TSE:6981

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Murata Manufacturing

Executive Summary

Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components and related products in Japan and internationally. More Details

Rewards

Earnings are forecast to grow 15.48% per year

Earnings grew by 14.7% over the past year

Risk Analysis

No risks detected for 6981 from our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record.


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 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 6981's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.7%

6981

3.0%

JP Electronic

1.3%

JP Market


1 Year Return

72.2%

6981

43.9%

JP Electronic

28.5%

JP Market

Return vs Industry: 6981 exceeded the JP Electronic industry which returned 43.9% over the past year.

Return vs Market: 6981 exceeded the JP Market which returned 28.5% over the past year.


Shareholder returns

6981IndustryMarket
7 Day-4.7%3.0%1.3%
30 Day-4.6%-3.1%-0.06%
90 Day1.6%5.8%7.3%
1 Year75.2%72.2%46.2%43.9%31.7%28.5%
3 Year86.2%76.8%39.7%33.2%18.1%9.9%
5 Year101.9%85.8%122.4%104.9%55.7%38.4%

Long-Term 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?

27.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6981 (¥9040) is trading above our estimate of fair value (¥7362.2)

Significantly Below Fair Value: 6981 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6981 is poor value based on its PE Ratio (27.2x) compared to the JP Electronic industry average (16.6x).

PE vs Market: 6981 is poor value based on its PE Ratio (27.2x) compared to the JP market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6981 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 6981 is overvalued based on its PB Ratio (3.2x) compared to the JP Electronic industry average (0.9x).


Next Steps

Future Growth

How is Murata Manufacturing forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6981's forecast earnings growth (15.5% per year) is above the savings rate (0%).

Earnings vs Market: 6981's earnings (15.5% per year) are forecast to grow slower than the JP market (17.4% per year).

High Growth Earnings: 6981's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6981's revenue (6.9% per year) is forecast to grow faster than the JP market (5.7% per year).

High Growth Revenue: 6981's revenue (6.9% 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 (15.9%).


Next Steps

Past Performance

How has Murata Manufacturing performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6981 has high quality earnings.

Growing Profit Margin: 6981's current net profit margins (13.4%) are higher than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: 6981's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: 6981's earnings growth over the past year (14.7%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: 6981 earnings growth over the past year (14.7%) exceeded the Electronic industry -5.3%.


Return on Equity

High ROE: 6981's Return on Equity (11.8%) 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 (¥1,169.3B) exceed its short term liabilities (¥324.2B).

Long Term Liabilities: 6981's short term assets (¥1,169.3B) exceed its long term liabilities (¥269.1B).


Debt to Equity History and Analysis

Debt Level: 6981's debt to equity ratio (13.1%) is considered satisfactory.

Reducing Debt: 6981's debt to equity ratio has increased from 0.8% to 13.1% over the past 5 years.

Debt Coverage: 6981's debt is well covered by operating cash flow (137.6%).

Interest Coverage: 6981 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Murata Manufacturing current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 6981's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the JP market (1.25%).

High Dividend: 6981's dividend (1.22%) is low compared to the top 25% of dividend payers in the JP market (2.88%).


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 (31.6%), 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?

4.7yrs

Average management tenure


CEO

Norio Nakajima (59 yo)

0.75

Tenure

Mr. Norio Nakajima has been President at Murata Manufacturing Co., Ltd. since June 2020. He served as Senior Executive Vice President at Murata Manufacturing Co., Ltd. since June 29, 2017 until June 2020 a...


Leadership Team

NamePositionTenureCompensationOwnership
Norio Nakajima
President & Representative Director0.75yrno data0.0014%
¥ 84.3m
Masanori Minamide
SVP, Director of Accounting1.75yrsno data0.00034%
¥ 20.2m
Toshiyuki Ozawa
General Manager of Corporate Communication Departmentno datano datano data
Satoshi Sonoda
Executive VP5.67yrsno datano data
Yoshito Takemura
Executive VP7.75yrsno data0.00091%
¥ 54.0m
Hiroshi Iwatsubo
Executive VP5.75yrsno data0.0017%
¥ 98.5m
Ryuji Miyamoto
Senior Vice President2.17yrsno data0.00069%
¥ 41.0m
Hideki Maruyama
Senior Vice President of Sales & Marketing Unitno datano datano data
Masahiro Ishitani
Executive VP0.75yrno data0.0011%
¥ 64.1m
Kenichi Mizuno
Senior Vice President of EMI Filter Division - Components Business Unitno datano datano data
Norio Sakai
Executive Vice President of Production Engineering Unitno datano datano data
Nagato Omori
Senior Vice President of Capacitor Division - Components Business Unit2.17yrsno datano data

4.7yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 6981's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norio Nakajima
President & Representative Director0.75yrno data0.0014%
¥ 84.3m
Masanori Minamide
SVP, Director of Accounting1.75yrsno data0.00034%
¥ 20.2m
Yoshito Takemura
Executive VP7.75yrsno data0.00091%
¥ 54.0m
Hiroshi Iwatsubo
Executive VP5.75yrsno data0.0017%
¥ 98.5m
Ryuji Miyamoto
Senior Vice President2.17yrsno data0.00069%
¥ 41.0m
Masahiro Ishitani
Executive VP0.75yrno data0.0011%
¥ 64.1m
Yuko Yasuda
Independent Outside Director2.75yrsno datano data
Takatoshi Shinji Yamamoto
Independent Outside Director2.17yrsno data0.00047%
¥ 27.9m
Tsuneo Murata
Chairman3.75yrsJP¥108.00m0.72%
¥ 42.9b
Takashi Shigematsu
Independent Outside Director5.75yrsno datano data
Hyo Kambayashi
Independent Outside Director2.75yrsno datano data
Yoshiro Ozawa
Director2.75yrsno data0.00047%
¥ 27.9m

2.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 6981's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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¥5.936t
  • Shares outstanding: 639.82m
  • Website: https://www.murata.com

Number of Employees


Location

  • Murata Manufacturing Co., Ltd.
  • 10-1, Higashikotari 1-chome
  • Nagaokakyo
  • Kyoto
  • 617-8555
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRAA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6981TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
MUR1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
MRAA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

Biography

Murata Manufacturing Co., Ltd. designs, manufactures, and sells electronic components and related products in Japan and internationally. It operates through Components, Modules, and Others segments. The co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/08 08:08
End of Day Share Price2021/03/08 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.