Murata Manufacturing Co (6981) AI Stock Analysis

• Market Cap: $5.59T
• Dividend Yield: 1.68%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.23
• Revenue Growth: 2.88%
• EPS Growth: 28.76%
• Country: JP
• Employees: 72,572
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 44.94
• Shares Outstanding: 1,963,001,800
• 10 Day Avg. Volume: 5,682,650
• 30 Day Avg. Volume: 7,321,480
• PEG Ratio: 0.60
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 15.16
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.68
• Enterprise Value/Gross Profit: 6.46
• Enterprise Value/Ebitda: 9.97
• 1Y Price Target: $3,279.35
• Price Target Upside: 0.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥3,260.00 ▼(-0.37% Downside)

Murata Manufacturing Co's overall stock score is primarily influenced by its strong financial performance, particularly its profitability and balance sheet strength. However, the decline in revenue growth and free cash flow growth are significant concerns. Technical analysis presents mixed signals, with some bullish momentum but potential oversold conditions. The valuation is relatively high, which could limit upside potential.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage and financial risk, providing Murata Manufacturing with a stable financial position and flexibility for future investments.

Profitability

Strong profitability margins reflect operational efficiency and the ability to maintain competitive pricing, supporting long-term business sustainability and shareholder value.

Cash Generation Ability

A strong operating cash flow to net income ratio indicates effective cash generation, enabling Murata to fund operations, pay dividends, and invest in growth opportunities.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth suggests challenges in market demand or competitive pressures, which could impact long-term growth prospects if not addressed.

Free Cash Flow Decline

Decreasing free cash flow growth can limit Murata's ability to invest in new projects and technologies, potentially hindering future expansion and innovation.

Revenue Growth Trends

Sustained revenue decline highlights potential issues in product demand or market competition, necessitating strategic adjustments to regain growth momentum.

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 generates revenue through the sale of its extensive range of electronic components and modules. The company operates on a business model that emphasizes high-value, high-margin products, with a significant focus on research and development to create cutting-edge technology solutions. Key revenue streams include the sale of passive components, such as capacitors and inductors, which are essential for electronic circuits, as well as power management solutions and wireless communication modules used in smartphones and IoT devices. Additionally, Murata benefits from strategic partnerships with major technology firms and manufacturers, which enhance its market presence and drive sales. The company's ability to innovate and adapt to market demands, alongside its established relationships with industry leaders, significantly contributes to its earnings.

Murata Manufacturing Co Financial Statement Overview

Summary

Murata Manufacturing Co demonstrates strong profitability and a robust balance sheet with low leverage, which are key strengths. However, the significant decline in revenue growth and free cash flow growth in the TTM are areas of concern. The company maintains operational efficiency and effective cash generation, but addressing revenue decline will be crucial for future growth.

Income Statement

Murata Manufacturing Co shows strong profitability with a consistent gross profit margin around 41% and a net profit margin of approximately 12.5% in the TTM. However, the company faces challenges with a negative revenue growth rate of -31.9% in the TTM, indicating a significant decline in sales. The EBIT and EBITDA margins remain robust, suggesting operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.024, indicating minimal leverage and financial risk. Return on equity is healthy at 8.5% in the TTM, reflecting effective use of equity to generate profits. The equity ratio is strong, showcasing a stable financial position with substantial equity backing the assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -5.2% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 1.82, indicating good cash generation relative to net income. The free cash flow to net income ratio is also solid at 0.59, suggesting decent cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.74T	1.74T	1.64T	1.69T	1.81T	1.63T
Gross Profit	720.91B	683.20B	603.86B	641.76B	768.23B	622.20B
EBITDA	466.79B	480.61B	418.49B	473.47B	588.60B	459.88B
Net Income	217.17B	233.82B	180.84B	243.95B	314.12B	237.05B
Balance Sheet
Total Assets	2.93T	3.03T	3.04T	2.86T	2.81T	2.46T
Cash, Cash Equivalents and Short-Term Investments	519.59B	625.15B	622.01B	469.41B	568.44B	450.80B
Total Debt	60.38B	59.99B	105.94B	163.57B	142.98B	182.71B
Total Liabilities	414.71B	448.22B	482.29B	498.36B	545.26B	540.62B
Stockholders Equity	2.52T	2.58T	2.56T	2.36T	2.26T	1.92T
Cash Flow
Free Cash Flow	274.68B	284.18B	273.02B	93.47B	270.93B	173.69B
Operating Cash Flow	448.33B	467.12B	501.64B	283.38B	421.46B	373.57B
Investing Cash Flow	-195.75B	-223.96B	-214.34B	-157.82B	-212.30B	-150.28B
Financing Cash Flow	-234.28B	-242.06B	-164.56B	-181.60B	-117.50B	-118.19B

