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Murata Manufacturing Co
(6981)
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Rating:65Neutral
Price Target:
¥6,914.00
▼(-3.77% Downside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by strong financial performance, led by a fortress balance sheet and solid profitability. Offsetting this, technicals are weak in the near term (price below key short-term moving averages) and valuation is stretched (high P/E with a low dividend yield), which together limit the overall score.
Positive Factors
Conservative Balance Sheet
Murata’s exceptionally low leverage reduces financial pressure and preserves flexibility to fund capacity, research, and strategic initiatives internally. A strong equity base also improves resilience through electronics cycles, allowing the company to sustain investment when demand conditions become less favorable.
Negative Factors
Modest Free Cash Flow Conversion
Although operating cash flow is positive, relatively weak free cash flow conversion means a substantial portion of earnings is absorbed by investment or working-capital needs. Slightly negative free cash flow growth could constrain the pace of internally funded expansion if it persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Murata’s exceptionally low leverage reduces financial pressure and preserves flexibility to fund capacity, research, and strategic initiatives internally. A strong equity base also improves resilience through electronics cycles, allowing the company to sustain investment when demand conditions become less favorable.
Read all positive factors
Murata Manufacturing Co (6981) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥12.46T
Dividend Yield1.04%
Average Volume (3M)18.48M
Price to Earnings (P/E)47.6
Beta (1Y)1.97
Revenue Growth10.31%
EPS Growth24.82%
CountryJP
Employees74,302
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)145.41
Shares Outstanding1,963,001,800
10 Day Avg. Volume18,778,920
30 Day Avg. Volume18,480,780
Financial Highlights & Ratios
PEG Ratio12.84
Price to Book (P/B)2.30
Price to Sales (P/S)3.41
P/FCF Ratio32.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥10,570.83Price Target Upside47.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)203.77
Revenue Forecast (FY)¥2.16T
Murata Manufacturing Co Business Overview & Revenue Model
Company Description
Established in Nagaokakyo, Japan, in 1944, Murata Manufacturing Co., Ltd. is a global leader in the development, production, and sale of ceramic-based passive electronic components and integrated solutions. The company's operations are organized a...
How the Company Makes Money
Murata makes money primarily by manufacturing and selling electronic components and modules to device makers and their supply chains (OEMs/ODMs and tier suppliers) that integrate these parts into end products like smartphones, PCs, base stations, ...
Murata Manufacturing Co Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92T | 1.83T | 1.74T | 1.64T | 1.69T | 1.81T |
| Gross Profit | 832.12B | 774.83B | 683.20B | 603.86B | 641.76B | 768.23B |
| EBITDA | 524.88B | 490.04B | 480.61B | 418.49B | 473.47B | 588.60B |
| Net Income | 265.58B | 233.92B | 233.82B | 180.84B | 243.95B | 314.12B |
Balance Sheet | ||||||
| Total Assets | 3.21T | 3.20T | 3.03T | 3.04T | 2.86T | 2.81T |
| Cash, Cash Equivalents and Short-Term Investments | 557.49B | 653.70B | 625.15B | 622.01B | 469.41B | 568.44B |
| Total Debt | 55.39B | 55.77B | 59.99B | 105.94B | 163.57B | 142.98B |
| Total Liabilities | 452.61B | 481.29B | 448.22B | 482.29B | 498.36B | 545.26B |
| Stockholders Equity | 2.76T | 2.72T | 2.58T | 2.56T | 2.36T | 2.26T |
Cash Flow | ||||||
| Free Cash Flow | 179.96B | 193.65B | 284.18B | 273.02B | 93.47B | 270.93B |
| Operating Cash Flow | 436.18B | 438.27B | 467.12B | 501.64B | 283.38B | 421.46B |
| Investing Cash Flow | -244.88B | -207.79B | -223.96B | -214.34B | -157.82B | -212.30B |
| Financing Cash Flow | -192.55B | -220.88B | -242.06B | -164.56B | -181.60B | -117.50B |
Murata Manufacturing Co Technical Analysis
Negative
7185.00
Price Trends
7504.69
Negative
8436.12
Negative
6274.92
Positive
Market Momentum
-281.96
Positive
33.82
Neutral
6.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6981, the sentiment is Negative. The current price of 7185 is below the 20-day moving average (MA) of 7725.99, below the 50-day MA of 7504.69, and above the 200-day MA of 6274.92, indicating a neutral trend. The MACD of -281.96 indicates Positive momentum. The RSI at 33.82 is Neutral, neither overbought nor oversold. The STOCH value of 6.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6981.
