Geomatec Co., Ltd. (6907) AI Stock Analysis

Geomatec Co., Ltd.

(TSE/TYO:6907)

Select Model

Rating:66Neutral

Price Target:JPY 1,004.00▲(27.09% Upside)

Action:reiterated

Date:10/15/26

The score is driven primarily by improving financial performance and a conservatively levered balance sheet, tempered by margin compression and uneven cash conversion. Technically, the uptrend is intact but the stock appears overbought, adding near-term risk. Valuation is reasonable (P/E ~12), providing modest support.

Positive Factors

Earnings ReboundThe strong FY2026 recovery indicates improved operating performance, with both revenue and profitability moving materially higher. If the company can sustain demand for its functional films and processed materials, this rebound could support reinvestment, strengthen financial resilience, and improve earnings capacity over the coming quarters.

Negative Factors

Gross Margin CompressionDeclining gross margin raises questions about the durability of the recent earnings rebound, because revenue growth is producing less gross profit per unit of sales. Continued pressure could limit operating leverage, reduce funds available for investment, and make profitability more sensitive to product mix and customer demand.

Geomatec Co., Ltd. (6907) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.25B
Dividend Yield: ―
Average Volume (3M): 31.36K
Price to Earnings (P/E): 10.2
Beta (1Y): 1.54
Revenue Growth: 11.48%
EPS Growth: 28.48%
Country: Japan
Employees: 495
Sector: General
Sector Strength: 55
Industry: Hardware, Equipment & Parts

Geomatec Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Yokohama, Japan, GEOMATEC Co., Ltd. is a specialist in the production and sale of advanced thin film products. The company provides essential components for flat-panel displays, including substrates for liquid crystal (LCD), electroluminesce...

How the Company Makes Money

Geomatec makes money primarily by selling manufactured functional film products and by providing film-processing/converting services for customers. Revenue is generated through (1) product sales: supplying functional/optical and surface-functional fi...

Geomatec Co., Ltd. Financial Statement Overview

Summary

FY2026 shows a strong rebound in earnings with revenue up ~13.8% and net margin improving to ~10.6%, supported by a solid, low-leverage balance sheet (debt-to-equity ~0.17). Offsetting this, gross margin has compressed for two consecutive years (~28.4% to ~24.3%) and cash conversion remains uneven (free cash flow ~33% of net income with prior-year volatility), reducing confidence in durability.

Income Statement

63Positive

Balance Sheet

78Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.63B	6.01B	5.28B	4.61B	5.81B	5.85B
Gross Profit	617.64M	1.46B	1.50B	627.46M	1.39B	1.64B
EBITDA	-377.24M	520.44M	477.20M	-297.12M	445.39M	377.60M
Net Income	-682.81M	638.85M	360.46M	-1.67B	-366.00M	-528.28M
Balance Sheet
Total Assets	17.08B	16.46B	16.36B	15.18B	17.43B	18.77B
Cash, Cash Equivalents and Short-Term Investments	3.10B	4.03B	3.03B	4.25B	5.77B	5.88B
Total Debt	1.78B	1.74B	2.03B	2.16B	2.10B	2.15B
Total Liabilities	7.29B	6.42B	7.25B	6.53B	7.29B	8.36B
Stockholders Equity	9.79B	10.04B	9.10B	8.65B	10.13B	10.41B
Cash Flow
Free Cash Flow	0	409.88M	148.21M	-1.91B	-482.95M	-547.75M
Operating Cash Flow	0	1.26B	480.27M	-967.62M	306.53M	289.52M
Investing Cash Flow	0	31.64M	-1.01B	-1.22B	-42.02M	-847.50M
Financing Cash Flow	0	-294.28M	-132.01M	82.26M	-78.00M	362.72M

Geomatec Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price790.00

Price Trends

50DMA796.08Negative

100DMA726.82Positive

200DMA888.56Negative

Market Momentum

MACD8.34Positive

RSI45.35Neutral

STOCH51.70Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6907, the sentiment is Negative. The current price of 790.00 is below the 20-day moving average (MA) of 827.85, below the 50-day MA of 796.08, and below the 200-day MA of 888.56, indicating a bearish trend. The MACD of 8.34 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 51.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6907.

Geomatec Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6907 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6859	78Outperform	JPY 94.85B	15.54	―	2.71%	8.67%	11.23%
JP:6866	78Outperform	JPY 120.91B	15.44	―	2.48%	16.76%	35.84%
JP:6850	72Outperform	JPY 30.96B	14.32	―	2.86%	1.92%	9.05%
JP:7745	72Outperform	JPY 80.05B	14.40	―	2.05%	2.11%	-19.76%
JP:6858	66Neutral	JPY 8.30B	9.75	―	3.65%	15.62%	50.30%
JP:6907	66Neutral	JPY 6.25B	10.24	―	―	11.48%	28.48%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6907 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6907	Geomatec Co., Ltd.	790.00	-377.00	-32.31%
JP:6850	Chino Corporation	1746.00	404.14	30.12%
JP:6858	Ono Sokki Co., Ltd.	740.00	167.72	29.31%
JP:6859	Espec Corp.	4240.00	842.42	24.79%
JP:6866	Hioki E.E.Corporation	8860.00	3080.71	53.31%
JP:7745	A&D HOLON Holdings Company. Limited	2923.00	939.43	47.36%

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.

Date of analysis: Oct 15, 2026

Geomatec Co., Ltd. AI Stock Analysis