Harmonic Drive Systems (6324) AI Stock Analysis

• Market Cap: $280.41B
• Dividend Yield: 0.69%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -9.75%
• EPS Growth: -1404.32%
• Country: JP
• Employees: 1,349
• Sector: Industrials
• Sector Strength: 70
• Industry: Industrial - Machinery
• EPS (TTM): 5.22
• Shares Outstanding: 96,315,400
• 10 Day Avg. Volume: 2,225,070
• 30 Day Avg. Volume: 1,812,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4,140.00
• Price Target Upside: 28.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

The overall score of 44.2 reflects significant financial challenges faced by Harmonic Drive Systems, marked by declining revenue and profitability, coupled with operational inefficiencies. The stock's bearish technical indicators signal caution, despite the potential valuation appeal from its dividend yield. Stabilizing financial performance is essential for future improvement.

Positive Factors

Humanoid Robot Market

Harmonic Drive is a rare beneficiary with a clear fundamental case in the humanoid robot market.

Sales Guidance

The company slightly raised its F3/25 sales guidance from ¥54bn to ¥55.5bn and its OP guidance from -¥0.4n to +¥0.4 as it expects sales in Japan and Europe to exceed its prior estimates.

Negative Factors

Competition

Harmonic Drive faces competition from both alternative reducer types and new entrants in SW reducer, its overall share declining from 35+% today to 6% in the long term.

Impairment Loss

HDS will recognize impairment at subsidiary Harmonic Precision, which manufactures special bearings; the company expects to record an extraordinary loss.

Harmonic Drive Systems Business Overview & Revenue Model

Company Description

Harmonic Drive Systems Inc. is a Japanese company specializing in the development, manufacturing, and sales of precision control equipment. The company's core products include harmonic drive gears and actuators, which are crucial components in robotics, semiconductor manufacturing equipment, and various industrial machinery. Harmonic Drive Systems is recognized for its innovative solutions that offer high precision and reliability, supporting a wide range of sectors including robotics, aerospace, and medical equipment.

How the Company Makes Money

Harmonic Drive Systems generates revenue primarily through the sale of its precision control equipment, specifically harmonic drive gears and actuators. These products are essential for applications requiring precise motion control, such as robotics, aerospace, and semiconductor manufacturing. The company benefits from long-term contracts and partnerships with key players in these industries, ensuring a steady demand for its products. Additionally, Harmonic Drive Systems invests in research and development to maintain its competitive edge and expand its product offerings, which contributes to its ability to capture new market opportunities and sustain revenue growth.

Harmonic Drive Systems Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
54.23B	55.80B	71.53B	57.09B	37.03B	37.49B
	Gross Profit
13.93B	15.61B	25.79B	22.43B	12.58B	12.00B
	EBIT
-873.28M	124.58M	10.22B	8.74B	865.92M	67.55M
	EBITDA
-18.75B	-17.07B	19.94B	17.40B	8.52B	7.71B
	Net Income Common Stockholders
-24.76B	-24.81B	7.60B	6.64B	662.50M	-832.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.63B	20.36B	20.81B	19.93B	21.16B	19.57B
	Total Assets
26.53B	119.14B	154.34B	143.29B	140.03B	127.43B
	Total Debt
3.32B	23.81B	27.37B	20.91B	9.50B	10.26B
	Net Debt
-1.28B	3.50B	6.58B	1.01B	-11.64B	-9.29B
	Total Liabilities
7.47B	39.74B	50.38B	44.43B	29.97B	25.13B
	Stockholders Equity
18.47B	79.40B	103.96B	98.86B	102.89B	98.03B
Cash Flow		Free Cash Flow
0.00	7.42B	1.78B	5.07B	8.17B	-434.16M
	Operating Cash Flow
0.00	12.73B	10.85B	9.88B	9.56B	10.95B
	Investing Cash Flow
0.00	-5.95B	-8.66B	-19.49B	-4.18B	-12.54B
	Financing Cash Flow
0.00	-8.12B	-1.60B	8.12B	-3.61B	2.36B

Harmonic Drive Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3210.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6324, the sentiment is Negative. The current price of 3210 is above the 20-day moving average (MA) of 2835.10, below the 50-day MA of 3674.49, and below the 200-day MA of 3451.66, indicating a neutral trend. The MACD of -185.23 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 88.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6324.

Harmonic Drive Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7735	71 Outperform	$888.53B	9.26	25.48%	2.93%	30.34%	55.11%
7012	69 Neutral	$1.34T	16.17	13.26%	1.64%	15.31%	―
6473	66 Neutral	$328.63B	25.68	1.72%	4.68%	-0.38%	-65.61%
6645	65 Neutral	¥824.13B	110.86	0.98%	2.35%	-6.57%	-76.15%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
6471	52 Neutral	¥280.27B	38.49		5.71%	-3.42%	-35.09%
6324	44 Neutral	$280.41B	―	-26.74%	0.69%	-9.75%	-1404.32%

Harmonic Drive Systems Corporate Events

Harmonic Drive Systems Revises Financial Forecast Amid Impairment Loss

Harmonic Drive Systems Inc. announced an expected impairment loss of ¥1,189 million for the fiscal year ended March 31, 2025, due to signs of impairment in non-current assets held by its subsidiary, Harmonic Precision Inc. Despite this, the company revised its financial forecast upwards, anticipating higher net sales in Japan and Europe, which are expected to result in increased operating and ordinary profits, although profit attributable to owners of the parent is slightly revised downward.

Harmonic Drive Systems Announces Treasury Share Repurchase

Harmonic Drive Systems Inc. announced the repurchase of 52,400 treasury shares, amounting to 210,454,500 yen, as part of a broader plan approved by its Board of Directors to repurchase up to 400,000 shares. This move, executed via market purchase on the Tokyo Stock Exchange, is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

Harmonic Drive Systems Initiates Treasury Share Repurchase

Harmonic Drive Systems Inc. announced the repurchase of 37,200 of its common shares, valued at 180,010,000 yen, as part of a resolution passed by its Board of Directors. This move, executed through market purchases on the Tokyo Stock Exchange, is part of a broader strategy to repurchase up to 400,000 shares, reflecting the company’s commitment to optimizing its capital structure and potentially enhancing shareholder value.

Harmonic Drive Systems Reports Financial Decline with Cautious Outlook

Harmonic Drive Systems Inc. reported its financial results for the nine months ending December 31, 2024, highlighting a decline in net sales by 3.7% compared to the previous period. The company also faced operating and ordinary profit losses, with a slight improvement in comprehensive income. Despite these challenges, the equity ratio slightly improved due to reduced total assets. The forecast for the fiscal year ending March 31, 2025, remains unchanged, indicating a cautious outlook for recovery.

Harmonic Drive Systems Issues Corrections to Financial Segment Data

Harmonic Drive Systems announced corrections to its consolidated financial results for the nine months ending December 31, 2023, specifically in segment information. These amendments, which do not affect the consolidated balance sheets or income statements, indicate a refined accuracy in reported segment sales and profits, potentially influencing stakeholder insights into the company’s regional performance and operational adjustments.

Harmonic Drive Systems Achieves CDP’s Highest Water Security Rating

Harmonic Drive Systems Inc. has been recognized by the UK-based non-profit CDP as an ‘A List’ company for its leadership in water security transparency and performance. This accolade marks the first time HDSI has achieved this distinction, reflecting its commitment to sustainable practices and enhancing corporate value through addressing climate change and resource management.