Fukuda Corporation (1899) AI Stock Analysis

• Market Cap: ¥66.90B
• Dividend Yield: 2.56%
• Average Volume (3M): 28.88K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.93
• Revenue Growth: 1.71%
• EPS Growth: 14.20%
• Country: JP
• Employees: 2,215
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 132.32
• Shares Outstanding: 8,988,111
• 10 Day Avg. Volume: 17,330
• 30 Day Avg. Volume: 28,880
• PEG Ratio: 2.52
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 80.24
• 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: 67 Neutral
• Price Target: ¥7,790.00 ▲(3.59% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by strong balance-sheet quality offset by weak and volatile cash flow and a sharp 2025 revenue decline. Valuation is attractive (low P/E and solid yield), but technicals are currently weak with the stock trading below key short- and mid-term averages.

Positive Factors

Strong balance sheet

Extremely low leverage and a large equity base provide durable financial resilience. This structural strength increases flexibility to fund projects, absorb timing mismatches in construction cash flows, pursue selective M&A or capex, and reduces default risk over the next several quarters.

Stable industry-level margins

Consistent gross and net margins across the cycle indicate durable operational competitiveness and pricing discipline. Even with top-line swings, steady margins support baseline earnings power, helping sustain operating profitability and contract competitiveness over 2–6 months.

Historical free cash flow track record

A multi-year history of free cash flow conversion shows the company can convert earnings into cash under normal conditions. That structural ability supports shareholder returns, maintenance capex and working-capital needs once project timing normalizes, aiding medium-term stability.

Negative Factors

Sharp 2025 revenue decline

A 24.6% revenue drop materially reduces scale economies and can erode backlog visibility. If revenue weakness reflects lost contracts or structural demand shifts, recovery may be slow, pressuring margins, utilization and the company’s ability to restore prior earnings levels over the medium term.

Weak and volatile cash generation

A sudden collapse in cash conversion highlights working-capital or project-timing risks that impair liquidity and predictability. Persistent FCF volatility can limit reinvestment, dividend coverage and debt flexibility, making capital planning and project execution riskier across quarters.

Low returns on equity

Mid-single-digit ROE reflects a capital-intensive model and large equity base, which limits the company’s ability to compound shareholder returns. Unless growth or margin expansion improves, low ROE constrains long-term shareholder value creation and strategic reinvestment efficiency.

Fukuda Corporation Business Overview & Revenue Model

Company Description

Fukuda Corporation operates in the construction business in Japan. It engages in the contracting, planning, design, supervision, and consulting of construction works; buying and selling, exchanging, renting, brokering, and managing real estate properties; the construction and sale of houses; and the creation and sale of land. The company also offers regional development, urban development, and environmental improvement, as well as related contracting, planning, designing, supervising, and consulting services. In addition, it is involved in the ownership, rental, and management of accommodation, sports, recreation, and health and medical facilities. Further, the company processes, sells, and rents construction materials, and equipment and machinery. Its projects include construction, roads, railways, ports, and energy related facilities. The company was founded in 1902 and is headquartered in Niigata, Japan.

How the Company Makes Money

Fukuda Corporation generates revenue through multiple streams, including the sale of its core products like electrical components and machinery. The company has established long-term contracts with various industries, ensuring a steady revenue flow from repeat customers. Additionally, Fukuda benefits from partnerships with major corporations in the automotive and electronics sectors, which often involve collaborative projects and technology sharing. The company also invests in research and development to create new products, which can lead to additional revenue from emerging markets. Their focus on high-quality manufacturing and customer service further enhances customer loyalty and repeat business, contributing significantly to their earnings.

Fukuda Corporation Financial Statement Overview

Summary

Strong balance-sheet safety (very low leverage; Balance Sheet Score 90) supports resilience, but operating performance is mixed: revenue fell sharply in 2025 (-24.6% YoY) despite steady margins (Income Statement Score 62). Cash generation is a key drag, with weak 2025 cash conversion and higher volatility (Cash Flow Score 48).

Income Statement

Profitability is steady for the industry, with gross margin around 9–11% and net margin ~2–3% across the period, and a clear rebound in 2024–2025 versus 2022–2023. However, growth is inconsistent: after modest growth in 2023–2024, revenue fell sharply in 2025 (-24.6% YoY), which is a key overhang despite margins holding up reasonably well.

Balance Sheet

The balance sheet is very conservatively positioned, with extremely low leverage (debt-to-equity roughly ~0.01–0.04 and improving to ~0.01 most recently) and a large equity base relative to assets. Returns on equity have been moderate (roughly mid-single-digit in recent years), which is the main trade-off for the high balance-sheet safety.

Cash Flow

Cash generation is the weak spot. While free cash flow was strong in 2021–2024 and generally tracked earnings well, 2025 saw a sharp drop in operating cash flow and free cash flow (free cash flow fell to ~0.8B versus net income ~5.5B), implying weaker cash conversion and likely working-capital or project-timing pressure. Volatility in free cash flow growth also raises predictability risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	168.37B	167.96B	166.59B	162.24B	154.36B	179.84B
Gross Profit	17.98B	18.53B	17.82B	14.96B	15.17B	18.75B
EBITDA	9.36B	9.13B	9.26B	6.65B	7.05B	10.35B
Net Income	5.40B	5.55B	5.31B	3.39B	3.65B	5.86B
Balance Sheet
Total Assets	142.38B	147.48B	142.81B	136.73B	134.35B	130.75B
Cash, Cash Equivalents and Short-Term Investments	36.45B	30.82B	32.85B	29.47B	28.51B	23.29B
Total Debt	662.00M	1.01B	1.20B	1.50B	3.35B	1.09B
Total Liabilities	56.50B	57.31B	57.41B	56.40B	55.85B	54.34B
Stockholders Equity	85.53B	89.81B	84.66B	79.62B	77.83B	75.77B
Cash Flow
Free Cash Flow	0.00	776.00M	4.52B	5.24B	3.68B	6.68B
Operating Cash Flow	0.00	2.57B	5.88B	7.49B	5.02B	7.80B
Investing Cash Flow	0.00	-1.13B	-1.98B	-1.88B	-1.13B	-1.50B
Financing Cash Flow	0.00	-2.57B	-1.37B	-4.35B	970.00M	-6.13B

