ULVAC (6728) AI Stock Analysis

• Market Cap: ¥408.77B
• Dividend Yield: 2.35%
• Average Volume (3M): 333.87K
• Price to Earnings (P/E): 28.0
• 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): 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: ¥8,100.00
• Price Target Upside: 7.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥9,263.00 ▲(22.45% 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

Profitability margins

Sustained gross and operating margins indicate durable unit economics for capital equipment and services. Healthy margins provide cash to fund R&D, service infrastructure, and cyclical downturns, supporting long-term competitiveness in vacuum and thin-film equipment markets.

Low leverage / strong equity base

A low debt load and high equity ratio give the company financial flexibility to invest through semiconductor/display capex cycles, fund working capital, and support capital-intensive projects without stressing solvency, preserving strategic optionality over months.

Installed-base and recurring revenue

An installed-base model with consumables and service revenue creates recurring cash flows that smooth cyclicality of large equipment orders. This mix helps sustain aftermarket margins and retention, supporting steady revenue and profitability over multi-month industry cycles.

Negative Factors

Declining revenue trend

Material revenue declines signal weakening demand or lost market share in capital equipment markets. Persistent top-line contraction erodes operating leverage, threatens scale benefits, and raises the bar for margin maintenance and reinvestment in product development.

Weak free cash flow generation

Falling FCF growth and modest cash conversion reduce the company's ability to self-fund capex, R&D, and dividends. Over several months this constrains strategic reinvestment, increases reliance on external financing, and limits buffer against equipment-order cyclicality.

Earnings deterioration

A pronounced EPS decline reflects pressure on profitability drivers or volume declines. Sustained earnings contraction can impair retained earnings growth, limit investment capacity, and signal structural margin or demand challenges requiring strategic adjustments.

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

ULVAC demonstrates a stable financial position with strong profitability margins and low leverage. However, declining revenue and free cash flow growth pose challenges. The company maintains a solid equity base, which supports its financial stability. Continued focus on improving cash flow and reversing revenue decline will be crucial for future growth.

Income Statement

ULVAC's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 31.79% and a net profit margin of 6.64%, which are relatively stable. However, the revenue growth rate is negative at -3.3%, indicating a decline in sales. The EBIT and EBITDA margins are healthy at 11.00% and 15.30%, respectively, suggesting efficient operations despite the revenue drop.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.21, indicating low leverage. Return on equity is moderate at 7.63%, showing decent profitability. The equity ratio stands at 58.56%, highlighting a solid financial structure with a good proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow growth rate is negative at -21.52%, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.35, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.67, reflecting a reasonable level of 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: Positive
• Last Price: 7565.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 7565 is below the 20-day moving average (MA) of 7981.00, above the 50-day MA of 7275.32, and above the 200-day MA of 6077.33, indicating a bullish trend. The MACD of 307.20 indicates Positive momentum. The RSI at 65.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.20 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
6951	78 Outperform	¥316.67B	18.02	―	2.04%	-0.69%	-29.88%
6965	74 Outperform	¥529.08B	36.18	4.19%	2.25%	3.97%	-41.76%
6590	74 Outperform	¥309.08B	26.61	―	1.49%	18.20%	28.13%
6728	73 Outperform	¥408.77B	27.97	6.61%	2.35%	-9.06%	-35.95%
6806	68 Neutral	¥545.04B	18.08	8.09%	2.85%	11.18%	-0.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6645	60 Neutral	¥770.98B	26.93	3.60%	2.62%	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.

The most recent analyst rating on (JP:6728) stock is a Buy with a Yen7680.00 price target. To see the full list of analyst forecasts on ULVAC stock, see the JP:6728 Stock Forecast page.