Ferrotec Holdings (6890) AI Stock Analysis

• Market Cap: ¥125.60B
• Dividend Yield: 6.14%
• Average Volume (3M): 452.86K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.45
• Revenue Growth: 23.36%
• EPS Growth: 3.63%
• Country: JP
• Employees: 14,192
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 65.86
• Shares Outstanding: 47,117,950
• 10 Day Avg. Volume: 524,000
• 30 Day Avg. Volume: 452,856
• PEG Ratio: -1.48
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.96
• 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: ¥3,325.17
• Price Target Upside: 24.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: ¥2,947.00 ▲(10.33%Upside)

Ferrotec Holdings is a strong performer in the semiconductor industry, with robust financial growth and profitability, solid technical indicators, and attractive valuation metrics. The primary strengths are its solid financial foundation and undervaluation, while high capital expenditure impacting cash flow is a notable challenge.

Ferrotec Holdings Business Overview & Revenue Model

Company Description

Ferrotec Holdings (6890) is a global leader in the manufacturing and supply of innovative materials and precision equipment used in various high-tech industries. The company specializes in providing advanced technologies and solutions in sectors such as semiconductor, photovoltaic, and electronic device manufacturing. Ferrotec's core products include precision ceramics, quartz products, thermal management solutions, and advanced vacuum and deposition systems, which are integral to the manufacturing processes of its clients.

How the Company Makes Money

Ferrotec Holdings generates revenue through the sale of its specialized materials and precision equipment to a diverse range of high-tech industries, primarily focusing on the semiconductor and photovoltaic sectors. The company's revenue streams are primarily derived from the manufacturing and distribution of precision products like ceramics, thermal components, and quartz products that are essential in the production processes of semiconductors and electronic devices. Additionally, Ferrotec earns income from its advanced vacuum and deposition systems, which are critical for manufacturing efficiency and quality in these fields. The company's growth is supported by strategic partnerships and collaborations within the industry, as well as its continuous investment in research and development to innovate and enhance its product offerings. Ferrotec's global presence and established relationships with major industry players also contribute significantly to its financial performance.

Ferrotec Holdings Financial Statement Overview

Summary

Ferrotec Holdings shows strong revenue growth and profitability, evidenced by significant increases in revenue and net profit margins. The balance sheet is solid with a healthy equity base, although the increase in debt suggests rising leverage. Cash flow challenges are noted due to negative free cash flow from high capital expenditure, but overall financial stability is maintained.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
256.53B	274.39B	222.43B	210.81B	133.82B	91.31B
	Gross Profit
71.92B	73.36B	69.86B	72.08B	48.68B	30.78B
	EBIT
23.64B	24.09B	24.87B	35.04B	22.60B	9.64B
	EBITDA
41.28B	51.63B	44.59B	47.85B	30.76B	18.82B
	Net Income Common Stockholders
14.30B	15.69B	15.15B	29.70B	26.66B	8.28B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
114.56B	117.73B	117.25B	103.11B	52.58B	30.20B
	Total Assets
565.74B	600.59B	510.03B	410.65B	264.77B	177.19B
	Total Debt
159.41B	168.28B	140.85B	72.26B	39.52B	49.77B
	Net Debt
44.84B	50.55B	44.04B	-30.85B	-13.06B	19.57B
	Total Liabilities
268.36B	277.04B	231.86B	161.00B	103.82B	98.95B
	Stockholders Equity
216.19B	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	-36.63B	-92.40B	-68.76B	-29.40B	-20.88B
	Financing Cash Flow
0.00	15.97B	55.24B	68.72B	30.60B	21.69B

Ferrotec Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2671.00
• 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 2671 is above the 20-day moving average (MA) of 2603.25, above the 50-day MA of 2472.46, and above the 200-day MA of 2430.70, indicating a bullish trend. The MACD of 43.98 indicates Negative momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 64.70 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	81 Outperform	¥79.07B	8.41		1.17%	11.53%	20.33%
6890	80 Outperform	¥125.60B	7.99	7.01%	6.14%	23.36%	3.63%
6966	78 Outperform	¥145.23B	11.17		3.21%	9.70%	-21.39%
5384	72 Outperform	¥141.05B	14.58		3.96%	18.61%	30.56%
6707	69 Neutral	¥188.32B	3.86		0.38%	-48.30%	―
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%