Japan Display (6740) AI Stock Analysis

• Market Cap: $77.61B
• Dividend Yield: N/A
• Average Volume (3M): 174.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: -32.03%
• EPS Growth: -133.57%
• Country: JP
• Employees: 4,507
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -3.27
• Shares Outstanding: 3,880,393,600
• 10 Day Avg. Volume: 227,605,849
• 30 Day Avg. Volume: 174,312,107
• 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: 2.07
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: -11.93
• Enterprise Value/Ebitda: -4.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥20.50 ▲(2.50% Upside)

Japan Display's overall stock score is primarily impacted by its poor financial performance, characterized by negative margins and high leverage. Technical analysis provides some positive signals, but the negative MACD tempers this outlook. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, further weighing down the score.

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, 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: Positive
• Last Price: 20.00
• 50DMA: Negative
• 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:6740, the sentiment is Positive. The current price of 20 is above the 20-day moving average (MA) of 19.10, below the 50-day MA of 20.16, and above the 200-day MA of 18.24, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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	¥233.72B	21.28	―	1.65%	18.20%	28.13%
6957	75 Outperform	¥109.52B	36.26	―	2.12%	4.48%	-39.40%
6677	73 Outperform	¥31.06B	11.64	―	4.41%	5.20%	-3.07%
6787	67 Neutral	¥263.24B	16.78	―	0.88%	15.02%	46.62%
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	44 Neutral	$77.61B	-0.92	-297.34%	―	-32.03%	-133.57%

Japan Display Corporate Events

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.

Japan Display Reports Financial Adjustments Amid Operational Restructuring

Japan Display Inc. reported several financial impacts in its FY26/3 Q1 earnings, including non-operating expenses from interest and foreign exchange losses, an extraordinary gain from the expiration of stock acquisition rights, and extraordinary losses due to impairment and restructuring costs. These financial activities reflect JDI’s ongoing adjustments in its operations, particularly the scheduled production end at the Mobara Fab and the associated voluntary retirement program, indicating a significant shift in its operational strategy.

Japan Display Reports Significant Q1 Financial Decline Amid Strategic Adjustments

Japan Display Inc. reported a significant decline in its financial performance for the first quarter of FY26/3, with sales dropping by 42% compared to the previous year. The company is currently undertaking measures to improve its earnings and financial position, though it has not disclosed a forecast for the fiscal year due to the anticipated impact of these actions.