Futaba (6986) AI Stock Analysis

• Market Cap: $28.55B
• Dividend Yield: 1.52%
• Average Volume (3M): 178.32K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.96
• Revenue Growth: -16.95%
• EPS Growth: -54.38%
• Country: JP
• Employees: 2,997
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -12.53
• Shares Outstanding: 42,426,740
• 10 Day Avg. Volume: 146,060
• 30 Day Avg. Volume: 178,323
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.23
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.73
• Enterprise Value/Ebitda: 3.32
• 1Y Price Target: $601.38
• Price Target Upside: -10.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥605.00 ▼(-10.10% Downside)

The overall stock score of 51 reflects significant challenges faced by the company, particularly in profitability and valuation. Despite a strong balance sheet and improving cash flow, the lack of profitability and negative market sentiment weigh heavily. Technical indicators suggest cautious trading behavior, while the dividend yield offers limited compensation for valuation risks.

Futaba Business Overview & Revenue Model

Company Description

Futaba Corporation designs, develops, manufactures, and sells electronic equipment, radio control equipment, and manufacturing equipment in Japan, the United States, Europe, and Asia. It operates through Electronic Devices; and Machinery and Tooling segments. The company provides organic light-emitting diode displays, USB displays, LCD modules, display modules, electronic modules, radio control equipment for industrial and hobby use, and touch panels; and engines and parts for models and robots. It also offers components for press die sets and plastic molds, mold bases, precision plates, and in-cavity measuring systems, as well as automation equipment; and touch sensors and molding rationalization equipment. Futaba Corporation was incorporated in 1948 and is headquartered in Mobara, Japan.

How the Company Makes Money

Futaba Corporation generates revenue primarily through the sale of its electronic components and devices. The company's main revenue streams include sales of vacuum fluorescent displays and OLED displays, which are used in a variety of applications such as automotive dashboards, consumer electronics displays, and industrial control panels. Additionally, Futaba earns income from its radio control equipment, catering to both hobby enthusiasts and professional applications in areas like drones and remote-controlled vehicles. The company may also engage in partnerships with automotive manufacturers and electronics companies, which contribute to its revenue growth by expanding its market reach and driving innovation in its product offerings.

Futaba Financial Statement Overview

Summary

The financial performance is challenged by negative EBIT and net income margins, reflecting ongoing profitability issues and declining revenues since 2023. However, a strong balance sheet with low leverage and improving cash flows provide some stability and potential for recovery.

Income Statement

The company has struggled with profitability, reflected by negative EBIT and net income margins over several years. The revenue has decreased year-on-year since 2023, indicating a declining growth trend. However, the gross profit margin has remained relatively stable, suggesting some cost control efficiency.

Balance Sheet

The company's balance sheet shows strength with a high equity ratio and a very low debt-to-equity ratio, indicating low leverage and financial stability. The equity base remains strong, which could provide a cushion against operational losses.

Cash Flow

Cash flows have improved significantly, with a positive free cash flow in 2025 after several years of negative performance. The operating cash flow to net income ratio indicates that cash generation is stronger than reported earnings, suggesting efficient cash management despite net losses.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	48.12B	56.36B	60.33B	53.45B	48.83B
Gross Profit	8.87B	8.75B	8.61B	8.95B	7.69B
EBITDA	1.96B	55.00M	-1.22B	-150.00M	-2.89B
Net Income	-281.00M	-1.85B	-3.50B	-2.67B	-5.43B
Balance Sheet
Total Assets	101.09B	104.26B	98.12B	100.44B	100.21B
Cash, Cash Equivalents and Short-Term Investments	31.58B	27.36B	24.37B	34.23B	41.44B
Total Debt	700.00M	733.00M	970.00M	971.00M	1.04B
Total Liabilities	12.78B	13.74B	12.91B	13.65B	12.71B
Stockholders Equity	77.17B	78.21B	73.78B	75.61B	76.88B
Cash Flow
Free Cash Flow	3.54B	234.00M	-8.34B	-9.33B	-2.51B
Operating Cash Flow	4.62B	1.53B	-5.83B	-6.07B	-508.00M
Investing Cash Flow	-1.35B	4.21B	1.06B	1.35B	-2.39B
Financing Cash Flow	-1.15B	-1.13B	-1.46B	-1.62B	-1.87B

Futaba Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 673.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 673 is above the 20-day moving average (MA) of 653.90, above the 50-day MA of 638.92, and above the 200-day MA of 555.77, indicating a bullish trend. The MACD of 7.82 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.22 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6626	80 Outperform	26.51B	7.72	13.40%	1.72%	6.82%	24.23%
6787	76 Outperform	258.86B	16.27	13.79%	0.76%	15.13%	31.79%
6989	71 Outperform	16.45B	10.19	9.66%	4.14%	4.08%	-33.22%
6958	68 Neutral	24.01B	10.25	4.79%	5.62%	3.34%	-57.23%
6844	58 Neutral	33.81B	-27.98	-3.68%	1.98%	5.16%	-5946.54%
6986	51 Neutral	$28.55B	9.02	-1.20%	1.52%	-16.95%	-54.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Futaba Corporate Events

Futaba Corporation Reports Discrepancy in Financial Results and Records Non-operating Expenses

Futaba Corporation announced a discrepancy between its forecasted and actual financial results for the fiscal year ending March 31, 2025, with a decrease in net sales and operating profit. Despite restructuring efforts and cost control measures, the company faced increased operating losses due to decreased revenue and pension asset adjustments. However, favorable foreign exchange rates and higher-than-expected gains on asset sales led to a narrower ordinary loss and increased profit attributable to owners of the parent.

Futaba Corporation Reports Decline in Fiscal Year 2025 Financial Results

Futaba Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a significant decline in net sales and operating profit compared to the previous year. Despite the challenging financial performance, the company maintained its dividend payout, indicating a commitment to shareholder returns. The exclusion of Futaba Mobile Display Corporation from the consolidation scope and changes in accounting policies were noted, potentially impacting future financial outcomes.