Japan Display AI Stock Analysis
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Japan Display (6740) AI Stock Analysis
Japan Display
(TSE/TYO:6740)
The score is driven primarily by weak financial performance: ongoing losses, persistent negative operating/free cash flow, and extremely high leverage versus equity. Technicals add pressure, with the stock well below key moving averages and bearish MACD (despite oversold RSI/Stoch). Valuation is also a headwind given the very high P/E and no dividend yield support.
Japan Display (6740) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 597.19M
- Dividend Yield
- ―
- Average Volume (3M)
- 15.18M
- Price to Earnings (P/E)
- 412.5
- Beta (1Y)
- -0.24
- Revenue Growth
- -24.75%
- EPS Growth
- 98.06%
- 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
Overall fundamentals remain highly stressed: the company is still loss-making (TTM net margin about -2.4%) with contracting revenue (TTM down ~6.4%). Balance-sheet risk is elevated with very high leverage (debt ~Â¥51B vs equity ~Â¥3.6B; debt-to-equity ~14x), and cash burn persists (TTM operating cash flow ~-Â¥20.7B; free cash flow ~-Â¥22.0B). A positive is improving profitability versus prior years (TTM gross margin ~7.2% and losses narrowed), but it is not yet enough to offset weak cash flow and leverage concerns.
Income Statement
18Very NegativeBalance Sheet
14Very NegativeCash Flow
12Very Negative| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 164.54B | 188.01B | 132.33B | 239.15B | 270.75B | 295.95B |
| Gross Profit | -13.46B | -2.62B | 2.57B | 612.00M | -10.00B | 24.81B |
| EBITDA | -81.28B | -68.58B | -5.88B | -36.38B | -12.44B | 4.26B |
| Net Income | -91.97B | -78.22B | -19.81B | -44.31B | -25.82B | -8.10B |
Balance Sheet | ||||||
| Total Assets | 141.39B | 148.03B | 124.25B | 223.99B | 222.70B | 258.27B |
| Cash, Cash Equivalents and Short-Term Investments | 28.17B | 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 | 154.35B | 141.14B | 131.66B | 138.33B | 98.26B | 185.50B |
| Stockholders Equity | -12.96B | 6.89B | -7.41B | 85.66B | 124.43B | 72.77B |
Cash Flow | ||||||
| Free Cash Flow | -44.07B | -35.96B | -24.39B | -29.67B | -74.30B | -28.84B |
| Operating Cash Flow | -35.32B | -25.45B | -23.20B | -17.58B | -65.67B | -21.67B |
| Investing Cash Flow | 235.00M | -8.16B | 22.76B | -13.43B | 9.78B | 95.00M |
| Financing Cash Flow | 31.29B | 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 30.10, below the 50-day MA of 39.84, and below the 200-day MA of 52.63, indicating a neutral trend. The MACD of -3.24 indicates Negative momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 68.97 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:498070.3Outperform
JP:418668Neutral
JP:774657Neutral
JP:791549Neutral- JP:674039Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5214 | 71Outperform | JPY 385.58B | 16.36 | 4.61% | 3.29% | 2.62% | ― |
| JP:4980 | 70Outperform | JPY 428.80B | 13.15 | ― | 2.35% | 3.81% | 8.59% |
| JP:4186 | 68Neutral | JPY 909.70B | 21.86 | 17.98% | 0.98% | 24.02% | 49.31% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:7746 | 57Neutral | JPY 22.75B | -174.70 | ― | ― | 10.53% | -499.03% |
| JP:7915 | 49Neutral | JPY 48.79B | -10.28 | -4.02% | 4.83% | 1.11% | -10072.92% |
| JP:6740 | 39Underperform | JPY 145.37B | 412.50 | 86.70% | ― | -24.75% | 98.06% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6740 | Japan Display | 33.00 | 11.00 | 50.00% | |
| JP:5214 | Nippon Electric Glass Co | 4869.00 | -588.72 | -10.79% | |
| JP:4186 | Tokyo Ohka Kogyo Co | 7869.00 | 1639.31 | 26.31% | |
| JP:7915 | Nissha Co.Ltd. | 1035.00 | -101.28 | -8.91% | |
| JP:4980 | Dexerials Corp. | 2598.00 | -276.16 | -9.61% | |
| JP:7746 | Okamoto Glass Co., Ltd. | 747.00 | 359.00 | 92.53% |
Japan Display Corporate Events
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 11, 2026