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Japan Display Inc (JP:6740)
:6740

Japan Display (6740) AI Stock Analysis

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Japan Display

(OTC:6740)

Rating:45Neutral
Price Target:
¥16.50
▲(3.13%Upside)
Japan Display's overall score reflects significant financial distress, with consistent losses and liquidity challenges being the most impactful factors. The technical indicators and valuation metrics provide little positive offset, highlighting the need for strategic improvements.

Japan Display (6740) vs. iShares MSCI Japan ETF (EWJ)

Japan Display Business Overview & Revenue Model

Company DescriptionJapan Display Inc. (JDI) is a leading technology company specializing in the development, design, and manufacturing of advanced display solutions. JDI primarily operates in the electronics and semiconductor sectors, providing high-quality display panels for a range of applications including smartphones, automotive displays, medical devices, and other consumer electronics. The company is known for its innovative technologies in the field of liquid crystal display (LCD) and organic light-emitting diode (OLED) panels.
How the Company Makes MoneyJapan Display Inc. generates revenue through the sale of its display panels to a wide array of industries including mobile, automotive, and consumer electronics manufacturers. The company leverages its expertise in LCD and OLED technologies to provide high-resolution, energy-efficient, and compact display solutions tailored to the specific needs of its clients. Key revenue streams for JDI include contracts with major smartphone manufacturers, automotive companies requiring advanced in-car displays, and other electronics companies seeking high-performance screens. Additionally, strategic partnerships and joint ventures with other technology firms and research institutions help JDI enhance its product offerings and maintain a competitive edge in the global market.

Japan Display Financial Statement Overview

Summary
Japan Display exhibits significant financial challenges, with declining revenues, persistent losses, and high leverage. The company struggles with profitability and cash flow generation, impacting its financial stability and growth prospects. The overall financial performance is one of financial distress, requiring strategic changes to improve performance and sustainability.
Income Statement
18
Very Negative
Japan Display has faced consistent challenges in generating profits, with negative gross profit and net profit margins over the years. The company has seen a declining revenue trend, with a significant drop from 2020 to 2025. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and high costs relative to revenue. Overall, the income statement reflects financial instability and poor performance.
Balance Sheet
32
Negative
The balance sheet reveals high financial leverage, with a substantial debt-to-equity ratio in recent years. The company's stockholders' equity has significantly decreased, adversely affecting the equity ratio. Although there was a decrease in total liabilities in the latest year, the overall financial stability remains weak due to the low equity base and high debt levels.
Cash Flow
25
Negative
Japan Display's cash flow position is concerning, with negative free cash flow and operating cash flow over the years. The company has been unable to generate positive cash flow from operations, reflecting difficulties in managing its cash efficiently. Additionally, the operating and free cash flow to net income ratios indicate poor cash flow relative to income, further emphasizing liquidity challenges.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
188.01B239.15B270.75B295.95B341.69B
Gross Profit
-9.65B-6.49B-15.19B19.69B5.14B
EBIT
-37.07B-34.15B-44.39B-8.58B-26.23B
EBITDA
-33.05B-36.39B-12.44B4.26B-25.66B
Net Income Common Stockholders
-78.22B-44.31B-25.82B-8.10B-42.70B
Balance SheetCash, Cash Equivalents and Short-Term Investments
21.07B29.34B26.22B52.25B55.70B
Total Assets
148.03B223.99B222.70B258.27B225.00B
Total Debt
59.50B33.50B0.0073.68B95.10B
Net Debt
38.43B4.16B-26.22B21.43B39.40B
Total Liabilities
141.14B138.33B98.27B185.51B183.17B
Stockholders Equity
6.89B85.66B124.43B72.77B39.55B
Cash FlowFree Cash Flow
-35.96B-29.67B-74.30B-28.84B-30.16B
Operating Cash Flow
-25.45B-17.58B-65.67B-21.67B-23.12B
Investing Cash Flow
-8.16B-13.43B9.78B95.00M-9.14B
Financing Cash Flow
25.69B32.90B27.68B14.77B20.23B

Japan Display Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.00
Price Trends
50DMA
16.14
Negative
100DMA
17.37
Negative
200DMA
19.45
Negative
Market Momentum
MACD
-0.03
Negative
RSI
48.34
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6740, the sentiment is Negative. The current price of 16 is above the 20-day moving average (MA) of 15.95, below the 50-day MA of 16.14, and below the 200-day MA of 19.45, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.34 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 Negative sentiment for JP:6740.

