ticker: 4062.T layer: L8-Substrate verdict: red verify_date: 2026-05-28

Ibiden Co., Ltd. (4062.T) — Graham Screen

Verify date: 2026-05-28 | Data sources: yfinance, web search


1. Price & Returns

Metric Value
Price (2026-05-28) JPY 19,740 (~EUR 106.4 at 0.00539 EUR/JPY)
52w range JPY 2,853 – JPY 22,330
YTD return +176% (JPY 7,145 → 19,740)
5Y return +731% (JPY 2,458 May-2021 → 20,425 May-2026)
Market cap JPY 5.51T = EUR 29.7B = ~USD 32.3B

The 52w low of JPY 2,853 (Jun-2025) to 19,740 today is a 592% move in under 12 months. This is not a trough-to-inflection setup — this is post-inflection, post-re-rating momentum. The stock was JPY 7,145 in Jan-2026 and JPY 13,480 in Apr-2026. Monthly close sequence: Jun-25: 3,157 → Sep-25: 4,469 → Oct-25: 7,294 → Jan-26: 8,214 → Apr-26: 13,480 → May-26: 19,740. A 592% rally in 12 months with current price at 88% of 52w high.


2. Valuation Multiples

Metric Value Comment
Trailing P/E 91.9x FY2026 EPS JPY 214.9
Forward P/E 63.9x FY2027 cons EPS JPY 308.96
P/B 10.0x BV JPY 1,969/sh
P/S (trailing ~416B) 13.1x
P/S (fwd 500B guide) 11.0x
EV/EBITDA 45x
EV/Sales 13.5x
Dividend yield 0.20% JPY 40/sh annual
Payout ratio 11.6%

Note: yfinance analyst mean price target = JPY 11,553, median = JPY 9,600, high = JPY 21,000. Current price of JPY 19,740 is 71% above the mean analyst target. This is not a consensus-supported level.


3. Balance Sheet (FY2025 Mar-31 / latest available)

Item JPY B
Cash & equivalents 390.7B
Total debt 343.1B
Net cash +47.6B
LT debt 253.0B
Working capital 221.9B
Current ratio 2.10 (yfinance info) / 1.68 (computed FY2025 BS)
Equity 490.5B
D/E 34.5%
Interest coverage ~45x (EBIT 52.6B / interest 1.16B)

Net cash position is positive. Balance sheet is solid despite the capex surge. Current ratio close to 2.0 borderline.


4. 5Y Income & FCF (JPY B)

FY Revenue EBITDA EBIT Net Inc EPS OCF Capex FCF
FY2022 (Mar-22) 401.1 112.2 59.5 41.2 186.9 108.4 -67.2 +41.2
FY2023 (Mar-23) 417.5 127.0 72.1 52.2 186.9 125.7 -104.0 +21.7
FY2024 (Mar-24) 370.5 94.2 48.1 31.5 112.4 145.2 -86.4 +58.8
FY2025 (Mar-25) 369.4 106.8 52.6 33.7 120.7 118.9 -198.5 -79.6
FY2026 (Mar-26) ~416* ~124* ~63* ~63.7* 214.9 -47.5**

*FY2026 partial from yfinance info (ebitda 124.4B); net profit 63.7B per earnings report. **yfinance freeCashflow -47.5B (TTM).

Key observation: Capex went from JPY 67B (FY2022) → 104B (FY2023) → 86B (FY2024) → 199B (FY2025). This is the ABF capacity build-out. FCF went deeply negative in FY2025 — FCF destruction is at its peak. The planned JPY 500B capex program over FY2026–FY2028 (first phase JPY 220B) means FCF will remain negative for 2–3 more years. This is cash-consuming growth, not Graham-style capital-light value.

FY2027 guidance: Revenue JPY 500B, operating profit JPY 90B. Electronics segment guide: JPY 330B revenue, JPY 75B operating profit (+70% YoY op profit).


5. Dividend History (5Y)

FY Per-share JPY Notes
FY2021 17.5 (10+7.5)
FY2022 25.0 (10+15) — peak cycle
FY2023 20.0 (10+10) — no cut despite trough
FY2024 20.0 (10+10)
FY2025 20.0 (10+10)
FY2026 25.0 (10+15) — recovery

Dividend maintained through the 2022–2025 trough without cuts. F4 passes. Note: at JPY 40/sh annual vs price JPY 19,740, yield is 0.20% — effectively zero yield, offering no income floor.


6. Insider Transactions (12mo)

yfinance returns empty insider transaction data for 4062.T — consistent with Japanese disclosure norms (Form 4 equivalent filings not systematically available via US data providers). Ibiden insider ownership ~10.6% per yfinance, institutional ownership 70.6%. No insider data available to assess directional signal.


7. Analyst Coverage


8. Last 2 Earnings (Quarterly)

Quarter EPS Actual EPS Cons Surprise
Q3 FY2026 (Dec-25) 31.99 36.98 -13.5% MISS
Q4 FY2026 (Mar-26) 117.14 46.40 +152.5% BEAT

Q4 FY2026 blowout: EPS of JPY 117 vs JPY 46 consensus driven by electronics segment surge (+70% op profit). Revenue missed (117.6B vs 121.1B estimate) — top line came in light, but margins expanded dramatically. FY2027 guidance: Revenue JPY 500B (+20%), operating profit JPY 90B (consensus FY operating income target +90% guide vs maintained estimates). Electronics segment FY2027 guide raised to JPY 330B / JPY 75B op profit.


