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Ferrotec Holdings Corporation (JP:6890)
:6890
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Ferrotec Holdings (6890) AI Stock Analysis

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JP:6890

Ferrotec Holdings

(OTC:6890)

Rating:77Outperform
Price Target:
¥4,222.00
▲(10.23%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 (6890) vs. iShares MSCI Japan ETF (EWJ)

Ferrotec Holdings Business Overview & Revenue Model

Company DescriptionFerrotec 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 MoneyFerrotec 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 revenue and profit growth, with a robust income statement and solid balance sheet. However, challenges in free cash flow due to high capital expenditures indicate potential liquidity concerns despite the company's strategic investments for future growth.
Income Statement
88
Very Positive
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
82
Very Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue274.39B222.43B210.81B133.82B91.31B
Gross Profit73.36B69.86B72.08B48.68B30.78B
EBITDA51.63B44.59B47.85B30.76B18.82B
Net Income15.69B15.15B29.70B26.66B8.28B
Balance Sheet
Total Assets600.59B510.03B410.65B264.77B177.19B
Cash, Cash Equivalents and Short-Term Investments117.73B117.25B103.11B52.58B30.20B
Total Debt168.28B140.85B72.26B39.52B49.77B
Total Liabilities277.04B231.86B161.00B103.82B98.95B
Stockholders Equity236.83B204.41B183.77B131.07B67.18B
Cash Flow
Free Cash Flow-25.17B-46.51B-13.95B-15.99B-1.08B
Operating Cash Flow26.07B28.72B43.02B17.83B13.22B
Investing Cash Flow-36.63B-92.40B-68.76B-29.40B-20.88B
Financing Cash Flow15.97B55.24B68.72B30.60B21.69B

Ferrotec Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3830.00
Price Trends
50DMA
2917.66
Positive
100DMA
2691.46
Positive
200DMA
2573.29
Positive
Market Momentum
MACD
242.31
Negative
RSI
84.88
Negative
STOCH
91.68
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 3830 is above the 20-day moving average (MA) of 3300.45, above the 50-day MA of 2917.66, and above the 200-day MA of 2573.29, indicating a bullish trend. The MACD of 242.31 indicates Negative momentum. The RSI at 84.88 is Negative, neither overbought nor oversold. The STOCH value of 91.68 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥152.43B16.93
2.24%9.00%-50.84%
80
Outperform
¥82.04B8.72
1.13%11.53%20.33%
77
Outperform
¥180.10B11.197.01%3.68%23.36%3.61%
72
Outperform
¥171.27B17.51
3.26%18.61%30.56%
67
Neutral
¥210.53B4.13
0.38%-48.30%
57
Neutral
HK$14.57B5.76-5.77%4.75%9.65%-43.80%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6890
Ferrotec Holdings
3,830.00
1,524.97
66.16%
JP:3445
RS Technologies Co. Ltd.
3,095.00
45.98
1.51%
JP:5384
Fujimi Incorporated
2,250.00
-562.09
-19.99%
JP:6707
Sanken Electric Co., Ltd.
8,722.00
1,581.00
22.14%
JP:6966
Mitsui High-Tec, Inc.
784.00
-302.58
-27.85%
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.Date of analysis: Jul 18, 2025