tiprankstipranks
Trending News
More News >
Icom Incorporated (JP:6820)
:6820
Japanese Market

Icom Incorporated (6820) AI Stock Analysis

Compare
0 Followers

Top Page

JP

Icom Incorporated

(6820)

Rating:74Outperform
Price Target:
Icom Incorporated's stock is supported by strong financial performance, featuring robust revenue growth and a solid balance sheet with low leverage. However, the decline in free cash flow poses a challenge. Technical analysis shows mixed signals, with the stock trading below key moving averages, suggesting resistance. The valuation is fair, with a reasonable P/E ratio and attractive dividend yield. Overall, the company appears well-positioned within the communication equipment industry, but careful monitoring of cash flow and market trends is advised.

Icom Incorporated (6820) vs. iShares MSCI Japan ETF (EWJ)

Icom Incorporated Business Overview & Revenue Model

Company DescriptionIcom 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 MoneyIcom 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
85
Very Positive
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
95
Very Positive
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
75
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue37.25B37.47B37.12B34.17B28.28B27.94B
Gross Profit16.22B16.39B16.04B14.29B11.37B11.67B
EBITDA5.69B5.01B5.58B3.71B2.07B3.13B
Net Income3.26B2.95B3.46B2.57B1.09B1.74B
Balance Sheet
Total Assets72.93B73.89B73.16B67.16B63.37B61.67B
Cash, Cash Equivalents and Short-Term Investments27.62B27.10B28.44B29.40B27.08B26.63B
Total Debt0.000.000.000.000.000.00
Total Liabilities6.88B6.53B7.42B6.71B5.63B5.15B
Stockholders Equity66.05B67.36B65.75B60.45B57.74B56.52B
Cash Flow
Free Cash Flow1.15B945.00M216.00M2.69B1.43B1.69B
Operating Cash Flow1.15B2.90B2.21B3.42B2.08B2.97B
Investing Cash Flow0.00-3.05B-3.67B2.48B-3.44B732.00M
Financing Cash Flow0.00-1.39B-1.12B-718.00M-717.00M-1.94B

Icom Incorporated Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2934.00
Price Trends
50DMA
2864.94
Positive
100DMA
2795.18
Positive
200DMA
2755.74
Positive
Market Momentum
MACD
12.11
Negative
RSI
55.22
Neutral
STOCH
62.81
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 2934 is above the 20-day moving average (MA) of 2909.90, above the 50-day MA of 2864.94, and above the 200-day MA of 2755.74, indicating a bullish trend. The MACD of 12.11 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥3.61T9.857.85%2.59%-0.45%-17.53%
74
Outperform
¥42.11B14.27
3.95%-1.34%-14.87%
74
Outperform
$6.41T28.8111.70%0.80%-5.48%-10.98%
73
Outperform
¥3.60T24.74
2.56%0.23%12.16%
71
Outperform
$22.24T19.2914.32%0.55%-0.49%19.71%
70
Outperform
¥3.94T22.83
3.91%9.08%-33.61%
69
Neutral
¥229.55B14.487.64%2.71%9.13%8.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6820
Icom Incorporated
2,935.00
-141.27
-4.59%
JP:6954
Fanuc Corporation
3,855.00
-528.61
-12.06%
JP:7751
Canon Inc.
4,130.00
-174.45
-4.05%
JP:6752
Panasonic
1,531.00
241.29
18.71%
JP:6758
Sony
3,676.00
909.95
32.90%
JP:6702
Fujitsu
3,369.00
744.06
28.35%

Icom Incorporated Corporate Events

Icom Incorporated Reports Decline in Financial Performance but Projects Modest Growth
Feb 13, 2025

Icom Incorporated reported a decline in its financial performance for the nine months ended December 31, 2024, with net sales and profits experiencing significant drops compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio, indicating a stable financial position, and projects modest growth in net sales and operating profit for the full fiscal year ending March 31, 2025.

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: May 03, 2025