Murata Manufacturing Co (6981) AI Stock Analysis

• Market Cap: $4.38T
• Dividend Yield: 2.38%
• Average Volume (3M): 6.42M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.19
• Revenue Growth: 2.58%
• EPS Growth: 11.54%
• Country: JP
• Employees: 72,572
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 26.83
• Shares Outstanding: 1,963,001,800
• 10 Day Avg. Volume: 6,259,530
• 30 Day Avg. Volume: 6,422,846
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.02
• Enterprise Value/Gross Profit: 4.92
• Enterprise Value/Ebitda: 7.36
• 1Y Price Target: $2,621.19
• Price Target Upside: 7.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 84 Outperform
• Price Target: ¥2,647.00 ▲(8.33% Upside)

Murata Manufacturing's strong financial performance, marked by consistent revenue growth and excellent cash flow management, is the primary driver of its high score. The company's solid technical indicators and reasonable valuation further support its potential for sustained growth in the hardware, equipment, and parts industry.

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, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID devices, matching devices, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also provides mercury-free silver watch battery; and Femtet, a CAE software that solves various physical phenomena. The company offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare and medical, and personal electronics applications. Murata Manufacturing Co., Ltd. was founded in 1944 and is headquartered in Nagaokakyo, Japan.

How the Company Makes Money

Murata Manufacturing Co. generates revenue primarily through the sale of its electronic components and solutions to various industries. The company's key revenue streams include the production and sale of passive components, such as capacitors and inductors, which are essential in electronic circuits. Additionally, Murata earns income from its connectivity modules and sensors, which are increasingly important in the Internet of Things (IoT) and automotive sectors. The company maintains significant partnerships with major electronics manufacturers worldwide, contributing to its earnings through long-term supply agreements and collaboration on innovative technologies. Murata's continuous investment in research and development also supports its revenue by enabling the creation of cutting-edge products that meet the evolving demands of its customers.

Murata Manufacturing Co Financial Statement Overview

Summary

Murata Manufacturing shows strong financial performance with consistent revenue and profit growth, efficient cost management, and excellent cash flow generation. The company maintains a robust balance sheet with low leverage and high equity, supporting long-term stability.

Income Statement

Murata Manufacturing has demonstrated strong financial performance with consistent revenue growth, achieving a 6.29% increase from the previous year. The gross profit margin is robust at 41.15%, reflecting efficient production and cost management. The net profit margin of 13.42% indicates solid profitability. Margins have slightly improved year-over-year, with an EBIT margin of 16.68% and an EBITDA margin of 27.67%, showcasing operational efficiency.

Balance Sheet

The company's balance sheet is healthy, with a low debt-to-equity ratio of 0.023, highlighting a conservative approach to leverage. Return on equity is strong at 9.06%, indicating effective use of shareholders' equity. The equity ratio stands at 85.23%, suggesting a stable financial structure with significant asset backing. The company has maintained a strong equity base while reducing debt levels.

Cash Flow

Murata Manufacturing exhibits excellent cash flow management, with a free cash flow growth rate of 12.15%, reflecting significant cash surplus. The operating cash flow to net income ratio is robust at 2.00, indicating strong cash generation relative to earnings. With a free cash flow to net income ratio of 1.21, the company efficiently converts profits into cash, supporting future investments and shareholder returns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.74T	1.64T	1.69T	1.81T	1.63T
Gross Profit	717.70B	636.80B	675.85B	768.23B	622.20B
EBITDA	482.40B	418.49B	473.47B	588.60B	459.88B
Net Income	233.82B	180.84B	243.95B	314.12B	237.06B
Balance Sheet
Total Assets	3.03T	3.04T	2.87T	2.81T	2.46T
Cash, Cash Equivalents and Short-Term Investments	625.15B	622.01B	493.25B	568.44B	450.80B
Total Debt	59.99B	105.94B	151.00B	142.98B	175.75B
Total Liabilities	448.22B	482.29B	470.29B	545.26B	540.62B
Stockholders Equity	2.58T	2.56T	2.26T	2.26T	1.92T
Cash Flow
Free Cash Flow	284.18B	253.41B	86.33B	270.93B	173.69B
Operating Cash Flow	467.12B	489.64B	276.28B	421.46B	373.57B
Investing Cash Flow	-223.96B	-214.34B	-157.85B	-212.30B	-150.28B
Financing Cash Flow	-242.06B	-165.32B	-173.71B	-117.50B	-118.19B

Murata Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2443.50
• 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:6981, the sentiment is Positive. The current price of 2443.5 is above the 20-day moving average (MA) of 2280.40, above the 50-day MA of 2180.72, and above the 200-day MA of 2349.23, indicating a bullish trend. The MACD of 67.53 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 73.10 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	84 Outperform	$4.38T	20.59	8.66%	2.38%	2.58%	11.54%
Sector *	62 Neutral	CHF2.52B	-22.50	1.43%	2.30%	-18.27%	-1.68%
HRSEF	―	$4.21B	20.41	8.68%	2.85%	―	―
MNBEF	―	$6.83B	18.28	7.69%	1.80%	―	―
OMRNF	―	$5.13B	23.64	4.20%	2.72%	―	―
6762	76 Outperform	¥3.71T	24.42		0.83%	4.83%	-12.18%
6976	59 Neutral	¥353.15B	152.85		3.04%	4.21%	-135.36%

Murata Manufacturing Co Corporate Events

Murata Manufacturing Revises Director Remuneration System for Sustainable Growth

Murata Manufacturing Co., Ltd. announced a revision of its director remuneration system, aiming to align with its Vision 2030 and enhance sustainable value creation. The revision introduces a performance-linked stock remuneration system to incentivize medium- to long-term corporate value enhancement, adjusting the remuneration composition to emphasize stock remuneration over bonuses, and refining performance evaluation indicators to strengthen the alignment between executives and employees.

Murata Manufacturing Announces Treasury Share Disposal for Stock Compensation

Murata Manufacturing Co., Ltd. has announced plans to dispose of treasury shares under its restricted stock compensation plan for eligible directors and vice presidents. This move, estimated to involve up to 300 million JPY, aligns with the company’s ongoing strategy to incentivize its leadership, potentially impacting its financial operations and shareholder value.

Murata Manufacturing Co. Reports Strong Financial Growth for FY 2025

Murata Manufacturing Co. reported significant financial growth for the fiscal year ending March 31, 2025, with a 6.3% increase in revenue and a substantial rise in operating profit by 29.8%. The company also implemented a three-for-one stock split in October 2023, which impacted earnings per share calculations. Despite a decrease in comprehensive income, the company improved its equity ratio and maintained strong cash flow, indicating robust financial health and strategic positioning in the market.

Murata Manufacturing Announces Major Stock Repurchase Plan

Murata Manufacturing Co., Ltd. has announced a stock repurchase plan, aiming to buy back up to 77 million shares, representing 4.13% of its outstanding shares, for a total of up to 100 billion yen. This move is intended to enhance capital efficiency and allow for a more flexible financial strategy, potentially impacting the company’s market positioning and shareholder value.

Murata Manufacturing Reports Strong FY2024 Revenue Growth Amid Challenges

Murata Manufacturing Co., Ltd. reported a 6.3% increase in revenue for FY2024, driven by strong demand for capacitors in servers and mobility, and multilayer resin substrates in smartphones. Despite a 29.8% rise in operating profit due to improved capacity utilization and cost reductions, the company faced challenges from a weak yen, lower capacity utilization, and one-time expenses, impacting their forecast. Shareholders will receive a year-end dividend of 30 yen per share, reflecting an increase from previous forecasts.