ULVAC (6728) AI Stock Analysis

• Market Cap: ¥327.36B
• Dividend Yield: 2.5%
• Average Volume (3M): 333.87K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.43
• Revenue Growth: -9.06%
• EPS Growth: -35.95%
• Country: JP
• Employees: 6,234
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 33.76
• 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: ¥7,701.29
• Price Target Upside: 17.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥7,766.00 ▲(18.29% Upside)

ULVAC's stock score is primarily driven by its stable financial performance and positive technical indicators. The company's strong profitability margins and low leverage support its financial stability, while bullish technical signals suggest potential upward momentum. However, challenges such as declining revenue and cash flow growth, along with moderate valuation, temper the overall score.

Positive Factors

Strong Profitability Margins

Stable profitability margins indicate efficient operations and pricing power, enhancing long-term financial stability and competitive positioning.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing ULVAC to invest in growth opportunities and withstand economic downturns.

Solid Equity Base

A strong equity base supports financial stability, providing a buffer against market volatility and enabling strategic investments for future growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder long-term expansion and market share, necessitating strategic adjustments to reverse the trend and sustain competitiveness.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates challenges in cash generation, potentially limiting the company's ability to fund operations and invest in future growth.

Declining Cash Conversion Efficiency

Moderate cash conversion efficiency suggests potential issues in converting profits into cash, impacting liquidity and operational flexibility over time.

ULVAC Business Overview & Revenue Model

Company Description

ULVAC, Inc. (6728) is a leading Japanese company specializing in vacuum technology and equipment. The company operates primarily in sectors such as semiconductor manufacturing, flat panel display production, and surface treatment. ULVAC offers a broad range of products including vacuum pumps, thin film deposition systems, and various vacuum-related components, catering to industries that require high precision and reliability in their manufacturing processes.

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

ULVAC demonstrates a solid financial position with strong profitability margins and effective cash flow management. While revenue growth has been challenging, the company maintains a conservative leverage profile and a robust equity base, positioning it well for future opportunities.

Income Statement

ULVAC's income statement shows a strong gross profit margin of 31.8% and a healthy net profit margin of 6.6% for the latest year. However, the company experienced a revenue decline of 4.7% compared to the previous year, indicating potential challenges in maintaining sales growth. The EBIT and EBITDA margins remain robust, reflecting efficient cost management.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.21, indicating a conservative leverage position. The return on equity is moderate at 7.5%, suggesting reasonable profitability relative to shareholder equity. The equity ratio stands at 59.6%, highlighting a strong equity base relative to total assets.

Cash Flow

ULVAC's cash flow statement reveals a significant free cash flow growth of 50.5%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 2.09, suggesting effective conversion of earnings into cash. The free cash flow to net income ratio is 1.41, reflecting solid cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.89B	251.18B	261.12B	227.53B	241.26B	183.01B
Gross Profit	76.41B	79.86B	80.66B	67.16B	73.74B	53.76B
EBITDA	33.94B	38.78B	39.20B	29.70B	38.65B	30.44B
Net Income	14.62B	16.69B	20.23B	14.17B	20.21B	14.83B
Balance Sheet
Total Assets	371.94B	375.06B	388.65B	353.47B	354.30B	292.76B
Cash, Cash Equivalents and Short-Term Investments	98.13B	105.95B	96.33B	98.40B	118.04B	91.55B
Total Debt	45.57B	46.60B	50.69B	45.89B	42.77B	42.53B
Total Liabilities	147.49B	143.98B	160.93B	148.62B	157.82B	119.06B
Stockholders Equity	217.85B	223.47B	220.43B	198.21B	188.98B	166.90B
Cash Flow
Free Cash Flow	18.41B	23.46B	-2.72B	-15.30B	26.59B	18.37B
Operating Cash Flow	29.16B	34.81B	17.16B	1.01B	33.93B	25.52B
Investing Cash Flow	-11.59B	-10.80B	-19.52B	-15.67B	-7.43B	-6.92B
Financing Cash Flow	-14.79B	-14.21B	-2.78B	-5.44B	-6.45B	-16.06B

ULVAC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6565.00
• 50DMA: Negative
• 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:6728, the sentiment is Neutral. The current price of 6565 is below the 20-day moving average (MA) of 6689.10, below the 50-day MA of 6765.44, and above the 200-day MA of 5675.59, indicating a neutral trend. The MACD of -5.99 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 13.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6728.

ULVAC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6590	76 Outperform	¥221.58B	19.07	―	1.66%	18.20%	28.13%
6965	74 Outperform	¥509.97B	34.88	4.19%	2.31%	3.97%	-41.76%
6728	73 Outperform	¥327.36B	22.40	6.61%	2.50%	-9.06%	-35.95%
6806	68 Neutral	¥558.85B	18.53	8.09%	2.88%	11.18%	-0.75%
6951	65 Neutral	¥245.51B	13.97	―	2.11%	-0.69%	-29.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6645	60 Neutral	¥767.24B	26.80	3.60%	2.66%	3.51%	―

ULVAC Corporate Events

ULVAC Reports First Quarter Financial Decline but Maintains Annual Forecast

ULVAC, Inc. reported a significant decline in its consolidated financial results for the first quarter ended September 30, 2025, with net sales dropping by 13.6% and operating profit plummeting by 60.4% compared to the previous year. Despite the downturn, the company maintains its forecast for the fiscal year ending June 30, 2026, indicating a slight decrease in net sales but an expected increase in profit attributable to owners of the parent, suggesting potential recovery and resilience in its operations.

ULVAC, Inc. Considers Lowering Investment Units to Boost Market Participation

ULVAC, Inc. has announced its consideration of lowering investment units to create a more investment-friendly environment, which could encourage individual investor participation and revitalize the stock market. The company plans to evaluate factors such as stock market trends and shareholder composition in its decision-making process, potentially impacting its market positioning and stakeholder engagement.