Ushio (6925) AI Stock Analysis

• Market Cap: $211.23B
• Dividend Yield: 2.98%
• Average Volume (3M): 287.66K
• Price to Earnings (P/E): 64.2
• Beta (1Y): 0.64
• Revenue Growth: 0.42%
• EPS Growth: -57.21%
• Country: JP
• Employees: 5,439
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -32.06
• Shares Outstanding: 92,500,000
• 10 Day Avg. Volume: 335,510
• 30 Day Avg. Volume: 287,660
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: 8.63
• 1Y Price Target: $2,128.33
• Price Target Upside: -9.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥2,128.00 ▼(-9.27% Downside)

Ushio's overall stock score reflects a stable financial foundation with low leverage and efficient operations. However, the lack of revenue growth and inconsistent cash flow are significant challenges. The technical analysis indicates a bullish trend, but the stock appears overbought, suggesting potential for a short-term pullback. Valuation metrics show the stock is overvalued, though the dividend yield offers some compensation for investors.

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 Inc. generates revenue primarily through the sale of its lighting solutions and systems. The company's key revenue streams include its broad range of specialty lamps, such as those used in projectors, cinema, and medical fields. Ushio also makes money by providing optical equipment and systems for industrial applications, including semiconductor manufacturing and biotechnology research. Significant partnerships with major technology and cinema companies further bolster its earnings, as does its involvement in developing cutting-edge light technologies for emerging industries.

Ushio Financial Statement Overview

Summary

Ushio demonstrates a stable financial foundation with low leverage, reflected in strong balance sheet metrics. While profitability metrics indicate moderate performance, the company has shown efficiency in its operations. However, revenue growth has been stagnant, and cash flow has been inconsistent. Overall, Ushio is financially stable but faces growth challenges that need addressing to enhance future profitability and cash flow consistency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	177.62B	179.42B	175.03B	148.82B	118.56B
Gross Profit	62.22B	64.92B	63.22B	54.03B	39.84B
EBITDA	22.32B	24.43B	23.65B	20.17B	8.11B
Net Income	6.80B	10.79B	13.70B	12.61B	-687.00M
Balance Sheet
Total Assets	297.30B	337.55B	323.62B	321.10B	290.27B
Cash, Cash Equivalents and Short-Term Investments	63.55B	69.77B	66.81B	93.62B	76.58B
Total Debt	41.40B	32.85B	8.32B	18.59B	24.63B
Total Liabilities	96.79B	100.57B	79.52B	85.90B	79.10B
Stockholders Equity	200.50B	236.96B	244.09B	235.12B	211.10B
Cash Flow
Free Cash Flow	6.78B	-1.04B	-7.24B	15.44B	7.73B
Operating Cash Flow	20.42B	8.97B	871.00M	21.63B	14.52B
Investing Cash Flow	2.72B	5.39B	-1.18B	-5.52B	-3.42B
Financing Cash Flow	-24.99B	-13.49B	-26.81B	-10.63B	-784.00M

Ushio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2345.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 2345.5 is above the 20-day moving average (MA) of 2236.07, above the 50-day MA of 2069.84, and above the 200-day MA of 1917.87, indicating a bullish trend. The MACD of 67.26 indicates Positive momentum. The RSI at 72.99 is Negative, neither overbought nor oversold. The STOCH value of 73.28 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
6622	81 Outperform	188.67B	15.06	8.64%	1.99%	18.08%	-18.15%
6508	75 Outperform	266.77B	14.87	13.09%	2.09%	5.25%	25.21%
6507	73 Outperform	245.52B	20.56	15.10%	1.09%	15.05%	38.95%
6407	73 Outperform	185.23B	14.27	9.90%	2.89%	10.27%	35.69%
6420	68 Neutral	160.41B	12.66	―	1.94%	13.93%	-1.88%
6925	60 Neutral	$211.23B	64.22	1.68%	2.98%	0.42%	-57.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ushio Corporate Events

Ushio Inc. Commences Major Share Repurchase Program

Ushio Inc. announced the purchase of 2,850,900 shares of its common stock through the Tokyo Stock Exchange’s off-auction own share repurchase trading system, totaling approximately 5.24 billion yen. This move is part of a broader strategy to repurchase up to 15 million shares, representing 17.04% of its total outstanding shares, with a maximum expenditure of 20 billion yen, indicating a significant effort to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Aligns Employee Incentives with Strategic Growth Plan

Ushio Inc. announced its decision to dispose of treasury stock to its Employee Stockholding Association through a restricted stock grant system. This move is part of the company’s strategy to align management and employees with its medium-term management plan and the ‘New Growth Strategy (Revive Vision 2030).’ The initiative aims to enhance corporate value over the medium to long term by encouraging employee participation and commitment to the company’s strategic goals.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

USHIO INC. Announces Major Share Buyback Plan

USHIO INC. has announced a decision to repurchase up to 15,000,000 of its own shares, representing 17.04% of its outstanding shares, to enhance capital efficiency and implement a more agile capital policy. This move, involving a maximum expenditure of 20 billion yen, is expected to impact the company’s market positioning by potentially increasing shareholder value and optimizing the capital structure.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Reports Q1 Financial Results with Increased Sales but Notable Loss

Ushio Inc. reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, showing a 2.2% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a significant loss attributable to owners of the parent, amounting to ¥2,827 million, highlighting challenges in maintaining profitability.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Acquires New Subsidiary to Boost Semiconductor Lamp Business

Ushio Inc. has announced its decision to acquire all shares of a new subsidiary that OSRAM GmbH plans to establish, which will focus on the lamp business for industrial and entertainment applications. This acquisition is part of Ushio’s strategy to enhance its industrial processes business, particularly in the semiconductor lamp market, and is expected to contribute significantly to the company’s revenue and efficiency, aligning with its ‘Revive Vision 2030’ goals.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Reports Results of Employee Support Program

Ushio Inc. announced the results of its expanded Second Life Support Program and special offering, which was aimed at employees aged 56 and older with at least three years of service. The initiative resulted in 238 applicants and incurred significant business restructuring expenses, leading to an extraordinary loss of 1,560 million yen for the fiscal year ended March 31, 2025, and an expected loss of approximately 2.6 billion yen for the first quarter of the fiscal year ending March 31, 2026. Despite these costs, Ushio Inc. has maintained its consolidated earnings forecast.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2230.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Reports Extraordinary Loss Due to Restructuring Efforts

Ushio Inc. announced it will record an extraordinary loss for the first quarter of the fiscal year ending March 2026 due to restructuring expenses. This includes costs from its Second Life Support Program and organizational management reviews aimed at improving profitability, but the company’s earnings forecast remains unchanged.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Inc. Exceeds Financial Forecasts Amid Market Challenges

Ushio Inc. announced a positive discrepancy between its financial results for the fiscal year ended March 31, 2025, and its previous forecast. The company reported higher net sales and profits due to increased operating profit from its lithography equipment segment and foreign exchange gains. This improvement is attributed to successful contract modifications and cost reductions amid challenging semiconductor market conditions.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 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 Financial Performance, Increases Dividend

Ushio Inc. reported a decline in its consolidated financial performance for the fiscal year ended March 31, 2025, with net sales slightly decreasing by 1% and operating profit dropping by 32%. Despite the downturn, the company increased its annual dividend per share from 50 yen to 70 yen, indicating a commitment to shareholder returns. Looking ahead, Ushio forecasts a further decrease in net sales by 4.3% for the fiscal year ending March 31, 2026, but anticipates a 13.3% increase in operating profit, reflecting strategic adjustments to improve profitability.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2150.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.