Murata Manufacturing Co Ltd (JP:6981)
:6981
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Murata Manufacturing Co
(6981)
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Rating:73Outperform
Price Target:
¥5,749.00
▲(24.98% Upside)
Action:ReiteratedDate:05/01/26
The score is supported primarily by very strong financial stability and solid profitability, reinforced by clear positive price momentum. This is meaningfully tempered by expensive valuation (high P/E with modest yield) and signs of stretched technical momentum, plus less predictable recent free-cash-flow trends.
Positive Factors
Balance sheet strength
Very low leverage and steadily rising equity provide durable financial flexibility. This balance-sheet strength supports capital investments in capacity and R&D, cushions cyclic downturns in component markets, and preserves ability to fund customer qualifications or strategic initiatives without relying on external debt.
Negative Factors
Cyclical top‑line and earnings
Heavy exposure to cyclical electronics demand and MLCC market swings means revenue and profits can fluctuate materially. These cycles reduce visibility for planning, create inventory and utilization volatility, and limit the company’s ability to deliver consistently rising earnings over medium‑term horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and steadily rising equity provide durable financial flexibility. This balance-sheet strength supports capital investments in capacity and R&D, cushions cyclic downturns in component markets, and preserves ability to fund customer qualifications or strategic initiatives without relying on external debt.
Read all positive factors
Murata Manufacturing Co (6981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.48T
Dividend Yield1.88%
Average Volume (3M)7.32M
Price to Earnings (P/E)20.3
Beta (1Y)1.30
Revenue Growth5.02%
EPS Growth2.02%
CountryJP
Employees72,572
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)127.52
Shares Outstanding1,963,001,800
10 Day Avg. Volume5,682,650
30 Day Avg. Volume7,321,480
Financial Highlights & Ratios
PEG Ratio12.85
Price to Book (P/B)2.30
Price to Sales (P/S)3.41
P/FCF Ratio32.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,190.91Price Target Upside12.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)168.32
Revenue Forecast (FY)¥1.96T
Murata Manufacturing Co Business Overview & Revenue Model
Company Description
Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. It operates through Components, Modules, and Others segments. The company offers capacitors, in...
How the Company Makes Money
Murata primarily makes money by designing, manufacturing, and selling electronic components and modules to original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers worldwide. Its largest revenue stream is typi...
Murata Manufacturing Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.83T | 1.74T | 1.64T | 1.69T | 1.81T |
| Gross Profit | 774.83B | 683.20B | 603.86B | 641.76B | 768.23B |
| EBITDA | 497.52B | 480.61B | 418.49B | 473.47B | 588.60B |
| Net Income | 233.92B | 233.82B | 180.84B | 243.95B | 314.12B |
Balance Sheet | |||||
| Total Assets | 3.20T | 3.03T | 3.04T | 2.86T | 2.81T |
| Cash, Cash Equivalents and Short-Term Investments | 653.70B | 625.15B | 622.01B | 469.41B | 568.44B |
| Total Debt | 55.77B | 59.99B | 105.94B | 163.57B | 142.98B |
| Total Liabilities | 481.29B | 448.22B | 482.29B | 498.36B | 545.26B |
| Stockholders Equity | 2.72T | 2.58T | 2.56T | 2.36T | 2.26T |
Cash Flow | |||||
| Free Cash Flow | 193.65B | 284.18B | 273.02B | 93.47B | 270.93B |
| Operating Cash Flow | 438.27B | 467.12B | 501.64B | 283.38B | 421.46B |
| Investing Cash Flow | -207.79B | -223.96B | -214.34B | -157.82B | -212.30B |
| Financing Cash Flow | -220.88B | -242.06B | -164.56B | -181.60B | -117.50B |
Murata Manufacturing Co Technical Analysis
Positive
4600.00
Price Trends
3733.35
Positive
3480.32
Positive
3009.09
Positive
Market Momentum
244.94
Negative
67.77
Neutral
88.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6981, the sentiment is Positive. The current price of 4600 is above the 20-day moving average (MA) of 3902.72, above the 50-day MA of 3733.35, and above the 200-day MA of 3009.09, indicating a bullish trend. The MACD of 244.94 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 88.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6981.
