Fudo Tetra Corporation (1813) AI Stock Analysis

• Market Cap: ¥49.53B
• Dividend Yield: 2.26%
• Average Volume (3M): 47.17K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.71
• Revenue Growth: 12.93%
• EPS Growth: 98.16%
• Country: JP
• Employees: 986
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 35.53
• Shares Outstanding: 16,489,523
• 10 Day Avg. Volume: 52,230
• 30 Day Avg. Volume: 47,166
• PEG Ratio: 1.52
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -5.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥3,431.00 ▲(29.33% Upside)

The overall stock score is driven by stable financial performance and reasonable valuation. However, technical indicators suggest potential bearish momentum, and cash flow volatility remains a concern.

Positive Factors

Balance Sheet Strength

A 53.34% equity ratio indicates durable balance-sheet resilience and financial flexibility. This reduces refinancing risk, supports bidding on large public infrastructure contracts, and helps absorb project timing gaps, enabling steady operations through multi-month construction cycles.

Stable Operating Margins

Consistent gross and operating margins reflect sustainable project execution and cost control in a project-based business. These margins support predictable profitability across contract cycles and provide a base for reinvestment and competitive bidding over the medium term.

Specialized Market Niche

A clear focus on marine/coastal infrastructure gives the company technical specialization and client relationships that are hard to replicate. This niche benefits from steady public investment in ports and coastal defense, supporting durable demand and backlog visibility over several months.

Negative Factors

Cash Flow Volatility

Weak operating cash conversion (0.28) and a drop in free cash flow signal structural cash-generation risk in a project-driven model. Poor timing of billings or retainage can strain working capital, forcing external financing or slower project pacing over the medium term.

Rising Leverage

An increasing debt-to-equity ratio to 0.35 reduces financial headroom and raises interest and covenant exposure. Coupled with variable cash flows, this moderate leverage can constrain bidding capacity and elevate refinancing risks during prolonged project payment cycles.

Modest Revenue Growth

Low single-digit revenue growth suggests limited top-line momentum in core markets. For a contractor, subdued growth restricts economies of scale, reduces scope for margin expansion, and increases dependence on stable public works rather than faster private-sector demand.

Fudo Tetra Corporation Business Overview & Revenue Model

Company Description

Fudo Tetra Corporation engages in the civil engineering, ground improvement, and block environment businesses. The company constructs energy facilities, coastline, rivers and erosion control, water supply and drainage, railways, airports, highways, harbors and fishing ports, and structural foundations. Fudo Tetra Corporation was founded in 1947 and is based in Tokyo, Japan.

How the Company Makes Money

Fudo Tetra Corporation generates revenue primarily through the sale of construction materials and services related to infrastructure projects. The company has several key revenue streams, including direct sales of its proprietary construction products, revenue from large-scale construction contracts, and consultancy services in engineering and design. Additionally, Fudo Tetra engages in partnerships with government agencies and private developers, allowing it to secure long-term contracts and projects that contribute significantly to its earnings. The emphasis on innovation and sustainability also positions the company favorably in the market, attracting clients looking for modern and environmentally friendly construction solutions.

Fudo Tetra Corporation Financial Statement Overview

Summary

Fudo Tetra Corporation shows stable revenue and profit margins with a strong balance sheet. However, cash flow management is a concern due to volatility and a significant decline in free cash flow.

Income Statement

Fudo Tetra Corporation demonstrates a stable financial performance with a gross profit margin of 17.27% and a net profit margin of 3.17% for 2025. The revenue growth rate is 2.37% from 2024 to 2025, indicating moderate growth. The EBIT and EBITDA margins are 4.52% and 8.20%, respectively, showing consistent operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 53.34%. The debt-to-equity ratio has increased to 0.35, reflecting a moderate leverage level. Return on equity stands at 6.44%, indicating satisfactory profitability from shareholders' equity.

Cash Flow

Fudo Tetra's cash flow position shows volatility, with a significant decline in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is 0.28, suggesting that operating cash generation is below expectations. The negative free cash flow to net income ratio highlights potential cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.37B	69.56B	67.95B	70.47B	66.78B	72.31B
Gross Profit	13.63B	12.01B	10.81B	11.62B	10.96B	12.51B
EBITDA	7.47B	5.70B	4.81B	5.17B	4.71B	6.04B
Net Income	3.18B	2.20B	2.01B	2.17B	2.06B	2.99B
Balance Sheet
Total Assets	55.99B	64.15B	55.25B	56.13B	51.90B	54.08B
Cash, Cash Equivalents and Short-Term Investments	7.84B	10.39B	10.99B	9.80B	9.29B	12.41B
Total Debt	4.14B	11.98B	5.39B	6.38B	3.95B	1.58B
Total Liabilities	21.49B	29.47B	21.98B	24.28B	21.55B	24.39B
Stockholders Equity	34.05B	34.22B	32.82B	31.42B	29.95B	29.31B
Cash Flow
Free Cash Flow	0.00	-6.44B	3.72B	-1.02B	-2.85B	7.99B
Operating Cash Flow	0.00	621.00M	7.07B	560.00M	-1.03B	10.45B
Investing Cash Flow	0.00	-6.50B	-3.63B	-1.29B	-2.09B	-2.66B
Financing Cash Flow	0.00	5.33B	-2.26B	1.20B	502.00M	-4.75B

Fudo Tetra Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2653.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1813, the sentiment is Positive. The current price of 2653 is below the 20-day moving average (MA) of 3031.95, below the 50-day MA of 2797.38, and above the 200-day MA of 2523.57, indicating a bullish trend. The MACD of 102.71 indicates Negative momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 74.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1813.

