Japan Display Inc (JP:6740)
:6740
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Japan Display
(6740)
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Rating:41Neutral
Price Target:
¥65.00
▲(209.52% Upside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by very weak financial performance (ongoing losses, persistent cash burn, and negative equity). Technical indicators also point to weak momentum with the stock trading below key moving averages. Valuation provides limited support because the negative P/E reflects unprofitable operations and no dividend yield data is available.
Positive Factors
Specialized small-/mid‑size display focus with industrial diversification
JDI's focused engineering and manufacturing expertise in small- and mid-sized panels and sales into industrial/specialized end markets supports durable customer relationships and longer product lifecycles. That specialization reduces direct competition with mass smartphone supply cycles and helps steady revenue mix over months.
Negative Factors
Material revenue decline trend
A sustained ~30% revenue decline erodes scale advantages and increases per-unit costs, pressuring margins and profitability. Without clear signs of recovering order volumes or new design wins, continued top-line contraction undermines cash generation and makes structural turnaround more difficult over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized small-/mid‑size display focus with industrial diversification
JDI's focused engineering and manufacturing expertise in small- and mid-sized panels and sales into industrial/specialized end markets supports durable customer relationships and longer product lifecycles. That specialization reduces direct competition with mass smartphone supply cycles and helps steady revenue mix over months.
Read all positive factors
Japan Display (6740) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥264.47B
Dividend YieldN/A
Average Volume (3M)292.92M
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-29.62%
EPS Growth86.43%
CountryJP
Employees4,507
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-2.65
Shares Outstanding4,265,632,300
10 Day Avg. Volume272,496,621
30 Day Avg. Volume292,916,444
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)-60.12
Price to Sales (P/S)3.37
P/FCF Ratio-18.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
16
Very Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 132.33B | 188.01B | 239.15B | 270.75B | 295.95B |
| Gross Profit | 2.57B | -2.62B | 612.00M | -10.00B | 24.81B |
| EBITDA | -14.78B | -32.64B | -28.22B | -36.20B | 160.00M |
| Net Income | -19.81B | -78.22B | -44.31B | -25.82B | -8.10B |
Balance Sheet | |||||
| Total Assets | 124.25B | 148.03B | 223.99B | 222.70B | 258.27B |
| Cash, Cash Equivalents and Short-Term Investments | 27.75B | 21.07B | 29.34B | 26.22B | 52.25B |
| Total Debt | 65.00B | 59.50B | 33.50B | 0.00 | 73.68B |
| Total Liabilities | 131.66B | 141.14B | 138.33B | 98.26B | 185.50B |
| Stockholders Equity | -7.41B | 6.89B | 85.66B | 124.43B | 72.77B |
Cash Flow | |||||
| Free Cash Flow | -24.39B | -35.96B | -29.67B | -74.30B | -28.84B |
| Operating Cash Flow | -23.20B | -25.45B | -17.58B | -65.67B | -21.67B |
| Investing Cash Flow | 22.76B | -8.16B | -13.43B | 9.78B | 95.00M |
| Financing Cash Flow | 5.05B | 25.69B | 32.90B | 27.68B | 14.77B |
Japan Display Technical Analysis
Neutral
21.00
Price Trends
84.34
Negative
53.26
Positive
36.45
Positive
Market Momentum
-4.72
Positive
38.38
Neutral
5.74
Positive
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 21 is below the 20-day moving average (MA) of 89.40, below the 50-day MA of 84.34, and below the 200-day MA of 36.45, indicating a neutral trend. The MACD of -4.72 indicates Positive momentum. The RSI at 38.38 is Neutral, neither overbought nor oversold. The STOCH value of 5.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6740.
Japan Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥643.12B | 12.70 | ― | 2.18% | 3.12% | 2.74% | |
74 Outperform | ¥534.90B | 13.26 | 6.30% | 2.16% | 4.78% | ― | |
74 Outperform | ¥1.23T | 18.84 | 15.75% | 1.08% | 18.84% | 42.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥74.71B | 34.03 | 0.90% | 4.00% | -1.57% | -49.55% | |
46 Neutral | ¥28.79B | -197.75 | ― | ― | 0.95% | -257.77% | |
41 Neutral | ¥264.47B | -22.49 | -217.94% | ― | -29.62% | 86.43% |
* Technology Sector Average
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Japan Display Corporate Events
Japan Display Revamps Board as It Prepares U.S. Advanced Display Expansion
May 14, 2026
Japan Display Inc. announced the slate of candidates for its Board of Directors to be voted on at the June 24, 2026 annual general meeting, keeping CEO Scott Callon as chairman and maintaining existing directors while adding industry veteran Hiroa...
Japan Display to Absorb Defunct OLED Subsidiary in Streamlining Move
May 14, 2026
Japan Display plans to absorb its wholly owned subsidiary JDI Design and Development G.K. through a merger set to take effect on July 1, 2026, pending shareholder approval at its June 24 annual meeting. The move follows the transfer of JOLED’...
Japan Display to Slash Capital and Wipe Out Deficit Through Balance-Sheet Revamp
May 14, 2026
Japan Display Inc. plans to significantly reduce its stated capital and capital reserve, reallocating a combined total of more than JPY 50 billion into other capital surplus to optimize its capital structure. The move aims to strengthen the compan...
Japan Display Sales Slump as Plant Closures Help Narrow Losses
May 14, 2026
Japan Display reported a sharp year-on-year sales decline for the fiscal year ended March 2026, as revenues fell nearly 30% to ¥132.3 billion. The drop was driven mainly by weaker LCD smartphone display sales following strategic downsizing an...
Japan Display Books Heavy Restructuring and Financing Costs in FY26/3 Results
May 14, 2026
Japan Display Inc. reported several non-operating and extraordinary items in its FY26/3 consolidated results, reflecting ongoing restructuring of its display operations. The company booked gains of JPY 432 million from selling raw materials no lon...
Japan Display Narrows Losses but Keeps Outlook on Hold Amid Financial Strain
May 14, 2026
Japan Display Inc., a Japanese display panel maker listed on the Tokyo Stock Exchange Prime Market, continues to specialize in small and medium-sized displays for electronics and other applications. The company remains focused on stabilizing its b...
Ichigo’s Warrant Exercise Bolsters Japan Display’s Capital Base and Control
May 13, 2026
Japan Display said Ichigo Trust has partially exercised its 14th stock acquisition rights, injecting about JPY 9.6 billion and raising its stake to 80.17% of JDI voting rights. The move increases JDI’s capital and capital reserve by JPY 4.82...
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...
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.