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Japan Material Co., Ltd.
(6055)
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Rating:80Outperform
Price Target:
¥2,470.00
▲(32.65% Upside)
Action:Reiterated
Date:07/08/26
Overall score is driven primarily by strong financial performance—rising margins, solid growth, and an exceptionally low-debt balance sheet—supported by a clear positive price trend above major moving averages. The main constraints are cash-flow conversion volatility and a moderately high P/E with a modest dividend yield.
Positive Factors
Improving profitability
The substantial expansion in gross, operating, and net margins indicates stronger pricing, service mix, or operating leverage. If these gains persist, Japan Material can convert revenue growth into faster earnings growth and fund investment while strengthening its competitive position.
Negative Factors
Volatile cash conversion
Although Japan Material generates substantial cash overall, the large year-to-year swings between earnings and cash flow indicate working-capital or project-timing variability. Persistent volatility could reduce the reliability of internally funded investment and make cash planning less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
The substantial expansion in gross, operating, and net margins indicates stronger pricing, service mix, or operating leverage. If these gains persist, Japan Material can convert revenue growth into faster earnings growth and fund investment while strengthening its competitive position.
Read all positive factors
Japan Material Co., Ltd. (6055) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥220.43B
Dividend Yield1.49%
Average Volume (3M)633.36K
Price to Earnings (P/E)18.8
Beta (1Y)1.29
Revenue Growth10.80%
EPS Growth38.94%
CountryJP
Employees1,646
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)114.51
Shares Outstanding105,149,520
10 Day Avg. Volume537,530
30 Day Avg. Volume633,356
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)2.58
Price to Sales (P/S)2.79
P/FCF Ratio18.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥2,400.00Price Target Upside28.89% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)111.82
Revenue Forecast (FY)¥63.32B
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...
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., bui...
Japan Material Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
78
Positive
| 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 | 18.73B | 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 | 0.00 | 8.90B | 12.07B | 372.00M | 1.93B | 1.12B |
| Operating Cash Flow | 0.00 | 9.61B | 14.20B | 4.23B | 4.74B | 4.45B |
| Investing Cash Flow | 0.00 | -6.42B | -2.74B | -5.10B | -3.41B | -3.44B |
| Financing Cash Flow | 0.00 | -2.56B | -2.15B | -2.13B | -2.08B | -1.64B |
Japan Material Co., Ltd. Technical Analysis
Positive
1862.00
Price Trends
2304.16
Negative
2198.58
Positive
1950.62
Positive
Market Momentum
-31.29
Negative
53.70
Neutral
63.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6055, the sentiment is Positive. The current price of 1862 is below the 20-day moving average (MA) of 2149.75, below the 50-day MA of 2304.16, and below the 200-day MA of 1950.62, indicating a neutral trend. The MACD of -31.29 indicates Negative momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 63.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6055.
Japan Material Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥220.43B | 18.76 | ― | 1.49% | 10.80% | 38.94% | |
76 Outperform | ¥556.80B | 11.84 | 11.30% | 2.22% | -15.29% | ― | |
70 Outperform | ¥179.46B | 2.17 | 101.68% | 2.63% | 13.90% | 185.56% | |
66 Neutral | ¥1.15T | 17.81 | 16.34% | 2.20% | 3.66% | 35.60% | |
65 Neutral | ¥573.50B | 14.05 | ― | 2.72% | 1.48% | 41.27% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥145.09B | -11.85 | -27.55% | 1.01% | -31.33% | -795.62% |
* General Sector Average
JP:6055
Japan Material Co., Ltd.
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Japan Material Co., Ltd. Corporate Events
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 sta...
Japan Material Completes Treasury Share Disposal for Restricted Stock Plan
Jul 23, 2026
Japan Material has completed payment procedures for the disposal of 17,000 treasury shares used for its restricted stock compensation plan, following a Board resolution passed in late June 2026. The shares, priced at ¥2,555 each for a total v...
Japan Material to Take Full Ownership of Singapore Semiconductor Subsidiary GBS
Jul 23, 2026
Japan Material Co., Ltd. has resolved to acquire an additional 30% stake in its consolidated subsidiary GBS (SINGAPORE) PTE. LTD., raising its total holding to 100% and converting GBS into a wholly owned subsidiary. Of this additional stake, 9% wi...
Japan Material to Grant Restricted Stock via Treasury Share Disposal
Jun 24, 2026
Japan Material will dispose of 17,000 treasury shares as restricted stock on July 23, 2026, at ¥2,555 per share, with a total value of ¥43.4 million, to directors and executive officers of the company and its subsidiaries. The allocation...
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.