FTGroup Co., Ltd. (2763) AI Stock Analysis

• Market Cap: ¥37.54B
• Dividend Yield: 4.36%
• Average Volume (3M): 16.12K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.36
• Revenue Growth: -8.78%
• EPS Growth: -17.28%
• Country: JP
• Employees: 347
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 50.34
• Shares Outstanding: 30,342,268
• 10 Day Avg. Volume: 12,210
• 30 Day Avg. Volume: 16,123
• PEG Ratio: 0.19
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 5.37
• 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: 82 Outperform
• Price Target: ¥1,486.00 ▲(22.30% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong fundamentals (high margins, strong ROE, low leverage, and solid cash conversion) and very attractive valuation (low P/E and high dividend yield). Technicals are supportive but mixed due to neutral momentum readings and a slightly negative MACD, while ongoing revenue contraction remains the main risk.

Positive Factors

High Profitability / Margins

Sustained high gross and operating margins imply structural pricing power or efficient cost structure, which supports resilient earnings and cash flow. These margins provide room for reinvestment, dividends, and to absorb demand shocks over the next several quarters.

Conservative Balance Sheet

Very low leverage and a stronger equity base reduce financial risk and increase flexibility for capex, acquisitions, or dividend policy. A conservative balance sheet lowers default risk and supports long-term stability across economic cycles.

Strong Cash Generation Quality

Operating cash conversion above net income and near-par free cash flow indicate earnings are high quality and largely cash-backed. Reliable cash flows support dividends, capex and deleveraging, underpinning durable shareholder returns and financial flexibility.

Negative Factors

Persistent Revenue Contraction

Ongoing top-line decline undermines sustainable earnings growth and forces reliance on cost controls to maintain margins. Continued revenue shrinkage over several quarters raises structural demand questions and limits long-term scalability of profits.

Earnings Growth Weakness

Negative EPS growth signals that operating leverage and margin gains may not offset falling sales. If future profits depend more on expense reduction than organic demand, earnings are more vulnerable to one-time savings and less tied to durable revenue drivers.

Historical Cash Flow Volatility

Past episodes of weak or negative cash flow show cash generation can deteriorate in adverse cycles. This variability raises concern over consistency of free cash flow and the company's ability to sustain payouts or investments if margins or revenues worsen.

FTGroup Co., Ltd. Business Overview & Revenue Model

Company Description

FTGroup Co., Ltd. (2763) is a diversified company based in [location], primarily engaged in the manufacturing and distribution of high-quality electronic components and products. The company operates across various sectors, including consumer electronics, automotive components, and industrial applications. FTGroup is known for its innovative solutions in circuit board assembly, semiconductor manufacturing, and integrated electronics systems, catering to a global clientele looking for advanced technology and reliable products.

How the Company Makes Money

FTGroup generates revenue through multiple streams, primarily from the sale of electronic components and assemblies to various industries, including consumer electronics and automotive sectors. The company capitalizes on its expertise in manufacturing to provide tailored solutions that meet the specific needs of its clients. Key revenue streams include direct sales to manufacturers, long-term contracts with major brands, and partnerships with technology firms for joint product development. Additionally, FTGroup benefits from economies of scale and operational efficiencies that enhance its margins. The company's strategic alliances and collaborations with research institutions also play a vital role in driving innovation, allowing it to stay competitive and increase market share.

FTGroup Co., Ltd. Financial Statement Overview

Summary

Strong profitability and returns with improving margins (TTM net margin ~16%, EBIT margin ~23%) and low leverage (debt-to-equity ~0.08). Cash flow quality is solid with operating cash flow exceeding net income (~1.12x). The key drag is persistent revenue contraction, including a sharp TTM decline, which raises sustainability risk.

Income Statement

Profitability is solid and has improved meaningfully versus earlier years: TTM (Trailing-Twelve-Months) gross margin is ~41% and net margin is ~16% (up from ~9% net margin in 2023). Operating profitability is healthy with TTM EBIT margin ~23%. The main weakness is top-line momentum: revenue growth is negative across the period and is sharply down in TTM (Trailing-Twelve-Months), indicating demand softness and making future earnings growth more dependent on cost control than sales expansion.

Balance Sheet

The balance sheet is conservatively positioned with low leverage: TTM (Trailing-Twelve-Months) debt-to-equity is ~0.08 (improving from ~1.02 in 2021), and equity has grown materially over time. Returns remain attractive with TTM (Trailing-Twelve-Months) return on equity around ~18% (still strong, though below the ~22% range in 2024–2025 annual results). Overall, financial risk from debt appears limited, with the key watch item being whether profitability can be sustained as revenue trends remain weak.

Cash Flow

Cash generation is strong and well-aligned with earnings: TTM (Trailing-Twelve-Months) operating cash flow exceeds net income (coverage ~1.12x) and free cash flow is close to net income (~0.91x), supporting quality of earnings. Free cash flow growth is positive in TTM (Trailing-Twelve-Months). The main weakness is historical volatility—cash flow was very weak in 2022 and negative in 2021—so consistency through cycles remains a key risk to monitor.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	32.29B	34.63B	36.48B	40.70B	45.24B	41.33B
Gross Profit	13.35B	13.79B	14.28B	14.86B	16.57B	16.47B
EBITDA	8.00B	10.09B	9.41B	9.70B	14.11B	6.61B
Net Income	5.43B	6.61B	5.28B	3.63B	4.81B	3.23B
Balance Sheet
Total Assets	42.25B	40.59B	33.08B	32.73B	34.27B	40.51B
Cash, Cash Equivalents and Short-Term Investments	16.76B	19.82B	19.93B	17.15B	8.31B	12.78B
Total Debt	2.93B	3.64B	3.77B	5.17B	9.27B	16.22B
Total Liabilities	8.79B	10.75B	9.40B	12.19B	15.76B	24.62B
Stockholders Equity	33.46B	29.84B	23.68B	20.54B	18.50B	15.89B
Cash Flow
Free Cash Flow	5.80B	6.27B	5.85B	14.77B	1.04B	-1.77B
Operating Cash Flow	6.38B	6.72B	6.05B	14.96B	1.61B	-1.14B
Investing Cash Flow	-6.72B	-4.63B	606.00M	52.00M	2.16B	456.00M
Financing Cash Flow	-2.48B	-2.21B	-3.88B	-6.18B	-8.29B	4.61B

FTGroup Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1215.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2763, the sentiment is Positive. The current price of 1215 is below the 20-day moving average (MA) of 1275.10, below the 50-day MA of 1275.54, and below the 200-day MA of 1217.28, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 68.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2763.

FTGroup Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2763	82 Outperform	¥37.54B	7.08	―	4.36%	-8.78%	-17.28%
6718	81 Outperform	¥46.00B	18.70	―	4.43%	0.63%	-24.87%
6820	70 Outperform	¥46.57B	22.04	―	2.93%	-0.90%	-13.24%
6835	68 Neutral	¥30.98B	10.78	24.14%	0.77%	6.43%	368.06%
6703	67 Neutral	¥287.08B	15.67	7.16%	2.31%	-2.36%	-61.50%
6778	63 Neutral	¥5.96B	32.04	―	3.54%	19.28%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%