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Taiyo Yuden Co., Ltd. (JP:6976)
:6976
Japanese Market

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

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JP

Taiyo Yuden Co., Ltd.

(6976)

Rating:55Neutral
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. (6976) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionTaiyo 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 MoneyTaiyo 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
55
Neutral
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
62
Positive
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
50
Neutral
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
335.56B341.44B322.65B319.50B349.64B300.92B
Gross Profit
69.87B71.27B65.32B87.42B124.98B88.95B
EBIT
10.32B10.16B9.08B31.98B68.22B40.77B
EBITDA
44.76B55.51B53.28B66.83B99.43B69.75B
Net Income Common Stockholders
12.81B2.33B8.32B23.22B54.36B28.61B
Balance SheetCash, Cash Equivalents and Short-Term Investments
82.50B78.17B102.78B87.20B92.57B84.30B
Total Assets
595.58B573.19B579.69B503.46B474.52B404.64B
Total Debt
164.45B164.40B148.84B98.94B72.98B73.75B
Net Debt
81.95B86.23B46.06B11.74B-19.59B-10.55B
Total Liabilities
260.27B254.01B249.59B184.99B174.24B160.70B
Stockholders Equity
335.31B319.17B330.10B318.48B300.29B243.94B
Cash FlowFree Cash Flow
0.00-28.77B-28.80B-23.88B15.76B8.97B
Operating Cash Flow
0.0033.94B51.10B39.46B67.31B52.88B
Investing Cash Flow
0.00-63.53B-82.79B-60.44B-50.62B-42.22B
Financing Cash Flow
0.003.05B37.65B14.48B-14.71B12.60B

Taiyo Yuden Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2436.50
Price Trends
50DMA
2259.38
Positive
100DMA
2333.84
Positive
200DMA
2489.39
Negative
Market Momentum
MACD
40.33
Positive
RSI
59.04
Neutral
STOCH
62.37
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
55
Neutral
¥305.99B130.51
3.69%5.82%-71.99%
$2.06B8.249.28%0.03%
$5.51B25.076.76%0.67%
$26.87B17.558.98%2.78%
$1.73B13.019.22%2.67%
73
Outperform
¥2.98T17.51
2.07%4.80%34.01%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6976
Taiyo Yuden Co., Ltd.
2,465.00
-1,221.05
-33.13%
APELF
Alps Alpine Co
10.08
0.77
8.27%
IBIDF
IBIDEN CO
40.73
0.87
2.18%
MRAAF
Murata Manufacturing Co
15.46
-4.72
-23.39%
ULVAF
ULVAC
35.66
-32.86
-47.96%
JP:6762
TDK Corporation
1,581.00
-140.12
-8.14%

Taiyo Yuden Co., Ltd. Corporate Events

Taiyo Yuden Reports Strong Fiscal Year 2025 Results and Optimistic Profit Outlook for 2026
May 9, 2025

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
May 9, 2025

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
May 9, 2025

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
May 9, 2025

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
May 9, 2025

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
Mar 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.