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Fuji Oil Holdings, Inc. (JP:2607)
:2607
Japanese Market

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

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JP

Fuji Oil Holdings, Inc.

(2607)

Rating:46Neutral
Price Target:
¥2,882.00
▼(-1.72%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. (2607) vs. iShares MSCI Japan ETF (EWJ)

Fuji Oil Holdings, Inc. Business Overview & Revenue Model

Company DescriptionFuji 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 MoneyFuji 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
65
Positive
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
72
Positive
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
40
Negative
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
671.21B564.09B557.41B433.83B364.78B
Gross Profit
77.00B82.86B72.24B66.31B65.86B
EBIT
9.89B18.21B10.94B15.01B17.91B
EBITDA
32.60B48.34B31.24B32.45B34.32B
Net Income Common Stockholders
2.23B6.52B6.13B11.50B11.01B
Balance SheetCash, Cash Equivalents and Short-Term Investments
70.62B27.49B19.00B15.93B20.46B
Total Assets
596.56B470.22B468.79B416.62B358.51B
Total Debt
288.78B135.40B178.21B148.77B131.31B
Net Debt
218.16B107.91B159.20B132.84B110.85B
Total Liabilities
382.04B225.93B257.81B227.13B195.62B
Stockholders Equity
210.50B232.19B202.82B186.38B160.02B
Cash FlowFree Cash Flow
-71.82B31.06B-11.94B-15.59B17.32B
Operating Cash Flow
-50.63B48.24B7.59B3.54B38.20B
Investing Cash Flow
-21.74B8.80B-16.49B-18.81B-17.39B
Financing Cash Flow
114.93B-50.01B9.80B9.39B-19.93B

Fuji Oil Holdings, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2932.50
Price Trends
50DMA
3027.61
Negative
100DMA
2983.65
Negative
200DMA
3134.03
Negative
Market Momentum
MACD
-28.07
Negative
RSI
44.85
Neutral
STOCH
58.56
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 2932.5 is below the 20-day moving average (MA) of 2940.08, below the 50-day MA of 3027.61, and below the 200-day MA of 3134.03, indicating a bearish trend. The MACD of -28.07 indicates Negative momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥33.54B14.23
2.74%10.57%4.52%
72
Outperform
¥16.74B8.31
3.66%1.07%-34.52%
68
Neutral
¥261.77B16.62
1.94%25.63%-24.35%
66
Neutral
¥64.34B9.22
1.02%-5.54%3.00%
65
Neutral
$8.92B15.034.68%6.11%3.59%-2.49%
46
Neutral
¥252.08B113.05
1.77%18.99%-65.81%
DE8WC
€921.44M12.476.86%3.68%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2607
Fuji Oil Holdings, Inc.
2,922.00
453.71
18.38%
DE:8WC
Nisshin OilliO Group, Ltd.
30.20
3.01
11.07%
JP:2612
Kadoya Sesame Mills Incorporated
3,640.00
82.07
2.31%
JP:2613
J-Oil Mills, Inc.
1,948.00
56.09
2.96%
JP:2811
Kagome Co., Ltd.
2,961.00
-611.47
-17.12%
JP:4404
Miyoshi Oil & Fat Co., Ltd.
1,635.00
306.74
23.09%

Fuji Oil Holdings, Inc. Corporate Events

Fuji Oil Holdings to Fully Acquire Fuji Oil International Inc.
Feb 25, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.