# Yokogawa Electric (6841.JP)

Canonical: https://gigainvestors.com/s/6841.JP

Analysis as of: 2026-10-15T07:11:07.473Z. 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 4,393.00 per share; close as of 2026-10-15.

Estimated value: low JPY 3,175.40 per share, central JPY 3,788.44 per share, high JPY 4,288.29 per share. Buy at or below the central value JPY 3,788.44 per share. Valuation as of 2026-10-15T07:11:07.473Z; scenarios are not confidence intervals.

Expected annual return: 8.8% at the stated quote. About 8.8% 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

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.08×

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.09×

- FY2021: 0.08×

- FY2022: 0.08×

- FY2023: 0.10×

- FY2024: 0.15×

- FY2025: 0.15×

- FY2026: 0.14×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 11.8%

- ROIC, second-lowest year: 9.7%

- Typical minus recent gross margin: -1.6 pp

- Typical gross margin (annual median): 44.1%

- Recent gross margin (lower of latest and 3-year median): 45.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 11.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 11.3%

- FY2018: 11.7%

- FY2019: 11.8%

- FY2020: 10.0%

- FY2021: 8.6%

- FY2022: 9.7%

- FY2023: 12.8%

- FY2024: 18.8%

- FY2025: 19.2%

- FY2026: 19.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 215B

- Net income, five-year total: JPY 232B

- Return on incremental invested capital: 67.2%

- Working capital / revenue, annual change: -1.4 pp

- Working capital / revenue, change between three-year averages: -9.4 pp

- Working capital / revenue, final three-year average: 30.8%

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

- FY2022: 0.85×

- FY2023: 0.91×

- FY2024: 0.96×

- FY2025: 0.90×

- FY2026: 0.95×

### management: pass

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.7% vs 19.2%

- Per-share earnings: 96.40 to 227.72 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: JPY 743B

- Cumulative retained earnings: JPY 215B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 11.3%

- Per-share value change: JPY 131.32

- Per-share value, starting three-year median: JPY 96.40

- Per-share value, ending three-year median: JPY 227.72

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 1.2%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 66B

- Cumulative net income, 10 years: JPY 342B

- ROIC, first three-year median: 11.7%

- ROIC, last three-year median: 19.2%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 96.40

- FY2018: JPY 80.39

- FY2019: JPY 106.54

- FY2020: JPY 55.02

- FY2021: JPY 72.00

- FY2022: JPY 79.67

- FY2023: JPY 145.81

- FY2024: JPY 234.83

- FY2025: JPY 200.41

- FY2026: JPY 227.72

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.03×

- 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: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.1%

- FY2018: -2.4%

- FY2019: 1.5%

- FY2020: -3.4%

- FY2021: -2.6%

- FY2022: -5.5%

- FY2023: -0.2%

- FY2024: -0.3%

- FY2025: -6.5%

- FY2026: -3.5%

## Holders

## Price story

Down 30% since Feb 2026 · sales +7.5%

Story as of 2026-10-16T10:00:14.523Z; price observation 2026-10-15.

Price needs cash profits to grow 5.7% a year for ten years

### Sales · FY2025–2026

sales +7.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf; observed 2026-06-18.

- FY2017: JPY 391B 

- FY2018: JPY 407B 

- FY2019: JPY 404B 

- FY2020: JPY 404B 

- FY2021: JPY 374B 

- FY2022: JPY 390B 

- FY2023: JPY 456B 

- FY2024: JPY 540B 

- FY2025: JPY 562B 

- FY2026: JPY 605B 

### Gross margin · FY2026

gross margin 45.7%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf; observed 2026-06-18.

- FY2017: 43.2% 

- FY2018: 43.1% 

- FY2019: 42.9% 

- FY2020: 43.6% 

- FY2021: 43.9% 

- FY2022: 44.3% 

- FY2023: 44.8% 

- FY2024: 47.2% 

- FY2025: 47.6% 

- FY2026: 45.7% 

## Owner memo

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

### How it makes money

Annual sales are JPY 604.8 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf (filed 2026-06-18); FY2026: revenue 604829000000; grossProfit 276392000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 45.7% to 47.6% during 2024–26; it earns 11.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2024: grossProfit / revenue = 47.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2025: grossProfit / revenue = 47.6%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf (filed 2026-06-18); FY2026: grossProfit / revenue = 45.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); 10-year return on capital observations [[2017,0.11258955088266456],[2018,0.11688492758025162],[2019,0.11849820521629037],[2020,0.09982393302550382],[2021,0.08607948691046266],[2022,0.09662081229640129],[2023,0.12757621106854844],[2024,0.18805977910622795],[2025,0.19152054744431168],[2026,0.19698895725306417]]; median 0.117691566398271. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 44% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf (filed 2026-06-18); Gross margin observations: [[2021,0.43871290145000347],[2022,0.44321507254405607],[2023,0.4479045038216435]]; range within 2 percentage points.

