Anritsu (6754) AI Stock Analysis

• Market Cap: ¥402.86B
• Dividend Yield: 1.76%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 36.6
• Beta (1Y): 1.20
• Revenue Growth: -0.89%
• EPS Growth: 53.87%
• Country: JP
• Employees: 3,966
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 19.63
• Shares Outstanding: 135,870,590
• 10 Day Avg. Volume: 928,330
• 30 Day Avg. Volume: 1,078,236
• PEG Ratio: 0.92
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 9.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,333.02
• Price Target Upside: -22.93% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 86.93
• Revenue Forecast (FY): ¥120.46B

• Rating: 75 Outperform
• Price Target: ¥3,491.00 ▲(15.33% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial stability and improving margins, supported by a robust technical uptrend. This is tempered by weaker recent free-cash-flow momentum and a relatively expensive valuation (high P/E with a modest dividend yield).

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt and a large equity base provide durable financial flexibility. This lowers funding risk, supports steady R&D and capex for product cycles, enables opportunistic M&A or buybacks, and cushions earnings volatility across telecom capex cycles over the next 2–6 months and beyond.

High and improving margins

Sustained near-50% gross margins and rising operating/net margins point to pricing power and favorable product mix (hardware plus software/services). Higher margins support reinvestment in R&D and services, enhancing long-term competitiveness and resilience to cyclical demand shifts.

Recurring software & service revenue mix

A business model combining capital equipment sales with software options and recurring after-sales services creates semi-predictable revenue streams. Installed-base services and upgrades tied to wireless standards smooth cycles and improve lifetime customer value, supporting durable cash flows.

Negative Factors

Weakened free cash flow and cash quality

A sharp drop in FCF versus the prior year reduces internal funding ability and raises reliance on timing-sensitive working capital. If the FCF decline persists it could constrain R&D, capex, or shareholder returns and signal less efficient conversion of profit into durable cash.

Uneven top-line growth and timing risk

Revenue appears driven by timing and cyclical network upgrade projects rather than steady end-market expansion. Uneven topline complicates capacity planning and forecasting, and makes profitability and cash generation dependent on the cadence of carrier and device-maker capex cycles.

Moderate returns vs historical peak

ROE sits in the mid-single digits, below prior peak levels, indicating only moderate capital efficiency. Persistently middling returns can limit the firm's ability to self-fund growth or deliver high shareholder returns versus higher-return peers, affecting long-term capital allocation.

Anritsu Business Overview & Revenue Model

Company Description

Anritsu Corporation develops, manufactures, and sells measurement instruments and systems for various communications applications in Japan and internationally. It operates through Test and Measurement, Products Quality Assurance, and Others segments. The company's test and measurement products include bit error rate tester and sampling oscilloscope; mobile/wireless communications measuring instruments, such as base station analyzers, Bluetooth and WLAN testers, cable and antenna analyzers, channel emulators/fading simulators, conformance test systems, handset one box testers, land mobile radio products, passive intermodulation analyzers, shield boxes/chambers, and signaling testers; optical measuring instruments comprising OTDRs, optical loss test set/light source/optical power meter products, optical spectrum analyzers, video inspection probes, and accessories; RF microwave measuring instruments, such as peripheral equipment, and power meters and sensors; signal generators; and signal/spectrum analyzers, vector network analyzers, and transport and ethernet testing products. It also provides X-Ray inspection systems, checkweighers, automatic combination weighers, and metal detectors for the food, pharmaceutical, and cosmetics industries, as well as service assurance solutions; and designs and produces precision microwave components. In addition, the company offers optical sensing for industry and medicine sectors; optical devices for communication sector; and electron devices. Further, it engages in the environmental measurement, logistics, welfare services, real estate leasing, and other businesses. The company was founded in 1895 and is headquartered in Atsugi, Japan.

How the Company Makes Money

Anritsu generates revenue through the sale of its test and measurement equipment, software solutions, and related services. Key revenue streams include the sales of hardware such as signal analyzers, network testers, and optical measurement tools, which are essential for telecommunications companies and service providers. The company also earns income from software licensing and maintenance contracts, as well as training and support services. Strategic partnerships with major telecommunications firms and technology companies enhance its market reach and drive sales. Additionally, Anritsu's focus on emerging technologies, such as 5G and IoT, positions it to capitalize on growing demand for high-performance testing solutions.

Anritsu Financial Statement Overview

Summary

Overall financials are healthy, led by a very strong, low-debt balance sheet (TTM debt-to-equity ~0.05) and improving profitability into TTM (gross margin ~49.8%, EBIT margin ~12.3%, net margin ~9.7%). Offsetting this, revenue growth has been modest/uneven and free cash flow declined materially in TTM (FCF growth ~-33%), indicating some recent cash-flow pressure.

