Taiyo Yuden Co., Ltd. (6976) AI Stock Analysis

• Market Cap: ¥305.99B
• Dividend Yield: 3.69%
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): 130.5
• Beta (1Y): 1.32
• Revenue Growth: 5.82%
• EPS Growth: -71.99%
• Country: JP
• Employees: 21,823
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -46.82
• Shares Outstanding: 130,218,480
• 10 Day Avg. Volume: 1,053,630
• 30 Day Avg. Volume: 1,861,766
• PEG Ratio: -0.42
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.17
• 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: ¥2,400.00
• Price Target Upside: -1.50% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: ¥2,479.00 ▲(1.74%Upside)

The overall stock score is primarily impacted by the company's financial performance and valuation concerns. While the stable operational performance and equity base are strengths, declining profitability and cash flow issues present risks. Additionally, the high P/E ratio suggests overvaluation, though a reasonable dividend yield offers some investor appeal. The technical analysis indicates mixed momentum, with short-term bullish signals overshadowed by long-term resistance.

Taiyo Yuden Co., Ltd. Business Overview & Revenue Model

Company Description

Taiyo Yuden Co., Ltd. develops, manufactures, and sells electronic components worldwide. It offers multilayer ceramic capacitors for use in smartphones, automobiles, and other devices; ferrite and applied products, such as inductors used in electronic equipment power and high-frequency circuits; integrated modules and devices, including film bulk acoustic resonator/surface acoustic wave devices for mobile communications and power supply modules; and other electronic components, such as energy devices used as backup power equipment for smart meters and other similar products, as well as peak current assistance for LED flashes. The company also provides noise suppression parts, such as bead inductors, common-mode choke coils, multilayer EMI suppression filters, and ring varistors; chip antennas; balun transformers; wireless modules; and aluminum electrolytic capacitors. Taiyo Yuden Co., Ltd. was founded in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Taiyo Yuden Co., Ltd. generates revenue primarily through the sale of its electronic components, including multilayer ceramic capacitors, inductors, and other passive components. These products are crucial for the functioning of various electronic devices, making them in demand across multiple industries. The company also benefits from strong relationships and partnerships with major electronics manufacturers, which help ensure a steady demand for its products. Additionally, Taiyo Yuden invests in research and development to innovate and improve its product offerings, thereby maintaining its competitive edge in the market and driving sales.

Taiyo Yuden Co., Ltd. Financial Statement Overview

Summary

Taiyo Yuden Co., Ltd. faces challenges with declining profitability and cash flow efficiency, despite stable operational performance and a robust equity base. The company should focus on improving cost management and maintaining liquidity while leveraging its strong capital structure to navigate financial risks.

Income Statement

The company has experienced fluctuating revenue with a slight increase in the most recent year. The gross profit margin has decreased over recent years, indicating potential cost pressures. Net profit margin has also declined significantly, suggesting challenges in maintaining profitability. However, EBIT and EBITDA margins show relatively stable performance, indicating efficient core operations despite net income challenges.

Balance Sheet

The company's balance sheet shows a healthy equity ratio, reflecting a strong capital base. However, the increasing debt-to-equity ratio indicates a growing reliance on debt financing, which could pose risks if not managed properly. Return on Equity (ROE) has declined, pointing to reduced returns on shareholder investments.

Cash Flow

Operating cash flow has decreased, coupled with negative free cash flow due to high capital expenditures, indicating significant reinvestment in the business. The cash flow to net income ratios suggest efficiency issues in converting income into cash. The company must monitor its cash flow closely to ensure liquidity amidst high investment levels.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
335.56B	341.44B	322.65B	319.50B	349.64B	300.92B
	Gross Profit
69.87B	71.27B	65.32B	87.42B	124.98B	88.95B
	EBIT
10.32B	10.16B	9.08B	31.98B	68.22B	40.77B
	EBITDA
44.76B	55.51B	53.28B	66.83B	99.43B	69.75B
	Net Income Common Stockholders
12.81B	2.33B	8.32B	23.22B	54.36B	28.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.50B	78.17B	102.78B	87.20B	92.57B	84.30B
	Total Assets
595.58B	573.19B	579.69B	503.46B	474.52B	404.64B
	Total Debt
164.45B	164.40B	148.84B	98.94B	72.98B	73.75B
	Net Debt
81.95B	86.23B	46.06B	11.74B	-19.59B	-10.55B
	Total Liabilities
260.27B	254.01B	249.59B	184.99B	174.24B	160.70B
	Stockholders Equity
335.31B	319.17B	330.10B	318.48B	300.29B	243.94B
Cash Flow		Free Cash Flow
0.00	-28.77B	-28.80B	-23.88B	15.76B	8.97B
	Operating Cash Flow
0.00	33.94B	51.10B	39.46B	67.31B	52.88B
	Investing Cash Flow
0.00	-63.53B	-82.79B	-60.44B	-50.62B	-42.22B
	Financing Cash Flow
0.00	3.05B	37.65B	14.48B	-14.71B	12.60B