Fukuda Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7520.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1899, the sentiment is Positive. The current price of 7520 is below the 20-day moving average (MA) of 7831.00, below the 50-day MA of 7842.33, and above the 200-day MA of 6418.80, indicating a bullish trend. The MACD of -97.24 indicates Positive momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1899.

Fukuda Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1921	80 Outperform	¥82.01B	37.08	―	0.79%	-8.53%	-83.61%
1899	67 Neutral	¥66.90B	11.72	―	2.56%	1.71%	14.20%
1888	65 Neutral	¥63.50B	15.24	―	2.84%	15.45%	43.95%
1815	64 Neutral	¥75.89B	24.18	―	2.73%	-3.59%	49.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥79.65B	19.06	―	3.84%	-8.79%	―
1811	60 Neutral	¥69.90B	16.41	―	1.57%	11.01%	231.83%

Fukuda Corporation Corporate Events

Fukuda Sets 2030 Management Targets Under New 10-Year Vision

Fukuda Corporation has outlined the framework of its new 10-year vision, “FUKUDA VISION 2035,” and the first five-year Medium-Term Management Plan 2030, dubbed the “Strengthening Phase,” covering the fiscal years from 2026 to 2030. The initiative follows the completion of its previous Long-Term Vision 2025 and Medium-Term Management Plan 2025, and is intended to steadily raise corporate value in stages by bolstering management resilience and core business strength.

Under the new plan, the company is targeting consolidated net sales of ¥190 billion and an operating profit margin of 5.0%, alongside a basic dividend of ¥260 per share and a dividend payout ratio of 50%. Fukuda also emphasizes active investment in human capital, the establishment of a stable medium- to long-term business base, and a stronger role in addressing social and regional issues, signaling a strategic focus on both financial performance and broader stakeholder value.

The most recent analyst rating on (JP:1899) stock is a Buy with a Yen9091.00 price target. To see the full list of analyst forecasts on Fukuda Corporation stock, see the JP:1899 Stock Forecast page.

Fukuda Corporation Lifts Year-End Dividend Forecast on Stronger Earnings

Fukuda Corporation has revised its year-end dividend forecast for the fiscal year ending December 31, 2025, lifting the planned payout from ¥250 to ¥260 per share. The revision means the total annual dividend for 2025 is now expected to be ¥260 per share, up from ¥200 in the previous fiscal year, reflecting stronger earnings than initially projected.

Management said the higher dividend aligns with its basic policy of enhancing shareholder returns while preserving financial soundness and reinforcing internal reserves. The increase follows profit attributable to owners of parent outperforming the company’s earlier forecast, signaling robust performance and a more generous cash return for shareholders, subject to formal approval by the board later this month.

The most recent analyst rating on (JP:1899) stock is a Buy with a Yen9091.00 price target. To see the full list of analyst forecasts on Fukuda Corporation stock, see the JP:1899 Stock Forecast page.

Fukuda Corporation Posts Higher FY2025 Earnings and Ups Dividend Amid Stronger Balance Sheet

Fukuda Corporation reported consolidated net sales of ¥167.96 billion for the fiscal year ended December 31, 2025, up 0.8% year on year, with operating profit rising 1.4% to ¥7.77 billion and profit attributable to owners of parent increasing 4.5% to ¥5.55 billion. Profitability ratios remained steady, return on equity was 6.4%, and the equity ratio improved to 60.9% as total assets climbed to ¥147.48 billion, underscoring a strengthening balance sheet.

Operating cash flow declined to ¥2.57 billion from ¥5.88 billion, while cash and cash equivalents at period-end slipped slightly to ¥30.82 billion, reflecting higher financing outflows. The company raised its annual dividend to ¥260 per share for 2025, up from ¥200, implying a higher consolidated payout ratio and signaling an ongoing emphasis on shareholder returns despite forecasting modest declines in profit for the 2026 fiscal year on slightly higher sales.

The most recent analyst rating on (JP:1899) stock is a Buy with a Yen9091.00 price target. To see the full list of analyst forecasts on Fukuda Corporation stock, see the JP:1899 Stock Forecast page.

Fukuda Corporation to Dispose Treasury Shares for Employee Benefit Plans

Fukuda Corporation announced the disposal of 12,000 treasury shares to support its Board Benefit Trust (BBT) and J-ESOP plans, aimed at providing stock benefits to directors, executive officers, and employees. This move is designed to ensure the continuation of these incentive plans, reflecting a strategic effort to align employee and management interests with company performance, while maintaining a reasonable level of share dilution.

The most recent analyst rating on (JP:1899) stock is a Buy with a Yen7807.00 price target. To see the full list of analyst forecasts on Fukuda Corporation stock, see the JP:1899 Stock Forecast page.