Ushio (6925) AI Stock Analysis

• Market Cap: $249.46B
• Dividend Yield: 2.81%
• Average Volume (3M): 275.19K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.83
• Revenue Growth: -3.70%
• EPS Growth: -36.38%
• Country: JP
• Employees: 5,439
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 34.83
• Shares Outstanding: 92,500,000
• 10 Day Avg. Volume: 251,540
• 30 Day Avg. Volume: 275,190
• PEG Ratio: -0.95
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 26.40
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 3.51
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: $3,100.00
• Price Target Upside: 14.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥3,094.00 ▲(14.32% Upside)

The score is driven primarily by solid financial stability (low leverage and strong equity base) and a strong upward technical trend (price above all key moving averages with positive MACD). These positives are tempered by expensive valuation (P/E 48.52) and very elevated momentum readings (RSI/Stoch), alongside modest profitability and slightly declining revenue.

Positive Factors

Balance Sheet Strength

Ushio's very low leverage and ~67.5% equity ratio provide durable financial flexibility. This reduces solvency risk, supports sustained capex and R&D spending, and allows the company to absorb sector cyclicality or pursue opportunistic M&A without relying on heavy external financing.

Diversified, specialized product portfolio

Ushio serves multiple specialized end markets (entertainment, healthcare, industrial, semiconductors) with both lighting and photolithography products. This technology-driven diversification supports more resilient demand, niche pricing power, and cross-market innovation that can sustain revenue streams over the medium term.

Improved cash generation

A turnaround to positive FCF (¥6.78B) and strong OCF-to-net-income conversion indicate improved cash quality. Durable cash generation strengthens the company's ability to fund maintenance capex, dividends, and selective investments without materially increasing leverage, supporting long-term financial stability.

Negative Factors

Revenue decline trend

A persistent top-line decline erodes scale benefits and makes margin expansion more difficult. Without clear growth drivers, shrinking revenue can constrain R&D and commercialization budgets, weaken negotiating leverage with suppliers, and raise execution risk for medium-term profitability improvement.

Modest profitability margins

Relatively low net and EBIT margins limit retained earnings available for reinvestment and reduce buffers against cost inflation or demand shocks. Over time modest margins can impede the firm's ability to sustainably boost ROE or fund strategic initiatives without external capital or margin expansion.

Volatile free cash flow limits reinvestment

Although FCF turned positive, its volatility and an FCF/net income ratio near 1.0 mean limited surplus beyond earnings. That reduces predictable internal funding for growth projects, heightens sensitivity to operational swings, and can constrain sustained investment in new products or capacity.

Ushio Business Overview & Revenue Model

Company Description

Ushio Inc. produces and sells light application products, industrial equipment, and other products in Japan, rest of Asia, Europe, North America, and internationally. The company offers laser diodes, LED chips/packages, ultraviolet (UV) lamps, xenon lamps, laser devices, halogen lamp heaters, and halogen heaters. It also provides lighting for general illumination, architecture and landscape, marine applications, and plant growth applications, as well as lamps for data projectors and LED lamps for illumination. In addition, the company offers light source units, excimer lamps and irradiation units, exposure units, illumination light sources, laser modules, fishing lamps, and warning lights, as well as lighting for security applications and UV-LED for printing UniJet series. Further, it provides lithography tools and aligners, cleaning and modification systems, UV curing systems, measurement equipment, photoheating equipment, laboratory instruments, environment and sanitation related equipment, and imaging and illumination systems. Additionally, the company offers power supply repair services, power supplies, plastic injection-molding machines, mold protection devices, joints and tubing, plastic materials, factory automation products, sound-systems, and cinema servers. Ushio Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ushio generates revenue through multiple streams, primarily from the sale of its lighting products, including traditional and LED lighting solutions. The company has established significant partnerships with various sectors, providing customized lighting solutions for industrial applications and specialized markets, such as cinema and medical lighting. Additionally, Ushio earns income from its semiconductor and electronics segments, which include the production of photolithography equipment and materials. The company's focus on innovation and technological advancement allows it to maintain competitive pricing and capture market share, contributing positively to its overall earnings.

Ushio Financial Statement Overview

Summary

Financially stable with low leverage (debt-to-equity 0.21) and strong equity backing (~67.5% equity ratio). Profitability is moderate (gross margin ~35%, EBIT margin ~5%, net margin ~3.8%) and revenue declined about 1% YoY. Cash flow improved with a turnaround to positive free cash flow (¥6.78B) but remains described as volatile.

Income Statement

Ushio has shown a mixed performance over the examined period. The recent gross profit margin is around 35%, and the net profit margin stands at approximately 3.8%. These margins indicate moderate profitability. Revenue has declined slightly by about 1% from the previous year, suggesting a need for growth stimulation. However, the company maintains a solid EBIT margin of 5% and an EBITDA margin of 12.6%, reflecting efficient operations despite the revenue dip.