### Where the cash goes

Spends 8.3% of cash earnings on expansion; earns 67.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2017: growth capex 0; upkeep 13701000000; owner earnings 28381000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2018: growth capex 0; upkeep 13583000000; owner earnings 24587000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2019: growth capex 0; upkeep 13483000000; owner earnings 30582000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2020: growth capex 0; upkeep 17015000000; owner earnings 12913000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2021: growth capex 0; upkeep 16516000000; owner earnings 16809000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2022: growth capex 1184000000; upkeep 16935000000; owner earnings 18151000000. Growth capex / owner earnings = 0.06523056580904633.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2023: growth capex 2805000000; upkeep 18037000000; owner earnings 35488000000. Growth capex / owner earnings = 0.07904080252479712.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2024: growth capex 3856000000; upkeep 20272000000; owner earnings 59129000000. Growth capex / owner earnings = 0.06521334708856906.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2025: growth capex 4296237573.000381; upkeep 22617762426.99962; owner earnings 46748237573.00038. Growth capex / owner earnings = 0.0919015944995045.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf (filed 2026-06-18); FY2026: growth capex 4597000000; upkeep 23085000000; owner earnings 55079000000. Growth capex / owner earnings = 0.0834619364912217.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Incremental return on capital 0.6720434525007798, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Dividend observations: [[2017,6672000000],[2018,7344000000],[2019,8008000000],[2020,9072000000],[2021,9073000000],[2022,9072000000],[2023,9078000000],[2024,8982000000],[2025,13521000000],[2026,15646000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YE3H.pdf (filed 2026-06-18); FY2026: cash repurchases 13022000000 JPY.

### What the price says

The price assumes cash profits grow 5.7% yearly over ten years; actual growth was 6.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Ten-year compound average after fade. Initial solved rate 0.06836364827301222. Price 4393; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 118.68737170136586 → FY2026 215.83105122778034. Closing-price date 2026-10-15.

