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

• Market Cap: ¥468.61B
• Dividend Yield: 1.02%
• Average Volume (3M): 953.16K
• Price to Earnings (P/E): 39.2
• Beta (1Y): 1.44
• Revenue Growth: 29.60%
• EPS Growth: 24.39%
• Country: JP
• Employees: 1,620
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 128.51
• Shares Outstanding: 40,025,314
• 10 Day Avg. Volume: 722,800
• 30 Day Avg. Volume: 953,160
• PEG Ratio: 0.62
• Price to Book (P/B): 4.13
• Price to Sales (P/S): 3.89
• P/FCF Ratio: -42.20
• 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: ¥9,500.00
• Price Target Upside: -22.13% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 385.04
• Revenue Forecast (FY): ¥83.95B

• Rating: 71 Outperform
• Price Target: ¥13,746.00 ▲(12.67% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (growth, improving profitability, and low leverage), partially offset by volatile free cash flow. Technicals remain trend-positive but look stretched based on overbought momentum signals, and valuation is a headwind due to the high P/E and low dividend yield.

Positive Factors

Strong revenue growth and improved profitability

Sustained revenue expansion through 2024–2025 alongside materially improved margins indicates the company is scaling operations and capturing demand across its end markets. These profitability gains suggest durable operating leverage and stronger cash-generation potential when FCF volatility eases.

Conservatively positioned balance sheet with low leverage

Very low leverage and steady growth in equity and assets provide financial flexibility to fund R&D, capex, and navigate semiconductor cyclicality. Solid ROE reflects efficient capital use, enabling sustainable reinvestment and a stronger buffer against macro or industry shocks.

Diversified B2B end markets and R&D focus

Broad exposure across automotive, telecom, and industrial customers reduces dependency on any single demand source and smooths revenue through market cycles. Ongoing R&D and partnerships strengthen product roadmap and technological differentiation, supporting longer-term market share and pricing power.

Negative Factors

Inconsistent free cash flow generation

Intermittent negative FCF despite reported profitability highlights cash-conversion risk driven by working-capital swings or capex timing. Persistent FCF volatility can constrain dividends, M&A capacity, and debt reduction, weakening resilience during industry downturns.

Cyclical revenue and margin volatility

Historical revenue declines and margin swings reflect semiconductor cyclicality and exposure to volatile end-market demand. Such variability complicates long-term planning, may force defensive cost actions in downturns, and increases the need for conservative liquidity management.

Increase in total debt in 2025 is a watch item

An uptick in total debt in 2025, while not yet high, reduces the previously wide cushion from minimal leverage. If elevated debt persists, it could limit financial flexibility for R&D or capex, raise interest expense risk, and amplify vulnerability to rate or demand shocks.

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

Company Description

Micronics Japan Co., Ltd. develops, manufactures, and sells testing and measurement equipment for semiconductors and LCD testing system worldwide. The company's semiconductor products include probe cards, package probes, semiconductor test equipment, and wafer prober. It also provides flat panel display (FPD) products, such as automated optical inspection equipment under the PIXQUIRE name; and mura inspection and compensation system under the Gaterumph name, as well as probe units, FPD lighting units, manual probers for FPD substrates, and array probers/cell probers. Micronics Japan Co., Ltd. was formerly known as Towa Electric Co., Ltd. and changed to Micronics Japan Co., Ltd. in April 1975. The company was founded in 1970 and is headquartered in Musashino, Japan.

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

Strong revenue growth and improved profitability support a high score, reinforced by a conservatively positioned balance sheet with low leverage and solid ROE. The main drag is cash flow inconsistency (FCF negative in 2023 and 2025 despite solid earnings), which raises cash-conversion risk in a cyclical industry.

Income Statement

Revenue has expanded strongly over the last two years (2024 up sharply, followed by further growth in 2025), and profitability has scaled meaningfully with higher operating and net income. Margins improved materially versus 2020–2023, showing better operating leverage. The main weakness is volatility across the cycle (e.g., revenue decline in 2023 and margin swings versus 2021–2022), which is typical for semiconductors but still a key risk.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage in recent years (debt-to-equity was minimal in 2021–2024) and equity and total assets have grown steadily, supporting financial flexibility. Returns on equity were solid in 2021–2024, indicating efficient capital use. A watch item is the increase in total debt in 2025 versus prior years, though leverage still appears manageable relative to the equity base.

