Futaba Corp. (JP:6986)
:6986
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Futaba
(6986)
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Rating:55Neutral
Price Target:
¥781.00
▲(18.51% Upside)
Action:ReiteratedDate:01/08/26
The score is held back primarily by weak profitability/declining revenue and a stretched valuation (high P/E). These are partially offset by a strong, low-leverage balance sheet, improving free cash flow, and a positive price trend that is tempered by overbought momentum signals.
Positive Factors
Strong balance sheet / low leverage
A high equity ratio and very low debt provide a durable financial cushion that supports ongoing R&D, capital expenditures, and working capital through downturns. Low leverage preserves strategic optionality for partnerships, product investment, or opportunistic M&A without refinancing stress.
Negative Factors
Declining revenue trend
A multi-year decline in revenue reduces scale benefits and spreads fixed costs over a smaller base, pressuring operating margins and cash generation. Persistent top-line contraction signals weakening market demand or share loss, posing medium-term risk to strategic investments and growth revival.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet / low leverage
A high equity ratio and very low debt provide a durable financial cushion that supports ongoing R&D, capital expenditures, and working capital through downturns. Low leverage preserves strategic optionality for partnerships, product investment, or opportunistic M&A without refinancing stress.
Read all positive factors
Futaba (6986) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥28.29B
Dividend Yield1.75%
Average Volume (3M)136.22K
Price to Earnings (P/E)3.5
Beta (1Y)1.16
Revenue Growth-14.20%
EPS GrowthN/A
CountryJP
Employees2,997
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)42.05
Shares Outstanding42,426,740
10 Day Avg. Volume131,010
30 Day Avg. Volume136,216
Financial Highlights & Ratios
PEG Ratio0.95
Price to Book (P/B)0.29
Price to Sales (P/S)0.47
P/FCF Ratio6.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Futaba Business Overview & Revenue Model
Company Description
Futaba Corporation (6986) is a Japanese company specializing in the design and manufacturing of various electronic components and systems, primarily focusing on automotive and industrial applications. The company operates mainly in the sectors of ...
How the Company Makes Money
Futaba generates revenue through multiple streams, primarily by selling its electronic components to automotive manufacturers and industrial clients. Key revenue sources include the production of LCD displays and electronic control units, which ar...
Futaba Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.84B | 48.12B | 56.36B | 60.33B | 53.45B | 48.83B |
| Gross Profit | 8.36B | 8.87B | 8.75B | 8.61B | 8.95B | 7.69B |
| EBITDA | -616.00M | -227.00M | 129.00M | -1.12B | -661.00M | -2.25B |
| Net Income | -884.00M | -281.00M | -1.85B | -3.50B | -2.67B | -5.43B |
Balance Sheet | ||||||
| Total Assets | 100.73B | 101.09B | 104.26B | 98.33B | 100.65B | 100.35B |
| Cash, Cash Equivalents and Short-Term Investments | 31.64B | 31.58B | 27.36B | 24.37B | 34.23B | 41.44B |
| Total Debt | 656.00M | 700.00M | 733.00M | 970.00M | 971.00M | 1.04B |
| Total Liabilities | 12.35B | 12.78B | 13.73B | 13.12B | 13.86B | 12.85B |
| Stockholders Equity | 76.98B | 77.17B | 78.21B | 73.79B | 75.61B | 76.88B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.54B | 311.00M | -8.27B | -9.29B | -2.37B |
| Operating Cash Flow | 0.00 | 4.62B | 1.53B | -5.83B | -6.07B | -508.00M |
| Investing Cash Flow | 0.00 | -1.35B | 4.21B | 1.06B | 1.35B | -2.39B |
| Financing Cash Flow | 0.00 | -1.15B | -1.13B | -1.46B | -1.62B | -1.87B |
Futaba Technical Analysis
Positive
659.00
Price Trends
677.54
Negative
640.84
Positive
641.51
Positive
Market Momentum
-8.17
Positive
49.38
Neutral
43.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6986, the sentiment is Positive. The current price of 659 is below the 20-day moving average (MA) of 669.56, below the 50-day MA of 677.54, and above the 200-day MA of 641.51, indicating a neutral trend. The MACD of -8.17 indicates Positive momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 43.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6986.
Futaba Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥425.77B | 9.21 | 11.96% | 3.04% | 2.70% | ― | |
78 Outperform | ¥676.50B | 15.50 | 8.07% | 2.85% | 11.18% | -0.75% | |
74 Outperform | ¥6.98T | 59.16 | 8.95% | 1.88% | 2.88% | 28.76% | |
67 Neutral | ¥3.94T | 15.03 | ― | 1.41% | 7.73% | -1.93% | |
64 Neutral | ¥164.28B | 29.59 | 5.91% | 2.39% | -3.24% | -25.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥28.29B | 3.47 | 0.31% | 1.75% | -14.20% | ― |
* Technology Sector Average
JP:6986
Futaba
667.00
215.88
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Futaba Corporate Events
Futaba Keeps Leadership Stable as It Sets New Executive Lineup for 2026
Mar 19, 2026
Futaba Corporation has confirmed the slate of director candidates it will put to shareholders at its 83rd annual general meeting in late June, including the reappointment of President and CEO Motoaki Arima and outside directors Takemitsu Kunio and...
Futaba Sticks to Full-Year Outlook as Operating Loss Deepens but Net Profit Rises
Feb 13, 2026
Futaba reported nine-month net sales to December 31, 2025 of ¥31.7 billion, down 12.5% year on year, and booked an operating loss of ¥1.5 billion and an ordinary loss of ¥503 million, even as profit attributable to owners of the par...
Futaba Boosts Quarterly Earnings with FX and Subsidiary Liquidation Gains
Feb 13, 2026
Futaba Corporation reported significant non-operating income in the third quarter of the fiscal year ending March 31, 2026, including ¥151 million in interest income from bank deposits held by the company and its subsidiaries, and a net forei...
Futaba Extends ¥5 Billion Commitment Line to Bolster Financial Flexibility
Jan 23, 2026
Futaba Corporation’s board of directors has approved a one-year extension of the expiry date on its existing ¥5 billion unsecured bilateral commitment line with The Chiba Bank, moving the commitment end date from February 27, 2026 to Fe...
Futaba to Dissolve Loss-Making Korean Subsidiary After Legacy Business Decline
Jan 23, 2026
Futaba Corporation has resolved to dissolve its wholly owned Korean subsidiary, Futaba Electronic Components Korea Co., Ltd., which has primarily handled the purchase and sale of electronic equipment products in South Korea. The decision follows a...
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.