Maruwa Co (5344) AI Stock Analysis

• Market Cap: ¥587.77B
• Dividend Yield: 0.23%
• Average Volume (3M): 165.71K
• Price to Earnings (P/E): 32.3
• Beta (1Y): 1.11
• Revenue Growth: 2.66%
• EPS Growth: 7.90%
• Country: JP
• Employees: 1,380
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 398.68
• Shares Outstanding: 12,372,000
• 10 Day Avg. Volume: 107,890
• 30 Day Avg. Volume: 165,706
• PEG Ratio: 0.74
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 5.21
• P/FCF Ratio: 24.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥54,000.00
• Price Target Upside: 34.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥52,392.00 ▲(30.88% Upside)

The score is primarily supported by very strong financial performance (high margins, debt-free balance sheet, and strong cash conversion). Offsetting factors are a weaker near-term technical picture (negative MACD and trading below key short-term averages) and a relatively expensive valuation (high P/E with a low dividend yield).

Positive Factors

High margins and profitability

Sustained gross and net margins near these levels provide durable pricing power and margin cushion against cost inflation. High profitability supports reinvestment in process R&D, funds operating needs internally, and underpins consistent return on capital over multiple cycles.

Exceptionally low leverage

A debt-free balance sheet grants long-term financial flexibility to fund capex, absorb demand shocks, and pursue strategic M&A without refinancing risk. This structural strength lowers insolvency risk and preserves capacity to support operations during industry downturns.

Strong operating cash generation

Robust OCF well above reported earnings indicates high-quality earnings and reliable cash conversion, enabling sustained reinvestment in manufacturing capabilities, steady working-capital financing, and the ability to fund strategic initiatives without relying on external financing.

Negative Factors

Revenue growth slowdown

A material deceleration to ~3% growth weakens the company's growth runway and reduces the leverage of fixed-cost absorption. Over the medium term this can pressure investment returns, limit scale benefits, and make sustaining above-market margins harder without new product or market expansion.

Volatile free cash flow

Historic swings in FCF complicate capital allocation: unpredictable cash makes planning for capex, dividends, or acquisitions riskier. During industry slowdowns, volatile FCF could force either reduced investment or increased external financing, impairing strategic consistency.

End-market cyclicality exposure

Revenue dependence on semiconductors and industrial equipment creates structural volume cyclicality risk. Prolonged downturns in these sectors can sharply reduce shipments and utilization of specialty ceramic lines, making top-line and margin stability contingent on external industry cycles.

Maruwa Co Business Overview & Revenue Model

Company Description

Maruwa Co., Ltd. (5344) is a Japan-based company primarily engaged in the manufacture and sale of electronic components and ceramic products. The company operates in sectors including electronics, telecommunications, and automotive industries, offering a range of products such as ceramic substrates, electronic components, and microwave components. Maruwa is known for its advanced ceramics technology, which is utilized in various high-performance applications across multiple industries.

How the Company Makes Money

Maruwa Co., Ltd. generates revenue through the production and sale of its electronic and ceramic products. The company's key revenue streams include sales of ceramic substrates used in electronic circuits, microwave components for telecommunications, and various other electronic components. Maruwa's earnings are significantly influenced by its ability to innovate and provide high-quality, technologically advanced products that meet the evolving needs of its customers in sectors like automotive and telecommunications. Additionally, partnerships with industry leaders and investments in research and development contribute to its competitive edge and financial performance.

Maruwa Co Financial Statement Overview

Summary

High-quality fundamentals: strong profitability (about 55% gross margin and ~27% net margin) with improved operating profitability, an exceptional near debt-free balance sheet (total debt 0; ~15% ROE), and healthy operating cash flow (25.4B) exceeding net income (~1.82x). Main constraints are the FY2025 revenue growth slowdown (~3%) and historically more variable free cash flow (FY2025 FCF 15.4B; ~61% of net income).

Income Statement

Profitability is a clear strength: FY2025 revenue was 71.8B with very strong margins (about 55% gross margin and ~27% net margin), and operating profitability improved versus prior years. Growth has been solid over the multi-year period, though FY2025 revenue growth (~3%) shows a slowdown after stronger expansion in earlier years, which is the main near-term watch item.

Balance Sheet

Balance sheet quality is exceptional with essentially no leverage (FY2025 total debt at 0 and debt-to-equity at 0.0), supporting high financial flexibility. Equity and assets have grown steadily, and returns on equity remain strong (~15% in FY2025). The main limitation is that with no debt, future returns may rely primarily on continued operating execution rather than balance-sheet leverage.

