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Futaba
(6986)
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Rating:60Neutral
Price Target:
¥616.00
▲(2.50% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by a conservative balance sheet and improving (but still mixed) cash flow, which help offset ongoing operating challenges and multi-year revenue decline. Technicals weigh on the rating because the price is below all major moving averages. Valuation is a positive contributor with a moderate P/E and an above-average dividend yield.
Positive Factors
Conservative Balance Sheet
Extremely low leverage and a large equity cushion provide durable financial resilience. This structural balance-sheet strength lowers default and refinancing risk, preserves strategic optionality for capex or M&A, and supports continuity of dividends or investments during revenue volatility.
Negative Factors
Multi-year Revenue Decline
Persistent top-line contraction erodes scale benefits, reduces leverage over fixed costs, and weakens competitive positioning. Continued revenue decline makes it harder to restore stable operating profits and increases execution risk for any turnaround initiatives in the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage and a large equity cushion provide durable financial resilience. This structural balance-sheet strength lowers default and refinancing risk, preserves strategic optionality for capex or M&A, and supports continuity of dividends or investments during revenue volatility.
Read all positive factors
Futaba (6986) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥26.09B
Dividend Yield2.93%
Average Volume (3M)136.22K
Price to Earnings (P/E)10.3
Beta (1Y)1.22
Revenue Growth-10.67%
EPS GrowthN/A
CountryJP
Employees2,384
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)59.46
Shares Outstanding42,426,740
10 Day Avg. Volume131,010
30 Day Avg. Volume136,216
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.32
Price to Sales (P/S)0.62
P/FCF Ratio30.59
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
Operating across Japan, the Americas, Europe, and Asia, Futaba Corporation specializes in the creation, production, and distribution of electronic devices, radio-controlled apparatus, and various manufacturing machinery. Its operations are organiz...
How the Company Makes Money
null...
Futaba Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
83
Very Positive
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.98B | 48.12B | 56.36B | 60.33B | 53.45B |
| Gross Profit | 6.92B | 8.87B | 8.75B | 8.61B | 8.95B |
| EBITDA | -1.27B | -227.00M | 129.00M | -1.12B | -661.00M |
| Net Income | 2.52B | -281.00M | -1.85B | -3.50B | -2.67B |
Balance Sheet | |||||
| Total Assets | 108.88B | 101.09B | 104.26B | 98.33B | 100.65B |
| Cash, Cash Equivalents and Short-Term Investments | 36.39B | 31.58B | 27.36B | 24.37B | 34.23B |
| Total Debt | 503.00M | 700.00M | 733.00M | 970.00M | 971.00M |
| Total Liabilities | 13.68B | 12.78B | 13.73B | 13.12B | 13.86B |
| Stockholders Equity | 83.79B | 77.17B | 78.21B | 73.79B | 75.61B |
Cash Flow | |||||
| Free Cash Flow | 868.00M | 3.54B | 311.00M | -8.27B | -9.29B |
| Operating Cash Flow | 1.77B | 4.62B | 1.53B | -5.83B | -6.07B |
| Investing Cash Flow | 2.44B | -1.35B | 4.21B | 1.06B | 1.35B |
| Financing Cash Flow | -833.00M | -1.15B | -1.13B | -1.46B | -1.62B |
Futaba Technical Analysis
Positive
601.00
Price Trends
590.26
Positive
634.05
Positive
636.70
Positive
Market Momentum
12.35
Negative
67.04
Neutral
92.15
Negative
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 601 is above the 20-day moving average (MA) of 593.80, above the 50-day MA of 590.26, and below the 200-day MA of 636.70, indicating a bullish trend. The MACD of 12.35 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 92.15 is Negative, 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 | ¥867.79B | 27.58 | 8.80% | 1.78% | 11.53% | 1.60% | |
68 Neutral | ¥434.01B | 17.01 | 6.28% | 2.86% | 2.28% | -22.89% | |
68 Neutral | ¥5.71T | 24.32 | ― | 1.20% | 21.98% | 57.54% | |
65 Neutral | ¥13.68T | 51.00 | 8.95% | 0.78% | 10.31% | 24.82% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥26.09B | 10.34 | 3.14% | 3.00% | -10.67% | ― | |
49 Neutral | ¥164.01B | 24.49 | 5.10% | 2.44% | 7.73% | -29.74% |
* Technology Sector Average
JP:6986
Futaba
637.00
20.40
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Futaba Corporate Events
Futaba Bets on SAP Core System Overhaul to Rebuild Competitiveness
Jun 5, 2026
Futaba Corporation has approved a major overhaul of its core enterprise systems, selecting SAP as its new group-wide ERP platform as part of its mid-term plan to reinforce its management base and accelerate digital transformation. The system is sl...
Futaba to Slash Strategic Shareholdings and Reinvest Proceeds for Growth
Jun 5, 2026
Futaba Corporation has adopted a new policy to reduce its strategic shareholdings in line with Japan’s Corporate Governance Code, aiming to improve capital efficiency and strengthen its balance sheet. The company plans to cut the ratio of su...
Futaba Sets May 2026 Resolution Date to Dissolve Chinese Subsidiary
May 20, 2026
Futaba Corporation has finalized May 20, 2026 as the official resolution date to dissolve its consolidated Chinese subsidiary, Futaba Precision Die and Mold Machinery (China) Co., Ltd., following earlier notices issued in 2025. The decision marks ...
Futaba to Dissolve Loss-Making Chinese Trading Subsidiary Amid Business Shift
May 20, 2026
Futaba Corporation has resolved to dissolve its consolidated Chinese subsidiary, Futaba International Trading (Shanghai) Co., Ltd., which has handled procurement and sales of electronic products in China since 2001. The move follows a sharp declin...
Futaba Issues Consolidated Financial Results for Fiscal Year Ended March 2026
May 18, 2026
Futaba Corporation has released a consolidated financial results presentation for the fiscal year ended March 31, 2026, clarifying that all figures are rounded to the nearest million yen and that net income refers specifically to earnings attribut...
Futaba Beats Profit Forecasts on FX Gains but Books Asset Impairment
May 12, 2026
Futaba reported full-year net sales of ¥42.98 billion, roughly in line with forecasts, but a deeper operating loss due to an unfavorable product mix and inventory-related factors. Despite weaker operations, ordinary profit and profit attribut...
Futaba Plans Sharp Hike in Year-End Dividend to Boost Shareholder Returns
May 12, 2026
Futaba Corporation’s board has approved a proposal to raise its year-end dividend for the fiscal year ended March 31, 2026, from a previously forecast 10 yen per share to 18 yen, lifting the total payout to 763 million yen, up from 424 milli...
Futaba Swings to Profit Despite Sales Drop, Hikes Dividend Amid Cautious Outlook
May 12, 2026
Futaba reported a 10.7% decline in net sales to ¥42.98 billion for the fiscal year ended March 31, 2026, but swung from a loss to a profit attributable to owners of the parent of ¥2.52 billion, supported by improved comprehensive income ...
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.