Murata Manufacturing Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥710.51B | 15.50 | 8.07% | 2.85% | 9.08% | -8.71% | |
74 Outperform | ¥5.27T | 64.56 | ― | 1.41% | 13.61% | 17.01% | |
73 Outperform | ¥9.48T | 20.30 | 8.95% | 1.88% | 5.02% | 2.02% | |
67 Neutral | ¥158.27B | 11.45 | ― | 2.18% | -4.77% | -62.32% | |
65 Neutral | ¥771.48B | 15.62 | ― | 2.57% | 5.15% | -47.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | ¥65.38B | 9.09 | 2.26% | ― | 5.14% | 32.69% |
* Technology Sector Average
JP:6981
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Murata Manufacturing Co Corporate Events
Murata to Dispose of Treasury Shares for Director Stock Incentive Plans
Apr 30, 2026
Murata Manufacturing said it will again use share-based remuneration plans for its directors and executive officers in the current fiscal year, combining restricted stock (RS) and performance-linked share units (PSU). The company plans to dispose ...
Murata Maintains Core Leadership While Refreshing Audit Oversight
Apr 30, 2026
Murata Manufacturing has proposed a largely unchanged leadership slate for approval at its June 2026 annual shareholders’ meeting, reappointing President and CEO Norio Nakajima and other key executives overseeing technology, finance, medical...
Murata Manufacturing Launches ¥150 Billion Share Buyback and Cancellation Plan
Apr 30, 2026
Murata Manufacturing’s board has approved a share buyback of up to 75 million common shares, representing as much as 4.12% of its outstanding stock excluding treasury shares, at a cost of up to ¥150 billion between May 11, 2026 and Janu...
Murata Raises Year-End Dividend Forecast on Solid Earnings and DOE Target
Apr 30, 2026
Murata Manufacturing has revised its dividend forecast for the fiscal year ending March 31, 2026, raising the projected year-end dividend from 30 yen to 35 yen per share. This increase lifts the total annual dividend forecast from 60 yen to 65 yen...
Murata Posts Solid FY2026 Results and Lifts Dividend as It Forecasts Stronger Profit Growth
Apr 30, 2026
Murata Manufacturing reported a 5% rise in consolidated revenue to ¥1.83 trillion for the year ended March 31, 2026, with operating profit up slightly at ¥281.8 billion and profit attributable to owners of the parent essentially flat at ...
Murata Details Data Exposure but Says Operations Unaffected After Cyberattack
Apr 27, 2026
Murata has disclosed further details on a previously reported unauthorized access to its IT environment, confirming that while systems, production, and sales continue to operate normally, data including personal and business information was improp...
Murata Manufacturing to Replace Deloitte With KPMG as External Auditor After Six-Decade Tenure
Mar 24, 2026
Murata Manufacturing will change its certified public accountant, with KPMG AZSA LLC set to become its new external auditor following shareholder approval at the 90th Ordinary General Meeting scheduled for June 2026. The Audit and Supervisory Comm...
Murata Probes Data Breach After Unauthorized Access to IT Systems
Mar 6, 2026
Murata Manufacturing has disclosed that a third party gained unauthorized access to its IT environment, leading to improper access to company data. The breach was first suspected on February 28, triggering an internal crisis response and a full-sc...
Murata Finalizes Transfer of Micro Primary Battery Business to Maxell
Mar 2, 2026
Murata Manufacturing has completed the transfer of its micro primary battery business, which includes coin manganese dioxide lithium, silver oxide, and alkaline button batteries, to a newly established wholly owned subsidiary. The move is part of ...
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.