Fuji Oil Holdings, Inc. (2607) AI Stock Analysis

• Market Cap: ¥345.74B
• Dividend Yield: 1.45%
• Average Volume (3M): 306.70K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.45
• Revenue Growth: 20.02%
• EPS Growth: N/A
• Country: JP
• Employees: 5,731
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 61.54
• Shares Outstanding: 87,569,380
• 10 Day Avg. Volume: 227,310
• 30 Day Avg. Volume: 306,696
• PEG Ratio: -1.79
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -3.67
• 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: 59 Neutral
• Price Target: ¥4,201.00 ▲(28.79% Upside)

Fuji Oil Holdings shows a mixed performance with strong technical indicators but faces challenges in financial performance and valuation. The stock's positive price trends are overshadowed by high leverage and operational inefficiencies. Its high P/E ratio suggests overvaluation, and the modest dividend yield offers limited income potential.

Positive Factors

Diversified B2B Food-ingredients Model

Fuji Oil’s B2B model selling oils, specialty fats and soy ingredients to food manufacturers and foodservice creates recurring, contract-like demand. Serving industrial customers domestically and overseas supports steady volume baselines and long-term customer stickiness.

Consistent Revenue Growth

Sustained top-line growth gives the company scale benefits and room to invest in product development and capacity. Over a 2–6 month horizon, consistent revenue expansion can help offset margin pressure and support strategic initiatives across regions.

Specialty Ingredients and Formulation Know-how

Proprietary formulations and specialty fats offer differentiated capabilities versus commodity oils, enabling customer-specific solutions. This structural product mix can sustain pricing power, create higher-margin revenue streams and deepen customer relationships long term.

Negative Factors

Elevated Leverage

A debt-to-equity ratio near 1.5 indicates materially higher leverage, reducing financial flexibility. Over months this raises refinancing and interest-service risk, constrains investment capacity, and amplifies vulnerability to commodity and FX shocks.

Weak Operating Cash Flow

Negative operating cash flow despite positive accounting income signals poor cash conversion. This structural weakness limits the company’s ability to fund capex, pay down debt, or sustain distributions without tapping external financing.

Very Thin Net Profit Margins

Extremely low net margins leave minimal buffer against commodity cost swings and FX volatility common in edible oils. Persistently compressed margins reduce retained earnings for reinvestment and make returns sensitive to operational disruptions.

Fuji Oil Holdings, Inc. Business Overview & Revenue Model

Company Description

Fuji Oil Holdings, Inc. (2607) is a leading Japanese manufacturer and supplier of vegetable oils and fats, primarily serving the food industry. The company operates in various sectors, including edible oils, processed foods, and specialty products, with a focus on plant-based ingredients. Fuji Oil is known for its innovative solutions, providing a range of products such as emulsifiers, chocolate, and health-oriented ingredient solutions that cater to both domestic and international markets.

How the Company Makes Money

Fuji Oil Holdings generates revenue primarily through the production and sale of vegetable oils and fats, which are essential ingredients in many food products. Key revenue streams include the sale of edible oils, specialty fats, and emulsifiers to food manufacturers, as well as the provision of customized solutions for specific customer needs. Additionally, Fuji Oil benefits from strategic partnerships with various food companies and distributors, which enhance its market reach and product offerings. Factors contributing to its earnings include increasing consumer demand for plant-based foods, innovation in product development, and the expansion of its global footprint in emerging markets.

Fuji Oil Holdings, Inc. Financial Statement Overview

Summary

Fuji Oil Holdings is experiencing revenue growth but faces challenges in profitability and cash flow management. Increased leverage poses a financial risk, while declining margins suggest operational inefficiencies. The company needs to focus on improving cash flow generation and managing debt levels to enhance financial stability.

Income Statement

Fuji Oil Holdings has shown a consistent revenue growth trend, with a 4.32% increase in TTM. However, the company's profitability margins, including gross profit and net profit margins, have been under pressure, with the TTM net profit margin at a low 0.12%. The EBIT and EBITDA margins have also declined compared to previous periods, indicating challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.46 in the TTM, indicating higher leverage and potential financial risk. Return on equity is modest at 4.55%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 33.73%, suggesting a moderate level of equity financing.

Cash Flow

Fuji Oil Holdings faces challenges in cash flow management, with negative operating and free cash flows in the TTM. Despite a 23.22% growth in free cash flow, the negative operating cash flow to net income ratio highlights inefficiencies in converting income into cash. The free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	730.95B	671.21B	564.09B	557.41B	433.83B	364.78B
Gross Profit	92.23B	77.00B	82.86B	72.24B	66.31B	65.86B
EBITDA	40.09B	32.60B	48.34B	31.24B	34.71B	34.32B
Net Income	9.76B	2.23B	6.52B	6.13B	11.50B	11.01B
Balance Sheet
Total Assets	650.44B	596.56B	470.22B	468.79B	416.62B	358.51B
Cash, Cash Equivalents and Short-Term Investments	47.29B	70.62B	27.49B	19.00B	15.93B	20.46B
Total Debt	320.67B	288.78B	135.40B	178.21B	151.62B	131.31B
Total Liabilities	427.25B	382.04B	225.93B	257.81B	227.13B	195.62B
Stockholders Equity	219.32B	210.50B	232.19B	202.82B	186.38B	160.02B
Cash Flow
Free Cash Flow	-59.32B	-71.82B	31.06B	-11.94B	-15.59B	17.32B
Operating Cash Flow	-33.56B	-50.63B	48.24B	7.59B	3.54B	38.20B
Investing Cash Flow	-45.94B	-21.74B	8.80B	-16.49B	-18.81B	-17.39B
Financing Cash Flow	88.52B	114.93B	-50.01B	9.80B	9.39B	-19.93B

Fuji Oil Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3262.00
• 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:2607, the sentiment is Positive. The current price of 3262 is below the 20-day moving average (MA) of 3954.75, below the 50-day MA of 3713.14, and below the 200-day MA of 3290.34, indicating a bullish trend. The MACD of 108.64 indicates Positive momentum. The RSI at 61.04 is Neutral, neither overbought nor oversold. The STOCH value of 28.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2607.

Fuji Oil Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4404	78 Outperform	¥25.43B	2.76	―	2.54%	2.80%	154.89%
2612	77 Outperform	¥36.90B	13.91	―	2.55%	8.21%	20.27%
2602	67 Neutral	¥182.46B	7.47	12.56%	3.44%	3.80%	63.03%
2811	66 Neutral	¥235.27B	19.93	―	2.11%	3.69%	-50.13%
2613	65 Neutral	¥66.88B	12.85	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	59 Neutral	¥345.74B	35.18	―	1.45%	20.02%	―

Fuji Oil Holdings, Inc. Corporate Events

Fuji Oil Holdings Reports Robust Financial Growth for Q2 FY2025

Fuji Oil Holdings, Inc. reported significant financial growth for the six months ending September 30, 2025, with net sales increasing by 18.9% year-on-year. The company also saw substantial rises in business profit and profit attributable to owners of the parent, indicating a strong market position and positive outlook for stakeholders.

The most recent analyst rating on (JP:2607) stock is a Hold with a Yen3255.00 price target. To see the full list of analyst forecasts on Fuji Oil Holdings, Inc. stock, see the JP:2607 Stock Forecast page.