Want to see JP:6981 full AI Analyst Report?
Top Page
Murata Manufacturing Co
(6981)
Select Model
Select Model
Rating:65Neutral
Price Target:
¥7,972.00
▼(-4.08% Downside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by strong financial performance, led by a fortress balance sheet and solid profitability. Offsetting this, technicals are weak in the near term (price below key short-term moving averages) and valuation is stretched (high P/E with a low dividend yield), which together limit the overall score.
Positive Factors
Fortress balance sheet
Very low debt-to-equity (~0.02) gives durable financial flexibility: supports continued capex/R&D, cushions cyclical downturns, and preserves optionality for strategic investments or share returns without reliance on external financing, improving long-term resilience.
Negative Factors
Modest free cash flow conversion
FCF conversion below 50% and slight negative FCF growth indicate working capital or investment demands temper cash available for returns. Over months this limits scope for higher buybacks/dividends and may constrain discretionary investment without using cash reserves.
Read all positive and negative factors
Positive Factors
Negative Factors
Fortress balance sheet
Very low debt-to-equity (~0.02) gives durable financial flexibility: supports continued capex/R&D, cushions cyclical downturns, and preserves optionality for strategic investments or share returns without reliance on external financing, improving long-term resilience.
Read all positive factors
Murata Manufacturing Co (6981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥13.68T
Dividend Yield0.88%
Average Volume (3M)7.32M
Price to Earnings (P/E)51.0
Beta (1Y)1.87
Revenue Growth10.31%
EPS Growth24.82%
CountryJP
Employees74,302
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)145.41
Shares Outstanding1,963,001,800
10 Day Avg. Volume5,682,650
30 Day Avg. Volume7,321,480
Financial Highlights & Ratios
PEG Ratio12.84
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
¥12,527.27Price Target Upside50.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)190.99
Revenue Forecast (FY)¥2.06T
Murata Manufacturing Co Business Overview & Revenue Model
Company Description
Established in Nagaokakyo, Japan, in 1944, Murata Manufacturing Co., Ltd. is a global leader in the development, production, and sale of ceramic-based passive electronic components and integrated solutions. The company's operations are organized a...
How the Company Makes Money
Murata makes money primarily by manufacturing and selling electronic components and modules to device makers and their supply chains (OEMs/ODMs and tier suppliers) that integrate these parts into end products like smartphones, PCs, base stations, ...
Murata Manufacturing Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92T | 1.83T | 1.74T | 1.64T | 1.69T | 1.81T |
| Gross Profit | 832.12B | 774.83B | 683.20B | 603.86B | 641.76B | 768.23B |
| EBITDA | 524.88B | 490.04B | 480.61B | 418.49B | 473.47B | 588.60B |
| Net Income | 265.58B | 233.92B | 233.82B | 180.84B | 243.95B | 314.12B |
Balance Sheet | ||||||
| Total Assets | 3.21T | 3.20T | 3.03T | 3.04T | 2.86T | 2.81T |
| Cash, Cash Equivalents and Short-Term Investments | 557.49B | 653.70B | 625.15B | 622.01B | 469.41B | 568.44B |
| Total Debt | 55.39B | 55.77B | 59.99B | 105.94B | 163.57B | 142.98B |
| Total Liabilities | 452.61B | 481.29B | 448.22B | 482.29B | 498.36B | 545.26B |
| Stockholders Equity | 2.76T | 2.72T | 2.58T | 2.56T | 2.36T | 2.26T |
Cash Flow | ||||||
| Free Cash Flow | 179.96B | 193.65B | 284.18B | 273.02B | 93.47B | 270.93B |
| Operating Cash Flow | 436.18B | 438.27B | 467.12B | 501.64B | 283.38B | 421.46B |
| Investing Cash Flow | -244.88B | -207.79B | -223.96B | -214.34B | -157.82B | -212.30B |
| Financing Cash Flow | -192.55B | -220.88B | -242.06B | -164.56B | -181.60B | -117.50B |
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 | ¥867.79B | 27.58 | 8.80% | 1.78% | 11.53% | 1.60% | |
68 Neutral | ¥5.71T | 24.32 | ― | 1.20% | 21.98% | 57.54% | |
65 Neutral | ¥13.68T | 51.00 | 8.95% | 0.78% | 10.31% | 24.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥198.53B | 31.18 | ― | 2.18% | -3.43% | 9.82% | |
54 Neutral | ¥1.34T | 86.36 | ― | 0.79% | 4.07% | 533.27% | |
45 Neutral | ¥87.23B | 30.58 | 4.16% | ― | 11.52% | 5651.84% |
* Technology Sector Average
JP:6981
Murata Manufacturing Co
7,263.00
4,903.01
207.75%
JP:6806
HIROSE ELECTRIC CO
26,995.00
8,104.04
42.90%
JP:6997
Nippon Chemi-Con Corporation
3,160.00
1,960.73
163.49%
JP:6762
TDK Corporation
2,988.00
1,113.44
59.40%
JP:6976
Taiyo Yuden Co., Ltd.
