Japan Display (6740) AI Stock Analysis

• Market Cap: ¥77.61B
• Dividend Yield: N/A
• Average Volume (3M): 292.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -31.80%
• EPS Growth: -117.36%
• Country: JP
• Employees: 4,507
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.43
• Shares Outstanding: 3,880,393,600
• 10 Day Avg. Volume: 272,496,621
• 30 Day Avg. Volume: 292,916,444
• PEG Ratio: -0.02
• Price to Book (P/B): 15.27
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -2.93
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -458.52
• Revenue Forecast (FY): ¥44.45T

• Rating: 47 Neutral
• Price Target: ¥22.50 ▲(12.50% Upside)

Japan Display's overall stock score is primarily impacted by its poor financial performance, which is the most significant factor. The technical analysis provides some positive momentum, but the overbought RSI suggests caution. Valuation metrics further highlight the company's financial distress, contributing to a low overall score.

Positive Factors

Advanced Technology

Japan Display's focus on advanced LCD technology positions it well in the high-performance display market, supporting long-term competitiveness.

Diversification Strategy

Diversifying into automotive and wearable tech markets can reduce reliance on smartphones and tablets, potentially stabilizing revenue streams.

Major Partnerships

Partnerships with major tech firms can enhance market reach and innovation, providing a competitive edge and supporting revenue growth.

Negative Factors

Declining Revenue

Declining revenues indicate challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

High Leverage

Excessive leverage poses significant risks to financial stability, limiting flexibility and increasing vulnerability to economic downturns.

Negative Cash Flow

Negative cash flows highlight liquidity issues, constraining the company's ability to invest in growth and manage debt obligations effectively.

Japan Display Business Overview & Revenue Model

Company Description

Japan Display Inc. designs, develops, produces, and sells small-and medium-sized display devices and related products in Japan and internationally. The company offers various LCD modules for mobile applications, such as smartphone, tablet, and notebook PC devices; wearable applications, including sports watches, healthcare equipment, and action cameras; automotive applications, such as car navigation, instrument panel, and rear seat monitor; devices used for display and diagnosis in medical field comprising mammography, PACS, surgical monitor, ultrasonography, X-ray sensitivity sensor, etc.; IoT products and applications, including outdoor sports gears, medical and healthcare devices, remote controllers, and portable devices; and industrial applications. It also provides landscape IPS LCD modules for single-lens reflex and high-end compact digital cameras. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Display generates revenue primarily through the sale of display panels to manufacturers of consumer electronics, particularly in the smartphone and tablet markets. The company's revenue model is largely based on direct sales of its LCD products, which are designed for high-performance applications. Key revenue streams include contracts with major device manufacturers, which often involve long-term supply agreements. Additionally, Japan Display benefits from partnerships with technology firms that seek to incorporate its display technology into new devices. The company also explores opportunities in emerging markets, such as automotive displays and wearable technology, to diversify its income sources and enhance profitability.

Japan Display Financial Statement Overview

Summary

Japan Display is facing significant financial challenges with negative margins, declining revenues, and high leverage. The income statement, balance sheet, and cash flow all indicate severe financial instability and a need for strategic restructuring.

Income Statement

Japan Display's income statement reveals significant challenges, with negative margins across the board. The gross profit margin is negative, indicating the company is selling products below cost. The net profit margin is also deeply negative, reflecting substantial losses. Revenue has been declining, with a notable drop of 12.5% in the TTM period. These factors highlight severe profitability issues and a need for strategic restructuring.

Balance Sheet

The balance sheet shows a concerning financial structure, with a negative stockholders' equity and a high debt-to-equity ratio, indicating financial instability. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' investments. The equity ratio is low, suggesting high leverage and potential solvency risks.

