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Japan Display
(6740)
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Rating:43Neutral
Price Target:
¥47.00
▲(0.00% Upside)
Action:Reiterated
Date:08/19/26
The score is held down primarily by weak financial performance—ongoing losses, heavy leverage relative to equity, and significant negative operating/free cash flow. Valuation also screens poorly due to an extremely high P/E and no stated dividend support. Technical indicators are mixed/neutral, providing only limited offset to the fundamental and valuation risks.
Positive Factors
Improving Gross Margin
The recovery in gross margin indicates better product economics or manufacturing performance than in prior periods. If sustained, it could improve operating leverage and support a durable turnaround, although profitability and cash generation remain unresolved.
Negative Factors
Extreme Leverage
The thin equity cushion leaves limited protection against operating setbacks and restricts financial flexibility. High leverage raises refinancing and potential dilution risks, making a successful operating turnaround essential to long-term stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margin
The recovery in gross margin indicates better product economics or manufacturing performance than in prior periods. If sustained, it could improve operating leverage and support a durable turnaround, although profitability and cash generation remain unresolved.
Read all positive factors
Japan Display (6740) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥214.97B
Dividend YieldN/A
Average Volume (3M)292.92M
Price to Earnings (P/E)575.0
Beta (1Y)-0.20
Revenue Growth-24.75%
EPS Growth98.06%
CountryJP
Employees2,333
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.08
Shares Outstanding4,573,828,000
10 Day Avg. Volume272,496,621
30 Day Avg. Volume292,916,444
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)-60.12
Price to Sales (P/S)3.37
P/FCF Ratio-18.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Japan Display Business Overview & Revenue Model
Company Description
Japan Display Inc. operates globally, specializing in the development, production, and sale of small to medium-sized display devices and related products. The company's diverse range of LCD modules serves numerous industries. For consumer electron...
How the Company Makes Money
JDI makes money mainly by selling display panels and related products to device manufacturers (B2B). Its core revenue stream is the shipment of small-to-medium display modules—historically dominated by LCD panels used in smartphones and other cons...
Japan Display Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
14
Very Negative
Cash Flow
12
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 123.81B | 132.33B | 188.01B | 239.15B | 270.75B | 295.95B |
| Gross Profit | 8.87B | 2.57B | -2.62B | 612.00M | -10.00B | 24.81B |
| EBITDA | 10.65B | -5.88B | -68.58B | -36.38B | -12.44B | 4.26B |
| Net Income | -3.01B | -19.81B | -78.22B | -44.31B | -25.82B | -8.10B |
Balance Sheet | ||||||
| Total Assets | 106.26B | 124.25B | 148.03B | 223.99B | 222.70B | 258.27B |
| Cash, Cash Equivalents and Short-Term Investments | 20.55B | 27.75B | 21.07B | 29.34B | 26.22B | 52.25B |
| Total Debt | 51.00B | 65.00B | 59.50B | 33.50B | 0.00 | 73.68B |
| Total Liabilities | 102.63B | 131.66B | 141.14B | 138.33B | 98.26B | 185.50B |
| Stockholders Equity | 3.63B | -7.41B | 6.89B | 85.66B | 124.43B | 72.77B |
Cash Flow | ||||||
| Free Cash Flow | -22.04B | -24.39B | -35.96B | -29.67B | -74.30B | -28.84B |
| Operating Cash Flow | -20.66B | -23.20B | -25.45B | -17.58B | -65.67B | -21.67B |
| Investing Cash Flow | 10.50B | 22.76B | -8.16B | -13.43B | 9.78B | 95.00M |
| Financing Cash Flow | -4.00M | 5.05B | 25.69B | 32.90B | 27.68B | 14.77B |
Japan Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥1.08T | 26.08 | 16.99% | 0.77% | 21.68% | 48.38% | |
69 Neutral | ¥517.96B | 17.70 | ― | 2.18% | 5.05% | 9.22% | |
64 Neutral | ¥384.85B | 13.86 | 6.90% | 2.90% | 5.27% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | ¥61.14B | 46.26 | 1.18% | 4.00% | -1.57% | -49.55% | |
45 Neutral | ¥23.37B | -181.32 | ― | ― | 10.53% | -499.03% | |
43 Neutral | ¥214.97B | 575.00 | -217.94% | ― | -24.75% | 98.06% |
* Technology Sector Average
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Japan Display Corporate Events
Japan Display Restores Positive Net Assets as Restructuring Bolsters Profitability
Aug 10, 2026
Japan Display has returned to a positive net asset position as of June 30, 2026, with net assets of JPY 3,631 million, after previously falling below the Tokyo Stock Exchange Prime Market net asset standard. The improvement was largely driven by a...
