Fujisan Magazine Service Co., Ltd. (3138) AI Stock Analysis

• Market Cap: ¥3.34B
• Dividend Yield: 1.63%
• Average Volume (3M): 16.77K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.29
• Revenue Growth: 2.88%
• EPS Growth: -69.65%
• Country: JP
• Employees: 93
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 21.67
• Shares Outstanding: 3,302,401
• 10 Day Avg. Volume: 34,670
• 30 Day Avg. Volume: 16,773
• PEG Ratio: -0.69
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 7.69
• 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: 63 Neutral
• Price Target: ¥1,105.00 ▲(5.84% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven by solid balance-sheet strength and generally positive cash generation, supported by a constructive technical uptrend. Offsetting these positives are weakened recent profitability (margin compression and lower earnings) and a high P/E that makes valuation less compelling.

Positive Factors

Conservative balance sheet

Low and stable leverage provides financial flexibility and resilience through industry cycles. Modest debt relative to equity reduces refinancing risk, supports investment in platform improvements, and preserves capacity to fund operations or M&A without pressuring cash flows over the next 2–6 months.

Healthy operating cash generation

Consistent operating cash flow improvement and generally positive free cash flow underpin the company’s ability to fund working capital, platform maintenance, and modest capex without external financing. Sustained cash conversion supports long-term viability and strategic flexibility.

Niche subscription & distribution platform

A focused marketplace for magazine subscriptions and digital distribution creates recurring revenue and publisher relationships that are hard to replicate. The intermediary model supports scale economics and recurring customer flows, anchoring durable revenue streams if retention remains steady.

Negative Factors

Recent margin compression

Material deterioration in margins and a sharp earnings decline signal weakening pricing power or rising costs. If structural, margin pressure can erode returns on capital and limit reinvestment, making profitability recovery harder and reducing cushion against future shocks.

Revenue stagnation and recent declines

Flat-to-declining revenue constrains operating leverage and long-term growth potential. Reliance on a narrow magazine market with modest top-line growth increases sensitivity to publisher dynamics and subscription churn, limiting scalability and earnings upside over the medium term.

Volatile free cash flow conversion

Inconsistent FCF conversion creates uncertainty about sustainable cash available for dividends, capex, or strategic initiatives. Episodic negative FCF episodes heighten execution risk and suggest sensitivity to working capital swings or investment timing that could pressure liquidity during stress periods.

Fujisan Magazine Service Co., Ltd. Business Overview & Revenue Model

Company Description

Fujisan Magazine Service Co., Ltd. operates an online bookstore for magazines in Japan. The company handles over 10,000 magazines and over 2,500 digital magazines. Its magazine content is compatible with paper, PCs, tablet terminals, and smartphones. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fujisan Magazine Service generates revenue through multiple key streams. Primarily, the company earns income from subscription fees paid by customers for digital and print magazine access. Additionally, it partners with publishers to offer a comprehensive catalog of titles, earning commission fees for each subscription sold through its platform. Advertising revenue also contributes to its earnings, as brands seek to reach target audiences through magazine placements. Furthermore, Fujisan Magazine Service leverages strategic partnerships with various publishers and digital platforms, enhancing its distribution capabilities and broadening its market reach, which ultimately supports its financial growth.

Fujisan Magazine Service Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: a conservative balance sheet (low, stable debt and rising equity) supports resilience, and cash generation is generally positive, but income performance has weakened with recent margin compression and a sharp drop in operating profit and net income in 2025 after prior peaks.

Income Statement

Revenue has been essentially flat over the last several years, with declines in 2023–2024 followed by a modest rebound in 2025. Profitability has clearly weakened: gross profit fell in 2024–2025 and operating profit and net income dropped sharply in 2025 versus prior years, implying meaningful margin compression from the 2021–2022 peak. Strengths include a still-positive operating profit profile and historically solid margins, but the recent step-down in earnings quality and consistency is a key concern.

Balance Sheet

The balance sheet looks conservatively financed. Debt is modest relative to equity (around 0.23–0.30 in 2020–2024) and total debt has been stable to slightly down in the latest period, while equity has trended higher versus 2020–2021. The main weakness is declining returns on shareholders’ capital from 2021–2023 levels, consistent with the recent profitability slowdown, but leverage and balance-sheet risk appear well-contained.

Cash Flow

Cash generation is generally healthy, with operating cash flow improving in 2023 and strong again in 2025, and free cash flow positive in most years. However, volatility is notable: free cash flow turned negative in 2024 and then rebounded strongly in 2025, indicating uneven conversion and/or shifting investment needs. A positive offset is that cash flow in the latest year appears strong relative to earnings, but consistency remains a watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.70B	5.81B	5.62B	5.77B	5.97B	5.93B
Gross Profit	1.60B	1.57B	1.67B	1.73B	1.85B	2.02B
EBITDA	468.33M	493.93M	577.62M	584.12M	650.55M	735.33M
Net Income	64.87M	79.22M	171.05M	223.00M	288.11M	346.86M
Balance Sheet
Total Assets	5.75B	5.72B	5.88B	5.82B	5.65B	5.46B
Cash, Cash Equivalents and Short-Term Investments	3.30B	2.98B	3.20B	3.11B	3.03B	2.89B
Total Debt	550.00M	450.00M	550.00M	550.00M	550.00M	550.00M
Total Liabilities	3.26B	3.16B	3.37B	3.47B	3.50B	3.55B
Stockholders Equity	2.35B	2.41B	2.38B	2.25B	2.07B	1.84B
Cash Flow
Free Cash Flow	0.00	383.74M	-78.83M	145.61M	195.50M	332.89M
Operating Cash Flow	0.00	421.97M	276.56M	429.59M	435.21M	532.92M
Investing Cash Flow	0.00	-480.44M	-155.20M	-295.99M	-239.82M	-478.54M
Financing Cash Flow	0.00	-163.56M	-33.56M	-46.09M	-62.30M	-7.85M

Fujisan Magazine Service Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1044.00
• 50DMA: Positive
• 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:3138, the sentiment is Positive. The current price of 1044 is above the 20-day moving average (MA) of 1034.05, above the 50-day MA of 985.96, and above the 200-day MA of 962.28, indicating a bullish trend. The MACD of 10.23 indicates Positive momentum. The RSI at 62.59 is Neutral, neither overbought nor oversold. The STOCH value of 79.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3138.

Fujisan Magazine Service Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3560	78 Outperform	¥8.31B	13.89	―	2.66%	15.17%	12.30%
3159	69 Neutral	¥31.93B	7.63	―	0.90%	12.50%	11.02%
3138	63 Neutral	¥3.34B	44.02	―	1.63%	2.88%	-69.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3058	53 Neutral	¥5.01B	13.53	―	―	-1.88%	679.68%
9978	44 Neutral	¥2.19B	-14.34	―	―	-3.14%	-462.00%