Keyence Corp. (6861.T)
Technology · TSE · Japan
Fundamentals
Valuation and ratings
Keyence Corp. trades at ¥70,710.00, close to the ¥70,527.76 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 84 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 42.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Keyence Corp.
Keyence Corporation, together with its subsidiaries, manufactures and sells electronic application equipment in Japan and internationally. The company offers photoelectric, fiber optic, laser, inductive proximity, positioning, vision, and specific solution sensors, as well as network communication units; laser profiler/3D laser snapshot sensor, laser displacement sensors, optical micrometer/laser micrometer, spectral interference displacement sensor, inductive displacement sensors, and LVDT/contact displacement sensors; machine vision products; and flow sensors/flow meters, pressure sensors, temperature sensors, and level sensors. It also provides pneumatic components; safety light curtains, laser scanners, interlock switches, and controller; microscopes/laser microscopes; optical comparator; coordinate measuring machine, 3D scanner, and 3D optical profilometers; programmable logic controller, micro PLC /small PLC, HMI, servo motors/servo systems, and other control products; and marking/coding, barcode reader, mobile computers/handheld computers, data acquisition, static control, additive manufacturing, and RPA/desktop automation software products. The company's products are used in automotive, metals, semiconductors/LCDs, electronic devices, plastics, films/sheets, food/pharmaceutical, medical technology, and logistics applications. The company was founded in 1972 and is headquartered in Osaka, Japan.
6861.T passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Keyence Corp. (6861.T) undervalued?
Against our discounted cash flow estimate of ¥70,527.76, 6861.T at ¥70,710.00 is 0% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 6861.T's P/E ratio?
6861.T trades at 42.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.