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Japan Display Inc (JP:6740)
:6740
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Japan Display (6740) AI Stock Analysis

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JP:6740

Japan Display

(6740)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥96.00
▲(357.14% Upside)
Action:ReiteratedDate:04/17/26
The score is held down primarily by very weak financial performance (large losses, negative equity, and significant cash burn). Offsetting this, technicals are strong with a clear uptrend and positive momentum indicators. Valuation is a modest negative because earnings are negative (limiting P/E usefulness) and no dividend yield is available.
Positive Factors
Specialized small/mid display expertise
JDI’s long-term focus on small- and mid-sized panels indicates deep engineering and manufacturing know-how specific to those formats. That specialization creates durable customer relationships, tailored production processes, and potential cost and quality advantages versus generalist suppliers, supporting stable B2B demand over months.
Negative Factors
Negative shareholders' equity
Negative shareholders' equity materially weakens the capital base and reduces financial flexibility. With roughly ¥65B of debt, the company faces constrained refinancing options, higher creditor scrutiny, and limited capacity to absorb further operating losses, raising structural solvency and covenant risks.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized small/mid display expertise
JDI’s long-term focus on small- and mid-sized panels indicates deep engineering and manufacturing know-how specific to those formats. That specialization creates durable customer relationships, tailored production processes, and potential cost and quality advantages versus generalist suppliers, supporting stable B2B demand over months.
Read all positive factors

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

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 not...
How the Company Makes Money
JDI primarily generates revenue by selling display panels and related products to device manufacturers and other business customers. Its main revenue stream is the shipment of display panels (historically dominated by small- and mid-sized LCD pane...

Japan Display Financial Statement Overview

Summary
Financial profile appears distressed: revenue is declining (about -6.4% TTM), profitability is deeply negative (EBIT margin around -13% and net margin around -48%), equity is negative in TTM, and operating/free cash flow are materially negative (roughly -¥25B / -¥30B). Slightly less-negative FCF versus the prior annual period is not enough to offset the ongoing losses and balance sheet strain.
Income Statement
8
Very Negative
Balance Sheet
12
Very Negative
Cash Flow
10
Very Negative
BreakdownTTMMar 2025Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue141.83B188.01B239.15B270.75B295.95B341.69B
Gross Profit-9.71B-2.62B612.00M-10.00B24.81B7.85B
EBITDA-28.01B-32.64B-28.22B-36.20B160.00M-12.50B
Net Income-43.98B-78.22B-44.31B-25.82B-8.10B-42.70B
Balance Sheet
Total Assets138.56B148.03B223.99B222.70B258.27B225.00B
Cash, Cash Equivalents and Short-Term Investments31.44B21.07B29.34B26.22B52.25B55.70B
Total Debt65.00B59.50B33.50B0.0073.68B95.10B
Total Liabilities144.59B141.14B138.33B98.26B185.50B183.17B
Stockholders Equity-6.03B6.89B85.66B124.43B72.77B39.55B
Cash Flow
Free Cash Flow-29.60B-35.96B-29.67B-74.30B-28.84B-32.72B
Operating Cash Flow-25.29B-25.45B-17.58B-65.67B-21.67B-23.12B
Investing Cash Flow18.90B-8.16B-13.43B9.78B95.00M-9.14B
Financing Cash Flow12.51B25.69B32.90B27.68B14.77B20.23B

Japan Display Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.00
Price Trends
50DMA
61.68
Positive
100DMA
41.25
Positive
200DMA
30.29
Positive
Market Momentum
MACD
9.53
Negative
RSI
64.54
Neutral
STOCH
77.43
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 21 is below the 20-day moving average (MA) of 84.75, below the 50-day MA of 61.68, and below the 200-day MA of 30.29, indicating a bullish trend. The MACD of 9.53 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥661.55B9.116.30%2.16%4.07%203.26%
71
Outperform
¥1.12T20.8515.75%1.08%17.94%48.64%
70
Outperform
¥429.92B14.112.18%-1.00%-6.07%
64
Neutral
¥27.54B-133.36-4.35%-190.54%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
¥60.44B59.150.90%4.00%-0.36%-73.50%
54
Neutral
¥353.12B-6.12-217.94%-29.87%30.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6740
Japan Display
94.00
77.00
452.94%
JP:5214
Nippon Electric Glass Co
8,186.00
5,017.44
158.35%
JP:4186
Tokyo Ohka Kogyo Co
9,169.00
6,077.25
196.56%
JP:7915
Nissha Co.Ltd.
1,291.00
115.58
9.83%
JP:4980
Dexerials Corp.
2,461.50
829.35
50.81%
JP:7746
Okamoto Glass Co., Ltd.
921.00
770.00
509.93%

Japan Display Corporate Events

Japan Display Clarifies Status of Potential U.S. Display Fab Plans
Apr 28, 2026
Japan Display has responded to recent Nikkei and other media reports suggesting it plans to launch and operate advanced display manufacturing fabs in the U.S. as a candidate for American investment. The company clarified that while it is investiga...
Japan Display to Relocate Tokyo Headquarters and Amend Articles of Incorporation
Apr 10, 2026
Japan Display Inc. plans to relocate its headquarters and the office of subsidiary JDI Design and Development GK from their current building, which is slated for redevelopment, to the 22nd floor of Sphere Tower Tennozu in Shinagawa-ku, Tokyo, on M...
Japan Display Sells Idle Tottori Fab, Keeps AutoTech Operations in Region
Mar 31, 2026
Japan Display Inc. has agreed to sell its idle Tottori fabrication plant to local real estate and cement wholesaler Yahata Touei Estate K.K., with the asset transfer slated for September 30, 2026. The sale follows the March 2025 shutdown of LCD pa...
Japan Display Scraps AutoTech Spinoff to Keep Automotive Displays In-House
Mar 12, 2026
Japan Display Inc. has reversed its earlier plan to spin off its AutoTech automotive display operations into a wholly owned subsidiary, opting instead to keep the business integrated within the group, pending shareholder approval at the June 24, 2...
Japan Display Books FX Gain and Extraordinary Items Amid Restructuring Costs
Feb 12, 2026
Japan Display reported several non-operating and extraordinary items in its fiscal third quarter, including a foreign exchange gain and proceeds from selling surplus raw materials following the shutdown of its Mobara facility. These gains were off...
Japan Display posts deeper balance-sheet strain and withholds outlook amid Mobara fab sale
Feb 12, 2026
Japan Display reported a sharp year-on-year decline in sales and continued losses for the nine months to December 31, 2025, underscoring persistent profitability challenges in its display business. Consolidated sales fell 32.2% to ¥97.3 billi...
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.Date of analysis: Apr 17, 2026