Micronics Japan Co., Ltd.

TSE:6871 Stock Report

Market Cap: JP¥143.7b

Micronics Japan Valuation

Is 6871 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 6871 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6871 (¥3715) is trading below our estimate of fair value (¥9111.15)

Significantly Below Fair Value: 6871 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6871?

Key metric: As 6871 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6871. This is calculated by dividing 6871's market cap by their current earnings.
What is 6871's PE Ratio?
PE Ratio17.6x
EarningsJP¥8.14b
Market CapJP¥143.75b

Price to Earnings Ratio vs Peers

How does 6871's PE Ratio compare to its peers?

The above table shows the PE ratio for 6871 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
6315 TOWA
14.5x20.8%JP¥121.7b
6055 JAPAN MATERIAL
26.2x20.5%JP¥164.7b
4369 Tri Chemical Laboratories
30.2x35.6%JP¥90.0b
6590 Shibaura Mechatronics
12.1x9.5%JP¥105.7b
6871 Micronics Japan
17.6x28.7%JP¥143.7b

Price-To-Earnings vs Peers: 6871 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

How does 6871's PE Ratio compare vs other companies in the JP Semiconductor Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
3856 Abalance
1.5xn/aUS$95.48m
No more companies available in this PE range
6871 17.6xIndustry Avg. 13.8xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6871 is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the JP Semiconductor industry average (13.8x).

Price to Earnings Ratio vs Fair Ratio

What is 6871's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6871 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio24.9x

Price-To-Earnings vs Fair Ratio: 6871 is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 6871 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentJP¥3,715.00
JP¥7,033.33
+89.3%
20.8%JP¥9,100.00JP¥6,000.00n/a3
Nov ’25JP¥3,645.00
JP¥7,033.33
+93.0%
20.8%JP¥9,100.00JP¥6,000.00n/a3
Oct ’25JP¥4,105.00
JP¥7,033.33
+71.3%
20.8%JP¥9,100.00JP¥6,000.00n/a3
Sep ’25JP¥4,800.00
JP¥8,366.67
+74.3%
20.5%JP¥10,000.00JP¥6,000.00n/a3
Aug ’25JP¥5,800.00
JP¥9,166.67
+58.0%
9.3%JP¥10,000.00JP¥8,000.00n/a3
Jul ’25JP¥6,610.00
JP¥9,166.67
+38.7%
9.3%JP¥10,000.00JP¥8,000.00n/a3
Jun ’25JP¥5,770.00
JP¥9,000.00
+56.0%
11.1%JP¥10,000.00JP¥8,000.00n/a2
May ’25JP¥6,710.00
JP¥8,450.00
+25.9%
18.3%JP¥10,000.00JP¥6,900.00n/a2
Apr ’25JP¥8,090.00
JP¥8,450.00
+4.4%
18.3%JP¥10,000.00JP¥6,900.00n/a2
Mar ’25JP¥7,930.00
JP¥8,450.00
+6.6%
18.3%JP¥10,000.00JP¥6,900.00n/a2
Feb ’25JP¥4,500.00
JP¥3,550.00
-21.1%
18.3%JP¥4,200.00JP¥2,900.00n/a2
Jan ’25JP¥3,670.00
JP¥3,000.00
-18.3%
3.3%JP¥3,100.00JP¥2,900.00n/a2
Dec ’24JP¥3,865.00
JP¥3,400.00
-12.0%
16.8%JP¥4,200.00JP¥2,900.00n/a3
Nov ’24JP¥2,188.00
JP¥2,300.00
+5.1%
12.8%JP¥2,700.00JP¥2,000.00JP¥3,645.003
Oct ’24JP¥2,119.00
JP¥2,300.00
+8.5%
12.8%JP¥2,700.00JP¥2,000.00JP¥4,105.003
Sep ’24JP¥2,155.00
JP¥2,300.00
+6.7%
12.8%JP¥2,700.00JP¥2,000.00JP¥4,800.003
Aug ’24JP¥2,280.00
JP¥2,366.67
+3.8%
10.0%JP¥2,700.00JP¥2,200.00JP¥5,800.003
Jul ’24JP¥2,000.00
JP¥2,000.00
0%
33.4%JP¥2,700.00JP¥1,100.00JP¥6,610.003
Jun ’24JP¥1,793.00
JP¥1,666.67
-7.0%
27.0%JP¥2,200.00JP¥1,100.00JP¥5,770.003
May ’24JP¥1,239.00
JP¥1,666.67
+34.5%
27.0%JP¥2,200.00JP¥1,100.00JP¥6,710.003
Apr ’24JP¥1,333.00
JP¥1,683.33
+26.3%
25.5%JP¥2,200.00JP¥1,150.00JP¥8,090.003
Mar ’24JP¥1,360.00
JP¥1,683.33
+23.8%
25.5%JP¥2,200.00JP¥1,150.00JP¥7,930.003
Feb ’24JP¥1,395.00
JP¥1,816.67
+30.2%
32.9%JP¥2,600.00JP¥1,150.00JP¥4,500.003
Jan ’24JP¥1,302.00
JP¥1,816.67
+39.5%
32.9%JP¥2,600.00JP¥1,150.00JP¥3,670.003
Dec ’23JP¥1,501.00
JP¥1,850.00
+23.3%
32.1%JP¥2,600.00JP¥1,150.00JP¥3,865.003
Nov ’23JP¥1,384.00
JP¥1,705.00
+23.2%
44.2%JP¥2,900.00JP¥1,020.00JP¥2,188.004

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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