Cash Flow

Cash generation is healthy: FY2025 operating cash flow was 25.4B and exceeded net income (operating cash flow to net income ~1.82x), indicating strong cash conversion. Free cash flow rebounded meaningfully in FY2025 (15.4B), but over the earlier period free cash flow was more volatile (including declines in FY2023 and FY2024), and free cash flow was only ~61% of net income in FY2025—suggesting ongoing investment/working-capital swings can create variability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.86B	71.85B	61.56B	58.80B	54.34B	41.44B
Gross Profit	39.97B	39.47B	30.99B	30.41B	27.33B	18.36B
EBITDA	31.30B	31.85B	23.94B	23.23B	21.91B	12.09B
Net Income	18.62B	19.24B	15.22B	15.02B	13.35B	6.93B
Balance Sheet
Total Assets	141.28B	142.28B	122.52B	108.03B	95.90B	78.06B
Cash, Cash Equivalents and Short-Term Investments	69.69B	71.79B	55.25B	49.80B	44.62B	34.09B
Total Debt	0.00	0.00	400.00M	733.00M	1.70B	1.97B
Total Liabilities	9.81B	14.43B	13.31B	13.82B	16.22B	11.72B
Stockholders Equity	131.47B	127.85B	109.20B	94.21B	79.68B	66.34B
Cash Flow
Free Cash Flow	0.00	15.37B	5.90B	6.92B	10.95B	5.14B
Operating Cash Flow	0.00	25.35B	17.22B	15.65B	14.76B	10.71B
Investing Cash Flow	0.00	-7.68B	-10.81B	-8.76B	-3.52B	-5.38B
Financing Cash Flow	0.00	-1.51B	-1.36B	-1.88B	-1.13B	-801.92M

Maruwa Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40030.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5344, the sentiment is Positive. The current price of 40030 is below the 20-day moving average (MA) of 47227.50, below the 50-day MA of 45594.40, and below the 200-day MA of 40713.48, indicating a neutral trend. The MACD of 1005.40 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 16.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5344.

Maruwa Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	77 Outperform	$5.78T	30.45	8.95%	1.88%	2.88%	28.76%
5344	72 Outperform	¥587.77B	32.27	14.38%	0.23%	2.66%	7.90%
6806	68 Neutral	$545.04B	18.08	8.09%	2.85%	11.18%	-0.75%
6807	64 Neutral	$165.53B	21.80	5.91%	2.39%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6762	61 Neutral	¥3.76T	20.05	―	1.41%	7.73%	-1.93%
6976	54 Neutral	¥407.03B	94.12	―	2.57%	4.81%	-49.43%

Maruwa Co Corporate Events

Maruwa Posts Softer Nine-Month Earnings but Maintains Strong Balance Sheet and Dividend Hike

Maruwa Co., Ltd. reported a slight 1.7% decline in consolidated net sales to ¥52.2 billion for the nine months ended December 31, 2025, with operating profit down 13.2% and profit attributable to owners of parent falling 11.7% year on year, reflecting a cooling from the strong growth recorded in the previous fiscal period. Despite weaker earnings and lower basic earnings per share, the company’s financial position remains robust, with total assets rising to ¥152.7 billion and an equity ratio improving to 92.2%, and it reaffirmed its full-year forecast of ¥75.1 billion in sales and ¥27.0 billion in operating profit along with a higher annual dividend payout, signaling continued confidence in its balance sheet strength and shareholder returns.

The most recent analyst rating on (JP:5344) stock is a Buy with a Yen52880.00 price target. To see the full list of analyst forecasts on Maruwa Co stock, see the JP:5344 Stock Forecast page.

Maruwa Co. Revises Earnings Forecast Amid Business Changes

Maruwa Co., Ltd. has revised its earnings forecast for the fiscal year ending March 31, 2026, due to recent changes in business performance. Despite a slight decrease in the projected net sales and operating profit compared to the previous forecast, the company still anticipates an overall increase in revenue and profit for the full fiscal year. However, the company has expressed caution regarding profit figures below ordinary profit due to potential exchange rate volatility.

The most recent analyst rating on (JP:5344) stock is a Buy with a Yen45000.00 price target. To see the full list of analyst forecasts on Maruwa Co stock, see the JP:5344 Stock Forecast page.

Maruwa Co. Reports Decline in Q2 2025 Financial Results, Revises Earnings Forecast

Maruwa Co., Ltd. reported a decline in its financial performance for the second quarter of fiscal year 2025, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company has revised its earnings forecast for the fiscal year ending March 31, 2026, indicating a slight increase in net sales and operating profit, which suggests a cautious optimism for future growth.

The most recent analyst rating on (JP:5344) stock is a Buy with a Yen45000.00 price target. To see the full list of analyst forecasts on Maruwa Co stock, see the JP:5344 Stock Forecast page.