Japan Display Books Heavy Interest Costs, Gains from Restructuring Reversal and Asset Impairment
Aug 10, 2026
Japan Display Inc. reported several notable items in its first-quarter results for the fiscal year ending March 2027, including a non-operating interest expense of JPY 2,256 million on short-term borrowings and a JPY 333 million extraordinary gain...
Japan Display Narrows Losses but Withholds Full-Year Outlook
Aug 10, 2026
Japan Display Inc. reported a sharp year-on-year decline in first-quarter sales to ¥23.9 billion, down 26.3%, with EBITDA, operating profit and net income all remaining in negative territory, though losses narrowed compared with the previous ...
Japan Display Bolsters Capital as Ichigo Partially Exercises Warrants
Aug 5, 2026
Japan Display Inc. has received a partial exercise of its 14th Stock Acquisition Rights by Ichigo Trust, resulting in the issuance of approximately 115.6 million new common shares and proceeds of about JPY 2.9 billion. This transaction increases J...
Japan Display Books JPY 3.7 Billion in Subsidiary Dividends
Jul 17, 2026
Japan Display Inc. has announced it will receive dividends from two consolidated subsidiaries, JDI Europe GmbH and JDI Hong Kong Limited, totaling approximately JPY 3.7 billion based on current exchange rates. The payments, scheduled for July 2026...
Japan Display to Close Hong Kong Subsidiary in Overseas Sales Overhaul
Jul 9, 2026
Japan Display Inc. has decided to close its wholly owned sales subsidiary, JDI Hong Kong Limited, as part of a broader reorganization of its overseas sales network to improve operational efficiency. The Hong Kong unit, established in 2012 and resp...
Japan Display Details Ichigo Trust’s Control and Safeguards for Minority Investors
Jun 30, 2026
Japan Display Inc. has disclosed that Ichigo Trust is its controlling shareholder, holding over three-quarters of its voting rights following recent exercises of stock acquisition rights and related capital transactions. The two companies have a c...
Japan Display Warns of Prime Market Delisting Risk as Turnaround Restructuring Deepens
Jun 30, 2026
Japan Display Inc. has disclosed that, as of the fiscal year ended March 31, 2026, it fails to meet the Tokyo Stock Exchange Prime Market’s free-float and net asset listing requirements. The company has secured an extension from the exchange...
Japan Display Cuts Debt to Strengthen Finances and Reduce Interest Costs
Jun 25, 2026
Japan Display Inc. has repaid ¥4.5 billion of borrowings from Ichigo Trust, a loan that was originally executed in February 2024 and was collateralized. The repayment is part of the company’s broader efforts to reinforce its balance she...
Japan Display Shareholders Back Capital Restructuring and Governance Moves
Jun 24, 2026
Japan Display Inc. said shareholders approved all proposals at its 24th annual general meeting, including scrapping a previously planned transfer of its automotive display business to a new wholly owned subsidiary. Investors also backed an absorpt...
Japan Display Issues Minor Revision to FY26/3 Cash Flow Figures
Jun 23, 2026
Japan Display Inc. has issued a minor correction to its previously disclosed consolidated cash flow figures for the fiscal year ended March 31, 2026, noting small revisions to cash flows from operating and investing activities. The adjustments sli...
Japan Display bolsters capital as Ichigo Trust partially exercises warrants
Jun 19, 2026
Japan Display Inc. has announced that Ichigo Trust, the allottee of its 14th Stock Acquisition Rights issued in July 2025, has partially exercised these warrants, investing approximately JPY 4.8 billion. The exercise resulted in the issuance of 19...
Japan Display Cuts Debt to Strengthen Finances and Reduce Interest Costs
May 19, 2026
Japan Display Inc. has repaid a total of JPY 9.5 billion in collateralized borrowings to Ichigo Trust, covering loans originally executed in 2023 and 2025. The move is aimed at reinforcing the company’s financial position and lowering its fu...
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.