Cash Flow

Cash generation has been uneven: operating cash flow is consistently positive, and 2024 delivered strong free cash flow. However, free cash flow turned negative in 2023 and again in 2025 despite solid earnings, pointing to working-capital or investment-driven swings that reduce near-term cash conversion. Overall, cash flow quality is acceptable but less consistent than reported profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	62.59B	70.17B	55.64B	38.29B	44.32B	40.00B
Gross Profit	30.99B	33.80B	27.14B	17.10B	20.23B	17.02B
EBITDA	17.73B	22.04B	14.85B	7.71B	12.56B	10.63B
Net Income	9.90B	12.06B	8.81B	4.13B	7.53B	8.24B
Balance Sheet
Total Assets	81.63B	99.03B	79.99B	55.85B	54.38B	49.74B
Cash, Cash Equivalents and Short-Term Investments	16.46B	19.30B	23.95B	17.99B	21.55B	19.20B
Total Debt	6.61B	6.53B	1.18B	1.34B	1.27B	1.33B
Total Liabilities	29.63B	32.97B	30.34B	14.65B	15.75B	16.68B
Stockholders Equity	52.00B	66.05B	49.64B	41.20B	38.63B	33.06B
Cash Flow
Free Cash Flow	0.00	-6.47B	8.06B	-1.53B	4.55B	4.23B
Operating Cash Flow	0.00	12.90B	15.10B	4.84B	8.39B	7.38B
Investing Cash Flow	0.00	-21.69B	-7.83B	-7.50B	-2.27B	-1.94B
Financing Cash Flow	0.00	3.28B	-1.44B	-2.17B	-2.48B	-1.25B

Micronics Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6871, the sentiment is Positive. The current price of 12200 is above the 20-day moving average (MA) of 10735.50, above the 50-day MA of 9004.09, and above the 200-day MA of 6390.82, indicating a bullish trend. The MACD of 1090.39 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 76.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥251.20B	24.66	―	3.09%	14.85%	29.86%
3156	76 Outperform	¥94.72B	15.06	―	4.31%	4.77%	-36.62%
6966	75 Outperform	¥160.27B	15.58	―	2.45%	4.60%	-21.64%
6871	71 Outperform	¥468.61B	39.16	―	1.02%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	55 Neutral	¥154.27B	-42.55	―	―	-51.82%	-96.08%

Micronics Japan Co., Ltd. Corporate Events

Micronics Japan Beats FY2025 Profit Forecasts on Strong Memory Probe Card Demand

Micronics Japan Co., Ltd. reported that its full-year results for the fiscal year ended December 31, 2025 exceeded its previous consolidated forecasts, with net sales slightly above guidance and profits significantly higher. The outperformance was driven by robust demand for probe cards in memory applications, increased production capacity, an improved product mix, and favorable foreign exchange valuation effects that lifted ordinary profit and net income beyond earlier expectations.

The company’s operating profit, ordinary profit, and net income attributable to owners of the parent all posted double‑digit percentage increases versus the forecast, underscoring strong earnings leverage on modest top-line outperformance. These results highlight Micronics Japan’s strengthened position in the semiconductor testing market and suggest improved profitability and cash-generation capacity for shareholders, supported by structural demand in memory-related testing and beneficial currency movements.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.

Micronics Japan Plans Sharp Hike in Year-End Dividend for FY2025

Micronics Japan has announced a significant increase in its year-end dividend for the fiscal year ended December 31, 2025, proposing a payout of ¥95 per share compared with ¥70 in the previous fiscal year. The total dividend payment will rise to ¥3.682 billion, with the distribution subject to approval at the shareholders’ meeting on March 26, 2026, and an effective payment date of March 27, 2026.

Management reiterated that shareholder returns are a key priority and emphasized a policy of continuous, stable dividends aligned with earnings performance and payout ratio targets. The higher dividend reflects the company’s newly disclosed full-year consolidated forecast for 2025, signaling confidence in its financial results and potentially strengthening its appeal to income-focused investors and long-term shareholders.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.

