JEOL Ltd. (6951) AI Stock Analysis

• Market Cap: ¥351.36B
• Dividend Yield: 2.04%
• Average Volume (3M): 223.67K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 1.39
• Revenue Growth: -0.69%
• EPS Growth: -29.88%
• Country: JP
• Employees: 3,435
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 149.40
• Shares Outstanding: 51,532,800
• 10 Day Avg. Volume: 188,480
• 30 Day Avg. Volume: 223,666
• PEG Ratio: -0.90
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 11.62
• 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: ¥6,400.00
• Price Target Upside: -7.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 370.4
• Revenue Forecast (FY): ¥183.05B

• Rating: 78 Outperform
• Price Target: ¥7,852.00 ▲(14.00% Upside)
• Action: Upgraded Date: 01/20/26
• Date: Action: Upgraded 01/20/26

The score is supported primarily by strong financial performance (revenue growth, strong free cash flow, and low leverage). Technicals add to the outlook due to a strong uptrend, but the score is tempered by very overbought momentum signals and some recent margin/ROE compression. Valuation is reasonable but not especially cheap.

Positive Factors

Strong balance sheet

JEOL’s very low leverage and high equity ratio provide durable financial flexibility to fund R&D, capex, and support service operations without needing external financing. This balance-sheet strength reduces solvency risk across industry cycles and supports multi-month strategic execution.

Robust free cash flow

Strong FCF growth almost doubles internal funding capacity, enabling JEOL to invest in product upgrades, service infrastructure and working capital internally. Reliable cash generation underpins long-term operational resilience and reduces dependency on debt or equity raises.

Healthy margins with revenue growth

Sustained top-line expansion alongside a ~47% gross margin shows structural pricing power and manufacturing efficiency in complex instrument markets. This margin base supports operating profit recovery even if SG&A rises, reinforcing durable profitability potential over several quarters.

Negative Factors

Net margin compression

Declining net margin suggests rising operating costs, pricing pressure, or adverse mix shifts. If persistent, margin erosion will weaken retained earnings and constrain reinvestment into product development or services, undermining long-term return stability.

ROE decline

A meaningful drop in ROE indicates reduced efficiency converting equity into profit, possibly from earnings lagging equity growth. Continued ROE compression can lower shareholder returns and force tougher capital-allocation choices over the medium term.

Earnings volatility

A near-50% EPS contraction signals earnings volatility that may reflect cyclical customer capex, timing of large instrument deliveries, or one-offs. Earnings swings complicate budgeting for R&D, service capacity and payouts, raising execution risk across quarters.

JEOL Ltd. Business Overview & Revenue Model

Company Description

JEOL Ltd. engages in the research, development, manufacture, and marketing of scientific and metrology instruments, semiconductor and industrial equipment, and medical equipment. The company provides transmission electron microscopes; scanning electron microscopes; ion beam application equipment, including specimen preparation equipment and multibeam systems; instruments for micro area and surface analysis, such as electron probe micro analyzers, auger microprobes, and photoelectron spectrometers; magnetic resonance equipment, such as nuclear magnetic resonance and electron spin resonance spectrometers; X-ray fluorescence spectrometers; mass spectrometers; electron beam lithography systems; and clinical chemistry analyzers. It also offers industrial equipment for thin-film formation and material processing, including thin film formation equipment and material processing equipment. The company was formerly known as Japan Electron Optics Laboratory Co., Ltd. and changed its name to JEOL Ltd. in 1961. JEOL Ltd. was founded in 1949 and is headquartered in Akishima, Japan.

How the Company Makes Money

JEOL Ltd. generates revenue primarily through the sale of its high-precision instruments and systems, including electron microscopes, mass spectrometers, and other analytical equipment. The company also earns income through maintenance and support services for its products, which ensures ongoing customer engagement. Additionally, JEOL has established partnerships with research institutions and universities, enhancing its market presence and driving sales through collaborative projects and research initiatives. As a result, the company benefits from both direct sales and long-term service contracts, contributing to a stable revenue stream.

JEOL Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by solid revenue growth and improving free cash flow, supported by a well-capitalized balance sheet with very low leverage. The main offset is profitability pressure, with net margin and ROE declining versus the prior year.

Income Statement

JEOL Ltd. exhibits strong revenue growth with a consistent upward trajectory in Total Revenue over the past years, achieving a notable revenue growth rate of 12.8% from 2024 to 2025. The Gross Profit Margin remains healthy at around 47% in 2025, indicating efficient cost management. However, the Net Profit Margin slightly decreased from 12.5% in 2024 to 9.5% in 2025, which could suggest increased expenses or competitive pressures. The company maintains robust EBIT and EBITDA margins, reflecting solid operating performance.

Balance Sheet

JEOL Ltd. demonstrates financial stability with a strong Equity Ratio of 61.4% in 2025, indicating a well-capitalized balance sheet. The Debt-to-Equity ratio is low at 0.07, showcasing a conservative leverage position. However, Return on Equity (ROE) decreased from 17.3% in 2024 to 13.7% in 2025, suggesting that profitability growth is not keeping pace with equity growth, potentially impacting shareholder returns.

