Makita Corporation (6586.T) Bundle
Dive into a data-driven look at Makita Corporation's financial pulse: with fiscal 2025 revenue of ¥753.13 billion (up 1.58%) but TTM revenue at ¥745.11 billion (down 1.72%), an impressive operating profit surge to ¥107.038 billion (+61.8%) and net income of ¥79.203 billion (+81.6%), alongside an improved operating margin of 14.2% and EPS rising to ¥294.90, this piece breaks down why cost-of-sales improvement to 63.6% and free cash flow of ¥112.28 billion matter to investors; we'll also scrutinize balance-sheet strength-cash and equivalents at ¥236.55 billion, total assets ¥1.09 trillion, liabilities ¥169.80 billion, equity of ¥919.83 billion and a near-zero debt-to-equity of 0.01-plus valuation metrics (market cap ¥1.30 trillion, P/E 16.39, P/B 1.41, dividend yield 2.12%) and the headwinds and growth levers from weakening overseas sales (-3.2% H1 FY2026) to cordless-tool expansion-read on to unpack the numbers that shape Makita's investor story
Makita Corporation (6586.T) - Revenue Analysis
Makita Corporation reported consolidated revenue of ¥753.13 billion for the fiscal year ending March 31, 2025, a 1.58% increase year-over-year. Performance through the first half of fiscal 2026 shows mixed momentum: H1 revenue of ¥378.4 billion (down 2.1% YoY), driven by a 3.7% increase in domestic sales offset by a 3.2% decline in overseas sales. The trailing twelve months (TTM) revenue stands at ¥745.11 billion, a 1.72% decline versus the prior year.- FY2025 revenue: ¥753.13 billion (+1.58% YoY)
- H1 FY2026 revenue: ¥378.4 billion (-2.1% YoY)
- Domestic H1 FY2026: +3.7%; Overseas H1 FY2026: -3.2%
- TTM revenue: ¥745.11 billion (-1.72% YoY)
- Cost of sales ratio (H1 FY2026): 63.6% (improved by 2.3 percentage points)
- Revenue per employee: ≈ ¥42.24 million (17,641 employees)
- Market capitalization: ¥1.30 trillion; P/S ratio: 1.74
| Metric | Period | Value | YoY Change |
|---|---|---|---|
| Revenue (Consolidated) | FY ending Mar 31, 2025 | ¥753.13 billion | +1.58% |
| Revenue (Consolidated) | H1 FY ending Mar 31, 2026 | ¥378.4 billion | -2.1% |
| Revenue (TTM) | Trailing 12 months | ¥745.11 billion | -1.72% |
| Domestic Sales Growth | H1 FY2026 | +3.7% | - |
| Overseas Sales Growth | H1 FY2026 | -3.2% | - |
| Cost of Sales Ratio | H1 FY2026 | 63.6% | Improved 2.3 ppt |
| Employees | Latest reported | 17,641 | - |
| Revenue per Employee | Calculated | ¥42.24 million | - |
| Market Capitalization | Latest | ¥1.30 trillion | - |
| Price-to-Sales (P/S) | Latest | 1.74 | - |
- Improved cost of sales ratio suggests margin recovery potential despite softer revenue in H1.
- Domestic resilience vs. overseas weakness points to regional demand divergence to monitor.
- P/S of 1.74 against market cap of ¥1.30 trillion provides a valuation lens relative to peers.
Makita Corporation (6586.T) - Profitability Metrics
Fiscal year ending March 31, 2025 results show a marked improvement in Makita Corporation's (6586.T) core profitability, driven by stronger margins, higher operating leverage and improved net income. Key headline figures are summarized below and followed by detailed metrics and context.
- Operating profit: ¥107.038 billion (up 61.8% YoY)
- Net income: ¥79.203 billion (up 81.6% YoY)
- Operating profit margin: 14.2% (from 10.0% prior year)
- Net profit margin: 10.5% (from 5.9% prior year)
- Earnings per share (EPS): ¥294.90 (from ¥162.13)
- Return on equity (ROE): 8.57%
| Metric | FY Mar 31, 2025 | FY Mar 31, 2024 | YoY Change |
|---|---|---|---|
| Operating Profit | ¥107,038,000,000 | ¥66,138,000,000 | +61.8% |
| Net Income | ¥79,203,000,000 | ¥43,625,000,000 | +81.6% |
| Operating Profit Margin | 14.2% | 10.0% | +4.2 ppt |
| Net Profit Margin | 10.5% | 5.9% | +4.6 ppt |
| EPS (¥) | ¥294.90 | ¥162.13 | +81.9% |
| Return on Equity (ROE) | 8.57% | - | - |
Drivers behind these improvements include stronger sales mix in high-margin cordless and professional tools, operational efficiencies, and favorable foreign exchange impacts in the period. Margin expansion is reflected both at the operating and net levels, indicating control over cost of goods sold and operating expenses while benefiting from higher revenue.
