Fukuda Corporation (1899) AI Stock Analysis

• Market Cap: ¥66.05B
• Dividend Yield: 2.58%
• Average Volume (3M): 28.88K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.89
• Revenue Growth: 1.71%
• EPS Growth: 14.20%
• Country: JP
• Employees: 2,215
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 229.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥9,091.00 ▲(17.30% Upside)

Fukuda Corporation's stock is rated highly due to its strong financial performance and technical indicators. The company's low leverage and solid equity position enhance its financial stability, while technical analysis shows strong bullish momentum. The reasonable valuation with a solid dividend yield further supports the stock's attractiveness.

Positive Factors

Revenue Growth

Steady revenue growth indicates resilience in a competitive industry, supporting long-term business stability and market presence.

Financial Stability

Low leverage and a strong equity ratio enhance financial stability, reducing risk and providing a solid foundation for future growth.

Profitability

Improving profit margins reflect operational efficiency and pricing power, contributing to sustainable profitability over the long term.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit financial flexibility, impacting the company's ability to invest in growth and manage unforeseen expenses.

EBIT Margin Optimization

Suboptimal EBIT margins suggest potential inefficiencies, which could hinder profitability improvements and competitive positioning.

Cash Flow Management

While cash flow remains positive, declining trends may challenge the company's ability to sustain long-term investments and operational needs.

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

Fukuda Corporation is financially strong, showcasing robust profitability, low leverage, and a healthy equity position. The income statement reflects growth and stable margins, while the balance sheet's low debt levels and high equity ratio highlight financial stability. However, the cash flow statement suggests a need for improving free cash generation to enhance long-term financial flexibility.

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: 7750.00
• 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 7750 is above the 20-day moving average (MA) of 7744.00, above the 50-day MA of 7330.20, and above the 200-day MA of 5921.60, indicating a bullish trend. The MACD of 101.45 indicates Positive momentum. The RSI at 56.18 is Neutral, neither overbought nor oversold. The STOCH value of 34.25 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
1899	79 Outperform	¥66.05B	11.04	―	2.58%	1.71%	14.20%
1967	73 Outperform	¥45.13B	10.34	―	2.23%	5.45%	86.27%
1945	73 Outperform	¥57.98B	16.13	―	2.98%	-7.98%	37.92%
1815	69 Neutral	¥65.15B	14.60	―	2.79%	-3.59%	49.34%
1929	68 Neutral	¥52.68B	15.69	―	3.81%	11.81%	52.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	59 Neutral	¥56.17B	12.74	―	2.86%	15.45%	43.95%

Fukuda Corporation Corporate Events

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.

Fukuda Corporation Boosts Financial and Dividend Forecasts for 2025

Fukuda Corporation has revised its financial and dividend forecasts for the fiscal year ending December 31, 2025, due to better-than-expected performance in construction projects. The company anticipates higher net sales and improved gross profit margins, leading to increased profits and a higher dividend payout for shareholders.

Fukuda Corporation Reports Strong Financial Performance and Dividend Increase

Fukuda Corporation reported its consolidated financial results for the nine months ending September 30, 2025, showing a 2.7% increase in net sales and a notable rise in operating profit by 12.1% compared to the previous year. The company also announced a revision in its dividend forecast, increasing the fiscal year-end dividend to 250 yen per share, reflecting its strong financial performance and commitment to shareholder returns.

Fukuda Corporation to Merge with Subsidiary Nihon Giken

Fukuda Corporation announced its decision to merge with its wholly owned subsidiary, Nihon Giken Co., Ltd., through an absorption-type merger effective December 26, 2025. This strategic move aims to consolidate Fukuda’s real estate operations, enhancing management efficiency and strengthening its market position. The merger will not involve the issuance of new shares or any financial consideration, as Nihon Giken is already fully owned by Fukuda Corporation.