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): 1.15
• 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: 1.41
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: -8.11
• Enterprise Value/Ebitda: -3.05
• 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: 48 Neutral
• Price Target: ¥21.50 ▲(7.50% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, with significant losses and declining revenues. While there are some positive technical indicators suggesting potential bullish momentum, the negative valuation metrics and lack of earnings call data further weigh down the score.

Positive Factors

Advanced Technologies

Japan Display's focus on advanced LCD technology positions it as a leader in high-resolution displays, appealing to major global brands and supporting long-term demand.

Diversification into Emerging Markets

Diversifying into automotive and wearable tech markets can reduce reliance on traditional segments, potentially stabilizing revenue streams and enhancing growth prospects.

Long-term Supply Agreements

Long-term supply agreements with major manufacturers provide stable revenue and strengthen Japan Display's market position, ensuring consistent demand for its products.

Negative Factors

Negative Margins

Persistent negative margins indicate that Japan Display is selling products below cost, which undermines profitability and requires strategic changes to improve financial health.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting Japan Display's ability to invest in growth opportunities and weather economic downturns.

Declining Revenues

Declining revenues highlight challenges in maintaining market share and demand, necessitating strategic adjustments to reverse the trend and achieve sustainable growth.

Japan Display Business Overview & Revenue Model

Company Description

Japan Display Inc. (6740) is a leading manufacturer of display panels, primarily specializing in liquid crystal display (LCD) technology. The company operates in the electronics sector, focusing on the production of high-resolution displays for smartphones, tablets, and other consumer electronics. Japan Display is known for its advanced technologies and innovative display solutions, catering to major global brands in the mobile device industry.

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, requiring urgent strategic interventions.

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	164.54B	188.01B	239.15B	270.75B	295.95B	341.69B
Gross Profit	-13.46B	-9.65B	-6.49B	-15.19B	19.69B	5.14B
EBITDA	-35.81B	-33.05B	-36.39B	-12.44B	4.26B	-25.66B
Net Income	-91.97B	-78.22B	-44.31B	-25.82B	-8.10B	-42.70B
Balance Sheet
Total Assets	141.39B	148.03B	223.99B	222.70B	258.27B	225.00B
Cash, Cash Equivalents and Short-Term Investments	28.17B	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	154.35B	141.14B	138.33B	98.27B	185.51B	183.17B
Stockholders Equity	-12.96B	6.89B	85.66B	124.43B	72.77B	39.55B
Cash Flow
Free Cash Flow	-44.07B	-35.96B	-29.67B	-74.30B	-28.84B	-30.16B
Operating Cash Flow	-35.32B	-25.45B	-17.58B	-65.67B	-21.67B	-23.12B
Investing Cash Flow	235.00M	-8.16B	-13.43B	9.78B	95.00M	-9.14B
Financing Cash Flow	31.29B	25.69B	32.90B	27.68B	14.77B	20.23B

Japan Display Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.00
• 50DMA: Negative
• 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:6740, the sentiment is Neutral. The current price of 20 is below the 20-day moving average (MA) of 20.30, below the 50-day MA of 20.22, and above the 200-day MA of 18.32, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥233.72B	21.28	―	1.65%	18.20%	28.13%
6787	76 Outperform	¥263.24B	16.78	―	0.88%	15.02%	46.62%
6957	75 Outperform	¥109.52B	36.26	―	2.12%	3.95%	-32.30%
6677	73 Outperform	¥31.06B	11.64	―	4.19%	13.45%	19.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥562.88B	-115.10	―	2.14%	4.81%	-49.43%
6740	48 Neutral	$77.61B	―	-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.

The most recent analyst rating on (JP:6740) stock is a Hold with a Yen20.50 price target. To see the full list of analyst forecasts on Japan Display stock, see the JP:6740 Stock Forecast page.

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.

The most recent analyst rating on (JP:6740) stock is a Hold with a Yen20.50 price target. To see the full list of analyst forecasts on Japan Display stock, see the JP:6740 Stock Forecast page.

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.

The most recent analyst rating on (JP:6740) stock is a Hold with a Yen20.50 price target. To see the full list of analyst forecasts on Japan Display stock, see the JP:6740 Stock Forecast page.

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.

The most recent analyst rating on (JP:6740) stock is a Hold with a Yen17.50 price target. To see the full list of analyst forecasts on Japan Display stock, see the JP:6740 Stock Forecast page.

Japan Display Inc. Concludes Workforce Reduction to Drive Growth Strategy

Japan Display Inc. has concluded its voluntary retirement program and workforce reduction efforts, resulting in a significant decrease in its domestic and global workforce. The company expects to leverage its streamlined workforce to enhance its BEYOND DISPLAY growth strategy, aiming for improved profitability. The restructuring is anticipated to cut annual personnel expenses by approximately JPY 13.5 billion, with a positive operating profit expected by FY27/3 due to cost savings and strategic production consolidations.

The most recent analyst rating on (JP:6740) stock is a Hold with a Yen17.50 price target. To see the full list of analyst forecasts on Japan Display stock, see the JP:6740 Stock Forecast page.