Income Statement

Profitability is solid and improving recently: TTM (Trailing-Twelve-Months) gross margin is ~49.8% with EBIT margin ~12.3% and net margin ~9.7%, all higher than the FY2025 annual levels. Earnings also recovered versus FY2024 (net income up from ¥7.7B to ¥9.3B in FY2025, and ¥10.7B in TTM). The main weakness is growth: FY2025 revenue growth was modest (~2.8%) and the TTM growth figure is unusually high (likely a timing/base-effect), so overall top-line momentum looks uneven compared with prior years.

Balance Sheet

The balance sheet is a clear strength with very low leverage: debt-to-equity is ~0.05 in TTM (Trailing-Twelve-Months) and ~0.03 in FY2025, supported by a large equity base (¥127.9B in TTM). Asset base is stable (TTM assets ¥168.5B). Returns are decent but not exceptional—return on equity is ~8.7% in TTM, improving from ~7.5% in FY2025 but below the stronger FY2021 level (~11.2%).

Cash Flow

Cash generation remains positive (TTM operating cash flow ¥13.8B; TTM free cash flow ¥10.6B), and free cash flow is reasonably close to reported earnings (TTM free cash flow to net income ~0.85). However, cash flow quality has softened versus FY2025: TTM free cash flow fell sharply (free cash flow growth about -33%), and operating cash flow is a smaller share of EBITDA in TTM (~0.67) than in FY2025 (~0.74). This suggests more working-capital or cash timing pressure recently despite steady profitability.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	113.21B	112.98B	109.95B	110.92B	105.39B	105.94B
Gross Profit	57.24B	54.98B	51.62B	54.05B	55.47B	57.20B
EBITDA	20.69B	18.59B	16.13B	18.61B	22.60B	24.97B
Net Income	10.68B	9.26B	7.67B	9.27B	12.80B	16.11B
Balance Sheet
Total Assets	168.53B	159.83B	161.09B	152.24B	153.26B	144.10B
Cash, Cash Equivalents and Short-Term Investments	43.02B	50.09B	45.66B	36.85B	45.71B	49.82B
Total Debt	8.00B	3.56B	4.09B	4.14B	4.12B	4.13B
Total Liabilities	40.57B	35.56B	35.56B	34.72B	38.82B	34.65B
Stockholders Equity	127.95B	124.27B	125.52B	117.29B	114.20B	109.26B
Cash Flow
Free Cash Flow	10.63B	18.63B	12.79B	1.97B	13.09B	17.79B
Operating Cash Flow	13.79B	21.07B	16.57B	6.11B	16.03B	20.48B
Investing Cash Flow	-13.98B	-3.92B	-3.64B	-5.22B	-8.71B	-5.03B
Financing Cash Flow	-11.29B	-12.26B	-6.58B	-11.41B	-13.39B	-14.46B

Anritsu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3027.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6754, the sentiment is Positive. The current price of 3027 is above the 20-day moving average (MA) of 2513.95, above the 50-day MA of 2379.53, and above the 200-day MA of 2000.17, indicating a bullish trend. The MACD of 151.63 indicates Negative momentum. The RSI at 73.58 is Negative, neither overbought nor oversold. The STOCH value of 85.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6754.

Anritsu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	80 Outperform	¥16.02T	38.32	12.80%	0.78%	7.09%	7.51%
6866	79 Outperform	¥105.76B	19.22	―	3.23%	7.28%	4.16%
6856	78 Outperform	$881.74B	23.82	11.99%	0.65%	8.50%	14.06%
6754	75 Outperform	¥402.86B	36.65	7.44%	1.76%	-0.89%	53.87%
6777	73 Outperform	¥232.98B	37.77	25.32%	2.30%	6.85%	10.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Anritsu Corporate Events

Anritsu Delivers Strong Profit Growth on Flat Sales, Confirms Full-Year Outlook and Dividend

Anritsu reported largely flat revenue but significantly higher profits for the nine months ended December 31, 2025, with sales edging up 0.3% year on year to ¥81.1 billion while operating profit jumped 31.1% to ¥8.4 billion and profit attributable to owners of the parent rose 28.9% to ¥6.3 billion, lifting basic earnings per share to ¥49.37 from ¥37.21. The company’s balance sheet remained solid with an equity ratio of 75.9%, and it upheld its full-year forecast for the period ending March 31, 2026, projecting revenue of ¥123.0 billion and operating profit of ¥15.0 billion alongside an unchanged annual dividend plan of ¥40 per share, signaling management confidence and stability for shareholders despite modest top-line growth.

The most recent analyst rating on (JP:6754) stock is a Hold with a Yen2615.00 price target. To see the full list of analyst forecasts on Anritsu stock, see the JP:6754 Stock Forecast page.