Executive Summary
Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components in Japan and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Murata Manufacturing's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 6981's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-0.5%
6981
-3.3%
JP Electronic
-4.6%
JP Market
1 Year Return
-9.9%
6981
-10.7%
JP Electronic
-15.7%
JP Market
Return vs Industry: 6981 exceeded the JP Electronic industry which returned -4.9% over the past year.
Return vs Market: 6981 exceeded the JP Market which returned -10.7% over the past year.
Shareholder returns
| 6981 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -3.3% | -4.6% |
| 30 Day | -9.3% | -9.5% | -11.2% |
| 90 Day | -22.8% | -22.0% | -21.0% |
| 1 Year | -8.2%-9.9% | -9.2%-10.7% | -13.5%-15.7% |
| 3 Year | 8.1%3.3% | 16.5%11.1% | -2.3%-9.2% |
| 5 Year | -3.4%-10.4% | 17.5%8.0% | -1.1%-11.8% |
Price Volatility Vs. Market
How volatile is Murata Manufacturing's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Murata Manufacturing undervalued compared to its fair value and its price relative to the market?
7.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 6981 (¥5472) is trading below our estimate of fair value (¥5623.02)
Significantly Below Fair Value: 6981 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 6981 is poor value based on its PE Ratio (18.9x) compared to the Electronic industry average (13.2x).
PE vs Market: 6981 is poor value based on its PE Ratio (18.9x) compared to the JP market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: 6981 is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: 6981 is overvalued based on its PB Ratio (2.1x) compared to the JP Electronic industry average (0.7x).
Next Steps
Future Growth
How is Murata Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
14.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 6981's forecast earnings growth (14.9% per year) is above the savings rate (-0.09%).
Earnings vs Market: 6981's earnings (14.9% per year) are forecast to grow faster than the JP market (9.4% per year).
High Growth Earnings: 6981's earnings are forecast to grow, but not significantly.
Revenue vs Market: 6981's revenue (6.6% per year) is forecast to grow faster than the JP market (3.4% per year).
High Growth Revenue: 6981's revenue (6.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 6981's Return on Equity is forecast to be low in 3 years time (13.7%).
Next Steps
Past Performance
How has Murata Manufacturing performed over the past 5 years?
0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 6981 has high quality earnings.
Growing Profit Margin: 6981's current net profit margins (12.1%) are lower than last year (12.5%).
Past Earnings Growth Analysis
Earnings Trend: 6981's earnings have grown by 0.4% per year over the past 5 years.
Accelerating Growth: 6981's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 6981 had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Electronic industry average (-10.4%).
Return on Equity
High ROE: 6981's Return on Equity (11%) is considered low.
Next Steps
Financial Health
How is Murata Manufacturing's financial position?
Financial Position Analysis
Short Term Liabilities: 6981's short term assets (¥1,062.0B) exceed its short term liabilities (¥303.9B).
Long Term Liabilities: 6981's short term assets (¥1,062.0B) exceed its long term liabilities (¥261.8B).
Debt to Equity History and Analysis
Debt Level: 6981's debt to equity ratio (12.7%) is considered satisfactory.
Reducing Debt: 6981's debt to equity ratio has increased from 3.2% to 12.7% over the past 5 years.
Debt Coverage: 6981's debt is well covered by operating cash flow (153.7%).
Interest Coverage: 6981 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 6981 has a high level of physical assets or inventory.
Debt Coverage by Assets: 6981's debt is covered by short term assets (assets are 5x debt).
Next Steps
Dividend
What is Murata Manufacturing's current dividend yield, its reliability and sustainability?
1.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 6981's dividend (1.77%) is higher than the bottom 25% of dividend payers in the JP market (1.67%).
High Dividend: 6981's dividend (1.77%) is low compared to the top 25% of dividend payers in the JP market (3.81%).
Stability and Growth of Payments
Stable Dividend: 6981's dividends per share have been stable in the past 10 years.
Growing Dividend: 6981's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.3%), 6981's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Tsuneo Murata (68yo)
12.83s
Tenure
JP¥108,000,000
Compensation
Mr. Tsuneo Murata has been the President of Murata Manufacturing Co., Ltd., since June 28, 2007 and has been its Chairman since June 29, 2017. He joined Murata Manufacturing Co., Ltd. in March 1974. Mr. Mu ...
CEO Compensation Analysis
Compensation vs Market: Tsuneo's total compensation ($USD999.39K) is below average for companies of similar size in the JP market ($USD1.80M).
Compensation vs Earnings: Tsuneo's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & President | 12.83yrs | JP¥108.00m | 0.72% ¥24.1b | |
| SVP of Accounting | 1.25yrs | no data | 0.00014% ¥4.7m | |
| Executive VP | 4.75yrs | no data | no data | |
| Director of Human Resources Group | 1.83yrs | no data | 0.00047% ¥15.7m | |
| Senior EVP | 4.83yrs | no data | 0.0016% ¥54.3m | |
| Senior EVP | 6.83yrs | no data | 0.0011% ¥36.0m | |
| Executive VP | 6.83yrs | no data | 0.00063% ¥21.0m | |
| Executive VP | 4.83yrs | no data | 0.0014% ¥46.0m | |
| Senior VP of Corporate Planning & Administration Unit and Director | 1.25yrs | no data | 0.00048% ¥16.0m | |
| Senior Vice President of Sales & Marketing Unit | no data | no data | no data |
4.8yrs
Average Tenure
58.5yo
Average Age
Experienced Management: 6981's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & President | 12.83yrs | JP¥108.00m | 0.72% ¥24.1b | |
| SVP of Accounting | 1.25yrs | no data | 0.00014% ¥4.7m | |
| Director of Human Resources Group | 1.83yrs | no data | 0.00047% ¥15.7m | |
| Senior EVP | 4.83yrs | no data | 0.0016% ¥54.3m | |
| Senior EVP | 6.83yrs | no data | 0.0011% ¥36.0m | |
| Executive VP | 6.83yrs | no data | 0.00063% ¥21.0m | |
| Executive VP | 4.83yrs | no data | 0.0014% ¥46.0m | |
| Senior VP of Corporate Planning & Administration Unit and Director | 1.25yrs | no data | 0.00048% ¥16.0m | |
| Outside Director | 4.83yrs | no data | no data | |
| Outside Director | 3.83yrs | no data | no data |
4.3yrs
Average Tenure
60.5yo
Average Age
Experienced Board: 6981's board of directors are considered experienced (4.2 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Murata Manufacturing Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Murata Manufacturing Co., Ltd.
- Ticker: 6981
- Exchange: TSE
- Founded: 1944
- Industry: Electronic Components
- Sector: Tech
- Market Cap: JP¥3.334t
- Shares outstanding: 639.80m
- Website: https://www.murata.com
Number of Employees
Location
- Murata Manufacturing Co., Ltd.
- 10-1, Higashikotari 1-chome
- Nagaokakyo
- Kyoto
- 617-8555
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MRAA.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1992 |
| 6981 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1992 |
| MUR1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
| MRAA.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Dec 2008 |
Biography
Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components in Japan and internationally. It offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID devices, matching devices, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, ultra-low-power short-range RFIC products, wireless connectivity platforms, and ionizers/active oxygen modules. The company provides its products for use in medical and healthcare equipment, mobile communications, industrial equipment, white goods, business machines, personal computers, and AV equipment, as well as smart home, automotive, network, data center, lighting, security and safety, AI speaker and hearable applications. Murata Manufacturing Co., Ltd. has a collaboration with Truphone Limited. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/02 02:49 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.