Japan Resistor Mfg.Co. (6977) AI Stock Analysis

• Market Cap: ¥1.18B
• Dividend Yield: 3.14%
• Average Volume (3M): 893.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -10.07%
• EPS Growth: -133.40%
• Country: JP
• Employees: 329
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -40.50
• Shares Outstanding: 1,240,000
• 10 Day Avg. Volume: 1,130
• 30 Day Avg. Volume: 893
• PEG Ratio: 0.01
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -4.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥977.00 ▲(2.30% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and profitability, and increased leverage. Despite strong technical indicators suggesting bullish momentum, the negative P/E ratio and profitability issues weigh heavily on the valuation. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Custom Resistor Solutions

Offering high-margin custom resistor solutions positions the company to capture niche markets, enhancing profitability and customer loyalty over time.

Long-term Contracts

Securing long-term contracts provides predictable revenue streams, supporting financial stability and strategic planning.

Industry Partnerships

Collaborations with tech firms can drive innovation and expand market reach, fostering growth and competitive advantage.

Negative Factors

Declining Revenues

Declining revenues indicate potential loss of market share or demand, challenging the company's ability to sustain operations and growth.

Increased Leverage

Higher leverage increases financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns.

Negative Cash Flow

Persistent negative cash flow suggests challenges in liquidity management, which could hinder operational stability and strategic investments.

Japan Resistor Mfg.Co. Business Overview & Revenue Model

Company Description

Japan Resistor Mfg. Co., Ltd. develops, manufactures, and sells electronic devices, sensor compound apparatuses, hybrid ICs, SMC products, sensors, potentiometers, heaters, and various resistors in Japan and internationally. It offers fixed resistors that include nonflammable PCB mounting type, square cement type, shunt, precision, power type, metal-clad fixed, film, and various customized resistors, as well as wire-wound variable resistors; shunt resistors for detecting current; and compact resistors for preventing noise of power sources. The company also provides wire-wound multi-turn potentiometers, contact potentiometers rotary-type, dual signal potentiometers, contactless potentiometers, contactless dual signal potentiometers, contactless multi-turn potentiometers, print resistance sensors, and customized potentiometers for detecting position/angle, as well as hybrid integrated circuits. In addition, it offers circuit boards and units, including household equipment, such as heated toilet seats with heated bidets and warm air dryers; control equipment related to automobile electronics; electrical farm apparatus comprising moisture meters and color selectors for management and selection of rice quality; health and beauty equipment; and power supply equipment for air conditioners, and office and factory automation. The company was founded in 1943 and is based in Nanto, Japan.

How the Company Makes Money

Japan Resistor Mfg. Co. generates revenue primarily through the sale of its electronic components, particularly resistors, which are essential in various electronic circuits. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and distributors in multiple industries, including automotive, industrial, and consumer electronics. Key revenue streams include bulk sales of standard resistors, customized resistor solutions, and contract manufacturing services for specific client needs. Additionally, the company may engage in partnerships with technology firms to develop specialized products, further enhancing its market reach and income. Factors contributing to its earnings include the growing demand for electronic devices, advancements in technology requiring high-performance components, and a strong reputation for quality and reliability within the industry.

Japan Resistor Mfg.Co. Financial Statement Overview

Summary

Japan Resistor Mfg.Co. is facing significant financial challenges, with declining revenues and profitability, increased leverage, and cash flow difficulties. The company needs to address its operational inefficiencies and manage its debt levels to improve financial stability and investor confidence.

Income Statement

The income statement shows declining revenues with a negative growth rate of approximately -10.07% from 2023 to 2024, indicating a downturn in sales. Gross profit margin decreased to 20.22% in 2024 from 21.42% in 2023. Net profit margin has turned negative, showing a loss of 2.81% in 2024 compared to a profit margin of 1.17% in 2023, highlighting profitability issues. Both EBIT and EBITDA margins have deteriorated, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.80 in 2024, up from 2.20 in 2023, suggesting increased leverage and potential risk. Return on equity has turned negative at -12.03% in 2024, down from 4.86% in 2023, indicating poor profitability. However, the company maintains an equity ratio of 19.50% in 2024, slightly lower than 22.59% in 2023, showing a moderate capital structure.

Cash Flow

The cash flow statement highlights negative free cash flow, although it has improved to -251.87 million in 2024 from -415 million in 2023. The operating cash flow to net income ratio is negative, indicating issues in converting income to cash. The free cash flow to net income ratio also remains negative, reinforcing cash management concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.03B	6.45B	7.18B	7.20B	6.19B	5.54B
Gross Profit	1.16B	1.31B	1.54B	1.68B	1.40B	1.26B
EBITDA	-108.93M	33.79M	307.73M	385.79M	273.01M	243.57M
Net Income	-375.46M	-181.41M	51.34M	133.21M	49.87M	38.08M
Balance Sheet
Total Assets	7.41B	7.73B	7.64B	7.59B	6.84B	6.27B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.67B	1.50B	1.37B	1.42B	1.78B
Total Debt	4.42B	4.22B	3.79B	3.24B	2.96B	2.92B
Total Liabilities	5.75B	5.83B	5.61B	5.57B	4.97B	4.54B
Stockholders Equity	1.25B	1.51B	1.73B	1.65B	1.52B	1.37B
Cash Flow
Free Cash Flow	0.00	-251.87M	-415.00M	-260.16M	-377.54M	133.11M
Operating Cash Flow	0.00	76.04M	-186.00M	-144.18M	-275.77M	296.63M
Investing Cash Flow	0.00	-199.80M	-204.34M	-103.87M	-88.50M	-112.96M
Financing Cash Flow	0.00	240.83M	494.00M	221.27M	9.95M	-176.22M

Japan Resistor Mfg.Co. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 955.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6977, the sentiment is Positive. The current price of 955 is above the 20-day moving average (MA) of 954.60, above the 50-day MA of 923.22, and above the 200-day MA of 847.95, indicating a bullish trend. The MACD of 8.72 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 22.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6977.

Japan Resistor Mfg.Co. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6658	76 Outperform	¥10.10B	5.48	―	4.49%	1.68%	15.79%
6989	71 Outperform	¥21.32B	9.12	―	3.19%	2.48%	39.69%
6969	68 Neutral	¥2.67B	4.52	―	―	16.21%	3915.63%
6772	65 Neutral	¥12.56B	32.45	―	1.72%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6977	54 Neutral	¥1.18B	-3.38	―	3.14%	-10.07%	-133.40%
6721	41 Neutral	¥4.99B	-3.32	―	―	-35.81%	-99.72%