Japan Display AI Stock Analysis
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Japan Display (6740) AI Stock Analysis
Japan Display
(TSE/TYO:6740)
The overall score is deeply distressed, driven primarily by a critical financial state characterized by unprofitability, massive cash burn, and a near-insolvent balance sheet. The bearish technical trend and negative valuation metrics reinforce the high-risk profile. The recent gross margin improvement is the only mitigating factor but is far outweighed by the company's existential financial challenges.
Japan Display (6740) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 597.19M
- Dividend Yield
- ―
- Average Volume (3M)
- 15.70M
- Price to Earnings (P/E)
- -11.1
- Beta (1Y)
- 0.04
- Revenue Growth
- -27.16%
- EPS Growth
- 79.29%
- Country
- Japan
- Employees
- 2,333
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Hardware, Equipment & Parts
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 electronics...
Japan Display Financial Statement Overview
Summary
Financial health is extremely precarious. The company suffers from persistent revenue decline, deep net losses (TTM net margin -14%), critical balance sheet leverage (9.7x debt-to-equity on razor-thin positive equity), and heavy cash burn (TTM FCF -Â¥25.8B). The only faint positive is a recent TTM gross margin improvement to 8.9%, but it is insufficient to offset the existential solvency and liquidity risks.
Income Statement
8Very NegativeBalance Sheet
5Very NegativeCash Flow
10Very Negative| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 151.53B | 188.01B | 132.33B | 239.15B | 270.75B | 295.95B |
| Gross Profit | -11.91B | -2.62B | 2.57B | 612.00M | -10.00B | 24.81B |
| EBITDA | -60.95B | -68.58B | -5.88B | -36.38B | -12.44B | 4.26B |
| Net Income | -72.76B | -78.22B | -19.81B | -44.31B | -25.82B | -8.10B |
Balance Sheet | ||||||
| Total Assets | 149.43B | 148.03B | 124.25B | 223.99B | 222.70B | 258.27B |
| Cash, Cash Equivalents and Short-Term Investments | 37.29B | 21.07B | 27.75B | 29.34B | 26.22B | 52.25B |
| Total Debt | 65.00B | 59.50B | 65.00B | 33.50B | 0 | 73.68B |
| Total Liabilities | 153.49B | 141.14B | 131.66B | 138.33B | 98.26B | 185.50B |
| Stockholders Equity | -4.07B | 6.89B | -7.41B | 85.66B | 124.43B | 72.77B |
Cash Flow | ||||||
| Free Cash Flow | -29.21B | -35.96B | -24.39B | -29.67B | -74.30B | -28.84B |
| Operating Cash Flow | -21.71B | -25.45B | -23.20B | -17.58B | -65.67B | -21.67B |
| Investing Cash Flow | 11.86B | -8.16B | 22.76B | -13.43B | 9.78B | 95.00M |
| Financing Cash Flow | 20.77B | 25.69B | 5.05B | 32.90B | 27.68B | 14.77B |
Japan Display Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6740, the sentiment is Neutral. The current price of 33.00 is above the 20-day moving average (MA) of 29.90, below the 50-day MA of 39.32, and below the 200-day MA of 52.73, indicating a neutral trend. The MACD of -2.23 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6740.
Japan Display Peers Comparison
Overall Rating
JP:521471Outperform
JP:498068Neutral
JP:418666Neutral
JP:791544Neutral
JP:774643Neutral- JP:674041Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5214 | 71Outperform | JPY 398.25B | 16.80 | 4.61% | 3.18% | 2.62% | ― |
| JP:4980 | 68Neutral | JPY 371.62B | 12.74 | ― | 2.95% | 3.81% | 8.59% |
| JP:4186 | 66Neutral | JPY 955.75B | 20.43 | 17.98% | 1.04% | 24.02% | 49.31% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:7915 | 44Neutral | JPY 46.35B | -9.07 | -4.61% | 4.96% | 1.11% | -10072.92% |
| JP:7746 | 43Neutral | JPY 22.41B | -165.48 | ― | ― | 22.83% | -35.54% |
| JP:6740 | 41Neutral | JPY 159.44B | -11.11 | 86.70% | ― | -27.16% | 79.29% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6740 | Japan Display | 33.00 | 12.00 | 57.14% | |
| JP:5214 | Nippon Electric Glass Co | 5039.00 | -451.86 | -8.23% | |
| JP:4186 | Tokyo Ohka Kogyo Co | 7397.00 | 1060.38 | 16.73% | |
| JP:7915 | Nissha Co.Ltd. | 1009.00 | -119.58 | -10.60% | |
| JP:4980 | Dexerials Corp. | 2067.00 | -1172.97 | -36.20% | |
| JP:7746 | Okamoto Glass Co., Ltd. | 700.00 | 352.00 | 101.15% |
Japan Display Corporate Events
Japan Display Reports Positive Net Assets After Warrant Exercise
Japan Display Inc. (JDI) is listed on the Tokyo Stock Exchange Prime Market. It reported positive net assets of JPY 4,998 million as of September 30, 2026, after a capital increase primarily from partial exercise of its 14th Stock Acquisition Rights...
Japan Display Records Interest Expense, Asset-Sale Gain and Extraordinary Losses
Japan Display Inc. (JDI) is identified in the release as a company with display manufacturing equipment and fabrication facilities. In FY27/3 Q2, it recorded JPY 1,905 million in interest expense on short-term borrowings, bringing the H1 total to JPY...
Japan Display Reports FY27/3 H1 Financial Results
Japan Display Inc. reported FY27/3 first-half sales of JPY 44,475 million for the six months ended September 30, 2026, down 33.1% year over year. EBITDA was a loss of JPY 1,606 million, while operating profit was negative JPY 3,066 million and net in...
Japan Display Cuts Debt to Trim Interest Costs and Bolster Balance Sheet
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 lowering i...
Japan Display Acquires Mobara Logistics Site Ahead of Fab Sale
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, contracte...
Japan Display To Sell Mobara Plant, Books ¥51.4bn Gain
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 earnin...
Ichigo Boosts Japan Display Stake with JPY 2.9 Billion Warrant Exercise
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 115,573,332 new c...
Japan Display Cuts Debt to Sharpen Financial Position and Profitability
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 settled on...
Japan Display Books Gain on Tottori Fab Sale as It Refocuses AutoTech Operations
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 an...
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: Nov 14, 2026