Japan Electronic Materials Corporation (6855) AI Stock Analysis

• Market Cap: ¥35.87B
• Dividend Yield: 2.29%
• Average Volume (3M): 284.89K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.60
• Revenue Growth: 32.53%
• EPS Growth: 182.70%
• Country: JP
• Employees: 1,084
• Sector: Technology
• Sector Strength: 81
• Industry: Semiconductors
• EPS (TTM): 78.26
• Shares Outstanding: 12,666,510
• 10 Day Avg. Volume: 232,270
• 30 Day Avg. Volume: 284,893
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,920.00
• Price Target Upside: 3.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,920.00 ▲(3.00% Upside)

Japan Electronic Materials Corporation has a strong financial position with robust revenue growth and profitability, supported by a solid balance sheet. The technical indicators show positive momentum, although caution is advised due to the RSI nearing overbought levels. The valuation is attractive with a low P/E ratio and a decent dividend yield. However, improvements in cash flow management are necessary for sustained growth.

Japan Electronic Materials Corporation Business Overview & Revenue Model

Company Description

Japan Electronic Materials Corporation (6855) is a leading Japanese company specializing in the development, manufacturing, and distribution of electronic materials and components. The company primarily operates in the semiconductor industry, providing essential testing and probing solutions that ensure the quality and functionality of semiconductor devices. Their core products include probe cards, test sockets, and other testing equipment vital for semiconductor manufacturing processes.

How the Company Makes Money

Japan Electronic Materials Corporation generates revenue by designing, manufacturing, and selling high-precision electronic testing equipment, particularly probe cards and test sockets used in semiconductor production. These products are essential in testing semiconductor wafers and ensuring the quality and reliability of integrated circuits before they are packaged and shipped. The company collaborates with semiconductor manufacturers and testing firms, establishing long-term partnerships and contracts that provide a steady stream of income. Their revenue model relies on both direct sales of their products and ongoing service contracts for maintenance and upgrades, which ensure continued product performance and client satisfaction.

Japan Electronic Materials Corporation Financial Statement Overview

Summary

Japan Electronic Materials Corporation shows strong revenue growth and profitability with a healthy gross profit margin of 39.2% and a solid net profit margin of 14.5%. The balance sheet is robust with a low debt-to-equity ratio and strong equity ratio. However, concerns exist around cash flow management, particularly the negative free cash flow, which needs improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.83B	23.83B	17.46B	20.78B	23.60B	18.52B
Gross Profit	9.35B	9.35B	5.24B	7.39B	8.97B	6.47B
EBITDA	5.86B	5.86B	2.11B	4.60B	6.14B	3.53B
Net Income	3.45B	3.45B	622.00M	2.61B	3.80B	2.04B
Balance Sheet
Total Assets	39.86B	39.86B	34.77B	32.69B	32.99B	25.58B
Cash, Cash Equivalents and Short-Term Investments	12.19B	12.19B	14.25B	12.81B	11.82B	6.66B
Total Debt	5.88B	5.88B	5.66B	4.18B	5.19B	6.46B
Total Liabilities	11.94B	11.94B	10.10B	8.45B	11.20B	10.17B
Stockholders Equity	27.91B	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: 2835.00
• 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 2835 is above the 20-day moving average (MA) of 2726.50, above the 50-day MA of 2492.78, and above the 200-day MA of 2141.99, indicating a bullish trend. The MACD of 83.56 indicates Positive momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 31.34 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	¥43.73B	8.89		3.39%	7.19%	45.73%
6855	78 Outperform	¥35.87B	10.02		2.29%	32.53%	182.70%
7510	76 Outperform	¥33.35B	13.84		2.96%	2.04%	-11.59%
6627	75 Outperform	¥42.30B	14.18		2.37%	-0.46%	-25.32%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
6616	56 Neutral	¥17.88B	―		3.42%	-7.92%	43.84%
6707	54 Neutral	¥185.57B	3.52		0.38%	-58.24%	―