Japan Display Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥26.57B7.73
4.30%5.60%26.47%
79
Outperform
¥114.29B10.80
3.21%19.77%18.15%
73
Outperform
¥91.88B23.95
2.52%5.02%-21.82%
71
Outperform
¥160.57B10.96
1.28%15.24%32.83%
62
Neutral
$11.80B10.08-7.46%2.99%7.37%-8.21%
52
Neutral
¥292.81B124.89
3.86%5.82%-71.99%
45
Neutral
$62.09B-167.88%-21.38%-63.07%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6740
Japan Display
16.00
2.00
14.29%
JP:6590
Shibaura Mechatronics Corp.
8,510.00
980.25
13.02%
JP:6677
SK-Electronics Co., Ltd.
2,471.00
-459.97
-15.69%
JP:6787
Meiko Electronics Co., Ltd.
6,240.00
-1,114.08
-15.15%
JP:6957
Shibaura Electronics Co., Ltd.
5,940.00
2,821.44
90.47%
JP:6976
Taiyo Yuden Co., Ltd.
2,331.50
-1,596.60
-40.65%

Japan Display Corporate Events

JDI and PanelSemi Adjust Strategic Alliance Amid Geopolitical Concerns
Jun 2, 2025

Japan Display Inc. (JDI) and PanelSemi have decided not to proceed with an equity investment as part of their strategic alliance due to geopolitical risks and economic changes, although they will continue collaborating on semiconductor packaging and sensor technologies. This decision is expected to have minimal impact on JDI’s earnings for the fiscal year 2026, as the companies focus on individual agreements to further their technological advancements.

Japan Display Extends Agreement Date with Ichigo Trust
May 30, 2025

Japan Display Inc. has announced an extension of the final agreement signing date with Ichigo Trust to June 27, 2025, as part of a strategic move to strengthen its financial position. The extension allows more time to finalize the terms of a transaction involving the transfer of JDI’s Mobara Fab and intellectual property, which is crucial for securing funds for JDI’s growth strategy. The change in schedule is not expected to impact the company’s earnings for the fiscal year ending March 2026.

Japan Display Reveals Financial Details of New AutoTech Subsidiary
May 22, 2025

Japan Display Inc. has disclosed the financial details of its new AutoTech subsidiary, revealing current assets of 42,616 million JPY and liabilities of 37,807 million JPY. This establishment is part of JDI’s strategic expansion into the automotive technology sector, potentially enhancing its market position and offering new opportunities for stakeholders.

Japan Display Reports Significant Earnings Decline for FY25/3
May 15, 2025

Japan Display Inc. reported a significant decline in its non-consolidated earnings for the fiscal year ending March 2025 compared to the previous year. The company experienced a 22.1% decrease in sales and a substantial increase in net income loss, indicating challenges in its financial performance. This downturn may impact JDI’s operational strategies and market positioning, raising concerns among stakeholders about the company’s future prospects.

Japan Display Reports Significant Financial Losses and Uncertain Future
May 15, 2025

Japan Display Inc. reported a significant decline in its financial performance for the fiscal year ending March 2025, with sales dropping by 21.4% and net income showing a substantial loss. The company is taking measures to improve its financial position and has not disclosed an earnings forecast for the next fiscal year, indicating uncertainty in its future performance.

Japan Display Inc. Announces Workforce Reduction to Boost Profitability
May 15, 2025

Japan Display Inc. (JDI) has announced a workforce reduction as part of its BEYOND DISPLAY growth strategy to return to profitability and achieve sustainable growth. The company plans to end production at its Mobara Fab and consolidate operations at the Ishikawa MULTI-FAB, expecting significant cost savings and improved profitability by FY27/3. This move includes a voluntary retirement program targeting 1,500 employees in Japan, with similar reductions at global subsidiaries, aiming to strengthen JDI’s financial position.

Japan Display Inc. Announces Leadership Changes and Strategic Realignment
May 15, 2025

Japan Display Inc. announced a significant leadership change with the resignation of CEO Scott Callon, who will remain as non-executive Chairman, and the appointment of Jun Akema as the new President, CEO, and Representative Executive Officer effective June 1, 2025. This leadership transition is part of a broader strategic shift, including amendments to the Articles of Incorporation and changes in the Board of Directors, aimed at addressing business performance challenges and aligning with the company’s future direction.

Japan Display Inc. to Establish AutoTech Subsidiary for Automotive Business
May 15, 2025

Japan Display Inc. (JDI) announced its plan to establish a new wholly-owned subsidiary, AutoTech Inc., to manage its automotive display business. This strategic move is part of JDI’s BEYOND DISPLAY growth strategy aimed at achieving profitability and sustainable growth by allowing more independent management, expanding funding opportunities, and exploring strategic partnerships.

Japan Display Strengthens Financial Position with Ichigo Trust MOU
May 15, 2025

Japan Display Inc. has signed a Memorandum of Understanding (MOU) with Ichigo Trust to strengthen its financial position by transferring its Mobara Fab and certain intellectual property to Ichigo. This strategic move will allow JDI to repay JPY 65 billion in borrowings and secure funds to support its BEYOND DISPLAY growth strategy, aiming for profitability and streamlined operations by consolidating production at its Ishikawa MULTI-FAB.

Japan Display Reports Mixed Financial Results Amid Restructuring Efforts
May 15, 2025

Japan Display Inc. reported a foreign exchange gain of JPY 1,027 million for the fiscal year, alongside significant interest expenses and extraordinary losses due to impairment and restructuring costs. The company experienced higher-than-expected sales driven by automotive display demand but faced lower-than-forecasted EBITDA, operating profit, and net income due to expenses associated with the production end at its Mobara Fab.

Japan Display Considers Workforce Reduction Amid Media Speculation
May 14, 2025

Japan Display Inc. has acknowledged media reports about a potential workforce reduction, confirming that it is under consideration but no final decision has been made. The company has committed to promptly disclose any developments that require official announcement, reflecting its transparency and responsiveness to stakeholder concerns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.