Ferrotec Holdings (6890) AI Stock Analysis

• Market Cap: $186.22B
• Dividend Yield: 3.56%
• Average Volume (3M): 548.14K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.50
• Revenue Growth: 22.01%
• EPS Growth: -13.47%
• Country: JP
• Employees: 14,192
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): 65.86
• Shares Outstanding: 47,117,950
• 10 Day Avg. Volume: 537,270
• 30 Day Avg. Volume: 548,143
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: 5.44
• 1Y Price Target: $4,222.42
• Price Target Upside: 6.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,222.00 ▲(6.62% Upside)

Ferrotec Holdings displays strong financial performance and attractive valuation, which are the primary drivers of its positive score. Despite technical analysis indicating potential short-term overbought conditions, the company's robust financial health and attractive valuation metrics make it a compelling investment. The absence of earnings call and corporate events data does not impact the overall score significantly.

Ferrotec Holdings Business Overview & Revenue Model

Company Description

Ferrotec Holdings (6890) is a global company specializing in the development and manufacturing of technology-based solutions. It operates primarily in sectors such as semiconductor manufacturing equipment, electronic components, and advanced technology solutions. The company is known for its production of essential materials and components like thermoelectric modules, quartz products, and magnetic fluids, which are used in a variety of industrial applications.

How the Company Makes Money

Ferrotec Holdings generates revenue through the sale of its diverse range of products and solutions tailored to high-tech industries. The company's key revenue streams include the semiconductor manufacturing equipment sector, where it supplies critical components and materials used in the production of semiconductors. Additionally, Ferrotec earns income from its electronic components and advanced materials divisions, which provide thermoelectric modules and quartz products to industries requiring precise temperature control and stability. The company's earnings are bolstered by strategic partnerships with leading technology firms and its global presence, which helps in capturing market share across different regions.

Ferrotec Holdings Financial Statement Overview

Summary

Ferrotec Holdings shows strong financial performance with significant revenue and profit growth. The income statement indicates robust growth and profitability, the balance sheet is solid with manageable leverage, and the company is well-positioned for future growth. However, challenges in cash flow due to high investment levels pose a risk, necessitating careful management.

Income Statement

Ferrotec Holdings has demonstrated strong revenue growth with a significant increase from ¥81.6 billion in 2020 to ¥274.39 billion in 2025. The company's gross profit margin and EBIT margin are stable, although the EBIT margin saw a decrease from 16.62% in 2023 to 8.78% in 2025. Net profit margin has improved since 2020, indicating strong profitability. The consistency in EBITDA margin suggests operational efficiency. Overall, the income statement reflects robust growth and profitability, with minor fluctuations in margins that are typical in the semiconductor industry.

Balance Sheet

The company's balance sheet reveals a healthy equity base, with stockholders' equity increasing from ¥48.47 billion in 2020 to ¥236.83 billion in 2025. The debt-to-equity ratio is manageable, though the increase in total debt to ¥168.28 billion by 2025 suggests increased leverage. The equity ratio has been stable, reflecting a solid financial foundation. Return on Equity (ROE) is strong, showing effective utilization of equity. While there is a rise in liabilities, the overall balance sheet remains solid with good equity coverage.

Cash Flow

Ferrotec Holdings' cash flow statement highlights challenges in free cash flow, which has been negative over the years, with an increase in capital expenditure impacting free cash flow from -¥13.95 billion in 2023 to -¥25.17 billion in 2025. The operating cash flow remains strong, but the free cash flow to net income ratio indicates potential concerns with cash generation relative to profits. The company appears to be investing heavily in growth, which affects short-term cash flow metrics.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	274.39B	274.39B	222.43B	210.81B	133.82B	91.31B
Gross Profit	73.36B	73.36B	69.86B	72.08B	48.68B	30.78B
EBITDA	51.63B	51.63B	44.59B	55.98B	42.61B	21.95B
Net Income	15.69B	15.69B	15.15B	29.70B	26.66B	8.28B
Balance Sheet
Total Assets	600.59B	600.59B	510.03B	410.65B	264.77B	177.19B
Cash, Cash Equivalents and Short-Term Investments	117.73B	117.73B	117.25B	103.11B	52.58B	30.20B
Total Debt	168.28B	168.28B	140.85B	72.26B	39.52B	49.77B
Total Liabilities	277.04B	277.04B	231.86B	161.00B	103.82B	98.95B
Stockholders Equity	236.83B	236.83B	204.41B	183.77B	131.07B	67.18B
Cash Flow
Free Cash Flow	0.00	-25.17B	-46.51B	-13.95B	-15.99B	-1.08B
Operating Cash Flow	0.00	26.07B	28.72B	43.02B	17.83B	13.22B
Investing Cash Flow	0.00	-39.63B	-92.40B	-68.76B	-29.40B	-20.88B
Financing Cash Flow	0.00	18.96B	60.42B	68.72B	30.60B	21.69B

Ferrotec Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6890, the sentiment is Positive. The current price of 3960 is above the 20-day moving average (MA) of 3797.75, above the 50-day MA of 3645.10, and above the 200-day MA of 2805.14, indicating a bullish trend. The MACD of 83.66 indicates Negative momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 64.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6890.

Ferrotec Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3445	80 Outperform	¥100.97B	10.70		0.92%	20.23%	20.22%
6890	77 Outperform	$186.22B	13.74	6.22%	3.56%	22.01%	-13.47%
6966	71 Outperform	¥140.90B	15.10		2.43%	6.31%	-37.42%
5384	69 Neutral	¥162.29B	17.17		3.44%	21.20%	36.43%
Sector *	61 Neutral	$36.85B	12.13	-10.22%	1.85%	8.52%	-7.53%
6707	54 Neutral	¥181.80B	3.45		0.38%	-58.24%	―
6871	―	¥202.43B	20.57		1.38%	―	―