# Taiyo Yuden (6976.JP)

Canonical: https://gigainvestors.com/s/6976.JP

Analysis as of: 2026-10-15T07:11:10.850Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 9,864.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.54×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.08×

- FY2019: 0.13×

- FY2020: 0.13×

- FY2021: 0.14×

- FY2022: 0.20×

- FY2023: 0.10×

- FY2024: 0.03×

- FY2025: 0.03×

- FY2026: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 8.4%

- ROIC, second-lowest year: 1.7%

- Typical minus recent gross margin: 5.4 pp

- Typical gross margin (annual median): 26.4%

- Recent gross margin (lower of latest and 3-year median): 21.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 15.1%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.4%

- FY2018: 9.6%

- FY2019: 15.1%

- FY2020: 13.6%

- FY2021: 13.5%

- FY2022: 18.4%

- FY2023: 7.3%

- FY2024: 1.6%

- FY2025: 1.7%

- FY2026: 3.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.33×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 34B

- Net income, five-year total: JPY 103B

- Return on incremental invested capital: -1.5%

- Working capital / revenue, annual change: 2.2 pp

- Working capital / revenue, change between three-year averages: 14.9 pp

- Working capital / revenue, final three-year average: 49.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.99×

- FY2023: -0.26×

- FY2024: -3.76×

- FY2025: -1.11×

- FY2026: 1.41×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.6% vs 1.7%

- Per-share earnings: 125.27 to 66.75 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.6%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: JPY 296B

- Cumulative retained earnings: JPY 126B

- Diluted shares, 10-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -7.6%

- Per-share value change: JPY -58.52

- Per-share value, starting three-year median: JPY 125.27

- Per-share value, ending three-year median: JPY 66.75

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 0.6%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 6.8B

- Cumulative net income, 10 years: JPY 195B

- ROIC, first three-year median: 9.6%

- ROIC, last three-year median: 1.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 46.08

- FY2018: JPY 138.80

- FY2019: JPY 189.93

- FY2020: JPY 143.04

- FY2021: JPY 227.99

- FY2022: JPY 433.46

- FY2023: JPY 186.32

- FY2024: JPY 66.75

- FY2025: JPY 18.67

- FY2026: JPY 118.49

### accounting: pass

- Sloan accruals: -7.0%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -8.9%

- FY2018: -6.1%

- FY2019: -5.9%

- FY2020: -10.0%

- FY2021: -6.0%

- FY2022: -2.7%

- FY2023: -3.2%

- FY2024: -7.4%

- FY2025: -5.5%

- FY2026: -7.0%

## Holders

## Price story

Down 51% since Jun 2026 · sales +4.1%

Story as of 2026-10-16T10:00:14.554Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +4.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YHU5.pdf; observed 2026-06-23.

- FY2017: JPY 231B 

- FY2018: JPY 244B 

- FY2019: JPY 274B 

- FY2020: JPY 282B 

- FY2021: JPY 301B 

- FY2022: JPY 350B 

- FY2023: JPY 320B 

- FY2024: JPY 323B 

- FY2025: JPY 341B 

- FY2026: JPY 355B 

### Gross margin · FY2026

gross margin 23.1%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YHU5.pdf; observed 2026-06-23.

