Japan Electronic Materials Corporation (6855) AI Stock Analysis

• Market Cap: ¥29.19B
• Dividend Yield: 1.73%
• Average Volume (3M): 234.72K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.55
• Revenue Growth: 36.47%
• EPS Growth: 454.90%
• Country: JP
• Employees: 1,084
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 111.01
• Shares Outstanding: 12,647,416
• 10 Day Avg. Volume: 349,910
• 30 Day Avg. Volume: 234,723
• PEG Ratio: -0.22
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.89
• 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

• Rating: 77 Outperform
• Price Target: ¥2,750.00 ▲(17.62%Upside)

The strong financial performance driven by growth and profitability, along with attractive valuation, are the key strengths. However, the technical indicators suggest caution due to overbought conditions, and cash flow management needs attention for sustained growth.

Japan Electronic Materials Corporation Business Overview & Revenue Model

Company Description

Japan Electronic Materials Corporation (JEM) is a prominent Japanese company specializing in the development and production of advanced electronic materials and testing solutions. The company operates primarily in the semiconductor industry, providing a range of high-quality probe cards and related testing equipment that are essential for semiconductor manufacturing and quality assurance. JEM's innovative products support the efficient production and performance evaluation of integrated circuits and electronic components, positioning it as a key player in the global electronics supply chain.

How the Company Makes Money

Japan Electronic Materials Corporation generates revenue through the sale of its advanced probe card products and testing equipment, which are critical for semiconductor testing and wafer inspection processes. These products are used by semiconductor manufacturers and other electronics companies to ensure the quality and functionality of their integrated circuits and electronic components. JEM's revenue streams are primarily driven by the demand for reliable and precise testing solutions in the semiconductor industry. The company's earnings are significantly influenced by the global semiconductor market trends, technological advancements, and its ability to maintain strong relationships with major semiconductor manufacturers. Additionally, JEM may engage in strategic partnerships and collaborative projects to further enhance its product offerings and market reach.

Japan Electronic Materials Corporation Financial Statement Overview

Summary

Japan Electronic Materials Corporation exhibits strong revenue growth and profitability with a solid balance sheet. However, concerns about cash flow management, particularly negative free cash flow, slightly lower the score.

Income Statement

Japan Electronic Materials Corporation has demonstrated strong revenue growth, particularly from 2024 to 2025 with a 36.4% increase. The gross profit margin is healthy at 39.2%, and the net profit margin is solid at 14.5%. The company shows a consistent improvement in EBIT and EBITDA margins, indicating efficient operations and cost management.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.21 and a strong equity ratio of 70.0%. Return on equity is also commendable at 12.4%, showcasing effective use of equity to generate profits. The significant cash reserves provide a cushion for future investments or downturns.

Cash Flow

Despite a decline in operating cash flow, the company maintains a positive operating cash flow to net income ratio of 0.52. However, free cash flow has turned negative in recent years, indicating potential challenges in managing capital expenditures. The free cash flow to net income ratio is concerning and suggests cash management improvements are needed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.19B	23.83B	17.46B	20.78B	23.60B	18.52B
Gross Profit	8.07B	9.35B	5.24B	7.39B	8.97B	6.47B
EBITDA	4.97B	5.86B	2.11B	4.31B	5.97B	3.59B
Net Income	2.70B	3.45B	622.00M	2.61B	3.80B	2.04B
Balance Sheet
Total Assets	35.11B	39.86B	34.77B	32.69B	32.99B	25.58B
Cash, Cash Equivalents and Short-Term Investments	11.28B	12.19B	14.25B	12.81B	11.82B	6.66B
Total Debt	4.85B	5.88B	5.66B	4.18B	5.19B	6.46B
Total Liabilities	8.97B	11.94B	10.10B	8.45B	11.20B	10.17B
Stockholders Equity	26.14B	27.91B	24.67B	24.24B	21.79B	15.41B
Cash Flow
Free Cash Flow	0.00	-1.66B	397.00M	2.43B	3.89B	19.00M
Operating Cash Flow	0.00	1.80B	2.31B	3.35B	4.81B	1.42B
Investing Cash Flow	0.00	-3.58B	-2.20B	-849.00M	-562.00M	-1.50B
Financing Cash Flow	0.00	-514.00M	879.00M	-1.58B	947.00M	2.97B

Japan Electronic Materials Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2338.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6855, the sentiment is Positive. The current price of 2338 is above the 20-day moving average (MA) of 2262.25, above the 50-day MA of 2116.94, and above the 200-day MA of 2129.71, indicating a bullish trend. The MACD of 78.92 indicates Positive momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 30.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6855.

Japan Electronic Materials Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7609	81 Outperform	¥38.86B	8.71		3.81%	7.88%	39.72%
6855	77 Outperform	¥29.19B	8.45		1.73%	36.47%	454.90%
6627	75 Outperform	¥29.66B	8.99		3.37%	3.61%	-14.91%
7510	73 Outperform	¥29.01B	10.96		3.62%	-0.38%	6.16%
6707	69 Neutral	¥203.07B	4.00		0.38%	-48.30%	―
Sector *	63 Neutral	$34.04B	6.14	-11.52%	1.82%	5.53%	-18.79%
6616	58 Neutral	¥14.88B	―		4.12%	-6.97%	45.07%