Balance Sheet

The balance sheet shows a robust equity structure with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The equity ratio is approximately 67.5%, reflecting strong asset backing. Return on equity is modest at about 3.4%, suggesting room for improving shareholder returns. Overall, the company maintains a strong financial position with low risk of financial distress.

Cash Flow

Ushio's cash flow performance has been volatile. The company achieved a substantial increase in free cash flow to ¥6.78 billion, marking a significant turnaround from the previous negative figures. The operating cash flow to net income ratio is 3.0, indicating healthy cash generation relative to income. However, the free cash flow to net income ratio is 1.0, showing that free cash flow is closely aligned with net earnings, which could limit reinvestment capacity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	178.43B	177.62B	179.42B	175.03B	148.82B	118.56B
Gross Profit	62.26B	62.22B	64.92B	63.22B	54.03B	39.84B
EBITDA	22.03B	22.32B	24.43B	28.22B	23.19B	8.11B
Net Income	3.67B	6.80B	10.79B	13.70B	12.61B	-687.00M
Balance Sheet
Total Assets	286.94B	297.30B	337.55B	323.62B	321.10B	290.27B
Cash, Cash Equivalents and Short-Term Investments	56.34B	63.55B	69.77B	66.81B	93.62B	76.58B
Total Debt	41.17B	42.36B	32.85B	8.32B	18.59B	24.63B
Total Liabilities	96.05B	96.79B	100.57B	79.52B	85.90B	79.10B
Stockholders Equity	190.88B	200.50B	236.96B	244.09B	235.12B	211.10B
Cash Flow
Free Cash Flow	0.00	6.78B	-1.04B	-7.24B	15.44B	7.73B
Operating Cash Flow	0.00	20.42B	8.97B	871.00M	21.63B	14.52B
Investing Cash Flow	0.00	2.72B	5.39B	-1.18B	-5.52B	-3.42B
Financing Cash Flow	0.00	-24.99B	-13.49B	-26.81B	-10.63B	-784.00M

Ushio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2706.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6925, the sentiment is Positive. The current price of 2706.5 is below the 20-day moving average (MA) of 2798.43, above the 50-day MA of 2593.22, and above the 200-day MA of 2149.02, indicating a neutral trend. The MACD of 57.64 indicates Positive momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 23.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6925.

Ushio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6420	80 Outperform	¥162.31B	12.25	―	1.94%	11.63%	3.32%
6407	76 Outperform	¥275.43B	21.86	―	2.50%	6.16%	17.11%
6507	74 Outperform	¥294.00B	23.79	―	1.01%	14.47%	30.85%
6622	73 Outperform	¥264.78B	21.66	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥274.03B	12.35	14.28%	2.40%	8.03%	23.50%
6925	69 Neutral	$249.46B	52.00	2.20%	2.81%	-3.70%	-36.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ushio Corporate Events

Ushio Advances Large-Scale Share Buyback, Repurchases 6.49 Million Shares to Date

Ushio Inc. has reported the latest status of its ongoing share repurchase program, revealing that it bought 392,400 common shares for a total of ¥965.53 million on the Tokyo Stock Exchange between December 1 and December 31, 2025. This buyback is part of a larger program authorized by the board in August 2025 to acquire up to 15 million shares, or 17.04% of shares outstanding (excluding treasury stock), for as much as ¥20 billion by April 30, 2026. As of December 31, 2025, cumulative repurchases under this mandate have reached 6,493,900 shares at a total cost of approximately ¥13.56 billion, underscoring management’s continued focus on shareholder returns and capital efficiency through an active treasury share program.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2394.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Updates on Treasury Shares Repurchase Progress

Ushio Inc. has announced the status of its treasury shares repurchase plan, which was resolved at the Board of Directors meeting in August 2025. During November 2025, the company purchased 654,000 common shares for a total of 1,543,263,500 Yen through market purchasing on the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 15 million shares by April 2026, potentially impacting shareholder value and market perception.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2394.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Reports Decline in First Half Financial Results

Ushio Inc. reported a decline in its consolidated financial performance for the first six months of the fiscal year ending March 31, 2026, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company maintains its dividend forecast and anticipates a modest profit for the full fiscal year, reflecting cautious optimism in its future operations.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2606.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Reports Progress on Treasury Share Repurchase Plan

Ushio Inc. has announced the status of its ongoing treasury share repurchase plan, initially resolved by the Board of Directors on August 5, 2025. As of October 31, 2025, the company has purchased 811,300 common shares for a total of 1,962,500,000 Yen through market purchases on the Tokyo Stock Exchange. This is part of a larger plan to repurchase up to 15,000,000 shares by April 2026, with the aim of enhancing shareholder value.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2606.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.