Murata Manufacturing Co (6981) AI Stock Analysis

• Market Cap: $5.18T
• Dividend Yield: 2.03%
• Average Volume (3M): 5.15M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.20
• Revenue Growth: 2.58%
• EPS Growth: 11.54%
• Country: JP
• Employees: 72,572
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 26.83
• Shares Outstanding: 1,963,001,800
• 10 Day Avg. Volume: 6,245,640
• 30 Day Avg. Volume: 5,148,063
• PEG Ratio: 0.60
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 2.47
• P/FCF Ratio: 15.16
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 4.90
• Enterprise Value/Ebitda: 7.56
• 1Y Price Target: $2,859.47
• Price Target Upside: 1.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: ¥2,811.00 ▲(0.18% Upside)

Murata Manufacturing Co's strong financial performance, particularly its profitability and balance sheet strength, are key positives. The technical analysis indicates strong bullish momentum, although caution is warranted due to the nearing overbought signals. The valuation is moderate, with the P/E ratio suggesting the stock is fairly priced, but the revenue decline remains a concern.

Murata Manufacturing Co Business Overview & Revenue Model

Company Description

Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. It operates through Components, Modules, and Others segments. The company offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID devices, matching devices, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also provides mercury-free silver watch battery; and Femtet, a CAE software that solves various physical phenomena. The company offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare and medical, and personal electronics applications. Murata Manufacturing Co., Ltd. was founded in 1944 and is headquartered in Nagaokakyo, Japan.

How the Company Makes Money

Murata Manufacturing Co. generates revenue primarily through the sale of its electronic components and solutions to various industries. The company's key revenue streams include the production and sale of passive components, such as capacitors and inductors, which are essential in electronic circuits. Additionally, Murata earns income from its connectivity modules and sensors, which are increasingly important in the Internet of Things (IoT) and automotive sectors. The company maintains significant partnerships with major electronics manufacturers worldwide, contributing to its earnings through long-term supply agreements and collaboration on innovative technologies. Murata's continuous investment in research and development also supports its revenue by enabling the creation of cutting-edge products that meet the evolving demands of its customers.

Murata Manufacturing Co Financial Statement Overview

Summary

Murata Manufacturing Co demonstrates strong profitability and a robust balance sheet with low leverage, which are key strengths. However, the significant decline in revenue growth and free cash flow growth in the TTM are areas of concern. The company maintains operational efficiency and effective cash generation, but addressing revenue decline will be crucial for future growth.

Income Statement

Murata Manufacturing Co shows strong profitability with a consistent gross profit margin around 41% and a net profit margin of approximately 12.5% in the TTM. However, the company faces challenges with a negative revenue growth rate of -31.9% in the TTM, indicating a significant decline in sales. The EBIT and EBITDA margins remain robust, suggesting operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.024, indicating minimal leverage and financial risk. Return on equity is healthy at 8.5% in the TTM, reflecting effective use of equity to generate profits. The equity ratio is strong, showcasing a stable financial position with substantial equity backing the assets.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -5.2% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 1.82, indicating good cash generation relative to net income. The free cash flow to net income ratio is also solid at 0.59, suggesting decent cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.74T	1.74T	1.64T	1.69T	1.81T	1.63T
Gross Profit	720.91B	683.20B	603.86B	641.76B	768.23B	622.20B
EBITDA	466.79B	480.61B	418.49B	473.47B	588.60B	459.88B
Net Income	217.17B	233.82B	180.84B	243.95B	314.12B	237.05B
Balance Sheet
Total Assets	2.93T	3.03T	3.04T	2.86T	2.81T	2.46T
Cash, Cash Equivalents and Short-Term Investments	519.59B	625.15B	622.01B	469.41B	568.44B	450.80B
Total Debt	60.38B	59.99B	105.94B	163.57B	142.98B	182.71B
Total Liabilities	414.71B	448.22B	482.29B	498.36B	545.26B	540.62B
Stockholders Equity	2.52T	2.58T	2.56T	2.36T	2.26T	1.92T
Cash Flow
Free Cash Flow	256.81B	284.18B	253.41B	86.33B	270.93B	173.69B
Operating Cash Flow	437.87B	451.90B	489.64B	276.28B	421.46B	373.57B
Investing Cash Flow	-180.07B	-208.07B	-214.34B	-157.85B	-212.30B	-150.28B
Financing Cash Flow	-235.04B	-242.06B	-165.32B	-173.71B	-117.50B	-118.19B

