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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

(6890)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
¥5,614.00
▲(12.51% Upside)
Ferrotec Holdings' strong financial performance and bullish technical indicators are the primary drivers of the stock's score. The company's strategic investments and solid balance sheet position it well for future growth, though careful management of cash flows is necessary. The valuation is reasonable, with a supportive dividend yield.

Ferrotec Holdings (6890) vs. iShares MSCI Japan ETF (EWJ)

Ferrotec Holdings Business Overview & Revenue Model

Company DescriptionFerrotec Holdings Corporation engages in semiconductor equipment-related, electronic device, and other businesses in Japan and internationally. The company offers vacuum seals, silicon wafers, vacuum coating systems, quartz products, ceramics products, CVD-SiC parts, silicon parts, and quartz crucibles, as well as parts cleaning services for semiconductor and FPD manufacturing equipment. It also provides ferrofluids; thermo-electric modules; power semiconductor DCB and AMB substrates; ingots, wafers, and cells for solar modules; industrial cleaning equipment; and machine blades. In addition, the company manufactures and sells automobile related products; manufactures and sells devices, parts, consumables, and consumable components for semiconductor manufacturing equipment; natural energy machinery; and scientific equipment and supplies, as well as imports and exports goods, technology, and systems. Additionally, it offers mechanical cutters for information, steel, paper pulp and meat industry; and industrial machines and parts, as well as landscaping and greening, green space management, and slope construction services. The company was formerly known as Fellow Tech Holdings Co., Ltd. and changed its name to Ferrotec Holdings Corporation in April 2007. Ferrotec Holdings Corporation was founded in 1980 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyFerrotec generates revenue through several key streams, primarily from the sale of specialized materials and equipment used in semiconductor manufacturing and other high-tech industries. The company's revenue model is built on direct sales to large manufacturers and technology firms, as well as long-term contracts for ongoing supply agreements. Significant partnerships with major players in the semiconductor and electronics sectors enhance its market reach and stability. Additionally, Ferrotec benefits from its ability to innovate and deliver tailored solutions that meet the evolving demands of its customers, which further drives sales and profitability.

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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue282.18B274.39B222.43B210.81B133.82B91.31B
Gross Profit74.53B73.36B69.86B72.08B48.68B30.78B
EBITDA53.71B51.63B44.59B55.98B42.61B21.95B
Net Income13.52B15.69B15.15B29.70B26.66B8.28B
Balance Sheet
Total Assets580.96B600.59B510.03B410.65B264.77B177.19B
Cash, Cash Equivalents and Short-Term Investments103.08B117.73B117.25B103.11B52.58B30.20B
Total Debt169.38B168.28B140.85B72.26B39.52B49.77B
Total Liabilities274.25B277.04B231.86B161.00B103.82B98.95B
Stockholders Equity223.31B236.83B204.41B183.77B131.07B67.18B
Cash Flow
Free Cash Flow0.00-25.17B-46.51B-13.95B-15.99B-1.08B
Operating Cash Flow0.0026.07B28.72B43.02B17.83B13.22B
Investing Cash Flow0.00-39.63B-92.40B-68.76B-29.40B-20.88B
Financing Cash Flow0.0018.96B60.42B68.72B30.60B21.69B

Ferrotec Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4990.00
Price Trends
50DMA
4008.05
Positive
100DMA
3600.42
Positive
200DMA
3023.15
Positive
Market Momentum
MACD
214.69
Negative
RSI
75.98
Negative
STOCH
88.79
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 4990 is above the 20-day moving average (MA) of 4280.25, above the 50-day MA of 4008.05, and above the 200-day MA of 3023.15, indicating a bullish trend. The MACD of 214.69 indicates Negative momentum. The RSI at 75.98 is Negative, neither overbought nor oversold. The STOCH value of 88.79 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
¥184.90B19.033.07%21.20%36.43%
$195.62B14.436.22%3.21%22.01%-13.47%
¥138.71B14.862.34%6.31%-37.42%
¥103.53B10.970.92%20.23%20.22%
$37.18B12.37-10.20%1.83%8.50%-7.62%
¥144.52B3.31-58.24%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6890
Ferrotec Holdings
4,990.00
2,517.39
101.81%
JP:3445
RS Technologies Co. Ltd.
3,810.00
-169.57
-4.26%
JP:5384
Fujimi Incorporated
2,387.00
74.99
3.24%
JP:6707
Sanken Electric Co., Ltd.
7,450.00
1,337.00
21.87%
JP:6871
Micronics Japan Co., Ltd.
8,200.00
4,337.49
112.30%
JP:6966
Mitsui High-Tec, Inc.
775.00
-37.01
-4.56%
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: Oct 30, 2025