- Margin expansion: Operating margin rose to 14.2%, a meaningful improvement that indicates better pricing and/or lower unit costs.
- Profit conversion: Net margin doubling to 10.5% shows improved conversion of top-line growth into shareholder returns.
- EPS leverage: EPS increased to ¥294.90, reflecting both higher net income and potential benefits from any share buybacks or capital structure effects.
For deeper investor context and ownership details, see: Exploring Makita Corporation Investor Profile: Who's Buying and Why?
Makita Corporation (6586.T) - Debt vs. Equity Structure
Makita Corporation (6586.T) exhibits a notably conservative capital structure, with minimal reliance on debt and a dominant equity base. As of June 30, 2025, the balance sheet highlights substantial equity financing and strong liquidity metrics that reduce leverage risk for investors.- Debt-to-equity ratio: 0.01 - indicating negligible financial leverage.
- Equity ratio: 83.70% - reflecting that a large majority of assets are financed by shareholders' equity.
- Total assets: ¥1.09 trillion as of June 30, 2025.
- Total liabilities: ¥169.80 billion as of June 30, 2025, down 0.95% year-over-year.
- Total equity: ¥919.83 billion as of June 30, 2025.
- Cash and cash equivalents: ¥236.55 billion as of June 30, 2025, up 17.81% year-over-year.
| Metric | Amount (¥) | Change / Ratio |
|---|---|---|
| Total assets (Jun 30, 2025) | 1,090,000,000,000 | - |
| Total liabilities (Jun 30, 2025) | 169,800,000,000 | -0.95% YoY |
| Total equity (Jun 30, 2025) | 919,830,000,000 | Equity ratio: 83.70% |
| Cash & cash equivalents (Jun 30, 2025) | 236,550,000,000 | +17.81% YoY |
| Debt-to-equity ratio | 0.01 | Minimal leverage |
For broader corporate context and background on the company's strategy, see: Makita Corporation: History, Ownership, Mission, How It Works & Makes Money
Makita Corporation (6586.T) - Liquidity and Solvency
Makita's short- and long-term liquidity profile shows solid cash-generation and conservative balance-sheet coverage of liabilities. Key metrics and inferred ratios (from the latest balance-sheet disclosures) indicate the company can comfortably service near-term obligations while generating strong operating cash.
- Free cash flow (FY ending Mar 31, 2025): ¥112.28 billion (down versus prior year).
- Operating cash flow to net income ratio: 1.64 - indicates operations convert earnings into cash effectively.
- Cash flow position: ample free cash flow supports working capital, capex and shareholder returns.
| Metric | Value (JPY) | Notes / Source |
|---|---|---|
| Free Cash Flow (FY2025) | ¥112.28 billion | Reported FCF for year ending Mar 31, 2025 |
| Operating CF / Net Income | 1.64x | High conversion of profit into cash |
| Inferred Current Ratio (estimated) | ~1.8x | Derived from reported current assets and current liabilities on balance sheet |
| Inferred Quick Ratio (estimated) | ~1.2x | Excludes inventory; indicates adequate liquid coverage |
| Trend (FCF year-over-year) | Decrease vs prior year | FCF fell in FY2025 despite still-robust absolute cash generation |
- Interpretation: Estimated current and quick ratios suggest Makita maintains comfortable short-term coverage; working capital is supported by strong operating cash flow and meaningful free cash flow.
- Risk note: The FCF decline year-over-year warrants monitoring (drivers: capex, working-capital swings, or one-off items).
For investor context and ownership activity related to Makita, see: Exploring Makita Corporation Investor Profile: Who's Buying and Why?
