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Murata Manufacturing Co
(6981)
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Rating:73Outperform
Price Target:
¥10,065.00
▲(118.80% Upside)
Action:Reiterated
Date:06/19/26
The score reflects strong financial stability and solid profitability, supported by strong technical momentum. This is materially offset by a very expensive valuation (high P/E and low yield) and some recent free-cash-flow volatility.
Positive Factors
Very strong balance sheet (low leverage)
Consistently low leverage and rising equity give Murata durable financial flexibility. A high-quality capital structure reduces refinancing and solvency risk, supports multi-year investments in capacity and R&D, and helps the company sustain qualification cycles for automotive and industrial customers during downturns.
Negative Factors
Cyclical revenue and earnings
Murata's end-markets (consumer electronics and automotive cycles) drive pronounced revenue swings. Cyclicality makes multi-quarter forecasting and capacity planning harder, increases the risk of margin compression in downturns, and can delay return to prior peak earnings power during prolonged slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet (low leverage)
Consistently low leverage and rising equity give Murata durable financial flexibility. A high-quality capital structure reduces refinancing and solvency risk, supports multi-year investments in capacity and R&D, and helps the company sustain qualification cycles for automotive and industrial customers during downturns.
Read all positive factors
Murata Manufacturing Co (6981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥16.65T
Dividend Yield1.88%
Average Volume (3M)7.32M
Price to Earnings (P/E)76.5
Beta (1Y)1.70
Revenue Growth5.02%
EPS Growth2.08%
CountryJP
Employees72,572
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)127.52
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
¥11,783.33Price Target Upside156.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)184.39
Revenue Forecast (FY)¥2.03T
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 primarily makes money by designing, manufacturing, and selling electronic components and modules to original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) providers worldwide. Its largest revenue stream is typi...
Murata Manufacturing Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.83T | 1.74T | 1.64T | 1.69T | 1.81T |
| Gross Profit | 774.83B | 683.20B | 603.86B | 641.76B | 768.23B |
| EBITDA | 490.04B | 480.61B | 418.49B | 473.47B | 588.60B |
| Net Income | 233.92B | 233.82B | 180.84B | 243.95B | 314.12B |
Balance Sheet | |||||
| Total Assets | 3.20T | 3.03T | 3.04T | 2.86T | 2.81T |
| Cash, Cash Equivalents and Short-Term Investments | 653.70B | 625.15B | 622.01B | 469.41B | 568.44B |
| Total Debt | 55.77B | 59.99B | 105.94B | 163.57B | 142.98B |
| Total Liabilities | 481.29B | 448.22B | 482.29B | 498.36B | 545.26B |
| Stockholders Equity | 2.72T | 2.58T | 2.56T | 2.36T | 2.26T |
Cash Flow | |||||
| Free Cash Flow | 193.65B | 284.18B | 273.02B | 93.47B | 270.93B |
| Operating Cash Flow | 438.27B | 467.12B | 501.64B | 283.38B | 421.46B |
| Investing Cash Flow | -207.79B | -223.96B | -214.34B | -157.82B | -212.30B |
| Financing Cash Flow | -220.88B | -242.06B | -164.56B | -181.60B | -117.50B |
Murata Manufacturing Co Technical Analysis
Positive
4600.00
Price Trends
8752.28
Positive
6320.60
Positive
4698.76
Positive
Market Momentum
239.93
Positive
46.57
Neutral
8.59
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 4600 is below the 20-day moving average (MA) of 10716.50, below the 50-day MA of 8752.28, and below the 200-day MA of 4698.76, indicating a neutral trend. The MACD of 239.93 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 8.59 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥859.87B | 28.30 | 8.07% | 2.85% | 11.53% | 1.60% | |
73 Outperform | ¥16.65T | 76.50 | 8.95% | 1.88% | 5.02% | 2.08% | |
64 Neutral | ¥6.26T | 33.29 | ― | 1.41% | 13.61% | 17.02% | |
62 Neutral | ¥1.88T | 125.59 | ― | 2.57% | 4.07% | 533.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥237.24B | 37.68 | ― | 2.18% | -3.43% | 9.82% | |
51 Neutral | ¥109.59B | 39.85 | 2.26% | ― | 11.52% | 5651.84% |
* Technology Sector Average
JP:6981
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Murata Manufacturing Co Corporate Events
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...
Murata to Dispose of Treasury Shares for Director Stock Incentive Plans
Apr 30, 2026
Murata Manufacturing said it will again use share-based remuneration plans for its directors and executive officers in the current fiscal year, combining restricted stock (RS) and performance-linked share units (PSU). The company plans to dispose ...
Murata Maintains Core Leadership While Refreshing Audit Oversight
Apr 30, 2026
Murata Manufacturing has proposed a largely unchanged leadership slate for approval at its June 2026 annual shareholders’ meeting, reappointing President and CEO Norio Nakajima and other key executives overseeing technology, finance, medical...
Murata Manufacturing Launches ¥150 Billion Share Buyback and Cancellation Plan
Apr 30, 2026
Murata Manufacturing’s board has approved a share buyback of up to 75 million common shares, representing as much as 4.12% of its outstanding stock excluding treasury shares, at a cost of up to ¥150 billion between May 11, 2026 and Janu...
Murata Raises Year-End Dividend Forecast on Solid Earnings and DOE Target
Apr 30, 2026
Murata Manufacturing has revised its dividend forecast for the fiscal year ending March 31, 2026, raising the projected year-end dividend from 30 yen to 35 yen per share. This increase lifts the total annual dividend forecast from 60 yen to 65 yen...
Murata Posts Solid FY2026 Results and Lifts Dividend as It Forecasts Stronger Profit Growth
Apr 30, 2026
Murata Manufacturing reported a 5% rise in consolidated revenue to ¥1.83 trillion for the year ended March 31, 2026, with operating profit up slightly at ¥281.8 billion and profit attributable to owners of the parent essentially flat at ...
Murata Details Data Exposure but Says Operations Unaffected After Cyberattack
Apr 27, 2026
Murata has disclosed further details on a previously reported unauthorized access to its IT environment, confirming that while systems, production, and sales continue to operate normally, data including personal and business information was improp...
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.