Ushio (6925) AI Stock Analysis

• Market Cap: ¥289.63B
• Dividend Yield: 2.81%
• Average Volume (3M): 275.19K
• Price to Earnings (P/E): 51.2
• Beta (1Y): 0.86
• Revenue Growth: -3.70%
• EPS Growth: -36.38%
• Country: JP
• Employees: 5,439
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 44.48
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,094.57
• Price Target Upside: -3.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 86.57
• Revenue Forecast (FY): ¥169.47B

• Rating: 69 Neutral
• Price Target: ¥3,522.00 ▲(9.51% Upside)
• Action: Reiterated Date: 01/07/26
• Date: Action: Reiterated 01/07/26

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

Low leverage, strong equity base

Ushio’s low debt-to-equity (0.21) and ~67.5% equity ratio provide durable financial flexibility, reducing bankruptcy risk and enabling funding for capex or R&D without relying heavily on external debt. This stability supports multi-quarter strategic investment and resilience to cyclical downturns.

Turnaround to positive free cash flow

Achieving ¥6.78B in free cash flow and a 3.0 operating cash flow-to-net income ratio indicates improved cash conversion and operational cash generation. Durable cash generation enhances capacity for sustained capex, dividend funding, or targeted M&A over the next several quarters.

Healthy gross and EBITDA margins

Margins (gross ~35%, EBITDA 12.6%, EBIT 5%) show structural operational efficiency in light-source manufacturing and systems. These margins provide buffer against input cost swings and support reinvestment in product development and specialized customer solutions across industrial and life-science end markets.

Negative Factors

Modest net profitability and ROE

Net margin near 3.8% and ROE around 3.4% indicate limited shareholder earnings generation relative to assets and equity. Persistently low returns constrain the company’s ability to significantly grow retained earnings or fund large strategic initiatives without improving operational leverage or achieving higher-margin revenue mix.

Slight revenue decline

A roughly 1% year-over-year revenue decline signals challenges in top-line growth within key end markets. Without clear structural growth drivers, sustained flat-to-declining revenue can strain margin expansion efforts and limit long-term scalability of R&D or go-to-market investments over the coming quarters.

Volatile cash flow and limited reinvestment headroom

Cash flow volatility and a free cash flow-to-net income ratio of 1.0 mean FCF closely tracks earnings, reducing excess cash for discretionary uses. This limits consistent reinvestment capacity for larger capex, product development, or acquisitions and raises execution risk for multi-quarter strategic initiatives.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: 3216.00
• 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:6925, the sentiment is Positive. The current price of 3216 is above the 20-day moving average (MA) of 3007.65, above the 50-day MA of 2823.69, and above the 200-day MA of 2280.70, indicating a bullish trend. The MACD of 103.89 indicates Negative momentum. The RSI at 74.92 is Negative, neither overbought nor oversold. The STOCH value of 88.85 is Negative, 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
3433	78 Outperform	¥183.81B	21.32	―	3.39%	14.21%	29.38%
6622	73 Outperform	¥328.31B	25.60	―	1.65%	14.49%	-21.17%
6508	71 Outperform	¥354.79B	15.98	14.28%	2.40%	8.03%	23.50%
6925	69 Neutral	¥289.63B	51.19	2.20%	2.81%	-3.70%	-36.38%
6235	66 Neutral	¥146.24B	46.25	―	2.72%	-6.46%	-47.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6324	58 Neutral	$438.48B	94.05	5.62%	0.56%	6.22%	―

Ushio Corporate Events

Ushio Holds FY2026 Outlook, Profit Weakens Despite Slight Operating Improvement

For the first nine months of the fiscal year ending March 31, 2026, Ushio reported net sales of ¥126.9 billion, down 0.9% year-on-year, while operating profit rose 4.6% to ¥7.7 billion. However, ordinary profit fell 15.1% to ¥8.9 billion and profit attributable to owners of the parent declined 29.8% to ¥4.0 billion, reflecting margin pressure and lower non-operating income despite an improved operating result; basic earnings per share decreased to ¥47.25. Total assets increased to ¥314.9 billion but the equity ratio slipped to 62.8% as net assets edged down, partly against the backdrop of a substantial increase in treasury stock. The company kept its full-year forecast unchanged, projecting a 4.3% decline in net sales to ¥170.0 billion but a 13.3% rise in operating profit to ¥10.0 billion and a modest 3.0% increase in full-year profit attributable to owners to ¥7.0 billion, alongside an annual dividend forecast of ¥70 per share, signaling management’s confidence in earnings resilience and a continued commitment to shareholder returns despite a challenging operating environment.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen3077.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

Ushio Advances Large-Scale Share Buyback, Spending Over ¥15.5 Billion by January End

Ushio Inc. has disclosed the latest progress of its share buyback program authorized by the board in August 2025. During the period from January 1 to January 31, 2026, the company repurchased 712,100 common shares on the Tokyo Stock Exchange for a total of ¥1,995,243,550. This forms part of a larger authorization to buy back up to 15 million shares, or 17.04% of shares outstanding (excluding treasury shares), with a ceiling of ¥20 billion through April 30, 2026; cumulatively, by the end of January 2026, Ushio had acquired 7,206,000 shares for ¥15,558,029,350. The accelerating pace of repurchases indicates active capital management and may support shareholder value through a reduced share float and potentially enhanced earnings per share, while signaling management’s confidence in the company’s financial position and future prospects.

The most recent analyst rating on (JP:6925) stock is a Hold with a Yen2882.00 price target. To see the full list of analyst forecasts on Ushio stock, see the JP:6925 Stock Forecast page.

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.