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

• Market Cap: ¥559.74B
• Dividend Yield: 2.57%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 82.2
• Beta (1Y): 1.42
• Revenue Growth: 4.81%
• EPS Growth: -49.43%
• Country: JP
• Employees: 21,823
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 56.70
• Shares Outstanding: 130,218,480
• 10 Day Avg. Volume: 1,502,560
• 30 Day Avg. Volume: 1,506,029
• PEG Ratio: -2.12
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.04
• P/FCF Ratio: -12.37
• 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: ¥3,922.22
• Price Target Upside: -12.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 101.72
• Revenue Forecast (FY): ¥354.35B

• Rating: 56 Neutral
• Price Target: ¥5,121.00 ▲(14.90% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily constrained by weakening profitability and cash-flow pressure (negative free cash flow), partially offset by a still-solid balance sheet. Technicals are supportive due to strong trend momentum, but overbought signals raise near-term risk. Valuation is a meaningful headwind given the very high P/E despite a modest dividend yield.

Positive Factors

Diversified End-Market Exposure

Taiyo Yuden's product mix (MLCCs, inductors) serves multiple structural end markets—consumer devices, automotive, industrial. That breadth reduces single-market cyclicality, supports steadier order flows, and allows long-term revenue resilience as automotive and industrial electronics demand matures.

Solid Capital Base

A healthy equity ratio indicates the company has a strong capital foundation to fund manufacturing scale, R&D, and qualification cycles required for automotive/industrial customers. This balance-sheet strength supports sustained investment and resilience through industry cycles over months to years.

Stable Core Operating Margins

Relatively stable EBIT/EBITDA margins imply the company retains operational efficiency in manufacturing and cost control. That stability supports cash generation from core activities and suggests management can protect operating profitability even if gross/net margins face temporary pressure.

Negative Factors

Declining Profitability

Material declines in gross and net margins erode intrinsic earnings power and signal cost pressures or pricing weakness. Over a multi-month horizon, squeezed margins reduce reinvestment capacity and make returns more sensitive to raw-material, energy, or pricing shifts in component markets.

Negative Free Cash Flow

Decreasing operating cash flow and negative free cash flow from heavy capex indicate that investments currently outpace cash generation. Persisting negative FCF pressures liquidity and increases reliance on external financing, constraining strategic flexibility and dividend or buyback capacity over time.

Rising Leverage & Lower ROE

A rising debt-to-equity ratio combined with declining ROE points to heavier leverage and weaker shareholder returns. Over the medium term this raises interest burden risk, reduces financial flexibility for cyclical downturns, and can magnify earnings volatility if demand softens.

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 generates revenue primarily through the sale of electronic components and modules. The company’s key revenue streams include capacitors, inductors, and high-frequency components, which are essential for a wide range of applications in smartphones, computers, and automotive electronics. Significant partnerships with major tech companies and automotive manufacturers enhance their market position and drive sales. Additionally, ongoing investments in research and development allow Taiyo Yuden to innovate and offer cutting-edge products, thereby maintaining competitive pricing and expanding their customer base globally.

Taiyo Yuden Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue recently improved slightly, but gross and net margins have declined meaningfully. Balance sheet remains relatively solid with a healthy equity base, though rising leverage and declining ROE add risk. Cash flow is a key weak spot, with lower operating cash flow and negative free cash flow from high capex.