Murata Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3272.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3272 is above the 20-day moving average (MA) of 3182.30, above the 50-day MA of 2992.52, and above the 200-day MA of 2438.32, indicating a bullish trend. The MACD of 58.05 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 87.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6479	76 Outperform	$1.18T	18.88	8.05%	1.61%	0.96%	3.22%
6806	72 Outperform	$698.52B	23.17	8.09%	2.37%	11.18%	-0.75%
6762	70 Outperform	¥4.92T	28.49	―	1.16%	7.73%	-1.93%
6981	68 Neutral	$5.59T	23.81	8.95%	1.68%	2.88%	28.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6645	61 Neutral	¥777.48B	27.16	3.60%	2.45%	3.51%	―
6976	47 Neutral	¥562.88B	-115.10	―	2.14%	4.81%	-49.43%

Murata Manufacturing Co Corporate Events

Murata Manufacturing Revises Delisting Timeline on SGX

Murata Manufacturing Co., Ltd. has announced a revised timeline for the voluntary delisting of its shares from the Main Board of the Singapore Exchange Securities Trading Limited. The delisting date has been postponed to December 5, 2025, to accommodate the payment of a scheduled cash dividend on November 28, 2025. This strategic move may impact the company’s market presence in Singapore and affect stakeholders who are invested in the company’s shares on the SGX-ST.

Murata Manufacturing Revises FY2025 Q2 Earnings Release

Murata Manufacturing Co., Ltd. announced corrections to its second-quarter FY2025 earnings release, initially published on October 31, 2025. The corrections involve changes in the projected financial results and operating profit breakdown, indicating a significant increase in estimated price decline and product mix impacts, which may affect stakeholders’ financial expectations and the company’s market positioning.

The most recent analyst rating on (JP:6981) stock is a Hold with a Yen3699.00 price target. To see the full list of analyst forecasts on Murata Manufacturing Co stock, see the JP:6981 Stock Forecast page.

Murata Manufacturing Reports Steady Growth Amid Challenges

Murata Manufacturing Co., Ltd., a leading company in the electronics sector, specializes in the development, manufacturing, and sale of electronic components and related products, with a strong presence in the global market. In its latest earnings report for the six months ending September 30, 2025, Murata Manufacturing Co. reported a modest increase in revenue by 2.2% year-on-year, reaching 902,778 million yen. The company also saw an increase in operating profit by 4.4% and profit before tax by 6.6%, indicating a stable financial performance amidst challenging economic conditions.

Murata Manufacturing Completes Strategic Share Repurchase

Murata Manufacturing Co., Ltd. has completed its share repurchase program, reaching the upper limit set by its board of directors. This strategic move, involving the repurchase of over 42 million shares for approximately 100 billion yen, is aimed at improving capital efficiency and enabling a more flexible financial strategy, which could enhance the company’s market positioning and shareholder value.

Murata Transfers Micro Battery Business to Maxell, Refocuses on Lithium-Ion Expansion

Murata Manufacturing Co., Ltd. has announced the transfer of its micro primary battery business to Maxell, Ltd. through a simplified absorption-type company split. This strategic move aims to allow Murata to concentrate its resources on expanding its cylindrical type lithium-ion secondary battery business, particularly targeting the power tool and energy storage system markets.

Murata Manufacturing Advances Share Buyback Strategy

Murata Manufacturing Co., Ltd. announced the purchase of 6,634,400 of its own common shares, amounting to JPY 16,782,187,875, through the Tokyo Stock Exchange between September 1 and September 30, 2025. This buyback is part of a broader strategy approved by the Board of Directors to acquire up to 77,000,000 shares, reflecting 4.13% of issued shares, with a total potential investment of JPY 100,000,000,000. As of September 30, 2025, the company has purchased 34,167,000 shares, costing JPY 76,953,727,665, indicating a significant commitment to enhancing shareholder value.

Murata Manufacturing Announces Share Repurchase Progress

Murata Manufacturing Co., Ltd. announced the purchase of 9,545,600 of its own common shares through the Tokyo Stock Exchange, amounting to JPY 22.8 billion, as part of a broader share repurchase program. This move is part of a strategic initiative to enhance shareholder value, with the company having acquired a total of 27,532,600 shares since the board’s resolution in April 2025, reflecting a significant investment in its own equity.

The most recent analyst rating on (JP:6981) stock is a Buy with a Yen2647.00 price target. To see the full list of analyst forecasts on Murata Manufacturing Co stock, see the JP:6981 Stock Forecast page.