- FY2017: 22.3% 

- FY2018: 25.4% 

- FY2019: 30.0% 

- FY2020: 30.2% 

- FY2021: 29.6% 

- FY2022: 35.7% 

- FY2023: 27.4% 

- FY2024: 20.3% 

- FY2025: 21.0% 

- FY2026: 23.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 355.3 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YHU5.pdf (filed 2026-06-23); FY2026: revenue 355341000000; grossProfit 81928000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 20.3% to 23.1% during 2024–26; it earns 8.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2024: grossProfit / revenue = 20.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2025: grossProfit / revenue = 21%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YHU5.pdf (filed 2026-06-23); FY2026: grossProfit / revenue = 23.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); 10-year return on capital observations [[2017,0.05414259028768468],[2018,0.09587012048532143],[2019,0.15051854802495637],[2020,0.1359416693080442],[2021,0.13545733012623004],[2022,0.1843623026956075],[2023,0.07250053337689513],[2024,0.015728628617423333],[2025,0.01679969654361197],[2026,0.0355054227794006]]; median 0.08418532693110828. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2018: growth capex 960000000; upkeep 25589000000; owner earnings 16293000000. Growth capex / owner earnings = 0.05892100902227951.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2019: growth capex 13882390635.424149; upkeep 28679609364.57585; owner earnings 21437390635.42415. Growth capex / owner earnings = 0.6475783770289765.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2020: growth capex 3747792656.27713; upkeep 40319207343.72287; owner earnings 4094792656.27713. Growth capex / owner earnings = 0.915258224499337.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2021: growth capex 9042206628.542343; upkeep 34865793371.45766; owner earnings 22304206628.542343. Growth capex / owner earnings = 0.40540364331861833.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); FY2022: growth capex 20264000000; upkeep 31287000000; owner earnings 53570000000. Growth capex / owner earnings = 0.3782714205712152.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YHU5.pdf (filed 2026-06-23); FY2026: growth capex 0; upkeep 41063000000; owner earnings 20824000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); Dividend observations: [[2017,2351000000],[2018,2352000000],[2019,2449000000],[2020,2776000000],[2021,3760000000],[2022,8146000000],[2023,10573000000],[2024,11198000000],[2025,11203000000],[2026,11224000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 3.5 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-23); Closing price 9864 JPY; reporting-to-trading FX 1; FY2026 annual sales per share 2843.735991489936; price multiple 3.4686764276004025. FY2026 cash earnings/share 166.65107118735645. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 1,245.00 per share