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

- 2016-11: JPY 1,585.00 per share

- 2016-12: JPY 1,693.00 per share

- 2017-01: JPY 1,806.00 per share

- 2017-02: JPY 1,749.00 per share

- 2017-03: JPY 1,752.00 per share

- 2017-04: JPY 1,721.00 per share

- 2017-05: JPY 1,921.00 per share

- 2017-06: JPY 1,801.00 per share

- 2017-07: JPY 1,859.00 per share

- 2017-08: JPY 1,713.00 per share

- 2017-09: JPY 1,916.00 per share

- 2017-10: JPY 2,138.00 per share

- 2017-11: JPY 2,070.00 per share

- 2017-12: JPY 2,158.00 per share

- 2018-01: JPY 2,316.00 per share

- 2018-02: JPY 2,178.00 per share

- 2018-03: JPY 2,198.00 per share

- 2018-04: JPY 2,414.00 per share

- 2018-05: JPY 1,989.00 per share

- 2018-06: JPY 1,972.00 per share

- 2018-07: JPY 1,981.00 per share

- 2018-08: JPY 2,279.00 per share

- 2018-09: JPY 2,403.00 per share

- 2018-10: JPY 2,221.00 per share

- 2018-11: JPY 2,086.00 per share

- 2018-12: JPY 1,901.00 per share

- 2019-01: JPY 2,022.00 per share

- 2019-02: JPY 2,144.00 per share

- 2019-03: JPY 2,291.00 per share

- 2019-04: JPY 2,318.00 per share

- 2019-05: JPY 2,113.00 per share

- 2019-06: JPY 2,112.00 per share

- 2019-07: JPY 1,963.00 per share

- 2019-08: JPY 1,930.00 per share

- 2019-09: JPY 1,977.00 per share

- 2019-10: JPY 1,997.00 per share

- 2019-11: JPY 2,003.00 per share

- 2019-12: JPY 1,929.00 per share

- 2020-01: JPY 1,936.00 per share

- 2020-02: JPY 1,737.00 per share

- 2020-03: JPY 1,303.00 per share

- 2020-04: JPY 1,480.00 per share

- 2020-05: JPY 1,552.00 per share

- 2020-06: JPY 1,680.00 per share

- 2020-07: JPY 1,603.00 per share

- 2020-08: JPY 1,733.00 per share

- 2020-09: JPY 1,665.00 per share

- 2020-10: JPY 1,526.00 per share

- 2020-11: JPY 1,844.00 per share

- 2020-12: JPY 2,054.00 per share

- 2021-01: JPY 2,255.00 per share

- 2021-02: JPY 2,016.00 per share

- 2021-03: JPY 2,038.00 per share

- 2021-04: JPY 1,984.00 per share

- 2021-05: JPY 1,733.00 per share

- 2021-06: JPY 1,660.00 per share

- 2021-07: JPY 1,674.00 per share

- 2021-08: JPY 1,723.00 per share

- 2021-09: JPY 1,959.00 per share

- 2021-10: JPY 2,272.00 per share

- 2021-11: JPY 2,135.00 per share

- 2021-12: JPY 2,074.00 per share

- 2022-01: JPY 1,865.00 per share

- 2022-02: JPY 1,845.00 per share

- 2022-03: JPY 2,099.00 per share

- 2022-04: JPY 2,083.00 per share

- 2022-05: JPY 2,318.00 per share

- 2022-06: JPY 2,241.00 per share

- 2022-07: JPY 2,347.00 per share

- 2022-08: JPY 2,445.00 per share

- 2022-09: JPY 2,275.00 per share

- 2022-10: JPY 2,491.00 per share

- 2022-11: JPY 2,566.00 per share

- 2022-12: JPY 2,105.00 per share

- 2023-01: JPY 2,270.00 per share

- 2023-02: JPY 2,034.00 per share

- 2023-03: JPY 2,150.00 per share

- 2023-04: JPY 2,199.00 per share

- 2023-05: JPY 2,632.00 per share

- 2023-06: JPY 2,650.50 per share

- 2023-07: JPY 2,666.50 per share

- 2023-08: JPY 2,888.50 per share

- 2023-09: JPY 2,888.50 per share

- 2023-10: JPY 2,712.50 per share

- 2023-11: JPY 2,801.00 per share

- 2023-12: JPY 2,689.00 per share

- 2024-01: JPY 2,924.00 per share

- 2024-02: JPY 3,164.00 per share

- 2024-03: JPY 3,485.00 per share

- 2024-04: JPY 3,511.00 per share

- 2024-05: JPY 4,036.00 per share

- 2024-06: JPY 3,890.00 per share

- 2024-07: JPY 3,821.00 per share

- 2024-08: JPY 4,088.00 per share

- 2024-09: JPY 3,655.00 per share

- 2024-10: JPY 3,436.00 per share

- 2024-11: JPY 3,333.00 per share

- 2024-12: JPY 3,398.00 per share

- 2025-01: JPY 3,424.00 per share

- 2025-02: JPY 2,851.50 per share

- 2025-03: JPY 2,893.00 per share

- 2025-04: JPY 3,088.00 per share

- 2025-05: JPY 3,549.00 per share

- 2025-06: JPY 3,855.00 per share

- 2025-07: JPY 4,029.00 per share

- 2025-08: JPY 4,347.00 per share

- 2025-09: JPY 4,255.00 per share

- 2025-10: JPY 4,623.00 per share

- 2025-11: JPY 4,992.00 per share

- 2025-12: JPY 5,016.00 per share

- 2026-01: JPY 5,128.00 per share

- 2026-02: JPY 6,245.00 per share

- 2026-03: JPY 4,744.00 per share

- 2026-04: JPY 5,463.00 per share

- 2026-05: JPY 5,001.00 per share

- 2026-06: JPY 5,635.00 per share

- 2026-07: JPY 5,782.00 per share

- 2026-08: JPY 5,112.00 per share

- 2026-09: JPY 4,692.00 per share

- 2026-10: JPY 4,557.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 1,550.82 per share, central JPY 1,716.38 per share, high JPY 1,936.78 per share

- FY2021: low JPY 1,284.11 per share, central JPY 1,411.87 per share, high JPY 1,581.94 per share

- FY2022: low JPY 1,154.89 per share, central JPY 1,257.36 per share, high JPY 1,393.78 per share

- FY2023: low JPY 1,349.59 per share, central JPY 1,552.72 per share, high JPY 1,740.18 per share

- FY2024: low JPY 1,631.67 per share, central JPY 1,911.59 per share, high JPY 2,148.64 per share

- FY2025: low JPY 2,688.72 per share, central JPY 3,186.10 per share, high JPY 3,604.28 per share

- FY2026: low JPY 3,175.40 per share, central JPY 3,788.44 per share, high JPY 4,288.29 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/S100YE3H.pdf); period 2026-03-31, filed 2026-06-18.

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.