ULVAC (6728) AI Stock Analysis

• Market Cap: ¥516.13B
• Dividend Yield: 2.35%
• Average Volume (3M): 333.87K
• Price to Earnings (P/E): 41.4
• Beta (1Y): 1.47
• Revenue Growth: -9.06%
• EPS Growth: -35.95%
• Country: JP
• Employees: 6,234
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 92.19
• Shares Outstanding: 49,355,934
• 10 Day Avg. Volume: 394,390
• 30 Day Avg. Volume: 333,870
• PEG Ratio: -0.89
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 11.14
• 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: ¥10,543.07
• Price Target Upside: 0.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 394.53
• Revenue Forecast (FY): ¥252.99B

• Rating: 62 Neutral
• Price Target: ¥10,674.00 ▲(1.85% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid underlying financial quality (healthy margins and conservative balance sheet) but moderated by weakening recent growth/profitability trends and historically uneven free cash flow. Technicals are supportive due to strong trend momentum, though overbought indicators raise pullback risk. Valuation is the key headwind given the elevated P/E with only a modest dividend yield.

Positive Factors

Conservative balance sheet

Low leverage and a steadily growing equity base provide durable financial flexibility. With debt-to-equity near 0.21, the company can fund R&D, capital cycles, and downturns without forcing asset sales or urgent refinancing, supporting long-term operational continuity and strategic investments.

Healthy core margins

Sustained gross and operating margins reflect a structurally profitable equipment and services mix. These margins provide a buffer against cyclical revenue swings, enable reinvestment in product development and service infrastructure, and support margin sustainability across typical capex cycles in capital-intensive end markets.

Installed-base recurring revenue

A business model combining capital equipment with consumables and lifecycle services creates recurring revenue and higher lifetime value per customer. After-sales services and parts smooth cash flow across capex cycles, deepen customer relationships, and create cross-sell opportunities that strengthen long-term revenue resilience.

Negative Factors

Negative revenue trend

Material negative revenue growth weakens operating leverage and signals softer end-market demand or competitive pressure. Sustained top-line declines reduce ability to scale fixed costs, compress margins over time, and can force tougher capital allocation choices that undermine long-term investment and growth plans.

Earnings and return deterioration

Falling ROE and stepped-down profitability indicate the company is generating weaker returns on capital than before. Persistently lower returns constrain retained-earnings growth, limit reinvestment capacity, and raise the bar for management to restore efficiency while still funding R&D and service expansion.

Volatile free cash flow

Irregular FCF history creates execution risk: negative FCF in recent years highlights sensitivity to working capital and capex timing. This volatility can constrain sustained funding for growth initiatives, increase reliance on external financing in downturns, and raise uncertainty about long-term cash conversion consistency.

ULVAC Business Overview & Revenue Model

Company Description

ULVAC, Inc. engages in the development, manufacture, sale, customer support, and import/export of vacuum equipment, peripheral devices, and vacuum components and materials in Japan and internationally. The company offers various equipment, including sputtering, chemical vapor deposition, vacuum evaporation, vapor deposition polymerization, ashing, etching, ion implantation, vacuum furnaces, roll coaters, freeze drying/vacuum drying, vacuum distillation systems, and other products. It also provides components that comprise vacuum pumps, vacuum gauges, process gas monitors, leak detectors, spectroscopic ellipsometers, deposition controllers, vacuum valves, power supplies, vacuum transfer robots, molecular interaction analyzers, microplate paddle mixers, film forming equipment, refrigerators, and heat treatment and thermal properties. In addition, the company offers sputtering targets, high performance materials, and nano-metal inks, as well as deposition and etching technologies used in packaging processes; technical solutions for the production of power devices; delivering systems for SiC and Si; and solutions for micro-powder dry systems and touch screens. It serves display, solar cell, semiconductor, electronics, electrics, metals, machinery, automotive, chemical, food, and pharmaceutical industries, as well as universities and research centers. The company was incorporated in 1929 and is headquartered in Chigasaki, Japan.

How the Company Makes Money

ULVAC generates revenue through the sale of its advanced vacuum equipment and systems, which are critical for the production of semiconductors and displays. The company's revenue model primarily consists of direct product sales to manufacturers in the electronics sector, along with ongoing maintenance and service contracts that provide recurring income. Key revenue streams include the sale of vacuum pumps, thin film deposition systems, and ancillary products. Additionally, ULVAC benefits from strategic partnerships with major technology companies, which enhance its market presence and facilitate collaborative development of new technologies, further contributing to its earnings.

ULVAC Financial Statement Overview

Summary

Fundamentals are generally solid with healthy margins and low leverage, but the recent trajectory is mixed: revenue growth has turned negative in the latest periods and profitability/returns have stepped down versus prior peaks. Cash flow is currently positive with improved free cash flow, yet historical free cash flow volatility tempers the strength of the rebound.

Income Statement

Profitability is solid but trending weaker. TTM (Trailing-Twelve-Months) gross margin is ~31% and operating margin is ~9.5%, indicating a healthy core business, but both are below the stronger FY2024–FY2025 levels. Revenue momentum is the key concern: growth is negative in the latest periods (TTM and FY2025), and net margin has stepped down to ~6% in TTM from ~7–8% in FY2022–FY2024. Overall: good margins for the industry, but growth and earnings trajectory have softened.

