# YASKAWA Electric (6506.JP)

Canonical: https://gigainvestors.com/s/6506.JP

Analysis as of: 2026-10-15T07:10:59.712Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 4,274.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,734.47 per share, central JPY 1,946.84 per share, high JPY 2,229.54 per share. Buy at or below the central value JPY 1,946.84 per share. Valuation as of 2026-10-15T07:10:59.712Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.12×

- FY2019: 0.11×

- FY2020: 0.06×

- FY2021: 0.07×

- FY2022: 0.11×

- FY2023: 0.12×

- FY2024: 0.12×

- FY2025: 0.09×

- FY2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.0%

- ROIC, second-lowest year: 6.5%

- Typical minus recent gross margin: -0.8 pp

- Typical gross margin (annual median): 34.5%

- Recent gross margin (lower of latest and 3-year median): 35.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.0%

- ROIC including acquisitions, ten-year median: 8.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 10.5%

- FY2018: 17.9%

- FY2019: 16.9%

- FY2020: 6.2%

- FY2021: 7.6%

- FY2022: 13.0%

- FY2023: 13.2%

- FY2024: 11.4%

- FY2025: 7.8%

- FY2026: 6.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.66×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 155B

- Net income, five-year total: JPY 233B

- Return on incremental invested capital: 3.0%

- Working capital / revenue, annual change: 1.6 pp

- Working capital / revenue, change between three-year averages: 10.5 pp

- Working capital / revenue, final three-year average: 46.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.57×

- FY2023: 0.93×

- FY2024: 0.81×

- FY2025: 0.64×

- FY2026: 0.20×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.9% vs 7.8%

- Per-share earnings: 84.71 to 193.87 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: JPY 835B

- Cumulative retained earnings: JPY 237B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 10.9%

- Per-share value change: JPY 109.16

- Per-share value, starting three-year median: JPY 84.71

- Per-share value, ending three-year median: JPY 193.87

- Buybacks concentrated in cheaper years (correlation): 0.46

- Average buyback yield: 0.3%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: JPY 7.0B

- Cumulative net income, 10 years: JPY 370B

- ROIC, first three-year median: 16.9%

- ROIC, last three-year median: 7.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 76.60

- FY2018: JPY 149.35

- FY2019: JPY 161.00

- FY2020: JPY 59.42

- FY2021: JPY 72.41

- FY2022: JPY 146.72

- FY2023: JPY 198.07

- FY2024: JPY 193.87

- FY2025: JPY 218.62

- FY2026: JPY 135.88

### accounting: pass

- Sloan accruals: -2.1%

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.48×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.08×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.4%

- FY2018: -1.4%

- FY2019: 1.8%

- FY2020: -1.3%

- FY2021: -4.2%

- FY2022: -1.9%

- FY2023: 8.3%

- FY2024: -0.6%

- FY2025: 0.1%

- FY2026: -2.1%

## Holders

## Price story

Down 41% since May 2026 · sales +0.8%

Story as of 2026-10-16T10:00:14.475Z; price observation 2026-10-15.

Price needs cash profits to grow 11.5% a year for ten years

### Sales · FY2025–2026

sales +0.8%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y69H.pdf; observed 2026-05-25.

- FY2017: JPY 395B 

- FY2018: JPY 449B 

- FY2019: JPY 475B 

- FY2020: JPY 411B 

- FY2021: JPY 390B 

- FY2022: JPY 479B 

- FY2023: JPY 556B 

- FY2024: JPY 576B 

- FY2025: JPY 538B 

- FY2026: JPY 542B 

### Gross margin · FY2026

gross margin 35.3%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y69H.pdf; observed 2026-05-25.

