Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

Keyence (6861 JP): Sliding Down a Mountain of Cash

Keyence (6861 JP): A Beneficiary of Rising Interest Rates

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>With the company's share price still below its 2021 and 2024 highs, Keyence management has again raised the dividend and is planning for share buy-backs. </li>
<li>Margins under pressure, but factory automation in China, the U.S. and other markets continues to drive sales and profit growth. Forecast P/E dropping toward low end of historical range.</li>
<li>But the question remains: What will the company do with its growing pile of cash? Total cash &amp; securities exceeded ¥3 trillion ($19 billion) at the end of FY Mar-26.</li>
</ul>


With the company's share price still below its 2021 and 2024 highs, Keyence management has again raised the dividend and is planning for share buy-backs. 
Margins under pressure, but factory automation in China, the U.S. and other markets continues to drive sales and profit growth. Forecast P/E dropping toward low end of historical range.
But the question remains: What will the company do with its growing pile of cash? Total cash &amp; securities exceeded ¥3 trillion ($19 billion) at the end of FY Mar-26.


Keyence (6861 JP): Welcome Attention to the Share Price

Keyence Corp

Keyence (6861 JP): Welcome Attention to the Share Price