Murata Manufacturing Co Ltd (JP:6981)
:6981
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Murata Manufacturing Co
(6981)
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Rating:74Outperform
Price Target:
¥3,929.00
▲(12.00% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by strong financial performance, led by a very robust, low-leverage balance sheet and solid (though off-peak) profitability. Technicals are supportive but appear overbought, increasing near-term volatility risk. Valuation is the main headwind due to a high P/E and only modest dividend yield.
Positive Factors
Very low leverage balance sheet
Sustained low leverage gives Murata durable financial flexibility to absorb cyclical demand swings, fund capital expenditure or qualification for automotive/industrial customers, and pursue opportunistic M&A or share returns without stressing liquidity across a 2–6 month horizon.
Negative Factors
Volatile free cash flow conversion
Sub-100% and volatile FCF conversion reduces predictability of distributable cash and constrains the pace of buybacks, dividends or aggressive capex. Over the medium term this raises execution risk when inventories or working capital swing with customer cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage balance sheet
Sustained low leverage gives Murata durable financial flexibility to absorb cyclical demand swings, fund capital expenditure or qualification for automotive/industrial customers, and pursue opportunistic M&A or share returns without stressing liquidity across a 2–6 month horizon.
Read all positive factors
Murata Manufacturing Co (6981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.47T
Dividend Yield1.88%
Average Volume (3M)7.32M
Price to Earnings (P/E)59.2
Beta (1Y)1.29
Revenue Growth2.88%
EPS Growth28.76%
CountryJP
Employees72,572
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)13.91
Shares Outstanding1,963,001,800
10 Day Avg. Volume5,682,650
30 Day Avg. Volume7,321,480
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)1.67
Price to Sales (P/S)2.47
P/FCF Ratio15.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,367.93Price Target Upside24.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)121.11
Revenue Forecast (FY)¥1.80T
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 manufacturing and selling electronic components and modules to device makers and automotive/industrial customers, with revenue recognized from product shipments under supply agreements and purchase orders. Key reven...
Murata Manufacturing Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.78T | 1.74T | 1.64T | 1.69T | 1.81T | 1.63T |
| Gross Profit | 744.29B | 683.20B | 603.86B | 641.76B | 768.23B | 622.20B |
| EBITDA | 438.30B | 480.61B | 418.49B | 473.47B | 588.60B | 459.88B |
| Net Income | 189.84B | 233.82B | 180.84B | 243.95B | 314.12B | 237.05B |
Balance Sheet | ||||||
| Total Assets | 3.09T | 3.03T | 3.04T | 2.86T | 2.81T | 2.46T |
| Cash, Cash Equivalents and Short-Term Investments | 582.20B | 625.15B | 622.01B | 469.41B | 568.44B | 450.80B |
| Total Debt | 108.66B | 59.99B | 105.94B | 163.57B | 142.98B | 182.71B |
| Total Liabilities | 477.97B | 448.22B | 482.29B | 498.36B | 545.26B | 540.62B |
| Stockholders Equity | 2.61T | 2.58T | 2.56T | 2.36T | 2.26T | 1.92T |
Cash Flow | ||||||
| Free Cash Flow | 247.27B | 284.18B | 273.02B | 93.47B | 270.93B | 173.69B |
| Operating Cash Flow | 420.81B | 467.12B | 501.64B | 283.38B | 421.46B | 373.57B |
| Investing Cash Flow | -179.06B | -223.96B | -214.34B | -157.82B | -212.30B | -150.28B |
| Financing Cash Flow | -221.03B | -242.06B | -164.56B | -181.60B | -117.50B | -118.19B |
Murata Manufacturing Co Technical Analysis
Neutral
3508.00
Price Trends
3525.60
Negative
3378.65
Positive
2894.49
Positive
Market Momentum
33.26
Positive
44.21
Neutral
47.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6981, the sentiment is Neutral. The current price of 3508 is below the 20-day moving average (MA) of 3801.85, below the 50-day MA of 3525.60, and above the 200-day MA of 2894.49, indicating a neutral trend. The MACD of 33.26 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 47.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | ¥679.46B | 15.50 | 8.07% | 2.85% | 11.18% | -0.75% | |
74 Outperform | ¥6.47T | 59.16 | 8.95% | 1.88% | 2.88% | 28.76% | |
67 Neutral | ¥3.88T | 15.03 | ― | 1.41% | 7.73% | -1.93% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥119.64B | 11.45 | ― | 2.18% | -0.93% | -45.03% | |
56 Neutral | ¥493.06B | 15.62 | ― | 2.57% | 4.81% | -49.43% | |
47 Neutral | ¥33.94B | 9.09 | 2.26% | ― | -2.53% | -85.61% |
* Technology Sector Average
JP:6981
Murata Manufacturing Co
3,543.00
1,115.52
45.95%
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474.00
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2,037.50
435.36
27.17%
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1,412.30
55.20%
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1,832.00
559.81
44.00%
Murata Manufacturing Co Corporate Events
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 ...
Murata Lifts FY2026 Revenue Outlook on AI and Smartphone Demand but Trims Operating Profit
Feb 2, 2026
Murata Manufacturing has revised its full-year forecast for the fiscal year ending March 31, 2026, projecting higher revenue of ¥1.8 trillion, up 3.4% from its previous outlook, driven by yen depreciation and stronger demand for electronic co...
Murata Posts Higher Revenue but Weaker Profits and Trims Full-Year Earnings Outlook
Feb 2, 2026
Murata Manufacturing reported consolidated revenue of ¥1.37 trillion for the nine months ended December 31, 2025, a 2.9% year-on-year increase, but saw profitability decline, with operating profit down 13.3% to ¥203.0 billion and profit ...
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.