Murata Manufacturing Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥770.47B | 24.32 | 8.79% | 2.14% | 15.94% | 6.46% | |
69 Neutral | ¥5.38T | 23.56 | ― | 1.38% | 21.98% | 57.54% | |
65 Neutral | ¥12.46T | 47.64 | 9.94% | 1.04% | 10.31% | 24.82% | |
63 Neutral | ¥1.21T | 66.78 | ― | 0.97% | 5.60% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥152.44B | 20.66 | ― | 1.66% | 0.36% | 45.02% | |
46 Neutral | ¥48.34B | 12.05 | 5.80% | 1.16% | 15.81% | ― |
* Technology Sector Average
JP:6981
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Murata Manufacturing Co Corporate Events
Murata Advances ¥150 Billion Share Buyback, Repurchases Over 10 Million Shares
Oct 7, 2026
Murata Manufacturing Co., Ltd. has reported progress on its ongoing share repurchase program, acquiring 2,241,000 common shares on the Tokyo Stock Exchange between September 1 and September 30, 2026, at a total cost of about 16.1 billion yen. This...
Murata to Absorb Saitama Subsidiary in Efficiency-Driven Merger
Oct 1, 2026
Murata Manufacturing Co., Ltd. has approved an absorption-type merger of its wholly owned subsidiary Saitama Murata Manufacturing Co., Ltd., and will close the subsidiary’s business site as part of a drive to streamline operations. Saitama M...
Murata Accelerates Share Buyback with ¥60 Billion Treasury Stock Purchase
Sep 7, 2026
Murata Manufacturing has reported the status of its ongoing share buyback program, disclosing that it repurchased 8,160,300 shares of common stock for approximately 60 billion yen via market purchases on the Tokyo Stock Exchange between August 1 a...
Murata Announces No Share Buybacks Yet Under ¥150 Billion Authorization
Aug 7, 2026
Murata Manufacturing reported that it did not acquire any of its own shares during the period from July 1 to July 31, 2026, despite having board authorization for a large-scale buyback. The resolution approved on April 30 allows market purchases o...
Murata Upgrades FY2027 Earnings Outlook on Data Center Demand and Weaker Yen
Jul 31, 2026
Murata Manufacturing Co., Ltd. has raised its consolidated full-year forecast for the fiscal year ending March 31, 2027, reflecting stronger-than-expected business performance and favorable market conditions. The company now projects revenue of &#...
Murata Posts Record Quarterly Revenue on Strong Component Demand
Jul 31, 2026
Murata Manufacturing Co., Ltd., a major producer of electronic components like capacitors and sensors, serves global technology markets, including data centers, mobility, and industrial applications. The company also offers lithium-ion secondary b...
Murata Manufacturing Posts Strong Q1 Rebound and Raises Full-Year Outlook
Jul 31, 2026
Murata Manufacturing reported a sharp rebound in earnings for the three months ended June 30, 2026, with revenue up 20.7 percent year on year to 502.3 billion yen and operating profit surging 59.8 percent to 98.5 billion yen. Profit attributable t...
Murata Completes Restricted Stock Treasury Share Disposal for Executive Compensation
Jul 28, 2026
Murata Manufacturing has completed the disposal of a portion of its treasury shares to provide restricted stock compensation to senior management, following a board resolution passed in late June. The transaction involved issuing 22,335 shares of ...
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.