Japan Electronic Materials Corporation (6855) AI Stock Analysis

• Market Cap: ¥26.06B
• Dividend Yield: 3.39%
• Average Volume (3M): 239.90K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.47
• Revenue Growth: 15.92%
• EPS Growth: 227.22%
• Country: JP
• Employees: 1,084
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): 111.01
• Shares Outstanding: 12,647,416
• 10 Day Avg. Volume: 294,220
• 30 Day Avg. Volume: 239,903
• PEG Ratio: 0.23
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 66 Neutral
• Price Target: ―

Japan Electronic Materials Corporation shows strong profitability and a solid balance sheet, but faces challenges with declining revenue and liquidity issues. Technical analysis suggests bearish momentum, yet the stock's valuation is attractive, offering potential for value investors.

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 profitability and financial stability, as evidenced by healthy profit margins and a strong equity position. However, recent revenue decline and lack of cash flow in TTM raise concerns about growth sustainability and liquidity management.

Income Statement

The company shows a strong gross profit margin of 39.8% for TTM, indicating efficient production and pricing strategies. Net profit margin for TTM is also robust at 13.4%, reflecting solid profitability. The revenue growth rate from the previous year to TTM is -3.04%, suggesting a slight decline in sales, which is a concern. EBIT margin for TTM is 18.1% and EBITDA margin is 24.7%, both demonstrating healthy operational efficiency.

Balance Sheet

The debt-to-equity ratio is low at 0.19, indicating a strong equity position relative to debt. Return on equity is 10.34% for TTM, showcasing effective use of shareholder funds. The equity ratio is high at 74.5%, underscoring financial stability and a strong asset base funded by equity.

Cash Flow

The company shows a concerning lack of operating cash flow and free cash flow for TTM, suggesting potential liquidity issues. Historical data indicates fluctuating free cash flow with periods of negative growth, which may affect future operations if continued.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
20.19B	17.46B	20.78B	23.60B	18.52B	15.67B
	Gross Profit
8.07B	5.24B	7.39B	8.97B	6.47B	4.63B
	EBIT
3.68B	870.00M	3.21B	4.95B	2.66B	1.01B
	EBITDA
4.68B	2.11B	4.31B	5.97B	3.59B	1.65B
	Net Income Common Stockholders
2.70B	622.00M	2.61B	3.80B	2.04B	1.08B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.25B	14.25B	12.81B	11.82B	6.66B	3.88B
	Total Assets
35.08B	34.77B	32.69B	32.99B	25.58B	20.65B
	Total Debt
5.66B	5.66B	4.18B	5.19B	6.46B	4.73B
	Net Debt
-7.97B	-8.56B	-8.60B	-6.61B	-61.00M	988.00M
	Total Liabilities
10.41B	10.10B	8.45B	11.20B	10.17B	8.55B
	Stockholders Equity
24.67B	24.67B	24.24B	21.79B	15.41B	12.10B
Cash Flow		Free Cash Flow
0.00	397.00M	2.43B	3.89B	19.00M	-1.29B
	Operating Cash Flow
0.00	2.31B	3.35B	4.81B	1.42B	1.53B
	Investing Cash Flow
0.00	-2.20B	-849.00M	-562.00M	-1.50B	-3.19B
	Financing Cash Flow
0.00	879.00M	-1.58B	947.00M	2.97B	1.11B

Japan Electronic Materials Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2057.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 2057 is above the 20-day moving average (MA) of 1964.70, above the 50-day MA of 1847.27, and below the 200-day MA of 2210.12, indicating a neutral trend. The MACD of 83.83 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 46.46 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
6758	79 Outperform	$22.50T	19.52	14.32%	0.52%	9.56%	26.52%
6902	78 Outperform	$5.08T	13.13	7.87%	3.08%	0.24%	37.62%
6762	77 Outperform	¥2.97T	17.45		1.95%	4.80%	34.01%
6770	73 Outperform	$282.01B	7.40	9.28%	4.21%	2.73%	―
6724	70 Neutral	$595.80B	11.03	6.70%	3.79%	3.72%	6.31%
6855	66 Neutral	¥26.06B	7.54		3.39%	15.92%	227.22%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%