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

• Market Cap: ¥333.62B
• Dividend Yield: 1.45%
• Average Volume (3M): 306.70K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.44
• Revenue Growth: 20.02%
• EPS Growth: N/A
• Country: JP
• Employees: 5,731
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 91.15
• 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): 248.59
• Revenue Forecast (FY): ¥761.98B

• Rating: 57 Neutral
• Price Target: ¥4,248.00 ▲(30.23% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakened cash generation (negative TTM operating and free cash flow) and higher leverage despite only thin margins. Offsetting this, the stock shows constructive technical momentum (above key moving averages with positive MACD) and a reasonable valuation (P/E ~16), though the dividend yield is modest.

Positive Factors

Diverse B2B product mix

Fuji Oil's diversified B2B product portfolio (edible oils, specialty industrial fats, soy protein) and multinational customer base provide revenue stability and reduce concentration risk. Serving food manufacturers and foodservice across markets supports steady demand and hedges regional slowdowns, preserving core volumes and commercial relationships over months.

Steady top-line growth

Consistent TTM revenue growth indicates ongoing product demand and commercial traction. Even with thin margins, expanding sales give management room to scale specialty offerings and absorb fixed costs, improving operating leverage potential over a 2-6 month horizon if revenue trends persist and raw-material pass-through remains managed.

Specialty product capability

Fuji's expertise in value-added fats and soy-based ingredients creates technical differentiation versus commodity oil suppliers. This formulation know-how fosters longer-term customer partnerships, makes switching harder, and can sustain premium pricing on specialty SKUs, supporting margin resilience and product mix improvement over several quarters.

Negative Factors

Weak cash conversion

Negative operating and free cash flow indicate earnings are not converting to cash, raising near-term liquidity and funding risks. This weak cash generation constrains reinvestment, dividend flexibility and debt servicing ability, making the company more reliant on external financing if the pattern persists over upcoming quarters.

Rising leverage

Meaningfully higher debt-to-equity reduces financial flexibility and increases interest and refinancing exposure. With elevated leverage alongside negative cash flow, the balance sheet is more vulnerable to margin shocks or raw-material price volatility, limiting strategic optionality and increasing default or covenant risk over the medium term.

Thin profitability

Persistently low margins and modest returns suggest limited pricing power and cost pressures in core segments. Thin profitability offers little buffer against commodity cost swings or currency moves, making earnings fragile and slowing the company's ability to deleverage or fund growth without structural margin expansion or sustained top-line improvement.

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 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

Steady TTM revenue growth (+4.3%) and improved profitability versus FY2025, but margins remain thin (TTM net margin ~1.3%, EBIT ~2.7%). The biggest drag is cash conversion: TTM operating cash flow is negative (~-9.9B) and free cash flow is deeply negative (~-39.2B) after positive FY2024, alongside meaningfully higher leverage (TTM debt-to-equity ~1.46).

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 4.3%, showing steady top-line momentum. Profitability is positive but thin, with TTM net margin at ~1.3% and EBIT margin at ~2.7%, indicating limited pricing power and/or cost pressure versus prior years (annual net margin was ~3.0% in 2021 and ~2.7% in 2022). A notable strength is the sharp improvement from FY2025 annual results (net margin ~0.3%) to TTM (net margin ~1.3%), but overall margins remain low for a stable, high-volume packaged foods business.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity moved from ~0.58 (FY2024) to ~1.37 (FY2025 annual) and ~1.46 in TTM (Trailing-Twelve-Months). Equity is still sizable (TTM equity ~239B vs. assets ~680B), but the higher debt load reduces financial flexibility. Returns on equity are modest (TTM ~4.6%), improving versus FY2025 annual (~1.1%) but still not strong, suggesting the balance sheet is carrying more leverage than recent profitability comfortably supports.

Cash Flow

Cash generation has weakened: TTM (Trailing-Twelve-Months) operating cash flow is negative (~-9.9B) and free cash flow is deeply negative (~-39.2B), and free cash flow declined further versus the prior period (TTM free cash flow growth ~-33.9%). This is a material deterioration from FY2024, when operating cash flow (~48.2B) and free cash flow (~31.1B) were positive. The current TTM pattern implies earnings are not converting into cash in the near term, elevating funding and liquidity risk (especially alongside rising leverage).

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	762.11B	671.21B	564.09B	557.41B	433.83B	364.78B
Gross Profit	111.16B	77.00B	82.86B	72.24B	66.31B	65.86B
EBITDA	57.89B	32.60B	48.34B	31.24B	34.71B	34.32B
Net Income	21.84B	2.23B	6.52B	6.13B	11.50B	11.01B
Balance Sheet
Total Assets	679.69B	596.56B	470.22B	468.79B	416.62B	358.51B
Cash, Cash Equivalents and Short-Term Investments	43.80B	70.62B	27.49B	19.00B	15.93B	20.46B
Total Debt	343.48B	288.78B	135.40B	178.21B	151.62B	131.31B
Total Liabilities	436.52B	382.04B	225.93B	257.81B	227.13B	195.62B
Stockholders Equity	239.03B	210.50B	232.19B	202.82B	186.38B	160.02B
Cash Flow
Free Cash Flow	-39.21B	-71.82B	31.06B	-11.94B	-15.59B	17.32B
Operating Cash Flow	-9.85B	-50.63B	48.24B	7.59B	3.54B	38.20B
Investing Cash Flow	-49.75B	-21.74B	8.80B	-16.49B	-18.81B	-17.39B
Financing Cash Flow	62.25B	114.93B	-50.01B	9.80B	9.39B	-19.93B

Fuji Oil Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3262.00
• 50DMA: Negative
• 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 Negative. The current price of 3262 is below the 20-day moving average (MA) of 4077.65, below the 50-day MA of 3945.90, and below the 200-day MA of 3392.01, indicating a neutral trend. The MACD of -12.73 indicates Positive momentum. The RSI at 40.50 is Neutral, neither overbought nor oversold. The STOCH value of 35.11 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
2809	71 Outperform	¥625.94B	20.30	9.28%	1.30%	5.50%	27.32%
2002	70 Outperform	¥616.19B	23.34	―	3.15%	-0.88%	-25.64%
2602	69 Neutral	¥197.70B	8.38	12.56%	3.44%	3.80%	63.03%
4404	69 Neutral	¥23.93B	2.52	―	2.54%	2.80%	154.89%
2613	65 Neutral	¥69.28B	18.79	―	3.77%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	57 Neutral	¥333.62B	15.70	―	1.45%	20.02%	―

Fuji Oil Holdings, Inc. Corporate Events

Fuji Oil Posts Strong Turnaround and Lifts Full-Year Profit Outlook

Fuji Oil Co., Ltd. reported a sharp recovery in earnings for the nine months ended December 31, 2025, with net sales rising 18.5% year on year to ¥582.8 billion and business profit surging more than sevenfold to ¥28.8 billion. Profit attributable to owners of the parent swung to ¥16.4 billion from a loss a year earlier, while total assets and equity both increased, indicating a strengthened balance sheet.

The company kept its dividend policy intact, paying ¥26 per share at the second quarter and maintaining a full-year dividend forecast of ¥52 per share for the fiscal year ending March 31, 2026. It also raised its full-year consolidated earnings forecast, now projecting double-digit growth in net sales and a more than threefold increase in profit attributable to owners of the parent, underscoring improved profitability and a more confident outlook for shareholders and creditors.

The most recent analyst rating on (JP:2607) stock is a Hold with a Yen4387.00 price target. To see the full list of analyst forecasts on Fuji Oil Holdings, Inc. stock, see the JP:2607 Stock Forecast page.