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Japan Material Co., Ltd. (JP:6055)
:6055
Japanese Market
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Japan Material Co., Ltd. (6055) AI Stock Analysis

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JP:6055

Japan Material Co., Ltd.

(6055)

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Outperform 80 (OpenAI - Gpt-5.6Sol)
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)

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
Strong overall fundamentals driven by steady revenue growth and meaningfully improving profitability (gross margin ~24.7% to ~34.1%, operating margin to ~25.3%, net margin to ~18.3%). Balance sheet is exceptionally low risk with near-zero leverage (debt-to-equity ~0.003) and consistent equity growth. Main offset is cash-flow variability versus earnings (OCF/NI fell to ~0.90 in the latest year; prior periods showed uneven conversion).
Income Statement
86
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
78
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue60.69B57.98B52.68B48.59B46.53B37.99B
Gross Profit21.36B19.76B16.16B12.02B15.00B12.21B
EBITDA18.73B16.49B12.62B9.02B11.93B10.20B
Net Income11.77B10.59B7.87B5.68B7.90B6.74B
Balance Sheet
Total Assets75.65B75.37B65.90B56.62B52.45B45.53B
Cash, Cash Equivalents and Short-Term Investments24.44B21.62B16.32B6.12B9.84B9.86B
Total Debt136.00M158.00M349.00M512.00M578.70M874.43M
Total Liabilities12.11B12.15B11.31B8.70B8.91B8.33B
Stockholders Equity62.94B62.64B54.13B47.60B43.54B37.20B
Cash Flow
Free Cash Flow0.008.90B12.07B372.00M1.93B1.12B
Operating Cash Flow0.009.61B14.20B4.23B4.74B4.45B
Investing Cash Flow0.00-6.42B-2.74B-5.10B-3.41B-3.44B
Financing Cash Flow0.00-2.56B-2.15B-2.13B-2.08B-1.64B

Japan Material Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1862.00
Price Trends
50DMA
2304.16
Negative
100DMA
2198.58
Positive
200DMA
1950.62
Positive
Market Momentum
MACD
-31.29
Negative
RSI
53.70
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥220.43B18.761.49%10.80%38.94%
76
Outperform
¥556.80B11.8411.30%2.22%-15.29%
70
Outperform
¥179.46B2.17101.68%2.63%13.90%185.56%
66
Neutral
¥1.15T17.8116.34%2.20%3.66%35.60%
65
Neutral
¥573.50B14.052.72%1.48%41.27%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
¥145.09B-11.85-27.55%1.01%-31.33%-795.62%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6055
Japan Material Co., Ltd.
2,148.00
653.57
43.73%
JP:6366
Chiyoda
693.00
268.00
63.06%
JP:1963
JGC
2,344.00
879.19
60.02%
JP:6330
Toyo Engineering Corporation
2,476.00
781.00
46.08%
JP:1942
Kandenko Co., Ltd.
5,630.00
1,685.34
42.72%
JP:1959
Kraftia Corporation
8,095.00
1,072.28
15.27%

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.Date of analysis: Jul 08, 2026