Megachips Corporation (JP:6875)
:6875
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Megachips
(6875)
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Rating:78Outperform
Price Target:
¥13,555.00
▲(68.80% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by strong financial resilience from a debt-free balance sheet and very attractive valuation (low P/E with a decent dividend yield). Technicals are also supportive with strong upward momentum, though overbought signals add some near-term risk. The main drag is weakening operating performance and inconsistent cash-flow generation.
Positive Factors
Debt-free balance sheet
A zero-debt capital structure materially lowers financial risk and provides durable flexibility to fund R&D, support customers, or pursue strategic opportunities without reliance on external leverage. This conservative financing strengthens resilience through semiconductor cycles and downturns.
Negative Factors
Multi-year revenue decline
Sustained revenue contraction undermines scale economics, weakens pricing power and puts pressure on R&D and SG&A efficiency. If the decline reflects structural loss of demand or market share, it can erode long-term competitiveness and make returning to prior growth and margins harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt capital structure materially lowers financial risk and provides durable flexibility to fund R&D, support customers, or pursue strategic opportunities without reliance on external leverage. This conservative financing strengthens resilience through semiconductor cycles and downturns.
Read all positive factors
Megachips (6875) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥179.24B
Dividend Yield0.76%
Average Volume (3M)155.09K
Price to Earnings (P/E)13.2
Beta (1Y)0.74
Revenue Growth-14.55%
EPS Growth100.23%
CountryJP
Employees339
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)613.72
Shares Outstanding19,046,900
10 Day Avg. Volume200,920
30 Day Avg. Volume155,093
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.66
Price to Sales (P/S)3.38
P/FCF Ratio36.04
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)983.73
Revenue Forecast (FY)¥41.76B
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
58
Neutral
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.17B | 42.33B | 57.94B | 70.72B | 75.26B |
| Gross Profit | 5.51B | 7.83B | 11.44B | 12.05B | 13.61B |
| EBITDA | 1.14B | 3.56B | 6.77B | 7.12B | 8.03B |
| Net Income | 9.28B | 5.37B | 4.49B | 7.09B | 27.54B |
Balance Sheet | |||||
| Total Assets | 255.16B | 149.94B | 126.61B | 89.08B | 89.87B |
| Cash, Cash Equivalents and Short-Term Investments | 15.29B | 20.83B | 28.06B | 20.72B | 25.77B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 69.49B | 31.70B | 23.94B | 14.54B | 22.44B |
| Stockholders Equity | 184.77B | 117.81B | 102.41B | 74.54B | 67.43B |
Cash Flow | |||||
| Free Cash Flow | 3.39B | -6.03B | 7.22B | 452.31M | -983.37M |
| Operating Cash Flow | 5.30B | -3.73B | 8.16B | 1.24B | -195.28M |
| Investing Cash Flow | 10.49B | 3.59B | 214.06M | -5.52B | 20.02B |
| Financing Cash Flow | -18.44B | -7.51B | -5.39B | -1.74B | -16.53B |
Megachips Technical Analysis
Positive
8030.00
Price Trends
9334.19
Positive
8782.41
Positive
7791.29
Positive
Market Momentum
771.38
Negative
57.35
Neutral
56.74
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 10604.00, below the 50-day MA of 9334.19, and above the 200-day MA of 7791.29, indicating a bullish trend. The MACD of 771.38 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 56.74 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥179.24B | 13.16 | 1.86% | 0.76% | -14.55% | 100.23% | |
67 Neutral | ¥6.22T | 14.32 | -2.51% | 1.31% | 6.68% | -106.55% | |
67 Neutral | ¥26.76B | 14.10 | ― | 3.98% | 4.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | ¥1.67T | -7.44 | -4.26% | 2.30% | 7.29% | -216.41% | |
52 Neutral | ¥11.95B | -5.95 | ― | 1.86% | 11.06% | -804.16% | |
47 Neutral | ¥181.58B | -15.00 | ― | ― | -34.08% | -122.57% |
* Technology Sector Average
JP:6875
Megachips
11,030.00
6,295.07
132.95%
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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.