Japan Electronic Materials (TSE:6855) - Share price, News & Analysis

6855 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	4/6

6855 Stock Overview

Japan Electronic Materials Corporation engages in the manufacture and sale of probe cards and electron tube parts in Japan and internationally.

Rewards

Trading at 62% below our estimate of its fair value

Earnings are forecast to grow 2.61% per year

Earnings have grown 51% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

Japan Electronic Materials Competitors

Tokyo Electron

TSE:8035

JP¥9.1t

Advantest

TSE:6857

JP¥1.7t

Micronics Japan

TSE:6871

JP¥55.4b

Applied Materials

NasdaqGS:AMAT

US$97.1b

Price History & Performance

Summary of all time highs, changes and price drops for Japan Electronic Materials
Historical stock prices
Current Share Price	JP¥1,776.00
52 Week High	JP¥3,175.00
52 Week Low	JP¥1,608.00
Beta	1.3
1 Month Change	-10.03%
3 Month Change	-7.02%
1 Year Change	-14.29%
3 Year Change	242.20%
5 Year Change	155.54%
Change since IPO	75.15%

Shareholder Returns

	6855	JP Semiconductor	JP Market
7D	-0.7%	2.0%	1.5%
1Y	-14.3%	13.7%	-2.7%

Return vs Industry: 6855 underperformed the JP Semiconductor industry which returned 13.7% over the past year.

Return vs Market: 6855 underperformed the JP Market which returned -2.7% over the past year.

Price Volatility

Is 6855's price volatile compared to industry and market?
6855 volatility
6855 Average Weekly Movement	6.3%
Semiconductor Industry Average Movement	6.3%
Market Average Movement	4.5%
10% most volatile stocks in JP Market	8.9%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 6855 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6855's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1960	984	Kazumasa Ohkubo	https://www.jem-net.co.jp

Japan Electronic Materials Corporation engages in the manufacture and sale of probe cards and electron tube parts in Japan and internationally. The company offers cantilever type and advanced probe cards; and heaters and cathodes for receiving tubes and CRTs, filaments for fluorescent character display tubes, and directly heated cathodes, as well as measuring instruments. It also provides a range of products for displays, which include color TV displays, such as high-definition TV displays; computer displays; measurement displays; and radar displays.

Japan Electronic Materials Fundamentals Summary

How do Japan Electronic Materials's earnings and revenue compare to its market cap?
6855 fundamental statistics
Market Cap	JP¥23.08b
Earnings (TTM)	JP¥3.80b
Revenue (TTM)	JP¥23.60b

5.9x

P/E Ratio

0.9x

P/S Ratio

Is 6855 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6855 income statement (TTM)
Revenue	JP¥23.60b
Cost of Revenue	JP¥14.63b
Gross Profit	JP¥8.97b
Other Expenses	JP¥5.17b
Earnings	JP¥3.80b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	302.01
Gross Margin	38.02%
Net Profit Margin	16.11%
Debt/Equity Ratio	24.2%

How did 6855 perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Japan Electronic Materials undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 6855 (¥1776) is trading below our estimate of fair value (¥4671.76)

Significantly Below Fair Value: 6855 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 6855 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the JP Semiconductor industry average (11.8x).

PE vs Market: 6855 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the JP market (12.4x).

Price to Earnings Growth Ratio

PEG Ratio: 6855 is poor value based on its PEG Ratio (2.3x)

Price to Book Ratio

PB vs Industry: 6855 is good value based on its Price-To-Book Ratio (1x) compared to the JP Semiconductor industry average (1.5x).

Future Growth

How is Japan Electronic Materials forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6855's forecast earnings growth (2.6% per year) is above the savings rate (0.02%).

Earnings vs Market: 6855's earnings (2.6% per year) are forecast to grow slower than the JP market (8.8% per year).

High Growth Earnings: 6855's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6855's revenue (3.9% per year) is forecast to grow slower than the JP market (4.1% per year).

High Growth Revenue: 6855's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 6855's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Japan Electronic Materials performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

51.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6855 has high quality earnings.

Growing Profit Margin: 6855's current net profit margins (16.1%) are higher than last year (11%).

Past Earnings Growth Analysis

Earnings Trend: 6855's earnings have grown significantly by 51% per year over the past 5 years.

Accelerating Growth: 6855's earnings growth over the past year (86.6%) exceeds its 5-year average (51% per year).

Earnings vs Industry: 6855 earnings growth over the past year (86.6%) underperformed the Semiconductor industry 100.7%.

Return on Equity

High ROE: 6855's Return on Equity (17.4%) is considered low.

Financial Health

How is Japan Electronic Materials's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6855's short term assets (¥25.5B) exceed its short term liabilities (¥7.4B).

Long Term Liabilities: 6855's short term assets (¥25.5B) exceed its long term liabilities (¥3.8B).

Debt to Equity History and Analysis

Debt Level: 6855 has more cash than its total debt.

Reducing Debt: 6855's debt to equity ratio has reduced from 25.7% to 24.2% over the past 5 years.

Debt Coverage: 6855's debt is well covered by operating cash flow (91.1%).

Interest Coverage: 6855's interest payments on its debt are well covered by EBIT (247.7x coverage).

Balance Sheet

Dividend

What is Japan Electronic Materials's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.25%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6855's dividend (2.25%) is higher than the bottom 25% of dividend payers in the JP market (1.64%).

High Dividend: 6855's dividend (2.25%) is low compared to the top 25% of dividend payers in the JP market (3.68%).

Stability and Growth of Payments

Stable Dividend: 6855's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6855's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.9%), 6855's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (13%), 6855's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure

CEO

Kazumasa Ohkubo (66 yo)

4.92yrs

Tenure

Mr. Kazumasa Ohkubo has been President of Jem America Co., Ltd. since April 2010. He is the President of Japan Electronic Materials Corporation since June 2017 and has been its Sales Manager since June 201...

Leadership Team

Experienced Management: 6855's management team is seasoned and experienced (8.1 years average tenure).

Board Members

Experienced Board: 6855's board of directors are considered experienced (6.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31