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

• Market Cap: ¥341.03B
• Dividend Yield: 3.31%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 145.5
• Beta (1Y): 1.38
• Revenue Growth: 5.82%
• EPS Growth: -71.97%
• Country: JP
• Employees: 21,823
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -46.82
• Shares Outstanding: 130,218,480
• 10 Day Avg. Volume: 1,376,660
• 30 Day Avg. Volume: 1,721,423
• PEG Ratio: -1.61
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,497.50
• Price Target Upside: -8.03% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: ¥2,601.00 ▼(-4.22%Downside)

The overall stock score reflects challenges in financial performance, particularly in profitability and cash flow efficiency. Despite robust technical indicators suggesting bullish momentum, the high P/E ratio raises valuation concerns. The company's strong equity base is a positive, but the need for improved cost management and liquidity is crucial.

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

Company Description

Taiyo Yuden Co., Ltd. (6976) is a Japanese electronic components manufacturer specializing in the production of capacitors, inductors, and various other electronic components. The company serves a wide range of industries including automotive, telecommunications, and consumer electronics by providing essential components that are integral to the functionality and efficiency of electronic devices. Taiyo Yuden is known for its innovation in high-density and high-reliability electronic components, striving to meet the demands of modern technology and digital devices.

How the Company Makes Money

Taiyo Yuden Co., Ltd. generates revenue primarily through the sale of its electronic components such as capacitors, inductors, and integrated modules. These products are essential in manufacturing a wide array of electronic devices used in various industries, including automotive, telecommunications, and consumer electronics. The company benefits from partnerships and long-term contracts with major electronics manufacturers, which provide a stable source of income. Additionally, Taiyo Yuden invests in research and development to innovate and improve its product offerings, thereby enhancing its competitive edge in the market. The company also capitalizes on global demand for miniaturized and energy-efficient components, which are crucial for the advancement of modern technology.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	341.44B	322.65B	319.50B	349.64B	300.92B
Gross Profit	71.27B	65.32B	87.42B	124.98B	88.95B
EBITDA	55.51B	53.28B	66.83B	99.43B	69.75B
Net Income	2.33B	8.32B	23.22B	54.36B	28.61B
Balance Sheet
Total Assets	573.19B	579.69B	503.46B	474.52B	404.64B
Cash, Cash Equivalents and Short-Term Investments	78.17B	102.78B	87.20B	92.57B	84.30B
Total Debt	164.40B	148.84B	98.94B	72.98B	73.75B
Total Liabilities	254.01B	249.59B	184.99B	174.24B	160.70B
Stockholders Equity	319.17B	330.10B	318.48B	300.29B	243.94B
Cash Flow
Free Cash Flow	-28.77B	-28.80B	-23.88B	15.76B	8.97B
Operating Cash Flow	33.94B	51.10B	39.46B	67.31B	52.88B
Investing Cash Flow	-63.53B	-82.79B	-60.44B	-50.62B	-42.22B
Financing Cash Flow	3.05B	37.65B	14.48B	-14.71B	12.60B

Taiyo Yuden Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2715.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2715.5 is above the 20-day moving average (MA) of 2588.10, above the 50-day MA of 2475.47, and above the 200-day MA of 2386.45, indicating a bullish trend. The MACD of 68.79 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 83.19 is Negative, 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
6981	80 Outperform	$4.04T	17.69	8.98%	2.58%	6.29%	30.60%
6770	79 Outperform	¥325.52B	8.54	9.28%	3.82%	2.73%	―
6762	75 Outperform	¥3.51T	20.61		0.88%	4.80%	34.02%
6728	70 Outperform	$274.32B	13.69	9.22%	2.94%	4.71%	27.67%
Sector *	68 Neutral	¥232.71B	14.90	7.50%	2.60%	9.27%	5.76%
4062	66 Neutral	$875.07B	25.97	6.76%	0.64%	-0.29%	7.04%
6976	58 Neutral	¥341.03B	145.46		3.31%	5.82%	-71.97%

Taiyo Yuden Co., Ltd. Corporate Events

Taiyo Yuden Completes Treasury Stock Disposal for Remuneration

Taiyo Yuden Co., Ltd. has completed the payment procedures for the disposal of its treasury stock as restricted stock remuneration, following a resolution by its Board of Directors. The disposal involves 197,034 shares at a price of 2,522.5 yen per share, amounting to a total value of 497,018,265 yen. This strategic move is aimed at aligning the interests of the company’s directors and operating officers with its long-term performance goals.

The most recent analyst rating on (JP:6976) stock is a Buy with a Yen3600.00 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 Transitions to Restricted Stock Remuneration

Taiyo Yuden Co., Ltd. has announced a resolution to dispose of 197,034 shares of its treasury stock as restricted stock remuneration. This move is part of a broader remuneration plan approved by shareholders, aimed at transitioning from stock options to a restricted stock system. The disposal, valued at approximately 497 million yen, is intended to align the interests of directors and operating officers with the company’s long-term performance goals.

The most recent analyst rating on (JP:6976) stock is a Buy with a Yen3600.00 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 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.