Icom Incorporated (6820) AI Stock Analysis

• Market Cap: ¥46.57B
• Dividend Yield: 2.93%
• Average Volume (3M): 26.23K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.70
• Revenue Growth: -0.90%
• EPS Growth: -13.24%
• Country: JP
• Employees: 1,034
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 50.38
• 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: ¥3,574.00 ▲(20.26% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

Zero debt and an exceptionally conservative balance sheet provide durable financial flexibility. This reduces solvency risk, supports steady investment in product development and capex, and allows the company to weather industry cycles or fund strategic initiatives without refinancing risk.

High and improving gross margin

A gross margin near 44% signals structural pricing power or cost advantages in specialized radio products. Sustained high gross margins support reinvestment, absorb periodic cost pressures, and underpin mid-term profitability even if top-line growth is modest.

Resilient revenue and diversified product mix

Modest but steady revenue growth alongside product exposure across professional, marine, aviation and amateur markets creates a diversified revenue base. This reduces reliance on any single end market, supporting steadier demand and recurring accessory sales over years.

Negative Factors

Volatile cash-flow conversion

Inconsistent conversion of earnings to cash reduces confidence in sustainable cash returns. Volatile free cash flow limits reliable funding for dividends, buybacks, or growth capex and increases dependence on working-capital timing or balance-sheet reserves during weaker periods.

Earnings quality and margin compression

Falling net and operating margins indicate rising costs or pricing pressure and weaken earnings quality. If structural (input costs, competitive pricing), this pressure can persist, eroding free cash flow and the firm's ability to fund investments or return cash to shareholders.

Low returns on equity

Mid-single-digit ROE suggests limited capital efficiency and modest shareholder returns relative to peers. With conservative leverage, growth requires higher margin expansion or better asset utilization to raise long-term returns without changing capital structure.

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

Strong overall financial profile supported by solid profitability and a very conservative, debt-free balance sheet. The main offset is weaker and volatile cash-flow conversion in the most recent year, which reduces confidence in the durability of cash returns.

Income Statement

Revenue has been resilient with modest growth in 2025 (+3.6%) after a strong rebound in 2023, while profitability remains solid with gross margin improving to ~43.8%. However, earnings quality softened in 2025 as net margin fell to ~7.9% (from ~9.3% in 2024) and operating margin also compressed, indicating some cost or pricing pressure despite stable sales.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across the period, providing strong financial flexibility and low solvency risk. Equity has steadily increased, and returns on equity are positive but only mid-single-digit (about 4–5% recently), suggesting the company is not highly leveraged and overall returns are steady rather than high.

Cash Flow

Cash generation is positive, but conversion from earnings to cash is inconsistent: in 2025 operating cash flow covers only about 56% of net income and free cash flow is ~38% of net income. Free cash flow has been volatile year-to-year (very strong in 2023, weak in 2024, modest in 2025), which reduces confidence in the durability of cash returns despite improving from 2024.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 below the 20-day moving average (MA) of 3090.50, below the 50-day MA of 3017.72, and above the 200-day MA of 2944.76, indicating a bullish trend. The MACD of 54.74 indicates Negative momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 72.95 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	¥46.00B	18.70	―	4.43%	0.63%	-24.87%
6675	79 Outperform	¥46.31B	27.24	―	2.26%	20.13%	33.43%
6822	77 Outperform	¥6.80B	5.07	―	0.53%	4.93%	23.92%
6820	70 Outperform	¥46.57B	22.04	―	2.93%	-0.90%	-13.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	60 Neutral	¥5.08B	7.48	―	2.01%	13.56%	―

Icom Incorporated Corporate Events

Icom Posts Profit Decline but Keeps Forecasts and Dividend Policy Intact

Icom Incorporated reported consolidated net sales of ¥26.06 billion for the nine months ended December 31, 2025, down 2.1% year on year, with operating profit plunging 39.0% to ¥1.50 billion and profit attributable to owners of parent dropping 43.1% to ¥1.16 billion. Despite weaker earnings, total assets rose to ¥76.88 billion and net assets to ¥69.28 billion, while the equity-to-asset ratio remained high at 90.1%, and the company maintained its dividend policy, projecting full-year sales of ¥36.0 billion and a continued decline in profits but no change to its previously announced forecasts.

The company plans a total annual dividend of ¥60 per share for the fiscal year ending March 31, 2026, including an interim payout of ¥25 already set, signaling a commitment to shareholder returns even as profits decline. Icom’s full-year forecast calls for a 3.9% drop in net sales and a 32.9% fall in profit attributable to owners of parent, indicating ongoing margin pressure but reflecting confidence in its balance sheet strength and ability to navigate current market conditions without revising guidance.

The most recent analyst rating on (JP:6820) stock is a Buy with a Yen3482.00 price target. To see the full list of analyst forecasts on Icom Incorporated stock, see the JP:6820 Stock Forecast page.