- FY2017: 31.4% 

- FY2018: 34.4% 

- FY2019: 32.9% 

- FY2020: 30.3% 

- FY2021: 29.9% 

- FY2022: 35.2% 

- FY2023: 34.5% 

- FY2024: 36.3% 

- FY2025: 35.6% 

- FY2026: 35.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 542.1 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y69H.pdf (filed 2026-05-25); FY2026: revenue 542122000000; grossProfit 191236000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 35.3% to 36.3% during 2024–26; it earns 11% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2024: grossProfit / revenue = 36.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2025: grossProfit / revenue = 35.6%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y69H.pdf (filed 2026-05-25); FY2026: grossProfit / revenue = 35.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); 10-year return on capital observations [[2017,0.10549698474938368],[2018,0.178993751392534],[2019,0.1694211143263151],[2020,0.06214249309580533],[2021,0.0759409349310894],[2022,0.12956338219040378],[2023,0.13223148606532556],[2024,0.11448114186758061],[2025,0.07772824308565753],[2026,0.06468985526231562]]; median 0.10998906330848215. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 14.1% of cash earnings; earns 3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2017: growth capex 0; upkeep 15154000000; owner earnings 17319000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2018: growth capex 5060000000; upkeep 12691000000; owner earnings 39749000000. Growth capex / owner earnings = 0.12729879996981056.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2019: growth capex 4048964041.3529434; upkeep 19008035958.647057; owner earnings 35697964041.35294. Growth capex / owner earnings = 0.1134228281664068.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2021: growth capex 0; upkeep 8609000000; owner earnings 28256000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2022: growth capex 0; upkeep 24227000000; owner earnings 22044000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2023: growth capex 2258000000; upkeep 19673000000; cash acquisitions 67000000; owner earnings 48322000000. Growth capex plus acquisitions / owner earnings = 0.04811473035056496.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2024: growth capex 3917719868.4099846; upkeep 27107280131.590015; cash acquisitions 0; owner earnings 41215719868.40999. Growth capex plus acquisitions / owner earnings = 0.09505402018739802.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); FY2025: growth capex 0; upkeep 37304000000; cash acquisitions 0; owner earnings 36246000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y69H.pdf (filed 2026-05-25); FY2026: growth capex 993891091.1872711; upkeep 45246108908.81273; cash acquisitions 0; owner earnings 7058891091.187271. Growth capex plus acquisitions / owner earnings = 0.1407998902870314.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); Incremental return on capital 0.029892877803252612, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); Dividend observations: [[2017,5331000000],[2018,7997000000],[2019,12181000000],[2020,13647000000],[2021,9932000000],[2022,9955000000],[2023,15172000000],[2024,16764000000],[2025,17285000000],[2026,17670000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/6506.T (filed 2026-05-25); FY2026: cash repurchases 2000000 JPY.

### What the price says

The price assumes cash profits grow 11.5% yearly over ten years; actual decline was 7.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-25); Ten-year compound average after fade. Initial solved rate 0.15333646401846324. Price 4274; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 62.232283936428296 → FY2026 27.21799436636. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,755.00 per share

