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Japan Display
(6740)
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Rating:43Neutral
Price Target:
¥38.00
▼(-17.39% Downside)
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 and material reduction in net losses indicate that operating economics have improved from prior periods. If maintained, better product mix, pricing, or utilization could strengthen the company’s path toward sustainable profitability over the next several quarters.
Negative Factors
Extreme Balance-Sheet Leverage
The very small equity cushion relative to debt leaves JDI with limited financial flexibility while operations remain weak. High leverage can increase refinancing and dilution risk, constrain investment in recovery initiatives, and make the business more vulnerable to prolonged underperformance.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Gross Margin
The recovery in gross margin and material reduction in net losses indicate that operating economics have improved from prior periods. If maintained, better product mix, pricing, or utilization could strengthen the company’s path toward sustainable profitability over the next several quarters.
Read all positive factors
Japan Display (6740) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥178.38B
Dividend YieldN/A
Average Volume (3M)12.47M
Price to Earnings (P/E)487.5
Beta (1Y)-0.44
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. Volume20,814,739
30 Day Avg. Volume12,468,776
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 Technical Analysis
Negative
46.00
Price Trends
47.20
Negative
50.82
Negative
51.56
Negative
Market Momentum
-1.77
Positive
30.18
Neutral
15.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6740, the sentiment is Negative. The current price of 46 is below the 20-day moving average (MA) of 46.50, below the 50-day MA of 47.20, and below the 200-day MA of 51.56, indicating a bearish trend. The MACD of -1.77 indicates Positive momentum. The RSI at 30.18 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6740.
Japan Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ¥614.83B | 21.03 | ― | 1.70% | 5.05% | 9.22% | |
66 Neutral | ¥1.16T | 27.88 | 17.38% | 0.82% | 21.68% | 48.38% | |
64 Neutral | ¥421.09B | 15.29 | 5.33% | 3.07% | 5.27% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | ¥52.88B | -11.61 | -4.02% | 4.44% | 0.46% | -1145.82% | |
48 Neutral | ¥27.70B | -211.82 | ― | ― | 10.53% | -499.03% | |
43 Neutral | ¥178.38B | 487.50 | 86.70% | ― | -24.75% | 98.06% |
* Technology Sector Average
JP:6740
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Japan Display Corporate Events
Japan Display Cuts Debt to Trim Interest Costs and Bolster Balance Sheet
Oct 9, 2026
Japan Display Inc. has repaid a total of JPY 10 billion in collateralized loans from Ichigo Trust, covering three borrowings executed between late 2024 and early 2025. The move is aimed at strengthening the company’s financial position and l...
Japan Display Acquires Mobara Logistics Site Ahead of Fab Sale
Sep 30, 2026
Japan Display Inc. has acquired a logistics facility adjacent to its Mobara manufacturing plant in Mobara City, Chiba Prefecture, for JPY 40 million from LOGISTEED, Ltd., a major logistics services provider. The asset purchase was approved, contra...
Japan Display To Sell Mobara Plant, Books ¥51.4bn Gain
Sep 30, 2026
Japan Display Inc., a Japanese maker of display panels for consumer and automotive electronics, has been restructuring to improve asset efficiency and bolster its balance sheet. The company is executing its BEYOND DISPLAY strategy to build new ear...
Ichigo Boosts Japan Display Stake with JPY 2.9 Billion Warrant Exercise
Sep 28, 2026
Japan Display Inc. said Ichigo Trust has partially exercised its 14th stock acquisition rights, injecting about JPY 2.9 billion and raising its stake to 73.40% of the company’s voting rights. The exercise resulted in the issuance of 115,573,...
Japan Display Cuts Debt to Sharpen Financial Position and Profitability
Aug 25, 2026
Japan Display Inc. has repaid ¥2.5 billion of collateralized borrowings from Ichigo Trust as part of a broader effort to strengthen its financial position and lower funding costs. The loan, originally executed in August 2024, was partially se...
Japan Display Books Gain on Tottori Fab Sale as It Refocuses AutoTech Operations
Aug 24, 2026
Japan Display Inc. has completed the sale of its idle Tottori Fab in Tottori Prefecture, where LCD production ended in March 2025, to local real estate firm Yahata Touei Estate. The company will relocate its AutoTech automotive display development...
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...
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.