Megachips Corporation (JP:6875)
:6875
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Megachips
(6875)
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Rating:70Outperform
Price Target:
¥11,077.00
▲(37.95% Upside)
Action:UpgradedDate:02/08/26
The score is driven primarily by strong solvency/low leverage but tempered by weak revenue momentum and volatile, less reliable cash flow. Technical signals are supportive and valuation is reasonable, helping offset the fundamental consistency concerns.
Positive Factors
Balance sheet strength (low leverage)
Megachips' effectively debt-free balance sheet gives durable financial flexibility over the next several months, reducing refinancing and interest risk. This supports capacity to fund R&D, absorb cyclicality in semiconductor demand, and pursue strategic partnerships without capital structure strain.
Negative Factors
Revenue contraction / weak momentum
Declining top-line trends and negative recent annual revenue create structural pressure on unit economics and R&D payback. Over 2–6 months this weak momentum can reduce bargaining power with customers and suppliers, compress fixed-cost absorption, and limit scale benefits for new product launches.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength (low leverage)
Megachips' effectively debt-free balance sheet gives durable financial flexibility over the next several months, reducing refinancing and interest risk. This supports capacity to fund R&D, absorb cyclicality in semiconductor demand, and pursue strategic partnerships without capital structure strain.
Read all positive factors
Megachips (6875) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥163.64B
Dividend Yield0.76%
Average Volume (3M)155.09K
Price to Earnings (P/E)2.9
Beta (1Y)0.67
Revenue Growth-18.07%
EPS Growth156.03%
CountryJP
Employees339
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)58.14
Shares Outstanding19,046,900
10 Day Avg. Volume200,920
30 Day Avg. Volume155,093
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)0.65
Price to Sales (P/S)1.82
P/FCF Ratio-12.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)159.35
Revenue Forecast (FY)¥47.34B
Megachips Business Overview & Revenue Model
Company Description
MegaChips Corporation designs, develops, manufactures, and sells semiconductor related products in Japan and internationally. It offers application specific integrated circuits that are used in various electronic devices and automobiles, as well a...
How the Company Makes Money
Megachips makes money primarily by selling its semiconductor products to device manufacturers and module makers. Revenue is generated from (1) system LSI products, where the company designs custom or semi-custom chips and supplies them for integra...
Megachips Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.77B | 42.33B | 57.94B | 70.72B | 75.26B | 83.81B |
| Gross Profit | 6.85B | 7.83B | 11.44B | 12.05B | 13.61B | 12.91B |
| EBITDA | 2.70B | 3.56B | 6.77B | 7.12B | 8.03B | 7.67B |
| Net Income | 12.94B | 5.37B | 4.49B | 7.09B | 27.54B | 20.92B |
Balance Sheet | ||||||
| Total Assets | 256.30B | 149.94B | 126.61B | 89.08B | 89.87B | 74.65B |
| Cash, Cash Equivalents and Short-Term Investments | 13.68B | 20.83B | 28.06B | 20.72B | 25.77B | 21.41B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 4.79B |
| Total Liabilities | 66.77B | 31.70B | 23.94B | 14.54B | 22.44B | 24.60B |
| Stockholders Equity | 188.81B | 117.81B | 102.41B | 74.54B | 67.43B | 50.04B |
Cash Flow | ||||||
| Free Cash Flow | 4.04B | -6.03B | 7.22B | 452.31M | -983.37M | 4.86B |
| Operating Cash Flow | 5.91B | -3.73B | 8.16B | 1.24B | -195.28M | 5.51B |
| Investing Cash Flow | 14.79B | 3.59B | 214.06M | -5.52B | 20.02B | 17.02B |
| Financing Cash Flow | -18.46B | -7.51B | -5.39B | -1.74B | -16.53B | -18.81B |
Megachips Technical Analysis
Positive
8030.00
Price Trends
8576.80
Positive
8235.47
Positive
7274.06
Positive
Market Momentum
124.57
Negative
60.54
Neutral
71.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6875, the sentiment is Positive. The current price of 8030 is below the 20-day moving average (MA) of 8494.66, below the 50-day MA of 8576.80, and above the 200-day MA of 7274.06, indicating a bullish trend. The MACD of 124.57 indicates Negative momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 71.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6875.
Megachips Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥163.64B | 2.91 | 1.86% | 0.76% | -18.07% | 156.03% | |
68 Neutral | ¥5.18T | 14.32 | -2.51% | 1.31% | 6.68% | -106.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥12.55B | -25.29 | ― | 1.86% | 0.55% | -198.36% | |
58 Neutral | ¥189.41B | -13.62 | ― | ― | -44.10% | -111.35% | |
57 Neutral | ¥21.31B | 15.70 | ― | 3.98% | -2.54% | 59.03% | |
49 Neutral | ¥1.37T | 47.56 | -4.26% | 2.30% | 3.51% | -490.72% |
* Technology Sector Average
JP:6875
Megachips
10,070.00
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123.43%
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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.