- 2016-12: JPY 1,403.00 per share

- 2017-01: JPY 1,381.00 per share

- 2017-02: JPY 1,498.00 per share

- 2017-03: JPY 1,406.00 per share

- 2017-04: JPY 1,359.00 per share

- 2017-05: JPY 1,573.00 per share

- 2017-06: JPY 1,762.00 per share

- 2017-07: JPY 1,858.00 per share

- 2017-08: JPY 1,663.00 per share

- 2017-09: JPY 1,665.00 per share

- 2017-10: JPY 1,958.00 per share

- 2017-11: JPY 1,876.00 per share

- 2017-12: JPY 1,756.00 per share

- 2018-01: JPY 1,838.00 per share

- 2018-02: JPY 1,893.00 per share

- 2018-03: JPY 1,803.00 per share

- 2018-04: JPY 1,949.00 per share

- 2018-05: JPY 2,452.00 per share

- 2018-06: JPY 3,095.00 per share

- 2018-07: JPY 3,325.00 per share

- 2018-08: JPY 3,275.00 per share

- 2018-09: JPY 2,554.00 per share

- 2018-10: JPY 2,279.00 per share

- 2018-11: JPY 2,153.00 per share

- 2018-12: JPY 1,636.00 per share

- 2019-01: JPY 1,904.00 per share

- 2019-02: JPY 2,192.00 per share

- 2019-03: JPY 2,177.00 per share

- 2019-04: JPY 2,687.00 per share

- 2019-05: JPY 1,996.00 per share

- 2019-06: JPY 2,005.00 per share

- 2019-07: JPY 2,189.00 per share

- 2019-08: JPY 1,999.00 per share

- 2019-09: JPY 2,629.00 per share

- 2019-10: JPY 2,901.00 per share

- 2019-11: JPY 2,866.00 per share

- 2019-12: JPY 3,355.00 per share

- 2020-01: JPY 3,250.00 per share

- 2020-02: JPY 3,020.00 per share

- 2020-03: JPY 2,861.00 per share

- 2020-04: JPY 3,030.00 per share

- 2020-05: JPY 3,000.00 per share

- 2020-06: JPY 3,345.00 per share

- 2020-07: JPY 3,320.00 per share

- 2020-08: JPY 2,856.00 per share

- 2020-09: JPY 3,290.00 per share

- 2020-10: JPY 3,840.00 per share

- 2020-11: JPY 4,735.00 per share

- 2020-12: JPY 4,835.00 per share

- 2021-01: JPY 6,140.00 per share

- 2021-02: JPY 5,260.00 per share

- 2021-03: JPY 5,200.00 per share

- 2021-04: JPY 5,020.00 per share

- 2021-05: JPY 5,270.00 per share

- 2021-06: JPY 5,490.00 per share

- 2021-07: JPY 5,590.00 per share

- 2021-08: JPY 6,240.00 per share

- 2021-09: JPY 6,610.00 per share

- 2021-10: JPY 5,750.00 per share

- 2021-11: JPY 6,260.00 per share

- 2021-12: JPY 6,620.00 per share

- 2022-01: JPY 5,480.00 per share

- 2022-02: JPY 5,100.00 per share

- 2022-03: JPY 5,550.00 per share

- 2022-04: JPY 5,180.00 per share

- 2022-05: JPY 5,310.00 per share

- 2022-06: JPY 4,610.00 per share

- 2022-07: JPY 4,690.00 per share

- 2022-08: JPY 4,350.00 per share

- 2022-09: JPY 3,725.00 per share

- 2022-10: JPY 4,055.00 per share

- 2022-11: JPY 4,365.00 per share

- 2022-12: JPY 3,830.00 per share

- 2023-01: JPY 4,375.00 per share

- 2023-02: JPY 4,125.00 per share

- 2023-03: JPY 4,440.00 per share

- 2023-04: JPY 4,140.00 per share

- 2023-05: JPY 4,345.00 per share

- 2023-06: JPY 4,087.00 per share

- 2023-07: JPY 4,234.00 per share

- 2023-08: JPY 4,057.00 per share

- 2023-09: JPY 4,049.00 per share

- 2023-10: JPY 3,336.00 per share

- 2023-11: JPY 3,834.00 per share

- 2023-12: JPY 3,730.00 per share

- 2024-01: JPY 3,606.00 per share

- 2024-02: JPY 3,270.00 per share

- 2024-03: JPY 3,640.00 per share

- 2024-04: JPY 3,732.00 per share

- 2024-05: JPY 3,307.00 per share

- 2024-06: JPY 4,086.00 per share

- 2024-07: JPY 4,546.00 per share

- 2024-08: JPY 3,596.00 per share

- 2024-09: JPY 2,915.50 per share

- 2024-10: JPY 2,738.50 per share

- 2024-11: JPY 2,130.50 per share

- 2024-12: JPY 2,269.00 per share

- 2025-01: JPY 2,190.00 per share

- 2025-02: JPY 2,475.00 per share

- 2025-03: JPY 2,467.00 per share

- 2025-04: JPY 2,157.00 per share

- 2025-05: JPY 2,428.00 per share

- 2025-06: JPY 2,535.00 per share

- 2025-07: JPY 2,857.00 per share

- 2025-08: JPY 3,036.00 per share

- 2025-09: JPY 3,310.00 per share

- 2025-10: JPY 4,401.00 per share

- 2025-11: JPY 3,259.00 per share

- 2025-12: JPY 3,540.00 per share

- 2026-01: JPY 3,241.00 per share

- 2026-02: JPY 4,796.00 per share

- 2026-03: JPY 3,694.00 per share

- 2026-04: JPY 6,392.00 per share

- 2026-05: JPY 14,815.00 per share

- 2026-06: JPY 20,150.00 per share

- 2026-07: JPY 10,225.00 per share

- 2026-08: JPY 9,184.00 per share

- 2026-09: JPY 9,324.00 per share

- 2026-10: JPY 11,410.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 1,113.74 per share, central JPY 1,208.23 per share, high JPY 1,334.02 per share

- FY2021: low JPY 2,372.75 per share, central JPY 2,613.91 per share, high JPY 2,934.94 per share

- FY2022: low JPY 2,940.99 per share, central JPY 3,252.41 per share, high JPY 3,666.97 per share

- FY2023: low JPY 3,001.73 per share, central JPY 3,700.23 per share, high JPY 4,216.87 per share

- FY2024: low JPY 1,229.56 per share, central JPY 1,353.67 per share, high JPY 1,451.29 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YHU5.pdf); period 2026-03-31, filed 2026-06-23.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations