Strong Balance SheetVery low leverage and a high equity ratio provide durable financial flexibility. With D/E ~0.09 and ROE near 8.2%, the company can fund operations and shareholder returns internally, withstand economic shocks, and pursue selective investments without reliance on external borrowing.

High And Improving MarginsRobust gross and improving net margins reflect durable pricing power and efficient cost control. Consistent operating profitability (EBIT/EBITDA) supports cash generation and provides room to sustain dividends and reinvest in product or service quality, underpinning long-term earnings stability.

Solid Operating Cash ConversionHigh operating cash conversion (OCF to net income ~0.85) indicates earnings largely convert to cash, supporting operations and distributions. Positive free cash flow, even if lower year-over-year, provides a continuing source for reinvestment and conservative capital allocation over the medium term.

Bears Say

Stagnant Revenue GrowthWeak top-line momentum limits the company’s ability to scale operating leverage and drive meaningful earnings expansion. Without new product lines or market expansion, profits will rely on cost efficiencies rather than volume growth, constraining long-term return potential and strategic optionality.

Weak Free Cash Flow TrendDeclining free cash flow and a low FCF-to-net-income ratio reduce capacity to fund capital expenditures, strategic initiatives, or increased shareholder distributions. Persistent FCF weakness would pressure liquidity buffers and limit flexibility for growth investments or unforeseen operational needs.

Limited Scale And Market LiquidityA small workforce and low trading volume imply limited geographic and product scale, which can restrict R&D, marketing reach, and competitive resilience. Low liquidity increases execution risk for large investors and can amplify the impact of strategic missteps on investor access and confidence.

6870 FAQ

What was Fenwal Controls of Japan, Ltd.’s price range in the past 12 months?

Fenwal Controls of Japan, Ltd. lowest stock price was ¥1560.00 and its highest was ¥1948.00 in the past 12 months.

What is Fenwal Controls of Japan, Ltd.’s market cap?

Fenwal Controls of Japan, Ltd.’s market cap is ¥10.88B.

When is Fenwal Controls of Japan, Ltd.’s upcoming earnings report date?

Fenwal Controls of Japan, Ltd.’s upcoming earnings report date is Apr 24, 2026 which is in 66 days.

How were Fenwal Controls of Japan, Ltd.’s earnings last quarter?

Fenwal Controls of Japan, Ltd. released its earnings results on Feb 10, 2026. The company reported ¥41.66 earnings per share for the quarter, beating the consensus estimate of N/A by ¥41.66.

Is Fenwal Controls of Japan, Ltd. overvalued?

According to Wall Street analysts Fenwal Controls of Japan, Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Fenwal Controls of Japan, Ltd. pay dividends?

Fenwal Controls of Japan, Ltd. pays a Semiannually dividend of ¥37 which represents an annual dividend yield of 3.98%. See more information on Fenwal Controls of Japan, Ltd. dividends here

What is Fenwal Controls of Japan, Ltd.’s EPS estimate?

Fenwal Controls of Japan, Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Fenwal Controls of Japan, Ltd. have?

Fenwal Controls of Japan, Ltd. has 5,893,000 shares outstanding.

What happened to Fenwal Controls of Japan, Ltd.’s price movement after its last earnings report?

Fenwal Controls of Japan, Ltd. reported an EPS of ¥41.66 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 4.788%.

Which hedge fund is a major shareholder of Fenwal Controls of Japan, Ltd.?

Currently, no hedge funds are holding shares in JP:6870

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Fenwal Controls of Japan, Ltd.

Fenwal Controls of Japan, Ltd. designs, develops, manufactures, and sells fire prevention, temperature control, and medical equipment in Japan. It offers residential use fire alarm, industrial explosion protection, fire extinguishing, smoke detection, and overheating alarm systems; and dialysis systems and medical equipment, as well as artwork design, anti-noise measures, and printed circuit board assembling services. The company also offers temperature controllers and sensors; and hot plate and apparatus for semiconductor manufacturing equipment. Fenwal Controls of Japan, Ltd. was incorporated in 1961 and is headquartered in Tokyo, Japan.