Icom Incorporated (6820) AI Stock Analysis

• Market Cap: ¥44.35B
• Dividend Yield: 2.93%
• Average Volume (3M): 26.23K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.67
• Revenue Growth: -0.90%
• EPS Growth: -13.24%
• Country: JP
• Employees: 1,034
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 11.91
• Shares Outstanding: 14,850,000
• 10 Day Avg. Volume: 20,450
• 30 Day Avg. Volume: 26,230
• PEG Ratio: -0.91
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 41.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥3,213.00 ▲(8.11% Upside)

The score is driven primarily by solid financial performance—especially the debt-free balance sheet and steady profitability—partly offset by inconsistent cash-flow conversion. Valuation is supportive with a reasonable P/E and a ~2.9% dividend yield, while technical indicators are mixed and limit upside conviction in the near term.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides strong financial flexibility and reduces solvency risk, allowing the company to navigate economic uncertainties more effectively.

Solid Profitability

Improving gross margins indicate effective cost management and pricing strategies, supporting long-term profitability and competitive positioning.

Dividend Increase

Increasing dividends reflects management's confidence in cash flow stability and commitment to shareholder returns, enhancing investor trust and company reputation.

Negative Factors

Decline in Financial Performance

A significant decline in sales and operating profit suggests market challenges and potential operational inefficiencies, impacting long-term growth prospects.

Inconsistent Cash Flow Conversion

Inconsistent cash flow conversion undermines confidence in the company's ability to sustain operations and fund growth initiatives, posing a risk to financial stability.

Market Challenges

Weak demand and excess inventory indicate potential market saturation and competitive pressures, which could hinder revenue growth and market share expansion.

Icom Incorporated Business Overview & Revenue Model

Company Description

Icom Incorporated (6820) is a Japanese company that specializes in the design, manufacture, and distribution of two-way radio communication devices and related equipment. Established in 1954, the company operates in the telecommunications sector, providing a wide range of products including amateur radios, land mobile radios, marine radios, and aviation radios. Icom is renowned for its high-quality, innovative products that cater to both commercial and consumer markets worldwide.

How the Company Makes Money

Icom Incorporated generates revenue primarily through the sale of its communication devices and equipment. The company's key revenue streams include the amateur radio market, commercial land mobile radio market, and marine and aviation communication systems. Icom also benefits from sales in the public safety sector, providing reliable communication solutions for emergency services. Beyond product sales, Icom may engage in partnerships and contracts with organizations and governments for customized communication solutions, contributing further to its earnings. The company's global distribution network and commitment to technological advancement play crucial roles in its financial success.

Icom Incorporated Financial Statement Overview

Summary

Icom Incorporated shows robust financial health with strong revenue growth, profitability, and a solid balance sheet. The company benefits from a high equity ratio, indicating financial stability and low leverage. However, cash flow management needs attention due to a significant decline in free cash flow.

Income Statement

Icom Incorporated has shown consistent growth with a notable increase in total revenue from ¥28,277 million in 2022 to ¥37,117 million in 2024, reflecting a strong revenue growth rate. The gross profit margin remains robust, and the net profit margin has improved to 9.32%. The EBIT and EBITDA margins are healthy, indicating operational efficiency. The company’s ability to maintain profitability and growth in revenue demonstrates strong financial performance in the communication equipment sector.

Balance Sheet

The balance sheet of Icom Incorporated is exceptionally strong, featuring a high equity ratio of 89.85%, indicating financial stability and low leverage with no total debt reported. The return on equity (ROE) has improved over the years, reflecting efficient management of shareholder funds. The company's strong cash position and minimal liabilities contribute to its financial resilience.

Cash Flow

The cash flow statements reveal a mixed picture. Although there is a significant decline in free cash flow growth, the operating cash flow to net income ratio remains positive, suggesting adequate cash generation from operations. However, the reduction in free cash flow from ¥2,692 million in 2023 to ¥216 million in 2024 highlights potential challenges in managing capital expenditures and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.80B	37.47B	37.12B	34.17B	28.28B	27.94B
Gross Profit	16.22B	16.39B	16.04B	14.29B	11.37B	11.67B
EBITDA	3.99B	5.01B	5.58B	4.12B	2.07B	3.13B
Net Income	2.27B	2.95B	3.46B	2.57B	1.09B	1.74B
Balance Sheet
Total Assets	73.86B	73.89B	73.16B	67.16B	63.37B	61.67B
Cash, Cash Equivalents and Short-Term Investments	27.60B	27.10B	28.44B	29.40B	27.08B	26.63B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	7.14B	6.53B	7.42B	6.71B	5.63B	5.15B
Stockholders Equity	66.72B	67.36B	65.75B	60.45B	57.74B	56.52B
Cash Flow
Free Cash Flow	0.00	945.00M	343.00M	2.69B	1.43B	1.69B
Operating Cash Flow	0.00	2.51B	2.21B	3.42B	2.08B	2.97B
Investing Cash Flow	0.00	-2.67B	-3.67B	2.48B	-3.44B	732.00M
Financing Cash Flow	0.00	-1.39B	-1.12B	-718.00M	-717.00M	-1.94B

Icom Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2972.00
• 50DMA: Positive
• 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:6820, the sentiment is Positive. The current price of 2972 is above the 20-day moving average (MA) of 2898.40, above the 50-day MA of 2894.52, and above the 200-day MA of 2875.79, indicating a bullish trend. The MACD of 40.52 indicates Negative momentum. The RSI at 67.88 is Neutral, neither overbought nor oversold. The STOCH value of 76.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6820.

Icom Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6718	81 Outperform	¥48.62B	18.16	―	4.43%	0.63%	-24.87%
6675	79 Outperform	¥38.78B	12.03	―	2.26%	20.13%	33.43%
6820	70 Outperform	¥44.35B	19.01	―	2.93%	-0.90%	-13.24%
6822	64 Neutral	¥5.11B	3.92	―	0.53%	4.93%	23.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	53 Neutral	¥4.23B	10.41	―	2.01%	13.56%	―

Icom Incorporated Corporate Events

Icom Incorporated Reports Decline in Financial Performance and Revises Forecasts

Icom Incorporated reported a decline in its financial performance for the six months ended September 30, 2025, with net sales decreasing by 5% and operating profit dropping by 59.3% compared to the previous year. The company also revised its dividend forecast and consolidated earnings forecast, indicating a challenging financial outlook for the fiscal year ending March 31, 2026, with expected decreases in net sales and profits.

Icom Incorporated Revises Earnings and Dividend Forecasts Amid Market Challenges

Icom Incorporated has revised its consolidated earnings and dividend forecasts for the fiscal year ending March 2026 due to challenging market conditions and economic uncertainties. Despite a downward revision in earnings, the company has increased its minimum annual dividend per share from ¥50 to ¥60, aiming to enhance shareholder returns while maintaining stable dividends based on consolidated performance.

Icom Revises Earnings Forecast Amid Market Challenges

Icom Incorporated has revised its earnings forecast for the six months ending September 30, 2025, due to weak demand in both commercial and consumer markets. The company cites excess inventory in the Americas and geopolitical uncertainties as key factors impacting sales, alongside a significant settlement payment for a patent lawsuit, leading to a substantial decrease in expected profits. Despite these challenges, the dividend forecast remains unchanged, and a full-year earnings forecast is under review, with results expected in November 2025.