Fudo Tetra Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	79 Outperform	¥47.49B	10.60	―	3.97%	2.85%	317.62%
1899	79 Outperform	¥69.63B	11.48	―	2.56%	1.71%	14.20%
1929	75 Outperform	¥55.64B	16.65	―	3.78%	11.81%	52.35%
1811	69 Neutral	¥59.45B	14.58	―	1.57%	11.01%	231.83%
1813	65 Neutral	¥49.53B	16.00	―	2.26%	12.93%	98.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	59 Neutral	¥60.57B	13.56	―	2.84%	15.45%	43.95%

Fudo Tetra Corporation Corporate Events

Fudo Tetra Slashes Executive Pay Over Fictitious Order Scandal

Fudo Tetra Corporation has announced disciplinary measures against its top management following an incident involving fictitious orders placed by employees, which had previously prompted a special committee investigation and the formulation of additional recurrence prevention measures. The board resolved to cut the monthly remuneration of President Shinya Okuda by 20% for three months, Executive Vice President Jun Ohbayashi by 15% for three months, and Director and Managing Executive Officer Yoji Kawachi by 10% for three months, with further temporary pay reductions imposed on several executive officers responsible for the soil improvement business and a regional branch; the company reiterated its apology to shareholders, business partners and other stakeholders, signaling an effort to assume management responsibility, strengthen internal controls and restore trust.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen3286.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Posts Sharp Profit Surge and Plans Higher Dividend for FY2025

Fudo Tetra Corporation reported strong consolidated results for the six months ended September 30, 2025, with net sales rising 25.1% year on year to ¥37.3 billion and operating profit surging more than fourfold to ¥2.1 billion. Ordinary profit climbed 267.0% to ¥2.2 billion, while profit attributable to owners of parent jumped 181.1% to ¥1.3 billion, lifting basic earnings per share to ¥83.95 and improving the equity-to-asset ratio to 58.6%. For the full fiscal year ending March 31, 2026, the company is forecasting net sales of ¥78.0 billion, operating and ordinary profit of ¥4.0 billion each, and profit attributable to owners of parent of ¥2.65 billion, implying double-digit growth in earnings per share to ¥175.09 and supporting a planned increase in the annual dividend from ¥60 to ¥70 per share, underscoring management’s confidence in earnings momentum and commitment to shareholder returns.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Unveils Expanded Plan to Prevent Recurrence of Fictitious Orders Scandal

Fudo Tetra Corporation has drawn up a new detailed execution plan for additional measures to prevent a recurrence of fictitious orders and related improper practices uncovered in an earlier internal investigation, following further recommendations from a Special Committee established in August 2025. The group will pursue broad reforms spanning corporate culture, internal controls in accounting and procurement, governance structures, and compliance training, while also improving employee treatment and workplace conditions and reinforcing fair dealings and whistleblowing channels for business partners, as it seeks to restore public trust, clarify management accountability through potential disciplinary actions, and strengthen its overall governance framework.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Corporation Releases Investigation Report and Plans for Future Compliance

Fudo Tetra Corporation has disclosed the public version of an investigation report by a Special Committee, following privacy and confidentiality considerations. The report addresses issues related to fictitious orders and outlines the company’s commitment to implementing recurrence prevention measures based on the committee’s recommendations. The company plans to submit its Semi-Annual Report for the fiscal year ending March 2026 by the extended deadline, ensuring transparency and accountability to its stakeholders.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Releases Public Version of Investigation Report

Fudo Tetra Corporation has disclosed the public version of the Special Committee’s Investigation Report, following the completion of non-disclosure measures to protect privacy and confidential information. This release marks a significant step in transparency for the company, potentially impacting its reputation and stakeholder trust.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Granted Extension for Semi-Annual Report Filing

Fudo Tetra Corporation has received approval from the Kanto Local Finance Bureau to extend the filing deadline for its Semi-Annual Report for the fiscal year ending March 2026. The new deadline is set for January 13, 2026, allowing the company time to complete necessary review and audit procedures. This extension aims to ensure thorough financial reporting and maintain transparency with stakeholders, despite the delay causing some concern among shareholders and business partners.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.

Fudo Tetra Delays Q2 Financial Results Amid Ongoing Investigation

Fudo Tetra Corporation has announced a delay in the release of its Q2 financial results for the fiscal year ending March 2026 due to ongoing investigations by a Special Committee into fictitious orders placed by its employees. The company has applied for an extension to submit its Semi-Annual Report, originally due on November 14, 2025, now expected by January 13, 2026. This decision underscores the company’s dedication to transparency and accountability, as it seeks to address shareholder concerns and ensure accurate financial reporting.

The most recent analyst rating on (JP:1813) stock is a Hold with a Yen2708.00 price target. To see the full list of analyst forecasts on Fudo Tetra Corporation stock, see the JP:1813 Stock Forecast page.