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

• Market Cap: ¥36.23B
• Dividend Yield: 4.4%
• Average Volume (3M): 16.32K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.38
• Revenue Growth: -8.78%
• EPS Growth: -17.28%
• Country: JP
• Employees: 347
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 45.78
• Shares Outstanding: 30,342,268
• 10 Day Avg. Volume: 8,480
• 30 Day Avg. Volume: 16,320
• 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: 72 Outperform
• Price Target: ¥1,348.00 ▲(10.95% Upside)

FTGroup Co., Ltd. scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest the stock is undervalued. Financial performance is solid, with strong profitability and a robust balance sheet, though revenue growth and cash flow challenges are concerns. Technical analysis indicates potential short-term weakness, but overall, the stock presents a compelling value proposition.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low financial leverage enhances the company's ability to invest in growth opportunities and withstand economic downturns, ensuring long-term stability and operational flexibility.

High Profit Margins

High profit margins indicate efficient cost management and strong competitive positioning, allowing the company to generate significant profits from its operations, which supports reinvestment and shareholder returns.

Effective Use of Equity

A high return on equity demonstrates the company's ability to effectively utilize shareholder funds to generate profits, indicating strong management performance and potential for sustained growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests challenges in expanding market share or product adoption, which could impact future profitability and market competitiveness if not addressed.

Cash Flow Management Challenges

Negative cash flow growth indicates potential issues in cash generation, which could limit the company's ability to fund operations, invest in growth, or return capital to shareholders, affecting long-term financial health.

Revenue Growth Challenges

Ongoing revenue growth challenges highlight potential difficulties in maintaining competitive advantage and market position, which could constrain financial flexibility and strategic initiatives in the long term.

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

FTGroup Co., Ltd. demonstrates strong profitability with high margins and a robust balance sheet, characterized by low debt and high equity ratio. However, challenges in revenue growth and declining cash flow generation indicate potential risks to future financial flexibility.

Income Statement

FTGroup Co., Ltd. demonstrates solid profitability with a TTM gross profit margin of 39.83% and a net profit margin of 19.10%, indicating efficient cost management and strong bottom-line performance. However, the revenue growth rate shows a decline of 2.11% TTM, suggesting challenges in expanding sales. The EBIT and EBITDA margins are robust at 26.85% and 28.46% respectively, reflecting effective operational management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.12 TTM, indicating prudent financial leverage. The return on equity is impressive at 24.32%, showcasing effective use of shareholder funds to generate profits. Additionally, the equity ratio stands at 77.64%, highlighting a solid capital structure with a high proportion of equity financing.

Cash Flow

FTGroup Co., Ltd. faces challenges in cash flow management with a TTM free cash flow growth rate of -15.24%, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.96, suggesting adequate cash conversion from earnings. However, the free cash flow to net income ratio of 0.93 reflects a need for improvement in cash retention relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.90B	34.63B	36.48B	40.70B	45.24B	41.33B
Gross Profit	13.60B	13.79B	14.28B	14.86B	16.57B	16.47B
EBITDA	9.68B	10.09B	9.41B	9.70B	14.11B	6.61B
Net Income	6.55B	6.61B	5.28B	3.63B	4.81B	3.23B
Balance Sheet
Total Assets	38.92B	40.59B	33.08B	32.73B	34.27B	40.51B
Cash, Cash Equivalents and Short-Term Investments	17.11B	19.82B	19.93B	17.15B	8.31B	12.78B
Total Debt	2.72B	3.64B	3.77B	5.17B	9.27B	16.22B
Total Liabilities	8.70B	10.75B	9.40B	12.19B	15.76B	24.62B
Stockholders Equity	30.21B	29.84B	23.68B	20.54B	18.50B	15.89B
Cash Flow
Free Cash Flow	5.32B	6.27B	5.85B	14.77B	1.04B	-1.77B
Operating Cash Flow	5.80B	6.72B	6.05B	14.96B	1.61B	-1.14B
Investing Cash Flow	-6.74B	-4.63B	606.00M	52.00M	2.16B	456.00M
Financing Cash Flow	-2.89B	-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: Negative

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 1235.25, below the 50-day MA of 1234.89, and above the 200-day MA of 1158.53, indicating a bullish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.74 is Negative, 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
6718	81 Outperform	¥45.37B	16.95	―	4.59%	0.63%	-24.87%
6835	80 Outperform	$24.67B	5.50	24.14%	0.85%	6.43%	368.06%
6820	74 Outperform	¥40.09B	17.18	―	2.98%	-0.90%	-13.24%
2763	72 Outperform	¥36.23B	6.85	―	4.40%	-8.78%	-17.28%
6675	67 Neutral	¥29.32B	9.10	―	2.55%	20.13%	33.43%
6822	64 Neutral	¥4.82B	3.69	―	0.54%	4.93%	23.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%