Fukuda Corporation (1899) AI Stock Analysis

• Market Cap: ¥42.36B
• Dividend Yield: 4.02%
• Average Volume (3M): 9.76K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.91
• Revenue Growth: -1.39%
• EPS Growth: 16.32%
• Country: JP
• Employees: 2,215
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 185.72
• Shares Outstanding: 8,988,111
• 10 Day Avg. Volume: 12,720
• 30 Day Avg. Volume: 9,763
• PEG Ratio: -1.28
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 70 Outperform
• Price Target: ¥5,477.00 ▲(10.20%Upside)

Fukuda Corporation scores well due to its strong financial performance and attractive valuation, which are offset by weak market momentum. The company's low P/E ratio and high dividend yield are significant positives, while the technical indicators suggest a lack of upward momentum.

Fukuda Corporation Business Overview & Revenue Model

Company Description

Fukuda Corporation, established in 1899, is a Japanese-based company that operates primarily in the construction industry. The company engages in various sectors, including civil engineering, building construction, and real estate development. Fukuda Corporation is known for its expertise in infrastructure projects, contributing to the development of public works, commercial buildings, and residential properties.

How the Company Makes Money

Fukuda Corporation generates revenue through its comprehensive construction services, which include civil engineering and building construction projects. The company secures contracts from both public and private sectors for infrastructure and building projects. Additionally, Fukuda engages in real estate development, which involves the acquisition, development, and sale of properties, adding another stream of income. Significant partnerships with government bodies and private enterprises enhance its project acquisition capabilities and profitability. The company's earnings are further supported by its ability to deliver high-quality construction services within stipulated timelines and budgets, fostering client trust and repeat business.

Fukuda Corporation Financial Statement Overview

Summary

Fukuda Corporation is financially strong, showcasing robust profitability, low leverage, and a healthy equity position. While the income statement reflects growth and stable margins, 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. Overall, the company is well-positioned in the engineering and construction industry, with opportunities to optimize operational efficiency and cash flow management.

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

Fukuda Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4970.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 4970 is above the 20-day moving average (MA) of 4930.50, below the 50-day MA of 5042.90, and below the 200-day MA of 5176.03, indicating a neutral trend. The MACD of -8.15 indicates Negative momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1899.

Fukuda Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1967	76 Outperform	¥44.00B	10.84		0.30%	10.09%	170.06%
1815	72 Outperform	¥43.15B	11.92		4.21%	0.83%	-14.46%
1945	71 Outperform	¥42.55B	15.37		3.90%	-23.45%	<0.01%
1899	70 Outperform	¥42.36B	8.29		4.02%	-1.39%	16.32%
1888	69 Neutral	¥55.79B	15.09		2.88%	-8.91%	-27.27%
1929	68 Neutral	¥46.01B	19.10		4.72%	-9.64%	-31.42%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%

Fukuda Corporation Corporate Events

Fukuda Corporation Reports Decline in Q1 2025 Financial Performance

Fukuda Corporation reported a decline in its financial performance for the first quarter of 2025, with net sales and profits showing a year-on-year decrease. The company experienced a 2.8% drop in net sales and a significant decline in operating and ordinary profits, impacting its market positioning and potentially affecting stakeholder confidence.