Maruwa Co (5344) AI Stock Analysis

• Market Cap: ¥549.65B
• Dividend Yield: 0.23%
• Average Volume (3M): 165.71K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.10
• Revenue Growth: 2.66%
• EPS Growth: 7.90%
• Country: JP
• Employees: 1,380
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 286.47
• 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: ¥47,641.00 ▲(19.01% 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

Balance Sheet Health

A debt-free balance sheet provides Maruwa Co. with high financial flexibility, allowing it to invest in growth opportunities without the burden of interest payments.

Profitability

High margins indicate efficient operations and pricing power, supporting sustained profitability and competitive positioning in the market.

Cash Generation

Strong cash conversion enhances Maruwa Co.'s ability to fund operations and investments internally, reducing reliance on external financing.

Negative Factors

Revenue Growth Slowdown

Slower revenue growth may indicate market saturation or increased competition, potentially impacting future earnings and market share.

Free Cash Flow Variability

Variable free cash flow suggests potential challenges in managing working capital and investment needs, which could affect financial stability.

Exchange Rate Volatility

Exchange rate fluctuations can impact profitability and financial forecasts, posing a risk to international operations and earnings predictability.

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

Maruwa Co exhibits strong financial performance with robust revenue and profit margins, minimal debt, and stable cash flow generation. Despite the healthy financials, the slowdown in revenue growth and decline in free cash flow growth are notable concerns.

Income Statement

Maruwa Co demonstrates strong financial health with a consistent increase in total revenue from ¥41,231 million in 2020 to ¥61,564 million in 2024. The gross profit margin remains robust, indicating efficient cost management. The net profit margin has slightly improved from 14.29% in 2020 to 24.72% in 2024, showcasing enhanced profitability. The EBIT and EBITDA margins are also strong, further emphasizing operational efficiency. However, the slowdown in revenue growth from prior years may be a point of concern.

Balance Sheet

The balance sheet of Maruwa Co is notably strong, with a substantial increase in stockholders' equity over the years. The debt-to-equity ratio is extremely low, reflecting minimal reliance on debt financing and solid financial stability. The equity ratio remains high, indicating a strong equity base relative to total assets. Overall, the company maintains a robust financial position with significant liquidity and low leverage.

Cash Flow

Maruwa Co's cash flow statement reflects a stable cash generation capability with positive operating cash flow. The free cash flow has seen fluctuations, with a decrease from ¥10,949 million in 2022 to ¥5,898 million in 2024, reflecting higher capital expenditures. The operating cash flow to net income ratio is solid, indicating effective conversion of income into cash flow. However, the decline in free cash flow growth rate is a potential area of concern.

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: Negative
• RSI: Neutral
• STOCH: Neutral

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 43129.50, below the 50-day MA of 43989.20, and above the 200-day MA of 39173.15, indicating a bullish trend. The MACD of -31.21 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 60.91 is Neutral, 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
6856	77 Outperform	¥690.06B	19.04	11.99%	0.65%	8.50%	14.06%
4980	77 Outperform	¥469.61B	18.20	―	2.18%	-6.10%	-7.03%
6965	74 Outperform	¥517.07B	36.34	4.19%	2.25%	3.97%	-41.76%
5344	72 Outperform	¥549.65B	31.03	14.38%	0.23%	2.66%	7.90%
4186	70 Outperform	¥747.44B	26.14	14.01%	1.08%	19.45%	41.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Maruwa Co Corporate Events

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.