Cash Flow

The company shows impressive Free Cash Flow growth, increasing from ¥11.8 billion in 2024 to ¥20.1 billion in 2025, which enhances financial flexibility. The Operating Cash Flow to Net Income ratio is strong, indicating efficient cash generation relative to net earnings. The Free Cash Flow to Net Income ratio also improved, showcasing effective cash management and a healthy ability to fund operations and investments internally.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	200.49B	196.69B	174.34B	162.69B	138.41B	110.44B
Gross Profit	93.61B	92.40B	79.28B	72.70B	55.37B	42.89B
EBITDA	32.13B	30.26B	34.31B	28.71B	18.48B	9.44B
Net Income	19.46B	18.69B	21.70B	17.83B	12.28B	3.75B
Balance Sheet
Total Assets	220.17B	222.49B	230.21B	199.28B	189.56B	146.39B
Cash, Cash Equivalents and Short-Term Investments	40.76B	36.14B	31.50B	34.25B	44.23B	15.38B
Total Debt	6.17B	9.28B	15.78B	12.48B	17.11B	33.34B
Total Liabilities	82.70B	85.83B	104.70B	97.39B	103.66B	95.39B
Stockholders Equity	137.47B	136.65B	125.51B	101.89B	85.90B	51.00B
Cash Flow
Free Cash Flow	0.00	20.14B	11.83B	-3.04B	21.09B	-3.67B
Operating Cash Flow	0.00	23.10B	15.30B	3.35B	22.60B	3.36B
Investing Cash Flow	0.00	-855.00M	-18.03B	-5.73B	-648.00M	-6.99B
Financing Cash Flow	0.00	-17.12B	-798.00M	-8.73B	5.52B	3.29B

JEOL Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6888.00
• 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:6951, the sentiment is Positive. The current price of 6888 is above the 20-day moving average (MA) of 6412.90, above the 50-day MA of 5842.58, and above the 200-day MA of 4936.57, indicating a bullish trend. The MACD of 260.94 indicates Negative momentum. The RSI at 74.02 is Negative, neither overbought nor oversold. The STOCH value of 85.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6951.

JEOL Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6951	78 Outperform	¥351.36B	21.69	―	2.04%	-0.69%	-29.88%
6856	78 Outperform	¥881.74B	23.82	11.99%	0.65%	8.50%	14.06%
6806	78 Outperform	¥766.87B	25.94	8.09%	2.85%	11.18%	-0.75%
7701	75 Outperform	¥1.28T	22.20	10.84%	1.46%	3.92%	9.99%
4186	75 Outperform	¥1.14T	33.11	14.01%	1.08%	19.45%	41.03%
6965	74 Outperform	¥625.35B	47.17	4.19%	2.25%	3.97%	-41.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

JEOL Ltd. Corporate Events

JEOL Posts Lower Nine-Month Earnings but Maintains Dividend and Full-Year Outlook

JEOL reported a 4.8% year-on-year decline in net sales to ¥129.8 billion for the nine months ended December 31, 2025, with operating profit down 18.6% and profit attributable to owners of parent falling 12.3%. Despite weaker earnings and lower basic EPS, total assets and equity increased, lifting the equity-to-asset ratio to 63.9% and supporting a planned annual dividend of ¥106 per share for the fiscal year.

For the full year to March 31, 2026, the company is forecasting an 8.0% drop in net sales to ¥181 billion and a 32.4% slide in operating profit, indicating a tougher operating environment after a strong prior year. Even with this earnings pressure, JEOL is maintaining its previously announced guidance and dividend forecast, signaling confidence in its financial resilience and commitment to shareholder returns.

The most recent analyst rating on (JP:6951) stock is a Buy with a Yen6761.00 price target. To see the full list of analyst forecasts on JEOL Ltd. stock, see the JP:6951 Stock Forecast page.

JEOL Posts Lower Nine-Month Earnings but Maintains Full-Year Outlook and Dividend Plan

JEOL reported consolidated net sales of ¥129.8 billion for the nine months ended December 31, 2025, down 4.8% year on year, with operating profit falling 18.6% to ¥21.4 billion and profit attributable to owners of parent decreasing 12.3% to ¥17.5 billion. Despite weaker earnings versus the strong prior-year period, the company’s equity ratio improved to 63.9% and net assets per share rose, underscoring a solid balance sheet.

The company maintained its full-year forecast for the fiscal year ending March 31, 2026, projecting an 8.0% decline in net sales to ¥181.0 billion and a 32.4% drop in operating profit, with basic EPS expected at ¥352.09. JEOL plans to keep total annual dividends unchanged at ¥106 per share, signaling continued shareholder returns even as it anticipates profit pressure amid a softer demand environment and market headwinds.

The most recent analyst rating on (JP:6951) stock is a Buy with a Yen6761.00 price target. To see the full list of analyst forecasts on JEOL Ltd. stock, see the JP:6951 Stock Forecast page.

JEOL Launches Tender Offer for Own Shares as Nikon Sells 4.49% Stake

JEOL’s board has approved a share repurchase via a tender offer for its own shares as part of its capital policy to enhance shareholder returns and improve capital efficiency, complementing its existing dividend policy that targeted a 30% payout ratio and delivered interim and year-end dividends for the fiscal year ended March 31, 2025. The move is also a response to Nikon Corporation’s decision to sell its entire 4.49% stake in JEOL in order to boost Nikon’s own asset efficiency and financial position, with JEOL opting to absorb these shares through a structured buyback while maintaining the existing business alliance that dates back to their 2014 capital and business partnership and associated third-party share allotment.

The most recent analyst rating on (JP:6951) stock is a Buy with a Yen6761.00 price target. To see the full list of analyst forecasts on JEOL Ltd. stock, see the JP:6951 Stock Forecast page.