Micronics Japan Co., Ltd. (6871) AI Stock Analysis

• Market Cap: ¥245.83B
• Dividend Yield: 1.16%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.54
• Revenue Growth: 29.60%
• EPS Growth: 24.39%
• Country: JP
• Employees: 1,620
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 59.58
• Shares Outstanding: 40,025,314
• 10 Day Avg. Volume: 636,950
• 30 Day Avg. Volume: 1,014,056
• PEG Ratio: 0.15
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 18.08
• 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: ¥7,300.00
• Price Target Upside: 3.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 246.04
• Revenue Forecast (FY): ¥69.22B

• Rating: 67 Neutral
• Price Target: ¥7,150.00 ▲(1.85% Upside)

Micronics Japan Co., Ltd. has a strong financial foundation with robust revenue and profit growth, which is the most significant factor in its overall score. However, the technical analysis indicates bearish momentum, which tempers the overall outlook. The valuation is reasonable, but not compelling enough to offset the technical weaknesses. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust demand and a strong market position, which supports long-term business expansion and stability.

Profitability

Improved profit margins reflect efficient cost management and enhanced profitability, contributing to sustainable financial health.

Financial Stability

A low debt-to-equity ratio indicates conservative leverage and financial stability, providing resilience against economic fluctuations.

Negative Factors

Cash Flow Volatility

Volatility in free cash flow growth can impact the company's ability to consistently fund operations and growth initiatives.

Asset Utilization

Inefficient asset utilization may limit the company's operational efficiency and profitability, affecting long-term competitiveness.

Technical Weakness

Persistent technical weakness may reflect underlying market concerns, potentially affecting investor confidence and stock performance.

Micronics Japan Co., Ltd. Business Overview & Revenue Model

Company Description

Micronics Japan Co., Ltd. (6871) is a prominent Japanese company specializing in the manufacturing and development of advanced electronic components and systems. Operating primarily in the sectors of industrial electronics, telecommunications, and automotive technology, Micronics focuses on delivering high-quality products, including semiconductor devices, circuit boards, and electronic modules. The company is known for its innovation in electronics, contributing significantly to various industries through cutting-edge solutions and reliable products.

How the Company Makes Money

Micronics Japan generates revenue through multiple key streams, primarily by selling its electronic components and systems to a diverse clientele, including manufacturers in the automotive, telecommunications, and industrial sectors. The company employs a business-to-business (B2B) model, where it supplies products directly to other businesses, which further integrate these components into their own systems. Additionally, Micronics may engage in partnerships with technology firms and research institutions to co-develop new products, enhancing its market offerings and increasing sales potential. Significant factors contributing to its earnings include ongoing investments in research and development to innovate and improve product performance, as well as maintaining strong relationships with key industry players that drive consistent demand for its products.

Micronics Japan Co., Ltd. Financial Statement Overview

Summary

Micronics Japan Co., Ltd. exhibits strong financial performance with impressive revenue and profit growth, efficient cost management, and prudent financial leverage. The income statement shows robust profitability, while the balance sheet reflects financial stability. Cash flow generation is strong, though consistency in free cash flow growth is an area for improvement.

Income Statement

Micronics Japan Co., Ltd. has demonstrated strong revenue growth with a 42.74% increase in 2024, indicating robust demand and market position. The gross profit margin improved to 48.78%, reflecting efficient cost management. The net profit margin also increased to 15.83%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 21.57% and 26.68%, respectively, indicating strong operational performance. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.02, suggesting conservative leverage and financial stability. Return on equity is strong at 17.75%, indicating effective use of shareholder funds. The equity ratio is not explicitly calculated, but the balance sheet shows a solid equity base relative to assets. Overall, the balance sheet reflects financial stability and prudent capital management, though further improvement in asset utilization could enhance performance.

Cash Flow

Operating cash flow increased significantly, supporting the company's ability to fund operations and growth. The free cash flow to net income ratio is 53.38%, indicating efficient cash generation relative to earnings. However, the previous year's negative free cash flow growth highlights potential volatility in cash generation. Overall, the cash flow statement shows strong operational cash generation, but attention to consistent free cash flow growth is needed.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.64B	38.29B	44.32B	40.00B	31.59B
Gross Profit	27.14B	17.10B	20.23B	17.02B	10.28B
EBITDA	14.85B	7.71B	12.56B	10.63B	4.25B
Net Income	8.81B	4.13B	7.53B	8.24B	1.50B
Balance Sheet
Total Assets	79.99B	55.85B	54.38B	49.74B	37.87B
Cash, Cash Equivalents and Short-Term Investments	23.95B	17.99B	21.55B	19.20B	12.10B
Total Debt	1.18B	1.34B	1.27B	1.33B	1.53B
Total Liabilities	30.34B	14.65B	15.75B	16.68B	13.45B
Stockholders Equity	49.64B	41.20B	38.63B	33.06B	24.42B
Cash Flow
Free Cash Flow	8.06B	-1.53B	4.55B	4.23B	1.27B
Operating Cash Flow	15.10B	4.84B	8.39B	7.38B	3.55B
Investing Cash Flow	-7.83B	-7.50B	-2.27B	-1.94B	-3.05B
Financing Cash Flow	-1.44B	-2.17B	-2.48B	-1.25B	-483.00M

Micronics Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7020.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6871, the sentiment is Negative. The current price of 7020 is above the 20-day moving average (MA) of 6429.50, below the 50-day MA of 7040.60, and above the 200-day MA of 5032.02, indicating a neutral trend. The MACD of -167.57 indicates Positive momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 10.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6871.

Micronics Japan Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5384	77 Outperform	¥180.03B	18.03	―	3.11%	14.85%	29.86%
3156	76 Outperform	¥81.18B	15.96	―	4.40%	4.77%	-36.62%
6966	75 Outperform	¥142.91B	13.90	―	2.31%	4.60%	-21.64%
6871	67 Neutral	¥245.83B	24.40	―	1.16%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	46 Neutral	¥115.69B	100.38	―	―	-51.82%	-96.08%