Want to see JP:6986 full AI Analyst Report?
Top Page
Futaba
(6986)
Select Model
Select Model
Rating:64Neutral
Price Target:
¥696.00
▼(-11.22% Downside)
Action:Downgraded
Date:08/28/26
The score is driven primarily by a conservative balance sheet and improving (but still uneven) cash-flow/earnings profile. Technicals add support because the stock is in an uptrend, though momentum is stretched, raising pullback risk. Valuation is reasonable but not compelling given ongoing operating-profit weakness and recent revenue contraction.
Positive Factors
Conservative Balance Sheet
Extremely low leverage and a substantial equity buffer provide financial resilience as Futaba addresses operating challenges. This reduces balance-sheet pressure, preserves flexibility for investment or restructuring, and lowers the risk that debt service constrains future business decisions.
Negative Factors
Persistent Revenue Contraction
Three consecutive years of revenue decline indicate that Futaba has not yet restored growth across its electronic products and components businesses. Continued contraction could reduce operating leverage, limit reinvestment capacity, and make a durable earnings recovery more difficult even with a strong balance sheet.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage and a substantial equity buffer provide financial resilience as Futaba addresses operating challenges. This reduces balance-sheet pressure, preserves flexibility for investment or restructuring, and lowers the risk that debt service constrains future business decisions.
Read all positive factors
Futaba (6986) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥28.04B
Dividend Yield2.72%
Average Volume (3M)374.94K
Price to Earnings (P/E)17.5
Beta (1Y)1.21
Revenue Growth-5.29%
EPS GrowthN/A
CountryJP
Employees2,384
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)37.86
Shares Outstanding42,426,740
10 Day Avg. Volume238,330
30 Day Avg. Volume374,936
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.32
Price to Sales (P/S)0.62
P/FCF Ratio30.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Futaba Business Overview & Revenue Model
Company Description
Operating across Japan, the Americas, Europe, and Asia, Futaba Corporation specializes in the creation, production, and distribution of electronic devices, radio-controlled apparatus, and various manufacturing machinery. Its operations are organiz...
How the Company Makes Money
Futaba generates revenue primarily by manufacturing and selling electronic products and components to other businesses (B2B) and to end customers through distribution/retail channels (B2C), depending on the product line. Key revenue streams includ...
Futaba Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
83
Very Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.41B | 42.98B | 48.12B | 56.36B | 60.33B | 53.45B |
| Gross Profit | 7.23B | 6.92B | 8.87B | 8.75B | 8.61B | 8.95B |
| EBITDA | -1.00B | -1.27B | -227.00M | 129.00M | -1.12B | -661.00M |
| Net Income | 1.61B | 2.52B | -281.00M | -1.85B | -3.50B | -2.67B |
Balance Sheet | ||||||
| Total Assets | 110.70B | 108.88B | 101.09B | 104.26B | 98.33B | 100.65B |
| Cash, Cash Equivalents and Short-Term Investments | 35.89B | 36.39B | 31.58B | 27.36B | 24.37B | 34.23B |
| Total Debt | 1.83B | 503.00M | 700.00M | 733.00M | 970.00M | 971.00M |
| Total Liabilities | 16.11B | 13.68B | 12.78B | 13.73B | 13.12B | 13.86B |
| Stockholders Equity | 83.27B | 83.79B | 77.17B | 78.21B | 73.79B | 75.61B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 868.00M | 3.54B | 311.00M | -8.27B | -9.29B |
| Operating Cash Flow | 0.00 | 1.77B | 4.62B | 1.53B | -5.83B | -6.07B |
| Investing Cash Flow | 0.00 | 2.44B | -1.35B | 4.21B | 1.06B | 1.35B |
| Financing Cash Flow | 0.00 | -833.00M | -1.15B | -1.13B | -1.46B | -1.62B |
Futaba Technical Analysis
Negative
784.00
Price Trends
720.96
Negative
655.68
Negative
660.52
Negative
Market Momentum
-21.37
Positive
36.93
Neutral
10.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6986, the sentiment is Negative. The current price of 784 is above the 20-day moving average (MA) of 710.95, above the 50-day MA of 720.96, and above the 200-day MA of 660.52, indicating a bearish trend. The MACD of -21.37 indicates Positive momentum. The RSI at 36.93 is Neutral, neither overbought nor oversold. The STOCH value of 10.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6986.
Futaba Peers Comparison
UnderperformOutperform
Sector (63)
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% | |
68 Neutral | ¥409.90B | 16.43 | 5.95% | 3.05% | 2.28% | -22.89% | |
65 Neutral | ¥12.46T | 47.64 | 9.94% | 1.04% | 10.31% | 24.82% | |
64 Neutral | ¥28.04B | 17.54 | 1.96% | 2.72% | -5.29% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | ¥183.32B | 27.88 | 4.63% | 2.04% | 7.73% | -29.74% |
* Industrials Sector Average
JP:6986
Futaba
650.00
-35.55
-5.19%
JP:6770
Alps Alpine Co
2,093.00
238.00
12.83%
JP:6806
HIROSE ELECTRIC CO
23,610.00
4,095.97
20.99%
JP:6807
Japan Aviation Electronics Industry
2,614.00
-78.41
-2.91%
JP:6981
Murata Manufacturing Co
6,432.00
3,571.67
124.87%
JP:6762
TDK Corporation
2,780.50
410.48
17.32%
Futaba Corporate Events
Futaba Acquires Aquatic Drone Maker Homura to Expand Robotics Business
Oct 23, 2026
Futaba Corporation will acquire a 91.9% stake in Homura Heavy Industries Corporation for ¥698 million, making the aquatic robotics specialist a subsidiary. Homura develops unmanned surface drones and related unmanned vessels serving defense, ...
Futaba to Sell Chosei Plant Assets, Booking ¥2.3 Billion Gain
Oct 23, 2026
Futaba Corporation has approved the transfer of part of its fixed assets at the Chosei Plant in Chiba Prefecture, including the Chosei Machinery and Tooling Technical Center and related facilities, to TAENAKA KOGYO CO., LTD. for ¥2,350 millio...
Futaba to Dissolve Korean Production Equipment Subsidiary
Aug 7, 2026
Futaba Corporation has decided to dissolve its consolidated Korean subsidiary, WONJIN PRECISION Co., Ltd., a manufacturer and seller of production equipment products based in Incheon. The unit, which joined the Futaba group in 2017 and is wholly o...
Futaba Books ¥1.5 Billion Extraordinary Loss on Core IT System Overhaul
Aug 7, 2026
Futaba Corporation has recognized an extraordinary loss in the consolidated first quarter of the fiscal year ending March 31, 2027 due to its overhaul of the group’s core IT systems. After reassessing the recoverability of investments tied t...
Futaba Posts Wider Quarterly Loss but Keeps Modest Sales Growth Outlook
Aug 7, 2026
Futaba Corporation reported a modest 4.1% year-on-year increase in net sales to ¥10.84 billion for the quarter ended June 30, 2026, but remained in the red with an operating loss of ¥335 million and a wider net loss of ¥1.45 billion...
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.