Makita Corporation (6586.T) - Valuation Analysis
Makita Corporation (6586.T) trades at a P/E of 16.39 and a forward P/E of 18.16, indicating current earnings-based valuation modestly below forward expectations. The P/B is 1.41, implying the stock trades at a slight premium to book value. Dividend yield stands at 2.12% with an ex-dividend date of September 29, 2025. Market capitalization is ¥1.30 trillion and the P/S ratio is 1.74. The stock price as of December 12, 2025 was ¥4,896.00 (up 5.40% from the previous close). The 52-week range is ¥3,674.00-¥5,539.00, reflecting moderate volatility.- P/E: 16.39
- Forward P/E: 18.16
- P/B: 1.41
- P/S: 1.74
- Dividend yield: 2.12% (Ex-dividend: 2025-09-29)
- Market cap: ¥1.30 trillion
- Latest price (2025-12-12): ¥4,896.00 (+5.40%)
- 52-week range: ¥3,674.00-¥5,539.00
| Metric | Value |
|---|---|
| Price-to-Earnings (P/E) | 16.39 |
| Forward P/E | 18.16 |
| Price-to-Book (P/B) | 1.41 |
| Price-to-Sales (P/S) | 1.74 |
| Dividend yield | 2.12% |
| Ex-dividend date | 2025-09-29 |
| Market capitalization | ¥1.30 trillion |
| Stock price (2025-12-12) | ¥4,896.00 |
| 52-week range | ¥3,674.00 - ¥5,539.00 |
Makita Corporation (6586.T) - Risk Factors
The following outlines principal risks that can materially affect Makita Corporation (6586.T)'s operating performance, cash flow and shareholder returns, with attendant figures and estimates where relevant.- Sluggish housing demand and high interest rates
- Currency exchange risk
| Metric | Illustrative exposure / estimate |
|---|---|
| Share of net sales from overseas markets | Approximately 80-85% |
| FX sensitivity (USD/JPY move) | ~1-2% swing in operating profit per 5% JPY move (company-specific sensitivities vary) |
| H1 FY2026 overseas sales change | -3.2% |
- Raw material and input-cost volatility
- Economic downturns in key markets
- Supply chain disruptions
- Intense industry competition
| Risk | Potential Impact (operational/financial) | Relative Likelihood |
|---|---|---|
| Housing-market weakness / high rates | Reduced sales volumes; potential mid-single-digit to double-digit revenue declines in affected segments | Medium-High |
| Currency fluctuations | Reported sales/profit volatility; currency translation losses | High |
| Raw material cost spikes | Gross margin compression of 1-4 percentage points (depending on pass-through) | Medium |
| Economic downturns in key markets | Lower demand across product categories; inventory write-down risk | Medium |
| Supply chain disruption | Delayed deliveries, lost sales, higher logistics costs | Medium |
| Competitive pressure | Pricing pressure, increased marketing/R&D spend | High |
Makita Corporation (6586.T) - Growth Opportunities
Makita Corporation (6586.T) sits in a market undergoing structural change: electrification of tools, digital distribution, and sustainability trends. The company can leverage its strong brand, global distribution and R&D to capture incremental revenue and margin improvement across multiple vectors.- Market expansion: The global power tools market was estimated at roughly $37-40 billion in 2023 with a projected CAGR of ~5-6% through 2030; increasing penetration in emerging markets (Southeast Asia, India, Latin America, Africa) offers above-average growth vs. saturated developed markets.
- Product innovation: Shift to cordless and battery-powered platforms continues - lithium-ion battery pack density and brushless motor adoption drive longer runtimes and higher ASPs (average selling prices).
- M&A and partnerships: Targeted acquisitions or JV partnerships for battery technology, AI-enabled tool diagnostics, or channel partners can accelerate capability build and market access.
- Digital channels: E‑commerce growth for tools and accessories (online share rising into the mid‑teens of sales for many OEMs) enables lower customer acquisition costs and richer data on buyer behavior.
- Sustainability & circularity: Eco-friendly materials, improved battery recycling programs and serviceable tool design appeal to institutional and retail buyers, and can unlock premium pricing in some segments.
- After-sales & services: Extended warranties, subscription-based fleet management, and enhanced repair networks increase lifetime value (LTV) and reduce churn for pro customers.
| Opportunity | Near-term KPI | Potential Financial Impact |
|---|---|---|
| Expansion into emerging markets | Revenue growth from emerging markets (% of total) | +3-6% organic revenue CAGR potential over 3-5 years |
| Cordless & battery-powered product lines | Share of cordless sales / ASP change | Higher gross margin (50-200 bps) due to premium pricing |
| Strategic partnerships / acquisitions | Time-to-market for new tech, distribution reach | Accelerated revenue mix shift; one-time CapEx or goodwill |
| Investment in e-commerce | Online sales % of total, conversion rate | Lower distribution costs; improved gross-to-net margins |
| Sustainability initiatives | Recycled content %, battery take-back participation | Brand premium, risk mitigation vs. regulation |
| After-sales & customer support | Repeat purchase rate, average order frequency | Improved LTV, recurring revenue streams |
- Target metrics to watch: cordless tool revenue penetration, battery pack unit sales, emerging market revenue share, online sales growth, service contract uptake, gross margin trend and R&D-to-sales ratio.
- Near-term tactical playbook: accelerate roll-out of modular battery platform, invest in localized supply/warehousing in growth regions to reduce lead times, pilot subscription/managed-fleet programs with pro customers.
- Capital considerations: incremental investment in battery manufacturing or partnerships may be CapEx‑intensive upfront but can produce higher-margin recurring consumables and accessory sales.
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