medium-term expectations remaining intact, our fair value estimate revision is limited.

Read Full Analysis

Company Profile

Business Description

Yaskawa Electric Corporation engages in manufacturing mechatronics products, which combine electrical and mechanical systems, and has core technologies related to motion control, robotics, and power conversion. It operates mainly in Asia, the Americas, and Europe, as one of the leading players in the AC servo motor/controller, AC drives (inverter), and robotics markets. According to the company, it has the leading global share with AC Servo motors/controllers, where the company's 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.

Contact
2-1, Kurosaki-shiroishi, Yahatanishi-ku
Kitakyushu, 806-0004, Japan
T +81 936458801
Sector Industrials
Industry Electrical Equipment & Parts
Most Recent Earnings May 31, 2021
Fiscal Year End Feb 28, 2020
Stock Type
Employees 14,892

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.