9,699.00
6,975.70
256.15%
JP:6996
Nichicon Corporation
2,891.00
1,619.14
127.30%
Murata Manufacturing Co Corporate Events
Murata Upgrades FY2027 Earnings Outlook on Data Center Demand and Weaker Yen
Jul 31, 2026
Murata Manufacturing Co., Ltd. has raised its consolidated full-year forecast for the fiscal year ending March 31, 2027, reflecting stronger-than-expected business performance and favorable market conditions. The company now projects revenue of &#...
Murata Posts Record Quarterly Revenue on Strong Component Demand
Jul 31, 2026
Murata Manufacturing Co., Ltd., a major producer of electronic components like capacitors and sensors, serves global technology markets, including data centers, mobility, and industrial applications. The company also offers lithium-ion secondary b...
Murata Manufacturing Posts Strong Q1 Rebound and Raises Full-Year Outlook
Jul 31, 2026
Murata Manufacturing reported a sharp rebound in earnings for the three months ended June 30, 2026, with revenue up 20.7 percent year on year to 502.3 billion yen and operating profit surging 59.8 percent to 98.5 billion yen. Profit attributable t...
Murata Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Jul 28, 2026
Murata Manufacturing has completed the disposal of a portion of its treasury shares to provide restricted stock compensation to senior management, following a board resolution passed in late June. The transaction involved issuing 22,335 shares of ...
Murata Discloses No Share Buybacks Yet Under Large Repurchase Authorization
Jul 7, 2026
Murata Manufacturing has disclosed that it did not repurchase any of its own shares during the period from June 1 to June 30, 2026, despite having authorization for a buyback program. The board had approved the acquisition of up to 75 million shar...
Murata Introduces Performance-Linked Share Plan for Executives
Jun 29, 2026
Murata Manufacturing has approved the grant of 84,417 performance-linked Standard Share Units to its directors and vice presidents under a post-delivery share-based remuneration scheme. The allocation, which may be satisfied through new share issu...
Murata to Grant ¥240 Million in Restricted Stock to Executives
Jun 29, 2026
Murata Manufacturing has approved the disposal of 22,335 treasury shares as restricted stock compensation for its directors and vice presidents, with a total value of about ¥240.5 million, to be executed on July 28, 2026 at ¥10,770 per s...
Murata Yet to Begin Share Buyback Despite Large Approved Program
Jun 5, 2026
Murata Manufacturing reported that it did not acquire any of its own shares during the period from May 11 to May 31, 2026, despite having Board approval for a substantial share buyback program. The authorization allows purchases of up to 75 millio...
Murata Raises Annual Dividend as It Targets Higher Shareholder Returns
May 26, 2026
Murata Manufacturing’s board has approved a year-end dividend of 35 yen per share for the fiscal year ended March 31, 2026, matching its latest forecast and up from 30 yen a year earlier. Subject to shareholder approval in June, the total pa...
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.