Murata Manufacturing Co (6981) AI Stock Analysis

• Market Cap: ¥5.90T
• Dividend Yield: 1.87%
• Average Volume (3M): 7.32M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.24
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,424.53
• Price Target Upside: 6.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥3,866.00 ▲(20.77% Upside)

Murata Manufacturing Co's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust balance sheet and efficient operations support its financial health. However, the high P/E ratio suggests the stock is expensive, which, along with declining free cash flow, poses potential risks. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Profit Margins

Murata's strong profit margins indicate efficient operations and pricing power, supporting long-term profitability and competitive positioning.

Robust Balance Sheet

A robust balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth opportunities.

Cash Generation Ability

Strong cash generation relative to earnings ensures liquidity, enabling Murata to fund operations and invest in innovation without relying on external financing.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow growth may limit Murata's ability to invest in new projects and technologies, potentially impacting future growth prospects.

Revenue Growth Challenges

Slower revenue growth suggests potential market saturation or increased competition, necessitating strategic initiatives to sustain growth momentum.

Moderate Return on Equity

A moderate return on equity indicates potential inefficiencies in capital utilization, which could affect investor confidence and long-term value creation.

Murata Manufacturing Co Business Overview & Revenue Model

Company Description

Murata Manufacturing Co., Ltd. is a leading global provider of electronic components and solutions, primarily operating in the sectors of passive components, power supplies, and wireless communication modules. Founded in 1944 and headquartered in Kyoto, Japan, the company is renowned for its innovative technologies and high-quality products, which include capacitors, resistors, inductors, and sensors. Murata serves a diverse range of industries, including automotive, telecommunications, consumer electronics, and industrial applications, positioning itself as a key player in the rapidly evolving electronics market.

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	1.76T	1.74T	1.64T	1.69T	1.81T	1.63T
Gross Profit	730.09B	683.20B	603.86B	641.76B	768.23B	622.20B
EBITDA	492.06B	480.61B	418.49B	473.47B	588.60B	459.88B
Net Income	235.88B	233.82B	180.84B	243.95B	314.12B	237.05B
Balance Sheet
Total Assets	3.04T	3.03T	3.04T	2.86T	2.81T	2.46T
Cash, Cash Equivalents and Short-Term Investments	582.39B	625.15B	622.01B	469.41B	568.44B	450.80B
Total Debt	59.90B	59.99B	105.94B	163.57B	142.98B	182.71B
Total Liabilities	444.16B	448.22B	482.29B	498.36B	545.26B	540.62B
Stockholders Equity	2.60T	2.58T	2.56T	2.36T	2.26T	1.92T
Cash Flow
Free Cash Flow	236.25B	284.18B	273.02B	93.47B	270.93B	173.69B
Operating Cash Flow	414.62B	467.12B	501.64B	283.38B	421.46B	373.57B
Investing Cash Flow	-187.86B	-223.96B	-214.34B	-157.82B	-212.30B	-150.28B
Financing Cash Flow	-224.99B	-242.06B	-164.56B	-181.60B	-117.50B	-118.19B

Murata Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3201.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3201 is below the 20-day moving average (MA) of 3271.40, above the 50-day MA of 3140.77, and above the 200-day MA of 2486.35, indicating a neutral trend. The MACD of 22.56 indicates Positive momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 17.97 is Positive, 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	77 Outperform	¥5.90T	25.13	8.95%	1.87%	2.88%	28.76%
6806	68 Neutral	¥558.85B	18.53	8.09%	2.88%	11.18%	-0.75%
6479	67 Neutral	¥1.26T	20.12	8.05%	1.57%	0.96%	3.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6762	61 Neutral	¥4.17T	24.12	―	1.46%	7.73%	-1.93%
6645	60 Neutral	¥767.24B	26.80	3.60%	2.64%	3.51%	―
6976	54 Neutral	¥423.23B	97.87	―	2.67%	4.81%	-49.43%

Murata Manufacturing Co Corporate Events

Murata Manufacturing Co. Strengthens Position in Expanding Electronics Market

Murata Manufacturing Co., Ltd. is strategically positioning itself to capitalize on the rapid changes in the electronics market driven by AI. By strengthening its core product offerings and implementing sustainable practices, the company aims to create a cycle of social and economic value, thereby improving profitability and customer satisfaction. Additionally, Murata is reinforcing its organizational, human, and financial capital to establish a strong management foundation, ensuring its growth and success in the expanding market.

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.