9. News Last 90 Days


10. Cycle Context: ABF Substrate Utilization

Ibiden is the dominant ABF substrate maker in a triopoly (Ibiden + Shinko Circuit + Unimicron). The 2022–2025 cycle: PC/server inventory correction crushed substrate demand; Ibiden revenue fell from JPY 417B peak (FY2023) to JPY 369B trough (FY2024–FY2025). EPS halved from JPY 186 to JPY 112.

Recovery trajectory: FY2026 Q4 EPS of 117 in a single quarter vs prior 4-quarter run rate of ~33/qtr indicates the utilization inflection has already happened — violently. Substrate utilization for AI/HPC packages is recovering driven by NVDA Blackwell, AMD MI300+ orders, and Intel Ponte Vecchio/EMIB ramps. The recovery is no longer anticipated — it's printing.

FY2027: JPY 500B revenue guide is a +35% lift from FY2025 trough. The inflection has been priced in and then some. Analysts remain behind the curve (consensus was JPY 46 for a quarter that printed JPY 117).


Graham's 7 Defensive Filters

Filter Test Result Type
F1 Market cap >USD 2B USD 32.3B PASS
F2 Current ratio ≥2.0 2.10 (info) / 1.68 (computed) MARGINAL Borderline
F2b LT debt < Working capital LT debt 253B > WC 222B FAIL Cyclicality — capex-driven borrowing
F3 Positive EPS 10y All positive FY2022–FY2026 PASS
F4 Dividends uninterrupted No cuts since 2020+ PASS
F5 EPS growth ≥33% (5y) +15% trailing; +65% to FY2027E BORDERLINE Forward passes; trailing fails
F6 P/E ≤15 (≤20 quality) Trailing 91.9x, Forward 63.9x FAIL Not cyclicality — pure momentum premium
F7 P/E × P/B ≤22.5 91.9 × 10.0 = 920 FAIL Not cyclicality — pure growth pricing

F2b, F6, F7 failures: Classification:


Graham IV: V = EPS × (8.5 + 2g)

g V (trailing 214.9) V (forward 309.0) MoS trailing MoS forward
0% 1,827 2,626 -90.7% -86.7%
3% 3,116 4,480 -84.2% -77.3%
5% 3,976 5,716 -79.9% -71.0%
7.5% 5,050 7,261 -74.4% -63.2%
10% 6,125 8,805 -69.0% -55.4%

Break-even growth rate: 41.7% (trailing) / 27.7% (forward EPS)

At forward EPS, you need to believe Ibiden can compound EPS at 28% per year indefinitely to justify today's price by Graham's formula. Given that FY2027 guide implies ~44% EPS growth (309 vs 215), the single-year forward growth is very high — but Graham's formula requires sustained long-run growth, and substrate demand is cyclical. The AI capex cycle will normalize. shr-003 applies: the gap between trailing g=41.7% and forward g=27.7% shows the market is pricing a multi-year high-growth regime, not just one good quarter.


shr-020 Red Flag Check

Category Signal Color
Recent price action +592% in 12mo, +176% YTD, near 52w high RED
Valuation vs IV Price 3-5x above IV at any reasonable growth rate RED
Analyst consensus vs price Price 71% above mean PT, 106% above median PT RED
FCF Deeply negative (-79.6B FY2025, -47.5B TTM); JPY 500B capex plan ahead RED
Balance sheet Net cash positive, interest coverage 45x GREEN
Earnings quality Q4 FY2026 152% beat — legitimate, not one-time (margin expansion) GREEN
Dividend Maintained through trough, payout ratio 11.6% GREEN
Thesis integrity Inflection is real — but already fully priced + premium RED
Insider signal No data available AMBER
Short interest Not flagged; institutional ownership 70.6% AMBER

4 RED, 3 GREEN, 2 AMBER. All reds are valuation/momentum, not fundamental.


Verdict

VERDICT LINE: RED — Ibiden is the right company at the wrong price.

The thesis hook is correct: Ibiden is the dominant ABF substrate maker, the trough was real (EPS halved FY2022→FY2024), and the recovery has arrived (Q4 FY2026 +152% EPS surprise, FY2027 guide +20% revenue). But the screen was best run in Jun–Sep 2025, when the stock was JPY 3,000–4,500 and the recovery was anticipated, not printed.

Today at JPY 19,740:

This is a momentum trade, not a Graham value position. The shr-017 warning applies in reverse: trailing prints look great now, but the market has already priced in the forward inflection and added a speculative tech-cycle premium on top. Entry now would require thesis continuity (AI capex cycle stays elevated through FY2028+) and confidence that the stock can grow into a 64x forward P/E — both are outside the Graham framework.

Watchlist at: JPY 5,000–7,000 (forward P/E ~16–23x on FY2027 EPS, Graham F6/F7 borderline territory). That level would require a 65–75% drawdown from current price, which would only occur on AI capex cycle disappointment — precisely the scenario that invalidates the thesis. This is a structural non-overlap with the Graham satellite strategy.