Murata Manufacturing Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2806.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6981, the sentiment is Positive. The current price of 2806 is above the 20-day moving average (MA) of 2510.50, above the 50-day MA of 2371.06, and above the 200-day MA of 2329.18, indicating a bullish trend. The MACD of 87.76 indicates Negative momentum. The RSI at 77.99 is Negative, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6981.

Murata Manufacturing Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6762	77 Outperform	4.13T	27.71	8.38%	0.74%	4.83%	-12.18%
6806	77 Outperform	638.70B	20.64	8.92%	2.52%	13.89%	11.34%
6981	75 Outperform	$5.18T	24.07	8.66%	2.03%	2.58%	11.54%
6479	73 Outperform	1.13T	19.86	8.00%	1.62%	4.71%	-11.61%
6645	70 Outperform	827.87B	25.32	2.11%	2.47%	1.05%	0.00%
6976	59 Neutral	433.02B	-88.55	0.73%	2.61%	4.21%	-135.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Murata Manufacturing Co Corporate Events

Murata Manufacturing Revises Director Remuneration System for Sustainable Growth

Murata Manufacturing Co., Ltd. announced a revision of its director remuneration system, aiming to align with its Vision 2030 and enhance sustainable value creation. The revision introduces a performance-linked stock remuneration system to incentivize medium- to long-term corporate value enhancement, adjusting the remuneration composition to emphasize stock remuneration over bonuses, and refining performance evaluation indicators to strengthen the alignment between executives and employees.

Murata Manufacturing Announces Treasury Share Disposal for Stock Compensation

Murata Manufacturing Co., Ltd. has announced plans to dispose of treasury shares under its restricted stock compensation plan for eligible directors and vice presidents. This move, estimated to involve up to 300 million JPY, aligns with the company’s ongoing strategy to incentivize its leadership, potentially impacting its financial operations and shareholder value.

Murata Manufacturing Co. Reports Strong Financial Growth for FY 2025

Murata Manufacturing Co. reported significant financial growth for the fiscal year ending March 31, 2025, with a 6.3% increase in revenue and a substantial rise in operating profit by 29.8%. The company also implemented a three-for-one stock split in October 2023, which impacted earnings per share calculations. Despite a decrease in comprehensive income, the company improved its equity ratio and maintained strong cash flow, indicating robust financial health and strategic positioning in the market.

Murata Manufacturing Announces Major Stock Repurchase Plan

Murata Manufacturing Co., Ltd. has announced a stock repurchase plan, aiming to buy back up to 77 million shares, representing 4.13% of its outstanding shares, for a total of up to 100 billion yen. This move is intended to enhance capital efficiency and allow for a more flexible financial strategy, potentially impacting the company’s market positioning and shareholder value.

Murata Manufacturing Reports Strong FY2024 Revenue Growth Amid Challenges

Murata Manufacturing Co., Ltd. reported a 6.3% increase in revenue for FY2024, driven by strong demand for capacitors in servers and mobility, and multilayer resin substrates in smartphones. Despite a 29.8% rise in operating profit due to improved capacity utilization and cost reductions, the company faced challenges from a weak yen, lower capacity utilization, and one-time expenses, impacting their forecast. Shareholders will receive a year-end dividend of 30 yen per share, reflecting an increase from previous forecasts.