Keyence stock closed at ¥78,000 on 30 October, capping a month where the share price slipped about 3% even as the automation specialist reported another powerful quarter. Q2 2027 results landed with Basic EPS of ¥657.84 and total revenue of ¥388,778m, numbers that keep the company firmly in high profitability territory. The twist is valuation. At a trailing P/E of 34.8x, a lot is already priced in, so the immediate reaction reflects expectations rather than business health. For long term holders, the key question is how that rich multiple aligns with sustained earnings power.
Impressed by Keyence's profitability but uneasy about paying a 34.8x P/E for it? Check out our screener of high quality peers with stronger value appeal through the 15 high quality undervalued stocks .
Q2 2027 Earnings Summary
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Total Revenue (Q2 2027 vs Q2 2026):¥388,778m vs. ¥284,224m (up about 37%)
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Net Income (Excl. Extra Items, Q2 2027 vs Q2 2026):¥159,542m vs. ¥107,843m (up about 48%)
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Basic EPS (Q2 2027 vs Q2 2026):¥657.84 vs. ¥444.67 (up about 48%)
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Trailing 12 Month Net Profit Margin (Q2 2027 vs prior year):40% vs. 37.6% (indicating higher profitability on recent earnings)
Ask Charlie what makes Keyence worth such a rich multiple .
Keyence momentum and quality case under the microscope
For anyone leaning bullish on Keyence, these earnings give solid backing. Revenue moved from ¥284,224m to ¥388,778m and net income excluding extras climbed from ¥107,843m to ¥159,542m. Profit margin on a trailing basis is now 40%, up from 37.6%. That combination of faster top line and fatter profitability fits the idea of a high quality automation supplier with strong economics. The recent acquisition of TraceParts S.A.S. also points to further product ecosystem depth in design and engineering workflows.
Testing Keyence downside worries against the data
Bears usually worry about cyclicality and earnings vulnerability. Short term share performance has been soft, with the stock down about 3% over 30 days and roughly 4% over 90 days. The income statement tells a different story. Earnings per share moved from ¥444.67 to ¥657.84 while net margin improved. This indicates the immediate business risk may currently appear lower than the recent share price pressure suggests, while cyclical end markets can still affect future orders.
Are analysts convinced that Keyence's 40% trailing net margin justifies a 34.8x P/E, or do their targets tell a different story? Check the consensus price target analysis for Keyence .
Hunt For Quiet Value Signals
Keyence just reported results that show disciplined execution alongside a market focused on valuation. The real opportunity could be quietly researching stocks that appear mispriced before broader attention develops.
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Company 1 - 39% below our estimate - sells virtual performer management and model creation as brands test avatar campaigns in their marketing mix.
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Company 2 - 46% below our estimate - connects employers to talent while integrating recruiting, attendance and payroll inside a single workflow platform.
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Company 3 - 44% below our estimate - runs regional lending and fee businesses as customers adopt bundled banking and adjacent service offerings.
Three companies from the same screener. Open the full list of 15 companies trading below our fair value estimates →
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.
Companies discussed in this article include 6861.T .
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