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

• Market Cap: ¥251.18B
• Dividend Yield: 1.78%
• Average Volume (3M): 364.03K
• Price to Earnings (P/E): 112.6
• Beta (1Y): 0.38
• Revenue Growth: 18.99%
• EPS Growth: -65.81%
• Country: JP
• Employees: 5,731
• Sector: Consumer Defensive
• Sector Strength: 70
• Industry: Packaged Foods
• EPS (TTM): 63.53
• Shares Outstanding: 87,569,380
• 10 Day Avg. Volume: 246,700
• 30 Day Avg. Volume: 364,033
• PEG Ratio: -1.82
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.48
• 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: ¥3,966.67
• Price Target Upside: 35.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: ¥2,882.00 ▼(-1.47%Downside)

Fuji Oil Holdings, Inc. faces significant risks primarily due to its financial performance and valuation. The negative cash flow and high debt levels pose liquidity challenges, while the stock's high P/E ratio raises valuation concerns. Technical analysis indicates bearish momentum, further impacting the overall score.

Fuji Oil Holdings, Inc. Business Overview & Revenue Model

Company Description

Fuji Oil Holdings Inc. develops, produces, and sells a range of food ingredients in Japan and internationally. The company offers vegetable oil and fats, such as hard butters for chocolate, confectionery oils and fats, frying and spraying oils, fats for frozen confectionery, emulsified oils and fats, powdered oils and fats, lubricating/releasing oils, and oils and fats for kneading. It also provides industrial chocolates, including couverture chocolates, chocolates for ice cream coating, chocolate chips, and stick chocolate for confectionery and bakery items; emulsified and fermented ingredients, such as whipping creams, fillings, margarines, and cheese-flavored ingredients; and soy-based ingredients comprising soy protein ingredients, soy protein products, soymilk products, and soluble soy polysaccharides. Fuji Oil Holdings Inc. was incorporated in 1950 and is headquartered in Osaka, Japan.

How the Company Makes Money

Fuji Oil Holdings, Inc. generates revenue primarily through the sale of its diverse range of food ingredients. Its key revenue streams include the oils and fats division, which produces specialty oils and fats for various applications in the food industry; the industrial chocolate division, which supplies high-quality chocolate products to confectionery and bakery manufacturers; and the emulsified and fermented ingredients division, which offers ingredients like margarine and fillings. Additionally, the soy-based ingredients division provides soy protein products for health-conscious consumers and manufacturers. Fuji Oil's earnings are bolstered by strategic partnerships with global food companies and its focus on developing innovative, value-added products that meet the evolving needs of the food industry.

Fuji Oil Holdings, Inc. Financial Statement Overview

Summary

Fuji Oil Holdings, Inc. shows moderate revenue growth but faces challenges with declining profitability and liquidity. The high debt levels and reduced ROE are concerning, with negative cash flow indicating potential liquidity problems.

Income Statement

Fuji Oil Holdings, Inc. experienced moderate revenue growth, with revenue increasing by 19% from 2024 to 2025. However, its profitability metrics have declined, with the gross profit margin decreasing from 14.7% to 11.5%, and net profit margin dropping from 1.2% to 0.3%. The EBIT and EBITDA margins also showed a decline, indicating pressure on operating efficiency.

Balance Sheet

The company's balance sheet shows a high level of debt, with a debt-to-equity ratio of 1.37 in 2025. However, the equity ratio remains stable at 35.3%, providing some assurance of balance sheet strength. Return on equity has decreased significantly from 2.8% to 1.1%, reflecting challenges in generating returns for shareholders.

Cash Flow

Fuji Oil Holdings, Inc. has faced substantial cash flow challenges, with operating cash flow turning negative in 2025. The free cash flow also turned negative, driven by higher capital expenditures and negative operating cash flow. The operating cash flow to net income and free cash flow to net income ratios are both unfavorable, highlighting liquidity concerns.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
671.21B	564.09B	557.41B	433.83B	364.78B
	Gross Profit
77.00B	82.86B	72.24B	66.31B	65.86B
	EBIT
9.89B	18.21B	10.94B	15.01B	17.91B
	EBITDA
32.60B	48.34B	31.24B	32.45B	34.32B
	Net Income Common Stockholders
2.23B	6.52B	6.13B	11.50B	11.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.62B	27.49B	19.00B	15.93B	20.46B
	Total Assets
596.56B	470.22B	468.79B	416.62B	358.51B
	Total Debt
288.78B	135.40B	178.21B	148.77B	131.31B
	Net Debt
218.16B	107.91B	159.20B	132.84B	110.85B
	Total Liabilities
382.04B	225.93B	257.81B	227.13B	195.62B
	Stockholders Equity
210.50B	232.19B	202.82B	186.38B	160.02B
Cash Flow		Free Cash Flow
-71.82B	31.06B	-11.94B	-15.59B	17.32B
	Operating Cash Flow
-50.63B	48.24B	7.59B	3.54B	38.20B
	Investing Cash Flow
-21.74B	8.80B	-16.49B	-18.81B	-17.39B
	Financing Cash Flow
114.93B	-50.01B	9.80B	9.39B	-19.93B

Fuji Oil Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2925.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2925 is below the 20-day moving average (MA) of 2937.45, below the 50-day MA of 3022.33, and below the 200-day MA of 3131.94, indicating a bearish trend. The MACD of -31.34 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2612	74 Outperform	¥33.49B	14.21		2.73%	10.57%	4.52%
4404	72 Outperform	¥16.74B	8.26		3.66%	1.07%	-34.52%
2613	66 Neutral	¥64.27B	9.21		1.03%	-5.54%	3.00%
Sector *	65 Neutral	$8.89B	14.91	4.67%	6.16%	3.60%	-2.89%
2607	46 Neutral	¥251.18B	112.65		1.78%	18.99%	-65.81%
8WC		€932.18M	12.55	6.86%	3.65%	―	―
2811	61 Neutral	¥262.35B	16.44		1.96%	25.63%	-24.35%

Fuji Oil Holdings, Inc. Corporate Events

Fuji Oil Holdings to Fully Acquire Fuji Oil International Inc.

Fuji Oil Holdings Inc. has announced its decision to acquire the remaining 20% shares of Fuji Oil International Inc. from Itochu International Inc., making it a wholly owned subsidiary. This strategic move aims to unify management strategies, enhance technological involvement, and allow Fuji Oil to better respond to changes in consumer habits and industry demands. The acquisition is not expected to significantly impact the company’s consolidated earnings.