Japan Display (JPDYY) AI Stock Analysis

• Market Cap: $549.09M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -31.46%
• EPS Growth: -114.54%
• Country: US
• Employees: 4,507
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.15
• Shares Outstanding: 388,039,370
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.02
• Price to Book (P/B): 15.90
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -4.30
• Enterprise Value/Market Cap: 205.94
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: -9.50
• Enterprise Value/Ebitda: -7.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $1.50 ▲(16.28% Upside)

Japan Display's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profit margins. Technical analysis provides a neutral outlook, while valuation metrics highlight the company's unprofitability. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Product Technology Leadership

Japan Display's R&D-driven product portfolio in high-resolution and energy-efficient panels is a durable competitive asset. Over 2-6 months this underpins OEM relevance, supports bespoke designs, and helps sustain technical differentiation that can secure repeat orders and margin improvement if execution holds.

Established OEM Partnerships

Long-term supply agreements with major electronics manufacturers provide structural revenue visibility and operational planning benefits. These relationships reduce short-term demand volatility risk, enable scale in manufacturing, and can protect market share during industry cycles if contractual terms remain intact.

Exposure to Secular Display Demand

Secular trends toward higher-resolution, lower-power displays across smartphones, automotive cockpits, and IoT expand the addressable market for specialized panels. This structural demand supports a medium-term recovery path if Japan Display can convert tech strengths and OEM ties into consistent order flow.

Negative Factors

Severe Profitability Decline

The company shows persistent revenue declines and deep negative margins, eroding internal capacity to fund operations and R&D. Over the next several months this weakness undermines ability to recover market share, reinvest in product development, and sustain competitive positioning without external support.

Weak Balance Sheet / Negative Equity

Negative equity and high leverage indicate solvency strain and reduced financial flexibility. This structural weakness raises refinancing and covenant risks, limits capacity for capital expenditure or large customer commitments, and increases sensitivity to industry downturns over the coming months.

Persistent Negative Cash Flow

Chronic negative operating and free cash flows create ongoing liquidity pressure and reliance on external financing. In a 2-6 month horizon this constrains working-capital flexibility, supplier relationships, and the ability to fund commercialization of new products without dilution or additional debt.

Japan Display Business Overview & Revenue Model

Company Description

Japan Display Inc. (JPDYY) is a leading global manufacturer of display panels, primarily focusing on advanced LCD and OLED technologies for smartphones, tablets, and other portable devices. The company operates in the consumer electronics sector, providing high-quality display solutions that enhance visual experiences across a wide range of applications. Japan Display is known for its innovative technologies, including high-resolution displays and energy-efficient solutions, catering to the demands of both domestic and international markets.

How the Company Makes Money

Japan Display generates revenue primarily through the sale of display panels to major electronics manufacturers, including those in the smartphone and automotive industries. The company has key revenue streams from its partnerships with leading technology firms, which often involve long-term contracts for the supply of custom display solutions. Additionally, Japan Display benefits from the demand for high-resolution and energy-efficient screens, which are increasingly sought after in modern devices. The company's revenue model is also supported by research and development collaborations aimed at advancing display technology, thereby creating new product offerings and enhancing existing ones.

Japan Display Financial Statement Overview

Summary

Japan Display is facing severe financial challenges, with declining revenues, negative profit margins, and high leverage. The negative stockholders' equity and persistent negative cash flows indicate significant solvency and liquidity issues.

Income Statement

Japan Display's income statement reveals significant challenges, with a consistent decline in revenue and negative profit margins. The TTM data shows a drastic revenue drop of 28.42% and a net profit margin of -48.02%, indicating severe profitability issues. The company has been unable to maintain positive gross profit margins, and EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure, with a negative stockholders' equity in the TTM period, leading to a negative debt-to-equity ratio. This indicates potential solvency issues. The return on equity is also negative, highlighting the company's inability to generate returns for shareholders. The equity ratio is low, suggesting high leverage and financial instability.

Cash Flow

Cash flow analysis indicates persistent negative operating and free cash flows, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is negative, and the free cash flow to net income ratio is above 1, suggesting cash flow issues despite high net losses. These factors point to liquidity challenges and potential difficulties in sustaining operations without external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	152.12B	188.01B	239.15B	270.75B	295.95B	341.69B
Gross Profit	-11.90B	-9.65B	-6.49B	-15.19B	19.69B	5.14B
EBITDA	-15.28B	-68.58B	-36.38B	-36.20B	4.26B	-12.50B
Net Income	-72.61B	-78.22B	-44.31B	-25.82B	-8.10B	-42.70B
Balance Sheet
Total Assets	149.43B	148.03B	223.99B	222.70B	258.27B	225.00B
Cash, Cash Equivalents and Short-Term Investments	37.29B	21.07B	29.34B	26.22B	52.25B	55.70B
Total Debt	65.00B	59.50B	33.50B	0.00	73.68B	95.10B
Total Liabilities	153.49B	141.14B	138.33B	98.27B	185.51B	183.17B
Stockholders Equity	-4.07B	6.89B	85.66B	124.43B	72.77B	39.55B
Cash Flow
Free Cash Flow	-29.26B	-25.45B	-29.67B	-74.30B	-28.84B	-30.16B
Operating Cash Flow	-11.85B	-25.45B	-17.58B	-65.67B	-21.67B	-23.12B
Investing Cash Flow	447.61M	-8.16B	-13.43B	9.78B	95.00M	-9.14B
Financing Cash Flow	15.34B	25.69B	32.90B	27.68B	14.77B	20.23B

Japan Display Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JPDYY, the sentiment is Positive. The current price of 1.29 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.33, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JPDYY.

Japan Display Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAKT	72 Outperform	$1.13B	173.75	2.64%	―	-6.13%	-76.92%
VPG	67 Neutral	$665.02M	85.20	2.37%	―	-7.46%	-39.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LPTH	52 Neutral	$555.18M	-27.36	-37.93%	―	36.85%	-77.93%
JPDYY	45 Neutral	$549.09M	-1.27	-297.34%	―	-31.46%	-114.54%
OUST	45 Neutral	$1.25B	-12.34	-42.03%	―	30.20%	35.80%
MVIS	43 Neutral	$248.17M	-2.14	-112.89%	―	-67.66%	13.39%