- 2016-12: JPY 1,818.00 per share

- 2017-01: JPY 2,041.00 per share

- 2017-02: JPY 2,106.00 per share

- 2017-03: JPY 2,234.00 per share

- 2017-04: JPY 2,129.00 per share

- 2017-05: JPY 2,205.00 per share

- 2017-06: JPY 2,381.00 per share

- 2017-07: JPY 2,961.00 per share

- 2017-08: JPY 3,330.00 per share

- 2017-09: JPY 3,565.00 per share

- 2017-10: JPY 4,040.00 per share

- 2017-11: JPY 4,950.00 per share

- 2017-12: JPY 4,965.00 per share

- 2018-01: JPY 5,620.00 per share

- 2018-02: JPY 5,010.00 per share

- 2018-03: JPY 4,825.00 per share

- 2018-04: JPY 4,470.00 per share

- 2018-05: JPY 4,400.00 per share

- 2018-06: JPY 3,915.00 per share

- 2018-07: JPY 3,670.00 per share

- 2018-08: JPY 3,730.00 per share

- 2018-09: JPY 3,375.00 per share

- 2018-10: JPY 3,265.00 per share

- 2018-11: JPY 3,540.00 per share

- 2018-12: JPY 2,698.00 per share

- 2019-01: JPY 3,060.00 per share

- 2019-02: JPY 3,165.00 per share

- 2019-03: JPY 3,475.00 per share

- 2019-04: JPY 4,095.00 per share

- 2019-05: JPY 3,150.00 per share

- 2019-06: JPY 3,660.00 per share

- 2019-07: JPY 3,650.00 per share

- 2019-08: JPY 3,570.00 per share

- 2019-09: JPY 3,965.00 per share

- 2019-10: JPY 4,180.00 per share

- 2019-11: JPY 4,020.00 per share

- 2019-12: JPY 4,170.00 per share

- 2020-01: JPY 3,875.00 per share

- 2020-02: JPY 3,385.00 per share

- 2020-03: JPY 2,976.00 per share

- 2020-04: JPY 3,565.00 per share

- 2020-05: JPY 3,870.00 per share

- 2020-06: JPY 3,725.00 per share

- 2020-07: JPY 3,485.00 per share

- 2020-08: JPY 3,815.00 per share

- 2020-09: JPY 4,095.00 per share

- 2020-10: JPY 4,035.00 per share

- 2020-11: JPY 5,030.00 per share

- 2020-12: JPY 5,130.00 per share

- 2021-01: JPY 5,360.00 per share

- 2021-02: JPY 5,320.00 per share

- 2021-03: JPY 5,510.00 per share

- 2021-04: JPY 5,040.00 per share

- 2021-05: JPY 5,310.00 per share

- 2021-06: JPY 5,430.00 per share

- 2021-07: JPY 5,380.00 per share

- 2021-08: JPY 5,380.00 per share

- 2021-09: JPY 5,400.00 per share

- 2021-10: JPY 4,920.00 per share

- 2021-11: JPY 5,090.00 per share

- 2021-12: JPY 5,640.00 per share

- 2022-01: JPY 4,755.00 per share

- 2022-02: JPY 4,570.00 per share

- 2022-03: JPY 4,815.00 per share

- 2022-04: JPY 4,450.00 per share

- 2022-05: JPY 4,485.00 per share

- 2022-06: JPY 4,370.00 per share

- 2022-07: JPY 4,625.00 per share

- 2022-08: JPY 4,580.00 per share

- 2022-09: JPY 4,165.00 per share

- 2022-10: JPY 4,130.00 per share

- 2022-11: JPY 4,445.00 per share

- 2022-12: JPY 4,225.00 per share

- 2023-01: JPY 5,030.00 per share

- 2023-02: JPY 5,360.00 per share

- 2023-03: JPY 5,770.00 per share

- 2023-04: JPY 5,510.00 per share

- 2023-05: JPY 5,900.00 per share

- 2023-06: JPY 6,583.00 per share

- 2023-07: JPY 6,171.00 per share

- 2023-08: JPY 5,721.00 per share

- 2023-09: JPY 5,395.00 per share

- 2023-10: JPY 4,877.00 per share

- 2023-11: JPY 5,673.00 per share

- 2023-12: JPY 5,890.00 per share

- 2024-01: JPY 5,627.00 per share

- 2024-02: JPY 6,119.00 per share

- 2024-03: JPY 6,375.00 per share

- 2024-04: JPY 6,580.00 per share

- 2024-05: JPY 5,987.00 per share

- 2024-06: JPY 5,777.00 per share

- 2024-07: JPY 5,258.00 per share

- 2024-08: JPY 4,820.00 per share

- 2024-09: JPY 4,998.00 per share

- 2024-10: JPY 4,455.00 per share

- 2024-11: JPY 3,919.00 per share

- 2024-12: JPY 4,067.00 per share

- 2025-01: JPY 4,539.00 per share

- 2025-02: JPY 4,033.00 per share

- 2025-03: JPY 3,730.00 per share

- 2025-04: JPY 3,017.00 per share

- 2025-05: JPY 3,412.00 per share

- 2025-06: JPY 3,269.00 per share

- 2025-07: JPY 3,182.00 per share

- 2025-08: JPY 2,958.00 per share

- 2025-09: JPY 3,157.00 per share

- 2025-10: JPY 4,245.00 per share

- 2025-11: JPY 4,039.00 per share

- 2025-12: JPY 4,756.00 per share

- 2026-01: JPY 4,915.00 per share

- 2026-02: JPY 5,515.00 per share

- 2026-03: JPY 4,020.00 per share

- 2026-04: JPY 5,520.00 per share

- 2026-05: JPY 7,208.00 per share

- 2026-06: JPY 7,027.00 per share

- 2026-07: JPY 4,867.00 per share

- 2026-08: JPY 4,780.00 per share

- 2026-09: JPY 4,633.00 per share

- 2026-10: JPY 4,758.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 874.18 per share, central JPY 977.83 per share, high JPY 1,115.81 per share

- FY2021: low JPY 1,346.68 per share, central JPY 1,509.59 per share, high JPY 1,726.46 per share

- FY2022: low JPY 1,626.72 per share, central JPY 1,826.97 per share, high JPY 2,093.55 per share

- FY2023: low JPY 2,082.51 per share, central JPY 2,740.58 per share, high JPY 3,188.75 per share

- FY2024: low JPY 2,047.92 per share, central JPY 2,604.37 per share, high JPY 3,025.57 per share

- FY2025: low JPY 1,920.87 per share, central JPY 2,316.73 per share, high JPY 2,670.72 per share

- FY2026: low JPY 1,734.47 per share, central JPY 1,946.84 per share, high JPY 2,229.54 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100Y69H.pdf); period 2026-02-28, filed 2026-05-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.