Taiyo Yuden Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2436.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6976, the sentiment is Positive. The current price of 2436.5 is above the 20-day moving average (MA) of 2423.90, above the 50-day MA of 2259.38, and below the 200-day MA of 2489.39, indicating a neutral trend. The MACD of 40.33 indicates Positive momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 62.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6976.

Taiyo Yuden Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
6976	55 Neutral	¥305.99B	130.51		3.69%	5.82%	-71.99%
APELF		$2.06B	8.24	9.28%	0.03%	―	―
IBIDF		$5.51B	25.07	6.76%	0.67%	―	―
MRAAF		$26.87B	17.55	8.98%	2.78%	―	―
ULVAF		$1.73B	13.01	9.22%	2.67%	―	―
6762	73 Outperform	¥2.98T	17.51		2.07%	4.80%	34.01%

Taiyo Yuden Co., Ltd. Corporate Events

Taiyo Yuden Reports Strong Fiscal Year 2025 Results and Optimistic Profit Outlook for 2026

Taiyo Yuden reported a 6% year-over-year increase in net sales for the fiscal year ending March 2025, driven by strong demand across various sectors and products, notably capacitors and inductors. The company exceeded its February forecast due to higher-than-expected demand for inductors, resulting in a 15% rise in operating profit. Looking ahead, Taiyo Yuden aims for slight declines in net sales for the fiscal year ending March 2026 but anticipates a significant 53% increase in operating profit. The annual dividend remains stable, with the introduction of a new Dividend on Equity ratio for shareholder returns.

Taiyo Yuden Reports Fiscal Year 2025 Financial Results and Optimistic Outlook

Taiyo Yuden Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 5.8% increase in net sales to ¥341,438 million. However, the company experienced a significant decline in profit attributable to owners of the parent, which dropped by 72% year-on-year to ¥2,328 million. Despite the challenges, the company forecasts a substantial recovery in profits for the next fiscal year, with a projected 243.6% increase in profit attributable to owners of the parent.

Taiyo Yuden Sets Shareholding Guidelines for Directors

Taiyo Yuden Co., Ltd. has established new Shareholding Guidelines for its Executive Directors, aiming to sustainably improve corporate value and align interests with shareholders. The guidelines recommend that Executive Directors hold company shares equivalent to a specified multiple of their annual basic remuneration within five years of their appointment.

Taiyo Yuden Revises Profit Distribution Policy to Enhance Shareholder Returns

Taiyo Yuden Co., Ltd. has revised its basic policy on profit distribution to further enhance shareholder returns. The company has introduced a dividend on equity (DOE) ratio of 3.5% as a new indicator, alongside its existing dividend payout ratio target of 30%. This change reflects the company’s commitment to providing stable dividends and improving corporate value by balancing economic and social factors.

Taiyo Yuden Reports Foreign Exchange Loss and Financial Forecast Discrepancies

Taiyo Yuden Co., Ltd. announced a recognition of non-operating expenses due to a foreign exchange loss for the fiscal year ending March 31, 2025. Despite recording foreign exchange gains earlier in the year, the company faced a significant loss in the fourth quarter, resulting in an overall foreign exchange loss of ¥819 million. Additionally, the company reported a discrepancy between its forecasted and actual financial results, with net sales and operating profit exceeding expectations due to high demand for inductors. However, ordinary profit and profit attributable to owners were lower than anticipated, primarily due to the foreign exchange loss and yen appreciation.

Taiyo Yuden Announces Director Appointments Ahead of Shareholders Meeting

Taiyo Yuden Co., Ltd. has announced an informal decision to appoint directors, which will be submitted for ratification at the upcoming Ordinary General Meeting of Shareholders in June 2025. The announcement includes the reappointment of several directors and the introduction of a candidate for a substitute director, indicating a strategic continuity in leadership and potential stability for stakeholders.