Fukuda Corporation (1899) AI Stock Analysis

• Market Cap: ¥58.72B
• Dividend Yield: 2.9%
• Average Volume (3M): 28.88K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.92
• Revenue Growth: 0.18%
• EPS Growth: 14.61%
• Country: JP
• Employees: 2,215
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 122.96
• Shares Outstanding: 8,988,111
• 10 Day Avg. Volume: 17,330
• 30 Day Avg. Volume: 28,880
• PEG Ratio: 0.14
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 9.61
• 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: ¥5,511.00
• Price Target Upside: -20.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥5,511.00 ▼(-20.01% Downside)

Fukuda Corporation is financially strong with robust profitability and low leverage, backed by an attractive valuation. However, neutral technical indicators suggest limited short-term momentum, and cash flow management requires improvement for better long-term flexibility.

Fukuda Corporation Business Overview & Revenue Model

Company Description

Fukuda Corporation, established in 1899, is a diversified company based in Japan, primarily operating in the manufacturing and technology sectors. The company specializes in producing high-quality electrical components, precision machinery, and advanced automation systems. With a commitment to innovation, Fukuda Corporation caters to various industries, including automotive, electronics, and industrial automation, offering a range of products such as sensors, control systems, and custom machinery solutions.

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

Fukuda Corporation shows strong financial performance with robust profitability and low leverage. The income statement reflects growth and stable margins, while the balance sheet highlights financial stability with a low debt-to-equity ratio and strong liquidity. However, cash flow management requires improvement to enhance free cash generation.

Income Statement

Fukuda Corporation demonstrates strong profitability with a consistent increase in gross profit and net profit margins over the years. The gross profit margin improved to 10.70% in 2024 from 9.22% in 2023, and the net profit margin increased to 3.19% from 2.09% in the same period. Revenue growth has been steady, with a recent growth rate of 2.68% from 2023 to 2024, showing resilience in the competitive engineering and construction industry. However, EBIT margin could be further optimized as it stands at 4.60%.

Balance Sheet

The balance sheet reflects a robust financial position with a debt-to-equity ratio of 0.014 in 2024, indicating low leverage and reduced financial risk. The return on equity (ROE) is 6.27%, showing effective utilization of equity. Furthermore, the equity ratio of 59.29% signifies a solid capital structure with substantial equity backing. The company maintains strong liquidity with significant cash reserves, enhancing financial stability.

Cash Flow

Cash flow management is sound, with a notable operating cash flow to net income ratio of 1.11, indicating efficient cash generation from operations relative to net income. The free cash flow has declined slightly, with a free cash flow growth rate of -13.67% from 2023 to 2024. However, the company continues to generate positive free cash flow, which supports ongoing operations and investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.37B	166.59B	162.24B	154.36B	179.84B	185.76B
Gross Profit	17.98B	17.82B	14.96B	15.17B	18.75B	19.07B
EBITDA	9.36B	9.26B	6.65B	7.05B	10.35B	10.46B
Net Income	5.40B	5.31B	3.39B	3.65B	5.86B	5.98B
Balance Sheet
Total Assets	142.38B	142.81B	136.73B	134.35B	130.75B	137.56B
Cash, Cash Equivalents and Short-Term Investments	36.45B	32.85B	29.47B	28.51B	23.29B	23.12B
Total Debt	662.00M	1.20B	1.50B	3.35B	1.09B	6.10B
Total Liabilities	56.50B	57.41B	56.40B	55.85B	54.34B	66.23B
Stockholders Equity	85.53B	84.66B	79.62B	77.83B	75.77B	70.72B
Cash Flow
Free Cash Flow	0.00	4.52B	5.24B	3.68B	6.68B	4.64B
Operating Cash Flow	0.00	5.88B	7.49B	5.02B	7.80B	6.91B
Investing Cash Flow	0.00	-1.98B	-1.88B	-1.13B	-1.50B	-2.19B
Financing Cash Flow	0.00	-1.37B	-4.35B	970.00M	-6.13B	-4.68B

Fukuda Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6890.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 6890 is above the 20-day moving average (MA) of 6824.00, above the 50-day MA of 6378.00, and above the 200-day MA of 5411.85, indicating a bullish trend. The MACD of 139.92 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 87.28 is Negative, 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
1945	75 Outperform	¥53.16B	18.80	―	3.25%	-17.57%	-12.49%
1815	74 Outperform	¥53.67B	19.09	―	3.39%	-1.36%	-27.45%
1899	71 Outperform	¥58.72B	10.55	―	2.90%	0.18%	14.61%
1929	68 Neutral	¥51.38B	18.13	―	3.90%	1.11%	0.17%
1967	66 Neutral	¥43.65B	11.41	―	2.31%	10.35%	152.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	58 Neutral	¥61.08B	16.18	―	2.63%	1.00%	-6.09%

Fukuda Corporation Corporate Events

Fukuda Corporation Reports Modest Gains Amidst Future Challenges

Fukuda Corporation reported a modest increase in its financial performance for the first half of 2025, with net sales rising by 2.4% and profit attributable to owners increasing by 3.9% compared to the same period in 2024. Despite these gains, the company anticipates a challenging fiscal year with projected declines in operating and ordinary profits, indicating potential pressures on its future financial stability.