Balance Sheet

Balance sheet looks conservative and stable. Leverage is low with debt-to-equity around ~0.21 in TTM (Trailing-Twelve-Months), and equity has steadily increased over the last several years, supporting financial flexibility. Returns are reasonable but not standout: return on equity is ~6.6% in TTM, down from the ~9–11% range seen at prior peaks, reflecting weaker profitability rather than balance-sheet stress.

Cash Flow

Cash generation has improved recently but remains somewhat inconsistent across cycles. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are positive, with strong free cash flow growth (from a low base), and free cash flow covers a meaningful portion of net income (~63% in TTM). However, prior years showed volatility including negative free cash flow (FY2023 and FY2024), which raises execution and working-capital/capex sensitivity concerns despite the current rebound.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	240.21B	251.18B	261.12B	227.53B	241.26B	183.01B
Gross Profit	73.29B	79.86B	80.66B	67.16B	73.74B	53.76B
EBITDA	30.44B	38.78B	39.20B	29.70B	38.65B	30.44B
Net Income	12.47B	16.69B	20.23B	14.17B	20.21B	14.83B
Balance Sheet
Total Assets	382.62B	375.06B	388.65B	353.47B	354.30B	292.76B
Cash, Cash Equivalents and Short-Term Investments	100.24B	105.95B	96.33B	98.40B	118.04B	91.55B
Total Debt	47.10B	46.60B	50.69B	45.89B	42.77B	42.53B
Total Liabilities	149.85B	143.98B	160.93B	148.62B	157.82B	119.06B
Stockholders Equity	225.76B	223.47B	220.43B	198.21B	188.98B	166.90B
Cash Flow
Free Cash Flow	21.92B	23.46B	-2.72B	-15.30B	26.59B	18.37B
Operating Cash Flow	33.73B	34.81B	17.16B	1.01B	33.93B	25.52B
Investing Cash Flow	-11.85B	-10.80B	-19.52B	-15.67B	-7.43B	-6.92B
Financing Cash Flow	-19.02B	-14.21B	-2.78B	-5.44B	-6.45B	-16.06B

ULVAC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10480.00
• 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:6728, the sentiment is Positive. The current price of 10480 is above the 20-day moving average (MA) of 9637.20, above the 50-day MA of 8452.10, and above the 200-day MA of 6585.96, indicating a bullish trend. The MACD of 674.24 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 63.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6728.

ULVAC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6856	78 Outperform	$881.74B	23.82	11.99%	0.65%	8.50%	14.06%
6951	78 Outperform	¥351.36B	21.69	―	2.04%	-0.69%	-29.88%
7701	75 Outperform	¥1.28T	22.20	10.84%	1.46%	3.92%	9.99%
4186	75 Outperform	¥1.14T	33.11	14.01%	1.08%	19.45%	41.03%
6965	74 Outperform	¥625.35B	47.17	4.19%	2.25%	3.97%	-41.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6728	62 Neutral	¥516.13B	41.36	6.61%	2.35%	-9.06%	-35.95%

ULVAC Corporate Events

ULVAC Profit Slumps in First Half but Keeps Full-Year Outlook and Dividend Plan Intact

ULVAC reported consolidated net sales of ¥123.9 billion for the six months ended December 31, 2025, down 8.1% year on year, with operating profit falling 44.9% to ¥8.5 billion and profit attributable to owners of parent dropping 40.5% to ¥6.2 billion, reflecting margin pressure despite solid overall scale. However, comprehensive income rose 40.1% to ¥11.6 billion, and the balance sheet remained robust with total assets of ¥382.6 billion and an equity ratio of 59.0%, underscoring financial stability.

The company kept its full-year forecast unchanged, projecting virtually flat net sales at ¥250.0 billion but a 7.5% rise in operating profit to ¥28.5 billion and a 19.9% increase in profit attributable to owners of parent to ¥20.0 billion, implying an expected margin recovery in the second half. ULVAC also maintained its annual dividend forecast of ¥164 per share, signaling confidence in cash generation and a commitment to shareholder returns despite the interim earnings decline.

The most recent analyst rating on (JP:6728) stock is a Buy with a Yen9065.00 price target. To see the full list of analyst forecasts on ULVAC stock, see the JP:6728 Stock Forecast page.

ULVAC subsidiary hit by ransomware, impact under review

The company disclosed that Pure Surface Technology suffered a ransomware attack on January 10 that encrypted internal servers and PCs, prompting isolation of the subsidiary’s network, engagement of external experts, and notification of Korean authorities while confirming no effect on other ULVAC entities. Management continues to assess potential financial repercussions and pledged further disclosure, underscoring ongoing cyber risk management priorities for ULVAC’s international operations.

The most recent analyst rating on (JP:6728) stock is a Buy with a Yen9130.00 price target. To see the full list of analyst forecasts on ULVAC stock, see the JP:6728 Stock Forecast page.