Ferrotec Holdings (6890) AI Stock Analysis

• Market Cap: ¥143.66B
• Dividend Yield: 5.63%
• Average Volume (3M): 513.53K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.51
• Revenue Growth: 23.36%
• EPS Growth: 3.61%
• Country: JP
• Employees: 14,192
• Sector: Technology
• Sector Strength: 86
• Industry: Semiconductors
• EPS (TTM): 65.86
• Shares Outstanding: 47,117,950
• 10 Day Avg. Volume: 588,870
• 30 Day Avg. Volume: 513,530
• 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: ¥2,600.14
• Price Target Upside: -14.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥3,662.00 ▲(19.87%Upside)

Ferrotec Holdings achieves a strong overall score driven by impressive financial performance and attractive valuation. While the stock shows strong price momentum, caution is advised due to potential overbought signals. The company's strategic investments may impact short-term cash flows but position it well for future growth.

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
EBITDA	41.28B	51.63B	44.59B	47.85B	30.76B	18.82B
Net Income	14.30B	15.69B	15.15B	29.70B	26.66B	8.28B
Balance Sheet
Total Assets	565.74B	600.59B	510.03B	410.65B	264.77B	177.19B
Cash, Cash Equivalents and Short-Term Investments	114.56B	117.73B	117.25B	103.11B	52.58B	30.20B
Total Debt	159.41B	168.28B	140.85B	72.26B	39.52B	49.77B
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: 3055.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3055 is above the 20-day moving average (MA) of 2815.55, above the 50-day MA of 2640.22, and above the 200-day MA of 2477.55, indicating a bullish trend. The MACD of 125.44 indicates Negative momentum. The RSI at 79.16 is Negative, neither overbought nor oversold. The STOCH value of 94.31 is Negative, 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	¥81.88B	8.70		1.13%	11.53%	20.33%
6890	79 Outperform	¥143.66B	9.14	7.01%	5.63%	23.36%	3.61%
5384	72 Outperform	¥151.79B	15.69		3.68%	18.61%	30.56%
6966	71 Outperform	¥135.90B	15.19		3.43%	9.00%	-50.84%
6707	69 Neutral	¥193.82B	3.79		0.38%	-48.30%	―
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%