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Japan Electronic Materials Corporation (JP:6855)
:6855
Japanese Market
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Japan Electronic Materials Corporation (6855) AI Stock Analysis

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JP:6855

Japan Electronic Materials Corporation

(6855)

Rating:77Outperform
Price Target:
¥2,750.00
▲(15.98%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 (6855) vs. iShares MSCI Japan ETF (EWJ)

Japan Electronic Materials Corporation Business Overview & Revenue Model

Company DescriptionJapan 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 MoneyJapan 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 solid margins. The balance sheet is robust with low debt and high equity ratio, but cash flow management needs improvement due to negative free cash flow.
Income Statement
80
Positive
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
85
Very Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue23.83B17.46B20.78B23.60B18.52B
Gross Profit9.35B5.24B7.39B8.97B6.47B
EBITDA5.86B2.11B4.31B5.97B3.59B
Net Income3.45B622.00M2.61B3.80B2.04B
Balance Sheet
Total Assets39.86B34.77B32.69B32.99B25.58B
Cash, Cash Equivalents and Short-Term Investments12.19B14.25B12.81B11.82B6.66B
Total Debt5.88B5.66B4.18B5.19B6.46B
Total Liabilities11.94B10.10B8.45B11.20B10.17B
Stockholders Equity27.91B24.67B24.24B21.79B15.41B
Cash Flow
Free Cash Flow-1.66B397.00M2.43B3.89B19.00M
Operating Cash Flow1.80B2.31B3.35B4.81B1.42B
Investing Cash Flow-3.58B-2.20B-849.00M-562.00M-1.50B
Financing Cash Flow-514.00M879.00M-1.58B947.00M2.97B

Japan Electronic Materials Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2371.00
Price Trends
50DMA
2212.32
Positive
100DMA
2026.18
Positive
200DMA
2118.44
Positive
Market Momentum
MACD
29.85
Positive
RSI
56.18
Neutral
STOCH
76.12
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 2371 is above the 20-day moving average (MA) of 2334.40, above the 50-day MA of 2212.32, and above the 200-day MA of 2118.44, indicating a neutral trend. The MACD of 29.85 indicates Positive momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 76.12 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥39.76B8.80
3.73%7.88%39.72%
77
Outperform
¥30.01B11.26
3.29%-0.38%6.16%
77
Outperform
¥29.95B8.70
2.11%36.47%454.90%
75
Outperform
¥30.02B9.10
3.33%3.61%-14.91%
67
Neutral
¥210.53B4.13
0.38%-48.30%
57
Neutral
$897.91M11.67-16.27%2.28%10.33%-39.65%
56
Neutral
¥16.53B
3.71%-6.97%45.07%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6855
Japan Electronic Materials Corporation
2,371.00
-589.98
-19.93%
JP:6616
Torex Semiconductor Ltd.
1,515.00
-236.67
-13.51%
JP:6627
Tera Probe, Inc.
3,280.00
-530.82
-13.93%
JP:6707
Sanken Electric Co., Ltd.
8,708.00
1,567.00
21.94%
JP:7510
Takebishi Corporation
1,889.00
-435.96
-18.75%
JP:7609
Daitron Co., Ltd.
3,750.00
1,186.24
46.27%
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: Jun 26, 2025