Cash Flow

Cash flow analysis indicates some improvement in free cash flow growth, but overall cash flow remains negative. The operating cash flow to net income ratio is negative, highlighting operational inefficiencies. The free cash flow to net income ratio is positive, suggesting some ability to cover losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	151.53B	188.01B	239.15B	270.75B	295.95B	341.69B
Gross Profit	-11.91B	-9.65B	-6.49B	-15.19B	19.69B	5.14B
EBITDA	-15.49B	-33.05B	-36.39B	-12.44B	4.26B	-25.66B
Net Income	-72.76B	-78.22B	-44.31B	-25.82B	-8.10B	-42.70B
Balance Sheet
Total Assets	149.43B	148.03B	223.99B	222.70B	258.27B	225.00B
Cash, Cash Equivalents and Short-Term Investments	37.29B	21.07B	29.34B	26.22B	52.25B	55.70B
Total Debt	65.00B	59.50B	33.50B	0.00	73.68B	95.10B
Total Liabilities	153.49B	141.14B	138.33B	98.27B	185.51B	183.17B
Stockholders Equity	-4.07B	6.89B	85.66B	124.43B	72.77B	39.55B
Cash Flow
Free Cash Flow	-29.21B	-35.96B	-29.67B	-74.30B	-28.84B	-30.16B
Operating Cash Flow	-21.71B	-25.45B	-17.58B	-65.67B	-21.67B	-23.12B
Investing Cash Flow	11.86B	-8.16B	-13.43B	9.78B	95.00M	-9.14B
Financing Cash Flow	20.77B	25.69B	32.90B	27.68B	14.77B	20.23B

Japan Display Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.00
• 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:6740, the sentiment is Positive. The current price of 20 is below the 20-day moving average (MA) of 20.20, above the 50-day MA of 19.86, and above the 200-day MA of 18.40, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 18.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6740.

Japan Display Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6590	76 Outperform	¥241.24B	20.77	―	1.49%	18.20%	28.13%
6787	76 Outperform	¥291.54B	16.16	―	0.76%	15.02%	46.62%
6957	75 Outperform	¥109.67B	33.69	―	2.12%	3.95%	-32.30%
6677	73 Outperform	¥32.10B	11.64	―	4.25%	13.45%	19.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥439.93B	101.73	―	2.57%	4.81%	-49.43%
6740	47 Neutral	¥77.61B	-1.25	-217.94%	―	-31.80%	-117.36%

Japan Display Corporate Events

Japan Display Secures $26.9 Million Pre-Payment to Boost Production

Japan Display Inc. (JDI) has announced that it will receive USD 26.9 million in pre-payments from a key customer and two Tier 1 suppliers to support accelerated production and inventory build at its Mobara Fab. This move is aimed at ensuring a stable supply of display modules before the planned production end at the facility, which is expected to bolster JDI’s financial position and meet customer demands.

Japan Display Inc. Reports FY26/3 H1 Financial Results with Strategic Adjustments

Japan Display Inc. reported its financial results for the first half of FY26/3, highlighting several non-operating income and extraordinary gains and losses. The company recorded a significant gain from the sale of subsidiary shares and a partial termination of retirement benefit plans, alongside gains from foreign exchange and raw material sales. However, these were offset by substantial interest expenses and restructuring costs due to the planned production end at the Mobara Fab. The financial adjustments reflect JDI’s strategic restructuring efforts and have implications for its operational focus and market positioning.

Japan Display Inc. Reports Significant Financial Decline in FY26/3 H1

Japan Display Inc. reported a significant decline in its financial performance for the first half of fiscal year 2026, with sales dropping by 35.5% compared to the previous year. The company is taking strategic actions to improve its earnings and financial position, but has not disclosed a consolidated earnings forecast due to the anticipated impact of these actions on its performance.

Japan Display Delays AutoTech Subsidiary Launch to 2026

Japan Display Inc. has announced a postponement in the establishment of its new wholly-owned subsidiary, AutoTech Inc., which will oversee its automotive display business. Originally set for October 1, 2025, the new effective date is now April 1, 2026, due to organizational restructuring and ongoing discussions with customers and partners. The company is reviewing the potential impact on its fiscal year 2026 earnings.