One-glance verdict
Overvalued
$6.91 our estimate vs market $19.73
185% above our estimate, beyond the bull case
Fundamentals snapshot
Murata Manufacturing Co., Ltd.
MRAAY · PNK · Technology · Electronic Components
Current price
$19.73
52-week range
$9.33 - $38.72
Market cap
$71.42B
Balance sheet
Healthy
88.38x Strong cushion
Net cash $3.46B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.0% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 28834.1% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
Murata Manufacturing Co., Ltd.
Murata Manufacturing makes tiny electronic parts like capacitors and sensors, which are essential for everything from smartphones to cars. Most of their money comes from selling these components for communication devices, and it matters because these small parts are the building blocks of the technology we use every day.
How the company got here
Murata Manufacturing Co., Ltd. started in 1944 in Japan, initially focusing on creating innovative ceramic materials. A key turning point was its early development and mass production of ceramic capacitors, which are essential tiny components in almost all electronic devices. Over decades, the company expanded its expertise in ceramic technology to create a wide range of electronic components, becoming a critical, though often unseen, supplier to the global electronics industry. This focus on specialized materials and miniaturization has been the bedrock of its long-term success.
What it actually does
Murata Manufacturing makes the small, but vital, electronic parts that go inside almost every electronic gadget you can think of, from smartphones and laptops to cars and home appliances. Think of them as the tiny building blocks that allow electronics to function, like capacitors that store electrical energy or filters that manage radio signals. While you won't see Murata's name on the final product, their components are crucial for the performance and reliability of countless everyday devices.
Components
This is Murata's largest business, focusing on ceramic-based passive electronic components. These include capacitors, which act like tiny batteries to store electrical charge, and inductors, which manage electrical current. These components are fundamental to controlling and processing electrical signals in nearly all electronic devices, making this segment the core of Murata's revenue. They are essential for everything from smartphones to complex industrial machinery.
Devices & Modules
This segment produces more complex electronic parts and integrated units, such as high-frequency devices and communication modules. These are critical for wireless communication, enabling devices to connect to Wi-Fi, Bluetooth, and cellular networks. This part of the business also includes sensors that detect various environmental conditions and connectivity modules that allow devices to communicate with each other. It represents a significant portion of Murata's business, especially as wireless technology becomes more prevalent.
Other
The 'Other' segment encompasses a variety of specialized products and solutions that don't fit neatly into the main categories. This can include items like lithium-ion secondary batteries, which power many portable electronics, and advanced materials or software used in specific industrial applications. While smaller than the other segments, this area allows Murata to leverage its core technologies in niche markets and explore new areas of innovation.
What management is betting on now
Murata's management is focused on capitalizing on the growing demand for advanced electronic components driven by trends like 5G technology, the Internet of Things (IoT), and electric vehicles. They are investing in research and development to create smaller, more efficient, and higher-performance components. A key priority is expanding their production capacity to meet this increasing global demand, ensuring they remain a leading supplier in these rapidly evolving markets.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $6.91 vs current price $19.73
Our most-likely fair value is $6.91 a share — about 65.0% below today's price of $19.73, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $3.5B - more cash than debt. Interest coverage 88.4x.
Net debt
$-3.46B
Interest coverage
88.38x
Murata Manufacturing Co., Ltd.'s profit covers its interest bill about 88.4 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
MRAAY
BASELINE
Murata Manufacturing Co., Ltd.
Total debt $347.91M Interest coverage 88.38x This is the baseline the peer rows are being compared against.
Total debt $9.17B Interest coverage 6.78x -92% vs MRAAY Carries about 13.0x less debt cushion than MRAAY.
Total debt $4.54B Interest coverage 8.33x -91% vs MRAAY Carries about 10.6x less debt cushion than MRAAY.
Total debt $17.87B Interest coverage 16.24x -82% vs MRAAY Carries about 5.4x less debt cushion than MRAAY.
Total debt $5.64B Interest coverage 43.95x -50% vs MRAAY Carries about 2.0x less debt cushion than MRAAY.
What you should know
The case for and against MRAAY
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.0% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 1.0% with 2-year payout history.
Risks
-
Stock trades 28834.1% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
46.98x
Forward P/E
—
P/B
4.09x
P/S
0.04x
EV/EBITDA
-0.80x
PEG ratio
1.14x
Profitability
How much profit each dollar creates
Gross margin
44.2%
Operating margin
25.1%
Net margin
14.2%
ROE
10.7%
ROA
8.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
4.96x
Quick ratio
3.03x
Total debt
$347.91M
Total cash
$3.81B
Growth
How the business has been compounding
Revenue TTM
$12.79B
Revenue 5Y CAGR
2.8%
EPS TTM
0.42
EPS 5Y CAGR
-0.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.69B
Free CF TTM
$1.10B
FCF margin
8.6%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
49.1%
Last ex-div date
2026-03-31