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Futaba (6986) AI Stock Analysis
Futaba
(TSE/TYO:6986)
Futaba's score is primarily driven by strong upward technical momentum and a highly resilient, virtually debt-free balance sheet. However, the overall score is constrained by significant long-term business risks, including a continuous top-line decay and weak core profitability, alongside a moderate valuation profile.
Futaba (6986) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 164.15M
- Dividend Yield
- 2.90%
- Average Volume (3M)
- 416.79K
- Price to Earnings (P/E)
- 16.4
- Beta (1Y)
- 1.22
- Revenue Growth
- -5.29%
- EPS Growth
- ―
- Country
- Japan
- Employees
- 2,384
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
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 organized...
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 include:...
Futaba Financial Statement Overview
Summary
Futaba presents a mixed financial profile featuring a pristine, debt-free balance sheet and positive free cash flow, which is heavily offset by persistent revenue contraction and deeply negative core operating margins.
Income Statement
35NegativeBalance Sheet
92Very PositiveCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.84B | 48.12B | 42.98B | 56.36B | 60.33B | 53.45B |
| Gross Profit | 8.36B | 8.87B | 6.92B | 8.75B | 8.61B | 8.95B |
| EBITDA | -616.00M | -227.00M | -1.27B | 129.00M | -1.12B | -661.00M |
| Net Income | -884.00M | -281.00M | 2.52B | -1.85B | -3.50B | -2.67B |
Balance Sheet | ||||||
| Total Assets | 100.73B | 101.09B | 108.88B | 104.26B | 98.33B | 100.65B |
| Cash, Cash Equivalents and Short-Term Investments | 31.64B | 31.58B | 36.39B | 27.36B | 24.37B | 34.23B |
| Total Debt | 656.00M | 700.00M | 503.00M | 733.00M | 970.00M | 971.00M |
| Total Liabilities | 12.35B | 12.78B | 13.68B | 13.73B | 13.12B | 13.86B |
| Stockholders Equity | 76.98B | 77.17B | 83.79B | 78.21B | 73.79B | 75.61B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 3.54B | 868.00M | 311.00M | -8.27B | -9.29B |
| Operating Cash Flow | 0 | 4.62B | 1.77B | 1.53B | -5.83B | -6.07B |
| Investing Cash Flow | 0 | -1.35B | 2.44B | 4.21B | 1.06B | 1.35B |
| Financing Cash Flow | 0 | -1.15B | -833.00M | -1.13B | -1.46B | -1.62B |
Futaba Technical Analysis
Price Trends
Market Momentum
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 622.00 is below the 20-day moving average (MA) of 672.05, below the 50-day MA of 719.22, and below the 200-day MA of 662.76, indicating a bearish trend. The MACD of -24.80 indicates Positive momentum. The RSI at 33.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6986.
Futaba Peers Comparison
Overall Rating
- JP:698672Outperform
JP:677068Neutral
JP:680666Neutral
JP:676262Neutral
JP:698162Neutral
JP:680758Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6986 | 72Outperform | JPY 26.30B | 16.38 | 1.96% | 2.90% | -5.29% | ― |
| JP:6770 | 68Neutral | JPY 408.72B | 24.59 | 3.75% | 3.07% | 5.06% | -65.51% |
| JP:6806 | 66Neutral | JPY 748.91B | 23.55 | 8.79% | 2.20% | 15.94% | 6.46% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| JP:6762 | 62Neutral | JPY 4.88T | 20.79 | ― | 1.56% | 25.38% | 50.76% |
| JP:6981 | 62Neutral | JPY 11.73T | 40.19 | 10.61% | 1.10% | 14.53% | 24.27% |
| JP:6807 | 58Neutral | JPY 171.39B | 31.36 | 3.74% | 2.21% | 10.23% | -33.88% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6986 | Futaba Corp | 620.00 | -51.76 | -7.70% | |
| JP:6770 | Alps Alpine Co | 2085.00 | 27.99 | 1.36% | |
| JP:6806 | HIROSE ELECTRIC CO | 23625.00 | 2850.11 | 13.72% | |
| JP:6807 | Japan Aviation Electronics Industry | 2485.00 | 249.15 | 11.14% | |
| JP:6981 | Murata Manufacturing Co | 6358.00 | 2947.30 | 86.41% | |
| JP:6762 | TDK Corporation | 2572.00 | 18.99 | 0.74% |
Futaba Corporate Events
Futaba Acquires Aquatic Drone Maker Homura to Expand Robotics Business
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, coa...
Futaba to Sell Chosei Plant Assets, Booking ¥2.3 Billion Gain
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 million....
Futaba to Dissolve Korean Production Equipment Subsidiary
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 owne...
Futaba Books ¥1.5 Billion Extraordinary Loss on Core IT System Overhaul
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 to n...
Futaba Posts Wider Quarterly Loss but Keeps Modest Sales Growth Outlook
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, t...
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 28, 2026