tiprankstipranks
Futaba Corp. (JP:6986)
:6986
Want to see JP:6986 full AI Analyst Report?

Futaba (6986) AI Stock Analysis

0 Followers

Top Page

JP:6986

Futaba

(6986)

Select Model
Select Model
Select Model
Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥709.00
▲(17.97% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by a strong balance sheet that reduces financial risk, offset by weak operating trends (multi-year revenue declines and ongoing operating losses). Technicals add support due to strong trend/momentum, but overbought indicators raise near-term risk. Valuation is neutral, with a moderate P/E and dividend yield.
Positive Factors
Conservative Balance Sheet
Minimal leverage and a large equity buffer reduce solvency risk and preserve financial flexibility. This gives Futaba greater capacity to withstand weak demand, fund operations, and pursue recovery without depending heavily on external financing.
Negative Factors
Multi-Year Revenue Decline
Persistent revenue contraction points to ongoing challenges in demand, customer volumes, or competitive positioning. Without a durable return to growth, fixed costs become harder to absorb and the path to sustainable operating profitability remains limited.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Minimal leverage and a large equity buffer reduce solvency risk and preserve financial flexibility. This gives Futaba greater capacity to withstand weak demand, fund operations, and pursue recovery without depending heavily on external financing.
Read all positive factors

Futaba (6986) vs. iShares MSCI Japan ETF (EWJ)

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
Overall fundamentals are mixed: a very conservative balance sheet (minimal leverage, strong equity buffer) supports stability, while operating performance remains a concern with revenue declining for three straight years and operating profit still negative. Cash flow has improved and stayed positive since 2024, but weaker cash conversion in 2026 (FCF well below net income) tempers the recovery.
Income Statement
46
Neutral
Balance Sheet
83
Very Positive
Cash Flow
57
Neutral
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue43.41B42.98B48.12B56.36B60.33B53.45B
Gross Profit7.23B6.92B8.87B8.75B8.61B8.95B
EBITDA-1.00B-1.27B-227.00M129.00M-1.12B-661.00M
Net Income1.61B2.52B-281.00M-1.85B-3.50B-2.67B
Balance Sheet
Total Assets110.70B108.88B101.09B104.26B98.33B100.65B
Cash, Cash Equivalents and Short-Term Investments35.89B36.39B31.58B27.36B24.37B34.23B
Total Debt1.83B503.00M700.00M733.00M970.00M971.00M
Total Liabilities16.11B13.68B12.78B13.73B13.12B13.86B
Stockholders Equity83.27B83.79B77.17B78.21B73.79B75.61B
Cash Flow
Free Cash Flow0.00868.00M3.54B311.00M-8.27B-9.29B
Operating Cash Flow0.001.77B4.62B1.53B-5.83B-6.07B
Investing Cash Flow0.002.44B-1.35B4.21B1.06B1.35B
Financing Cash Flow0.00-833.00M-1.15B-1.13B-1.46B-1.62B

Futaba Technical Analysis

Technical Analysis Sentiment
Positive
Last Price601.00
Price Trends
50DMA
608.08
Positive
100DMA
635.66
Positive
200DMA
638.28
Positive
Market Momentum
MACD
30.49
Negative
RSI
68.83
Neutral
STOCH
70.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6986, the sentiment is Positive. The current price of 601 is below the 20-day moving average (MA) of 656.40, below the 50-day MA of 608.08, and below the 200-day MA of 638.28, indicating a bullish trend. The MACD of 30.49 indicates Negative momentum. The RSI at 68.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6986.

Futaba Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥427.44B17.156.28%2.86%2.28%-22.89%
68
Neutral
¥5.79T25.231.20%21.98%57.54%
66
Neutral
¥811.68B26.028.80%1.78%15.94%6.46%
65
Neutral
¥13.15T51.628.95%0.78%10.31%24.82%
63
Neutral
¥29.06B19.443.14%3.00%-5.29%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
49
Neutral
¥166.97B25.615.10%2.44%7.73%-29.74%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6986
Futaba
781.00
148.64
23.51%
JP:6770
Alps Alpine Co
2,211.50
437.59
24.67%
JP:6806
HIROSE ELECTRIC CO
25,875.00
6,832.80
35.88%
JP:6807
Japan Aviation Electronics Industry
2,460.00
-64.36
-2.55%
JP:6981
Murata Manufacturing Co
7,309.00
4,917.15
205.58%
JP:6762
TDK Corporation
3,077.00
1,162.09
60.69%

Futaba Corporate Events

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...
Futaba Bets on SAP Core System Overhaul to Rebuild Competitiveness
Jun 5, 2026
Futaba Corporation has approved a major overhaul of its core enterprise systems, selecting SAP as its new group-wide ERP platform as part of its mid-term plan to reinforce its management base and accelerate digital transformation. The system is sl...
Futaba to Slash Strategic Shareholdings and Reinvest Proceeds for Growth
Jun 5, 2026
Futaba Corporation has adopted a new policy to reduce its strategic shareholdings in line with Japan’s Corporate Governance Code, aiming to improve capital efficiency and strengthen its balance sheet. The company plans to cut the ratio of su...
Futaba Sets May 2026 Resolution Date to Dissolve Chinese Subsidiary
May 20, 2026
Futaba Corporation has finalized May 20, 2026 as the official resolution date to dissolve its consolidated Chinese subsidiary, Futaba Precision Die and Mold Machinery (China) Co., Ltd., following earlier notices issued in 2025. The decision marks ...
Futaba to Dissolve Loss-Making Chinese Trading Subsidiary Amid Business Shift
May 20, 2026
Futaba Corporation has resolved to dissolve its consolidated Chinese subsidiary, Futaba International Trading (Shanghai) Co., Ltd., which has handled procurement and sales of electronic products in China since 2001. The move follows a sharp declin...
Futaba Issues Consolidated Financial Results for Fiscal Year Ended March 2026
May 18, 2026
Futaba Corporation has released a consolidated financial results presentation for the fiscal year ended March 31, 2026, clarifying that all figures are rounded to the nearest million yen and that net income refers specifically to earnings attribut...
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: Aug 17, 2026