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Japan Electronic Materials Corporation (JP:6855)
:6855
Japanese Market

Japan Electronic Materials Corporation (6855) AI Stock Analysis

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JP:6855

Japan Electronic Materials Corporation

(6855)

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Outperform 81 (OpenAI - 5.2)
Rating:81Outperform
Price Target:
¥7,069.00
▲(83.85% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by strong fundamentals (growth, margins, and a conservative balance sheet) and attractive valuation (low P/E). Technicals are supportive overall due to a strong multi-month uptrend and positive MACD, but mixed short-term momentum and cash flow/negative free cash flow temper the rating.
Positive Factors
Healthy margins
Sustained gross and net margins near 39% and 14.5% indicate durable pricing power and cost control in test-related materials. For a component supplier, such margins support reinvestment, R&D and profitability through product cycles, underpinning long-term cash earning ability.
Negative Factors
Negative free cash flow
Persistent negative free cash flow limits the company’s ability to self-fund expansion, pay sustained dividends, or build cash buffers. Over 2-6 months this raises reliance on existing reserves or external financing for capex and working capital needs, pressuring flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy margins
Sustained gross and net margins near 39% and 14.5% indicate durable pricing power and cost control in test-related materials. For a component supplier, such margins support reinvestment, R&D and profitability through product cycles, underpinning long-term cash earning ability.
Read all positive factors

Japan Electronic Materials Corporation (6855) vs. iShares MSCI Japan ETF (EWJ)

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 tub...
How the Company Makes Money
Japan Electronic Materials generates revenue primarily by manufacturing and selling semiconductor test-related materials and components to semiconductor manufacturers and companies involved in semiconductor testing. Its earnings are driven by prod...

Japan Electronic Materials Corporation Financial Statement Overview

Summary
Strong profitability and growth with a healthy gross margin (39.2%) and solid net margin (14.5%), plus robust balance sheet leverage (debt-to-equity 0.21) and equity ratio (70.0%). The main offset is weaker cash generation, with negative free cash flow in recent years and a modest operating cash flow to net income ratio (0.52).
Income Statement
80
Positive
Balance Sheet
85
Very Positive
Cash Flow
70
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue24.27B23.83B17.46B20.78B23.60B18.52B
Gross Profit9.98B9.35B5.19B7.34B8.93B6.41B
EBITDA6.15B5.78B1.94B4.31B5.97B3.59B
Net Income3.57B3.45B622.00M2.61B3.80B2.04B
Balance Sheet
Total Assets37.80B39.86B35.08B32.96B33.21B25.77B
Cash, Cash Equivalents and Short-Term Investments13.71B12.19B14.25B12.81B11.87B6.81B
Total Debt5.50B5.88B5.66B4.18B5.19B6.46B
Total Liabilities9.75B11.94B10.41B8.72B11.42B10.36B
Stockholders Equity28.05B27.91B24.67B24.24B21.79B15.41B
Cash Flow
Free Cash Flow0.00-1.66B397.00M2.43B3.89B19.00M
Operating Cash Flow0.001.80B2.31B3.35B4.81B1.42B
Investing Cash Flow0.00-3.58B-2.20B-849.00M-562.00M-1.50B
Financing Cash Flow0.00-514.00M879.00M-1.58B947.00M2.97B

Japan Electronic Materials Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3845.00
Price Trends
50DMA
6499.00
Positive
100DMA
5155.55
Positive
200DMA
4003.49
Positive
Market Momentum
MACD
-109.88
Positive
RSI
48.27
Neutral
STOCH
22.10
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 7120.00, below the 50-day MA of 6499.00, and below the 200-day MA of 4003.49, indicating a neutral trend. The MACD of -109.88 indicates Positive momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.10 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥89.22B6.871.72%36.31%101.77%
78
Outperform
¥221.51B14.213.09%14.85%29.86%
76
Outperform
¥303.78B15.355.77%3.28%11.15%-19.39%
71
Outperform
¥390.25B22.631.02%29.60%24.39%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
50
Neutral
¥648.33B-42.711.14%0.66%-87.63%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6855
Japan Electronic Materials Corporation
6,200.00
4,236.48
215.76%
JP:6890
Ferrotec Holdings
6,460.00
3,638.51
128.96%
JP:3436
SUMCO Corporation
1,851.50
732.99
65.53%
JP:5384
Fujimi Incorporated
2,910.00
895.57
44.46%
JP:6871
Micronics Japan Co., Ltd.
10,160.00
6,461.59
174.71%
JP:5016
JX Advanced Metals Corporation
3,730.00
2,821.05
310.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 06, 2026