Japan Electronic Materials Corporation (6855) AI Stock Analysis

• Market Cap: ¥101.71B
• Dividend Yield: 1.72%
• Average Volume (3M): 388.46K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.75
• Revenue Growth: 36.31%
• EPS Growth: 101.77%
• Country: JP
• Employees: 1,084
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 139.95
• Shares Outstanding: 12,666,510
• 10 Day Avg. Volume: 386,270
• 30 Day Avg. Volume: 388,460
• PEG Ratio: 0.01
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -13.72
• 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): 260.9
• Revenue Forecast (FY): ¥26.50B

• Rating: 71 Outperform
• Price Target: ¥11,039.00 ▲(187.10% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (solid growth, profitability, and a conservative balance sheet), partially offset by negative free cash flow trends. Technicals remain strong but look overbought, and valuation is only moderate given a P/E of 23.49 and a low ~0.65% dividend yield.

Positive Factors

Revenue Growth

A multi-year revenue uptrend (36.4% y/y in 2025) indicates sustained demand for its semiconductor test materials and expanding customer adoption. Durable top-line growth supports scale economics, funds R&D and product development, and strengthens negotiating leverage with suppliers and customers over the medium term.

Profitability & Margins

Robust gross (39.2%) and net (14.5%) margins show the company captures value within the test-related supply chain. Sustainable margin levels provide a buffer during cyclical downturns, enable reinvestment in higher-value products, and indicate operational efficiency and product differentiation over the medium term.

Balance Sheet Strength

A conservative capital structure—low D/E and 70% equity ratio—gives the company flexibility to fund capex or weather semiconductor cycles without urgent refinancing. Strong reserves and ROE (~12.4%) reduce solvency risk and support strategic investments or opportunistic M&A over time.

Negative Factors

Weak Cash Generation

Declining operating cash flow and a recent negative free cash flow trend constrain internally generated funding for growth or dividends. Persistent negative FCF may force use of cash reserves or external financing, limiting flexibility for capex, R&D, or shareholder returns across cycles.

Cyclicality / Demand Sensitivity

Revenue is structurally tied to semiconductor production and customer capex cycles, making demand volatile. This exposure can cause pronounced swings in sales and utilization, complicating capacity planning, margin stability, and multi-year forecasting in a capital-intensive industry.

Narrow Market Focus

Concentration on test-related materials and components creates specialization benefits but increases exposure to shifts in testing technologies, customer consolidation, or substitutions. Limited product-market diversification raises strategic risk if test methodologies or customer needs evolve rapidly.

Japan Electronic Materials Corporation Business Overview & Revenue Model

Company Description

Japan Electronic Materials Corporation engages in the manufacture and sale of probe cards and electron tube parts in Japan and internationally. The company offers cantilever type and advanced probe cards; and heaters and cathodes for receiving tubes and CRTs, filaments for fluorescent character display tubes, and directly heated cathodes, as well as measuring instruments. It also provides a range of products for displays, which include color TV displays, such as high-definition TV displays; computer displays; measurement displays; and radar displays. In addition, the company is involved in the precision processing and assembly of heat-resistant metals comprising tungsten, molybdenum, and tantalum. Japan Electronic Materials Corporation was founded in 1960 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

Japan Electronic Materials Corporation generates revenue through the sale of its specialized electronic materials and chemicals, with key revenue streams originating from its core products such as photoresists and semiconductor materials. The company primarily serves major players in the semiconductor industry, including foundries and manufacturers of electronic devices, thereby securing long-term contracts and partnerships that ensure consistent demand. Additionally, Japan Electronic Materials Corporation invests in research and development to create innovative products that meet emerging market needs, which further enhances its competitive edge and revenue potential. Strategic collaborations with technology companies and partnerships for joint development projects also contribute significantly to its earnings by expanding market reach and facilitating entry into new sectors.

Japan Electronic Materials Corporation Financial Statement Overview

Summary

Strong revenue growth (notably 36.4% from 2024 to 2025) with healthy profitability (39.2% gross margin, 14.5% net margin) and a robust balance sheet (low debt-to-equity of 0.21, 70.0% equity ratio). The main offset is weaker cash generation: operating cash flow declined and free cash flow has turned negative, indicating capital/cash flow management risk.

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	24.27B	23.83B	17.46B	20.78B	23.60B	18.52B
Gross Profit	9.87B	9.35B	5.24B	7.39B	8.97B	6.47B
EBITDA	5.92B	5.86B	1.94B	4.60B	6.14B	3.53B
Net Income	3.57B	3.45B	622.00M	2.61B	3.80B	2.04B
Balance Sheet
Total Assets	37.80B	39.86B	34.77B	32.69B	32.99B	25.58B
Cash, Cash Equivalents and Short-Term Investments	13.71B	12.19B	14.25B	12.81B	11.82B	6.66B
Total Debt	5.50B	5.88B	5.66B	4.18B	5.19B	6.46B
Total Liabilities	9.75B	11.94B	10.10B	8.45B	11.20B	10.17B
Stockholders Equity	28.05B	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: 3845.00
• 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:6855, the sentiment is Positive. The current price of 3845 is below the 20-day moving average (MA) of 7171.25, below the 50-day MA of 5389.50, and above the 200-day MA of 3562.85, indicating a bullish trend. The MACD of 1037.50 indicates Negative momentum. The RSI at 59.45 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 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	80 Outperform	¥63.94B	12.98	―	2.87%	10.24%	61.61%
7510	75 Outperform	¥42.06B	14.91	―	3.02%	7.09%	13.13%
6855	71 Outperform	¥101.71B	20.87	―	1.72%	36.31%	101.77%
6627	66 Neutral	¥89.06B	26.44	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	55 Neutral	¥154.27B	-42.55	―	―	-51.82%	-96.08%
6616	45 Neutral	¥19.23B	-12.69	―	3.98%	-6.84%	50.71%