Japan Display (JPDYY) AI Stock Analysis

• Market Cap: $506.86M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• 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: 2.19
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: -0.08
• Enterprise Value/Ebitda: -0.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 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, negative profitability, and a weak balance sheet. Technical analysis provides some short-term bullish signals, but these are overshadowed by the company's fundamental challenges. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score.

Positive Factors

Innovative Technologies

Japan Display's focus on innovation and energy-efficient display technologies positions it well to capture demand in high-tech sectors, ensuring long-term competitiveness and relevance in the market.

Strategic Partnerships

Strategic partnerships and joint ventures help Japan Display access new markets and technologies, potentially driving revenue growth and diversifying income streams over the long term.

Customized Solutions

Offering customized solutions allows Japan Display to cater to niche markets, fostering customer loyalty and creating barriers to entry for competitors, which can lead to sustained revenue streams.

Negative Factors

Declining Revenues

Consistent revenue decline indicates weakening market position and demand for products, which can undermine long-term growth prospects and financial stability.

Negative Profitability

Persistent negative profitability suggests structural inefficiencies and challenges in cost management, which could hinder the company's ability to invest in growth and innovation.

Weak Balance Sheet

A weak balance sheet with high leverage limits financial flexibility and increases risk, potentially affecting the company's ability to weather economic downturns or invest in strategic initiatives.

Japan Display Business Overview & Revenue Model

Company Description

Japan Display Inc. designs, develops, produces, and sells small-and medium-sized display devices and related products in Japan and internationally. The company offers various LCD modules for mobile applications, such as smartphone, tablet, and notebook PC devices; wearable applications, including sports watches, healthcare equipment, and action cameras; automotive applications, such as car navigation, instrument panel, and rear seat monitor; devices used for display and diagnosis in medical field comprising mammography, PACS, surgical monitor, ultrasonography, X-ray sensitivity sensor, etc.; IoT products and applications, including outdoor sports gears, medical and healthcare devices, remote controllers, and portable devices; and industrial applications. It also provides landscape IPS LCD modules for single-lens reflex and high-end compact digital cameras. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Display generates revenue primarily through the sale of display panels to major electronics manufacturers, including smartphone and tablet producers. The company also earns income from providing customized display solutions for automotive and industrial applications. Key revenue streams include bulk sales of LCD and OLED panels, licensing agreements for proprietary technology, and strategic partnerships with leading technology firms. Additionally, Japan Display has been focusing on expanding its market presence through collaborations and joint ventures, which enhance its product offerings and market reach, thereby contributing to its overall earnings.

Japan Display Financial Statement Overview

Summary

Japan Display is facing significant financial difficulties across all major financial statements. The company is struggling with declining revenues, negative profitability, and a weak balance sheet characterized by high leverage and negative equity. Cash flow improvements are insufficient to offset these challenges, indicating a need for strategic restructuring or external support to stabilize its financial position.

Income Statement

Japan Display's income statement reveals significant challenges, with negative margins across the board. The gross profit margin is negative, indicating cost issues, and the net profit margin is deeply negative, reflecting substantial losses. Revenue has been declining consistently, with a notable drop of 12.5% in the TTM period. These factors highlight severe profitability and growth issues.

Balance Sheet

The balance sheet shows a precarious financial position, with a negative stockholders' equity and a high debt-to-equity ratio of 8.64 in the TTM period, indicating heavy reliance on debt financing. The return on equity is negative, further emphasizing the company's inability to generate profits from its equity base. The equity ratio is also concerning, reflecting a weak capital structure.

Cash Flow

Cash flow analysis indicates some improvement in free cash flow growth, but overall cash flows remain negative. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies. While the free cash flow to net income ratio is positive, it is primarily due to the large net losses rather than strong cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	164.54B	188.01B	239.15B	270.75B	295.95B	341.69B
Gross Profit	-13.46B	-9.65B	-6.49B	-15.19B	19.69B	5.14B
EBITDA	-35.13B	-68.58B	-36.38B	-36.20B	4.26B	-12.50B
Net Income	-91.97B	-78.22B	-44.31B	-25.82B	-8.10B	-42.70B
Balance Sheet
Total Assets	141.39B	148.03B	223.99B	222.70B	258.27B	225.00B
Cash, Cash Equivalents and Short-Term Investments	28.17B	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	154.35B	141.14B	138.33B	98.27B	185.51B	183.17B
Stockholders Equity	-12.96B	6.89B	85.66B	124.43B	72.77B	39.55B
Cash Flow
Free Cash Flow	-44.07B	-25.45B	-29.67B	-74.30B	-28.84B	-30.16B
Operating Cash Flow	-35.32B	-25.45B	-17.58B	-65.67B	-21.67B	-23.12B
Investing Cash Flow	235.00M	-8.16B	-13.43B	9.78B	95.00M	-9.14B
Financing Cash Flow	31.29B	25.69B	32.90B	27.68B	14.77B	20.23B

Japan Display Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JPDYY, the sentiment is Neutral. The current price of 1.29 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.30, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JPDYY.

Japan Display Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAKT	64 Neutral	$895.38M	4,086.36	4.36%	―	-7.67%	7.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VPG	60 Neutral	$464.64M	61.79	2.37%	―	-7.46%	-39.98%
LPTH	51 Neutral	$409.75M	―	-37.93%	―	36.85%	-77.93%
JPDYY	46 Neutral	$506.86M	-0.90	-297.34%	―	-31.46%	-114.54%
OUST	45 Neutral	$1.32B	―	-42.03%	―	30.20%	35.80%
MVIS	44 Neutral	$319.02M	-2.70	-112.89%	―	-67.66%	13.39%