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    Makino Milling Machine (TSE:6135) Unveils Buyback And New Guidance, Is The Valuation Still Cheap?

    Simply Wall St·08/04/2026 05:28:52
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    Makino Milling Machine (TSE:6135) has drawn fresh attention after announcing a share repurchase program alongside updated dividend forecasts and new earnings guidance. This has put its capital return approach firmly in focus for investors.

    See our latest analysis for Makino Milling Machine.

    At a share price of ¥14,710.0, Makino Milling Machine has a 1-year total shareholder return of 31.78%, building on a very large 5-year total shareholder return of about 3x. This suggests momentum has been strong over the longer term, even though the 30-day share price return of 4.04% indicates some recent cooling following the buyback and guidance news.

    If you are curious about other companies benefiting from interest in automation and advanced manufacturing, this could be a good moment to scan 36 robotics and automation stocks.

    After a strong multi year run and a fresh buyback now on the table, the real test for Makino Milling Machine is whether the current price still leaves enough upside for the risk you are taking.

    Price-to-Earnings of 13.5x: Is it justified?

    Makino Milling Machine is flagged as trading at good value, with a P/E of 13.5x at the last close of ¥14,710 compared to several reference points that suggest the market may be pricing its earnings cautiously.

    The P/E multiple compares what investors pay for each unit of current earnings. For a machinery manufacturer like Makino Milling Machine, this is a common way to frame how the market is weighing its profit profile against peers and its own history.

    According to the checks provided, the current P/E of 13.5x is lower than the estimated fair P/E of 15.4x and also below the peer average of 17.3x. It is just under the JP Machinery industry average of 13.9x. That combination points to the market valuing the company at a discount to what the fair ratio model implies could be reasonable, as well as to its direct peer group, even though it is roughly in line with the broader industry.

    These comparisons suggest room for the multiple to move closer to the fair ratio level of 15.4x if the market view shifts closer to the modelled relationship between fundamentals and valuation.

    Explore the SWS fair ratio for Makino Milling Machine

    Result: Price-to-Earnings of 13.5x (UNDERVALUED)

    However, Makino Milling Machine still faces execution risk on automation projects, and any setback in key end markets like automotive or semiconductors could quickly challenge the current valuation story.

    Find out about the key risks to this Makino Milling Machine narrative.

    Another view on Makino Milling Machine's value

    While the P/E checks suggest Makino Milling Machine looks inexpensive, the SWS DCF model takes a different route and values the shares at ¥29,794.53. That is above the current ¥14,710 price and points to a larger gap. Which view do you think better reflects the risk you are taking?

    Look into how the SWS DCF model arrives at its fair value.

    6135 Discounted Cash Flow as at Aug 2026
    6135 Discounted Cash Flow as at Aug 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Makino Milling Machine for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    Given the mix of positives and concerns around Makino Milling Machine, it makes sense to check the data yourself and move quickly before views shift. To see how the balance of potential upside and downside looks in one place, review the 4 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Makino Milling Machine?

    If you want to build on what you have learned about Makino Milling Machine, this is a good time to widen your watchlist with a few focused stock ideas.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.