Japan Material Co., Ltd. (6055) AI Stock Analysis

Japan Material Co., Ltd.

(TSE/TYO:6055)

Select Model

Rating:80Outperform

Price Target:JPY 2,338.00▲(16.67% Upside)

Action:reiterated

Date:10/08/26

The score is driven primarily by strong financial performance—material margin improvement and an ultra-low-debt balance sheet—tempered by historically volatile cash conversion. Technicals add support with a clear uptrend and positive momentum, while valuation (P/E ~21 and ~1.33% yield) is only متوسط, limiting upside from multiple expansion.

Positive Factors

Margin expansionThe substantial expansion in gross, operating, and net margins indicates stronger pricing or service mix and meaningful operating leverage. If retained, this improvement should increase earnings resilience, support internal reinvestment, and strengthen profitability across the company’s infrastructure-related project base.

Negative Factors

Volatile cash conversionAlthough the company generates cash overall, the wide variation in conversion from earnings to operating and free cash flow creates uncertainty in the timing of available funds. Working-capital and project-timing swings could periodically constrain reinvestment, distributions, or other capital allocation.

Japan Material Co., Ltd. (6055) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 208.94B
Dividend Yield: 1.57%
Average Volume (3M): 565.95K
Price to Earnings (P/E): 17.8
Beta (1Y): 1.35
Revenue Growth: 10.80%
EPS Growth: 38.94%
Country: Japan
Employees: 1,646
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Japan Material Co., Ltd. Business Overview & Revenue Model

Company Description

JAPAN MATERIAL Co., Ltd. operates across distinct electronics and graphics divisions. Within its electronics segment, the company specializes in the development, manufacturing, and distribution of essential gas supply systems for semiconductor and li...

How the Company Makes Money

Japan Material makes money mainly by providing services and solutions tied to building and operating telecommunications and IT infrastructure. Its revenue model is centered on (1) project-based income from construction/installation work (e.g., buildi...

Japan Material Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth with meaningful margin expansion (gross ~24.7% to ~34.1%, operating ~25.3%, net ~18.3%) and an exceptionally conservative balance sheet (debt-to-equity ~0.003). Main risk is cash-flow variability versus earnings, with operating cash flow below net income in the latest year (~0.90) and historically weak cash conversion in 2024.

Income Statement

86Very Positive

Balance Sheet

93Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	60.69B	57.98B	52.68B	48.59B	46.53B	37.99B
Gross Profit	21.36B	19.76B	16.16B	12.02B	15.00B	12.21B
EBITDA	18.20B	16.49B	12.62B	9.02B	11.93B	10.20B
Net Income	11.77B	10.59B	7.87B	5.68B	7.90B	6.74B
Balance Sheet
Total Assets	75.65B	75.37B	65.90B	56.62B	52.45B	45.53B
Cash, Cash Equivalents and Short-Term Investments	24.44B	21.62B	16.32B	6.12B	9.84B	9.86B
Total Debt	136.00M	158.00M	349.00M	512.00M	578.70M	874.43M
Total Liabilities	12.11B	12.15B	11.31B	8.70B	8.91B	8.33B
Stockholders Equity	62.94B	62.64B	54.13B	47.60B	43.54B	37.20B
Cash Flow
Free Cash Flow	0	8.90B	12.07B	372.00M	1.93B	1.12B
Operating Cash Flow	0	9.61B	14.20B	4.23B	4.74B	4.45B
Investing Cash Flow	0	-6.42B	-2.74B	-5.10B	-3.41B	-3.44B
Financing Cash Flow	0	-2.56B	-2.15B	-2.13B	-2.08B	-1.64B

Japan Material Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2004.00

Price Trends

50DMA2173.40Negative

100DMA2276.46Negative

200DMA2051.99Negative

Market Momentum

MACD-55.99Positive

RSI41.78Neutral

STOCH76.36Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6055, the sentiment is Negative. The current price of 2004.00 is below the 20-day moving average (MA) of 2182.65, below the 50-day MA of 2173.40, and below the 200-day MA of 2051.99, indicating a bearish trend. The MACD of -55.99 indicates Positive momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 76.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6055.

Japan Material Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6055 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6366	80Outperform	JPY 151.75B	1.83	101.68%	―	13.90%	185.56%
JP:6055	80Outperform	JPY 208.63B	17.75	―	1.57%	10.80%	38.94%
JP:1959	77Outperform	JPY 549.41B	11.81	―	3.22%	5.31%	51.56%
JP:1963	77Outperform	JPY 502.17B	10.68	11.30%	2.46%	-15.29%	―
JP:1942	65Neutral	JPY 939.40B	13.98	16.79%	3.13%	3.74%	30.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6330	47Neutral	JPY 127.86B	-10.44	-27.55%	1.15%	-31.33%	-795.62%

* General Sector Average

Performance Comparison

JP:6055 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6055	Japan Material Co., Ltd.	2033.00	113.28	5.90%
JP:6366	Chiyoda Corp	586.00	173.00	41.89%
JP:1963	JGC Corp	2114.00	560.34	36.07%
JP:6330	Toyo Engineering Corporation	2182.00	-210.00	-8.78%
JP:1942	Kandenko Co., Ltd.	4598.00	-111.95	-2.38%
JP:1959	Kraftia Corporation	7755.00	205.39	2.72%

Japan Material Co., Ltd. Corporate Events

Japan Material Reshuffles Key Management Roles in Production and Sales

Sep 24, 2026

Japan Material Co., Ltd. announced a set of management and personnel changes effective October 1, 2026, following a resolution at its Board of Directors meeting on September 24, 2026. These changes reassign responsibilities within key operational div...

Japan Material Delivers Strong Q1 Profit Growth, Keeps FY2026 Outlook Intact

Aug 7, 2026

Japan Material Co., Ltd., listed in Tokyo and Nagoya, supplies materials and associated services to industrial and technology sectors and operates with a strong balance sheet, as reflected in an equity ratio exceeding 80%. The group emphasizes stable...

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.

Date of analysis: Oct 08, 2026

Japan Material Co., Ltd. AI Stock Analysis