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

• Market Cap: ¥192.52B
• Dividend Yield: 1.14%
• Average Volume (3M): 584.76K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.16
• Revenue Growth: 10.85%
• EPS Growth: 38.67%
• Country: JP
• Employees: 1,540
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 20.78
• Shares Outstanding: 105,149,520
• 10 Day Avg. Volume: 466,050
• 30 Day Avg. Volume: 584,763
• PEG Ratio: 0.41
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 10.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,000.00
• Price Target Upside: 3.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,126.00 ▲(9.93% Upside)

Japan Material Co., Ltd. scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and a solid balance sheet. Technical analysis supports a positive outlook with bullish momentum, although valuation metrics suggest the stock is moderately priced. The absence of earnings call data and corporate events does not impact the overall score.

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

Company Description

JAPAN MATERIAL Co., Ltd. engages in the electronics and graphics businesses. The company develops, manufactures, and sells gas supply systems for semiconductor and liquid crystal manufacturing; total facility and gas management services; and designs and constructs special gas, ultrapure water, chemicals, vacuum, general equipment piping, etc. It also engages in the equipment management; power and harmment equipment management and maintenance; maintenance of manufacturing equipment; vacuum pump overhauling; clean room environmental quality control; and manufacturing, sales, cleaning, maintenance, etc. of semiconductor manufacturing equipment parts. In addition, the company imports and sells personal computer-related parts, such as graphic boards and I / O boards, digital signage-related equipment, and application systems in the broadcasting and video fields; offers application development and maintenance support services; and develops and sells handling tools. Further, it is involved in the solar power generation. The company was founded in 1997 and is headquartered in Nagano, Japan.

How the Company Makes Money

Japan Material Co., Ltd. generates revenue primarily through the sale of its high-performance materials and products to a diverse range of industries, including electronics, automotive, and manufacturing. Key revenue streams include direct sales of functional plastics, adhesives, and coatings, as well as long-term contracts with major clients for continuous supply. The company also benefits from strategic partnerships with leading corporations in various sectors, allowing for collaborative development of specialized materials tailored to specific industry needs. Additionally, Japan Material Co., Ltd. invests in research and development to innovate new products and improve existing ones, which helps to maintain a competitive edge and attract new customers, further contributing to its earnings.

Japan Material Co., Ltd. Financial Statement Overview

Summary

Japan Material Co., Ltd. demonstrates a robust financial profile with strong growth in revenue and profitability, supported by a solid balance sheet and efficient cash flow management. The company has maintained healthy margins and a conservative leverage strategy, positioning it well for future growth. While recent revenue growth has slowed, the company's strong cash position and equity base provide a buffer against potential market volatility.

Income Statement

Japan Material Co., Ltd. has demonstrated strong financial performance, with consistent revenue growth over the past five years. The gross profit margin has remained healthy, averaging around 30% annually. Notably, the net profit margin improved significantly from 11.4% in 2020 to 14.9% in 2025, reflecting enhanced operational efficiency. The EBIT and EBITDA margins also show solid performance, indicating effective cost management. However, the revenue growth rate has slightly decelerated recently, which could be a potential area of concern if the trend continues.

Balance Sheet

The balance sheet of Japan Material Co., Ltd. reflects a strong financial position with robust equity levels. The debt-to-equity ratio is extremely low, highlighting a conservative leverage approach. The equity ratio improved from 78.1% in 2020 to 82.4% in 2025, indicating a stable financial foundation. The return on equity also increased from 20.6% in 2020 to 14.5% in 2025, showcasing efficient use of equity to generate profits. The company’s high cash reserves further strengthen its financial stability.

Cash Flow

Japan Material Co., Ltd. shows strong cash flow management, evidenced by consistent operating cash flow growth. The free cash flow has expanded significantly from 2020 to 2025, indicating effective capital expenditure management. The operating cash flow to net income ratio has remained above 1, reflecting healthy conversion of profits into cash. The free cash flow to net income ratio has improved, demonstrating efficient cash generation relative to profitability. However, fluctuations in capital expenditure require ongoing monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.78B	52.68B	48.59B	46.53B	37.99B	35.25B
Gross Profit	17.45B	16.16B	12.02B	15.00B	12.21B	11.53B
EBITDA	13.35B	12.62B	9.02B	11.93B	10.20B	9.62B
Net Income	8.47B	7.87B	5.68B	7.90B	6.74B	6.14B
Balance Sheet
Total Assets	63.18B	65.70B	56.43B	52.43B	45.50B	38.96B
Cash, Cash Equivalents and Short-Term Investments	13.89B	16.32B	6.12B	9.84B	9.86B	10.23B
Total Debt	80.00M	105.00M	253.00M	412.24M	709.27M	583.17M
Total Liabilities	9.35B	11.12B	8.51B	8.89B	8.30B	7.20B
Stockholders Equity	53.39B	54.13B	47.60B	43.54B	37.20B	31.76B
Cash Flow
Free Cash Flow	0.00	12.07B	350.00M	1.92B	1.12B	5.82B
Operating Cash Flow	0.00	14.20B	4.23B	4.74B	4.45B	5.94B
Investing Cash Flow	0.00	-2.74B	-5.10B	-3.41B	-3.44B	-771.47M
Financing Cash Flow	0.00	-2.15B	-2.13B	-2.08B	-1.64B	-1.51B

Japan Material Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1934.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 1934 is above the 20-day moving average (MA) of 1889.05, above the 50-day MA of 1739.60, and above the 200-day MA of 1487.41, indicating a bullish trend. The MACD of 37.29 indicates Positive momentum. The RSI at 60.58 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	―	¥77.70B	10.65	―	3.63%	-3.62%	9.37%
6055	―	¥192.52B	22.90	―	1.14%	10.85%	38.67%
1980	―	¥286.66B	11.88	―	2.82%	38.57%	138.68%
1952	―	¥143.99B	13.06	―	2.92%	9.14%	43.46%
1946	―	¥137.01B	12.07	―	3.39%	3.75%	87.00%
1934	―	¥179.76B	14.91	―	2.50%	6.66%	46.38%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Japan Material Co., Ltd. Corporate Events

Japan Material Co., Ltd. Announces Key Personnel Changes

Japan Material Co., Ltd. announced personnel changes effective October 1, 2025, with Tetsuo Kai assuming the role of Managing Director and Senior Managing Executive Officer, and Masaaki Yamashita becoming the General Manager of the Fab Support Department. These changes are part of the company’s strategic efforts to enhance operational efficiency and strengthen its management team.

The most recent analyst rating on (JP:6055) stock is a Buy with a Yen1752.00 price target. To see the full list of analyst forecasts on Japan Material Co., Ltd. stock, see the JP:6055 Stock Forecast page.

Japan Material Co., Ltd. Reports Strong Q1 2025 Financial Results

Japan Material Co., Ltd. reported a strong financial performance for the three months ended June 30, 2025, with net sales increasing by 18.8% year-on-year to ¥13,256 million. The company also saw significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, indicating robust operational efficiency and market demand. This financial upturn positions Japan Material Co., Ltd. favorably within the industry, potentially enhancing its attractiveness to investors and stakeholders.

The most recent analyst rating on (JP:6055) stock is a Hold with a Yen1800.00 price target. To see the full list of analyst forecasts on Japan Material Co., Ltd. stock, see the JP:6055 Stock Forecast page.