Keyence stock trades on the Tokyo Stock Exchange (6861.T) and is part of the Nikkei 225 and TOPIX indices. The company’s shares can also be found on the US OTC market under ticker KYCCF.
Keyence Corporation Shares Today (6861.T)
Keyence Corporation EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $7.11 | $4.87 billion |
| 2021 | $10.43 | $6.30 billion |
| 2022 | $10.91 | $6.67 billion |
| 2023 | $11.00 (TTM) | $6.69 billion |
Keyence Corporation is a Japanese firm developing and manufacturing industrial automation and inspection equipment. Headquartered in Osaka, Japan, it was founded in 1974 and has grown into one of the leading companies in factory automation and vision systems. Keyence offers a wide range of products, including sensors, barcode readers, machine vision systems, laser markers, and microscopes.
Unlike traditional manufacturers, Keyence operates a fabless business model, outsourcing production to third parties while focusing on research, product development, and sales. It procures materials required for product planning, development, design, and production. The approach allows the company to stay agile and profitable. Keyence serves industries such as automotive, electronics, food production, pharmaceuticals, and robotics, making it a key player in the Industrial Internet of Things (IIoT) sector.
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Industrial Automation Industry Comparison
Keyence Corporation Price & Dividend Yield
Since 2021, after hitting a high, the stock has been in somewhat of a range, despite hitting a new all-time high of over JPY 77,000 in July 2024. As of October 25, 2024, the stock trades at around JPY 64,810, making it one of the most expensive shares on the Tokyo Stock Exchange.
Keyence offers modest dividends compared to other companies, as it prioritises reinvestment in growth and product innovation.
Dividend Yield: 0.46%
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Keyence Corporation Share Price Forecast
Analysts generally have a positive outlook for Keyence, with its focus on automation and vision systems seen as a key driver of growth. Out of 15 analysts, 12 recommend a Buy, two suggest a Hold, and one has a Sell rating on the stock.
A View From The Bulls: Analysts at Bernstein recently highlighted Keyence as a stock that it believes can benefit from the boom in robots or automated devices. Bernstein said the company, alongside Shenzhen-listed Hangzhou Hikvision Digital, has “the best capabilities and/or are showing success in advancing adoption.” The firm has a price target of JPY 82,000 on Keyence, which implied around a 26.5% upside from its October 22 close.
A View From The Bears: While there is a lack of bearish views on the stock, we can provide some points that investors may want to assess. Keyence, while a high-quality company with a strong brand, will, of course, face potential headwinds. For example, its premium pricing strategy could become less sustainable in a weakening global economy, as cost-conscious customers may seek cheaper alternatives. Additionally, increased competition from emerging sensor manufacturers, particularly in China, could erode Keyence’s market share and pricing power.
Average Analyst Consensus 12-Month Price Target: JPY 78, 910
Our View: Keyence’s strong position in the automation and IIoT industries makes it an attractive option for investors looking for long-term growth.
The company’s focus on research and product development ensures it stays at the forefront of technological advancements. However, valuation risks and exposure to global economic cycles are challenges that investors should consider.
Who Should Buy Keyence Shares?
Keyence shares are suitable for investors seeking exposure to high-growth industries such as automation, robotics, and smart manufacturing. Its strong balance sheet, high margins, and innovation-driven approach make it appealing to those with a long-term investment horizon.
However, the stock’s high price and elevated valuation may deter short-term investors. In addition, its dividend payments mean it may not be suitable for those seeking high dividend yields.
Keyence is best suited for investors comfortable with volatility and looking for exposure to advanced industrial technologies that are likely to shape the future of manufacturing.
Furthermore, investors wanting exposure to Japanese stocks will also find Keyence a suitable investment. However, it should also be noted that the company has a global network with 250 Offices in 46 Countries across the Americas, EMEA, and the Asia Pacific regions.