Micronics Japan Delivers Strong 2025 Earnings and Hikes Dividend

Micronics Japan posted strong results for the fiscal year ended December 31, 2025, with net sales up 26.1% to ¥70.2 billion and profit attributable to owners of parent rising 36.9% to ¥12.1 billion, reflecting robust demand and improved profitability. The company’s financial position also strengthened, as total assets increased to ¥99.0 billion, equity-to-asset ratio improved to 66.7%, and operating margins remained above 23%, underlining solid balance sheet health.

Shareholders are set to benefit from a higher year-end dividend of ¥95 per share for 2025, up from ¥70 a year earlier, keeping the payout ratio around 30%. Looking ahead to the first half of 2026, Micronics Japan forecasts continued strong momentum, projecting a 32.5% jump in net sales to ¥43.9 billion and a 71.7% surge in profit attributable to owners of parent to ¥8.2 billion, signaling sustained growth and earnings expansion into the new fiscal year.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.

Micronics Japan Beats FY2025 Forecasts on Strong Memory Probe Card Demand

Micronics Japan reported that its full-year 2025 consolidated results significantly outperformed its prior forecast, with net sales edging up to ¥70.2 billion and profits well above guidance. Stronger-than-expected demand for probe cards used in memory applications, combined with expanded production capacity and an improved product mix, drove a near 20% rise in operating profit and over 30% growth in net income attributable to owners.

The company also benefited from favorable foreign exchange valuation effects, which lifted ordinary profit and bottom-line earnings beyond earlier projections. The performance marks a sharp acceleration from 2024 results and underscores Micronics Japan’s strengthened earnings power in the semiconductor testing market, signaling a positive development for shareholders amid robust memory-related investment.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.

Micronics Japan Plans Higher Year-End Dividend as Earnings Outlook Improves

Micronics Japan Co., Ltd. has approved a year-end dividend from surplus for the fiscal year ended December 31, 2025, proposing a payout of ¥95 per share, up from ¥70 the previous year. The total planned dividend distribution is ¥3.682 billion, with the payment scheduled to take effect on March 27, 2026, subject to shareholder approval at the upcoming annual general meeting.

The board stated that shareholder returns are a key management priority and reaffirmed a basic policy of maintaining continuous and stable dividends. The higher dividend reflects the company’s newly disclosed full-year consolidated business forecast and consideration of its dividend payout ratio, signaling confidence in its earnings strength and a more generous capital return stance to investors.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.

Micronics Japan Flags Uncertainty Around Q4 FY2025 Results and Outlook

Micronics Japan Co., Ltd. released supplementary materials for its quarterly financial results for the three months ended December 31, 2025, dated February 13, 2026. The company emphasized that the English materials are machine translated and should be used only as reference, with the Japanese original remaining the authoritative source.

The release underscores that all outlooks and forward-looking statements are subject to significant uncertainty stemming from global market conditions, competitive pressures, and semiconductor and LCD industry trends. Stakeholders are cautioned that actual performance may differ substantially from the presented views, highlighting elevated business and forecasting risk in the current industry environment.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.

Micronics Japan Lifts Dividend on Strong 2025 Earnings and Bullish 2026 Outlook

Micronics Japan reported strong full-year 2025 results, with net sales rising 26.1% to ¥70.2 billion and profit attributable to owners of parent climbing 36.9% to ¥12.1 billion, alongside improved margins and higher return on equity. The company’s solid earnings enabled a higher year-end dividend of ¥95 per share and strengthened its balance sheet, while a robust forecast for the first half of 2026 signals continued growth momentum and supports its positioning in the semiconductor test equipment market.

Total assets expanded to ¥99.0 billion and the equity ratio improved to 66.7%, reflecting enhanced financial stability despite heavy investing cash outflows in 2025. Management projects double-digit year-on-year gains in sales and profits for the six months ending June 30, 2026, suggesting sustained demand for its testing solutions and offering a positive outlook for shareholders and industry stakeholders.

The most recent analyst rating on (JP:6871) stock is a Buy with a Yen9592.00 price target. To see the full list of analyst forecasts on Micronics Japan Co., Ltd. stock, see the JP:6871 Stock Forecast page.