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	345.11B	341.44B	322.65B	319.50B	349.64B	300.92B
Gross Profit	72.18B	71.57B	65.32B	87.42B	124.98B	88.95B
EBITDA	51.74B	56.42B	53.28B	66.47B	103.55B	66.63B
Net Income	-4.86B	2.33B	8.32B	23.22B	54.36B	28.61B
Balance Sheet
Total Assets	584.37B	573.19B	579.69B	503.46B	474.52B	404.64B
Cash, Cash Equivalents and Short-Term Investments	85.53B	78.17B	102.78B	87.20B	92.57B	84.30B
Total Debt	170.29B	164.40B	148.84B	98.94B	72.98B	73.75B
Total Liabilities	270.87B	254.02B	249.59B	184.99B	174.24B	160.70B
Stockholders Equity	313.49B	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: 4457.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 4457 is above the 20-day moving average (MA) of 4339.65, above the 50-day MA of 3833.94, and above the 200-day MA of 3230.53, indicating a bullish trend. The MACD of 316.85 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 39.36 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
6770	78 Outperform	¥419.79B	8.40	11.96%	3.04%	2.70%	―
6981	74 Outperform	¥6.88T	36.22	8.95%	1.88%	2.88%	28.76%
6762	67 Neutral	¥3.97T	21.20	―	1.41%	7.73%	-1.93%
6728	62 Neutral	¥501.35B	40.18	6.61%	2.35%	-9.06%	-35.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4062	61 Neutral	¥2.42T	60.31	6.81%	0.40%	5.18%	3.36%
6976	56 Neutral	¥559.74B	82.19	―	2.57%	4.81%	-49.43%

Taiyo Yuden Co., Ltd. Corporate Events

Taiyo Yuden Boosts Profit Outlook as Cost Cuts and Yen Weakness Lift Earnings

Taiyo Yuden reported third-quarter consolidated net sales of ¥88.5 billion, slightly lower quarter-on-quarter due to front-loaded capacitor demand in earlier quarters, but achieved a 27% sequential increase in operating profit to ¥7.5 billion, driven by fixed-cost reductions and the impact of yen depreciation, with results exceeding its prior forecast. The company raised its full-year outlook, now expecting net sales of ¥354.0 billion and operating profit to more than double year-on-year to ¥21.0 billion, and, despite booking approximately ¥1.0 billion in restructuring costs for additional structural reforms in its communication device business, it projects profit attributable to owners of parent to surge 458% year-on-year to ¥13.0 billion, signaling a significant earnings recovery and operational streamlining for stakeholders.

The most recent analyst rating on (JP:6976) stock is a Hold with a Yen3176.00 price target. To see the full list of analyst forecasts on Taiyo Yuden Co., Ltd. stock, see the JP:6976 Stock Forecast page.

Taiyo Yuden Doubles Operating Profit and Raises Full-Year Earnings Outlook

Taiyo Yuden reported consolidated net sales of ¥266.1 billion for the nine months ended December 31, 2025, up 4.5% year-on-year, with operating profit nearly doubling to ¥16.5 billion and profit attributable to owners of parent rising 54.6% to ¥12.6 billion, reflecting improved profitability and robust demand. The company’s financial position strengthened, with total assets increasing to ¥608.6 billion and an equity ratio of 55.7%, while it maintained its annual dividend forecast of ¥90 per share for the fiscal year ending March 31, 2026 and upgraded its full-year earnings outlook, now projecting operating profit of ¥21 billion and ordinary profit of ¥22 billion, signaling continued recovery and earnings momentum for shareholders and other stakeholders.

The most recent analyst rating on (JP:6976) stock is a Hold with a Yen3176.00 price target. To see the full list of analyst forecasts on Taiyo Yuden Co., Ltd. stock, see the JP:6976 Stock Forecast page.

Taiyo Yuden Lifts Full-Year Profit Outlook on Foreign Exchange Gains and Solid IT Demand

Taiyo Yuden has booked ¥4.18 billion in foreign exchange gains as non-operating income for the nine months ended December 31, 2025, reversing earlier currency-related losses thanks to recent exchange rate movements. Reflecting this windfall and firmer-than-expected demand—particularly for components used in IT infrastructure and industrial equipment in the fourth quarter—the company has raised its full-year forecast for the year ending March 31, 2026, lifting projected net sales to ¥354 billion and significantly increasing forecast operating profit, ordinary profit, and profit attributable to owners of parent, with basic earnings per share now expected to surge to ¥103.96 from ¥18.67 a year earlier, signaling a marked improvement in profitability and earnings outlook for shareholders.

The most recent analyst rating on (JP:6976) stock is a Hold with a Yen3176.00 price target. To see the full list of analyst forecasts on Taiyo Yuden Co., Ltd. stock, see the JP:6976 Stock Forecast page.