KEYENCE Corp. (6861) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lasertec Corp.

Nissan Chemical Corp.

Advantest Corp.

Dexerials Corp.

Amano Corp.

Azbil Corp.

KEYENCE Corp.

Yokogawa Electric Corp.

Nitto Denko Corp.

ULVAC, Inc.

Toshiba Tec Corp.

Why is KEYENCE Corp. ?

Strong Long Term Fundamental Strength with a 13.93% CAGR growth in Net Sales

Company has very low debt and has enough cash to service the debt requirements
The company has been able to generate a Return on Capital Employed (avg) of 30.95% signifying high profitability per unit of total capital (equity and debt)

Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by 1.54% (YoY)
CASH AND EQV(HY) Highest at JPY 2,383,554 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.16%

With ROE of 12.82%, it has a attractive valuation with a 4.56 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.66%, its profits have risen by 7.9% ; the PEG ratio of the company is 4.5
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to KEYENCE Corp. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is KEYENCE Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

KEYENCE Corp.

-16.66%

495.86

31.59%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.93%

EBIT Growth (5y)

14.64%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.35

Tax Ratio

28.94%

Dividend Payout Ratio

21.29%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

30.95%

ROE (avg)

12.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.56

EV to EBIT

23.55

EV to EBITDA

22.92

EV to Capital Employed

6.85

EV to Sales

12.22

PEG Ratio

4.53

Dividend Yield

0.00%

ROCE (Latest)

29.10%

ROE (Latest)

12.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.54% (YoY

CASH AND EQV(HY)

Highest at JPY 2,383,554 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.16%

-5What is not working for the Company

ROCE(HY)

Lowest at 13.17%

OPERATING PROFIT MARGIN(Q)

Lowest at 50.99 %

NET PROFIT(Q)

Lowest at JPY 92,116 MM

EPS(Q)

Lowest at JPY 379.82

Here's what is working for KEYENCE Corp.

Cash and Eqv

Highest at JPY 2,383,554 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 2.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 1.54% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for KEYENCE Corp.

Operating Profit Margin

Lowest at 50.99 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at JPY 92,116 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 379.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)