FUJITA CORPORATION Co., Ltd. (3370) AI Stock Analysis

• Market Cap: ¥1.83B
• Dividend Yield: 0.6%
• Average Volume (3M): 55.34K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.33
• Revenue Growth: 4.19%
• EPS Growth: 87.44%
• Country: JP
• Employees: 110
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 11.67
• Shares Outstanding: 3,432,300
• 10 Day Avg. Volume: 74,170
• 30 Day Avg. Volume: 55,336
• PEG Ratio: 0.10
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -42.26
• 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: 56 Neutral
• Price Target: ¥600.00 ▲(36.36% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by financial risks: very high leverage, thin net profitability, and weak free cash flow dynamics despite solid revenue growth and strong gross margins. Technicals are supportive due to a strong uptrend and positive MACD, but overbought readings (high RSI/Stoch) add near-term risk. Valuation appears fair on P/E, though the very low dividend yield limits support.

Positive Factors

Revenue Growth

Sustained revenue growth of ~5.9% signals steady demand and successful sales expansion across outlets. Over a 2-6 month horizon this underpins recurring cash inflows, supports scale benefits in a low-margin restaurant industry, and provides a firmer base for margin recovery initiatives.

High Gross Margin

A 59.1% gross margin reflects strong unit economics or favorable input/pricing mix versus peers. This structural margin cushion helps absorb cost inflation and supports investment in marketing or store improvements without immediately eroding contribution margins.

Strong Return on Equity

ROE of ~40.6% indicates management has historically generated high returns on shareholder capital, implying operational efficiency or profitable asset deployment. Over months this suggests the business can deliver shareholder value if capital structure risks are managed.

Negative Factors

Very High Leverage

Debt-to-equity ~8.66 denotes heavy reliance on debt financing, increasing interest expense sensitivity and refinancing risk. Structurally, high leverage constrains strategic flexibility, raises default risk in downturns, and can limit capacity to invest in growth or weather margin compression.

Weak Cash Conversion

Negative FCF growth and OCF/net income ~0.29 show earnings are not converting well to free cash. Over time this limits self-funding for capex, increases dependence on external financing, and reduces the company's buffer against revenue shocks or cyclical industry downturns.

Thin Net Profitability

A net margin near 2% despite high gross margins suggests elevated SG&A, interest, or non-operating costs that erode bottom-line resilience. Structurally, thin net profits limit retained earnings buildup, reducing ability to deleverage or reinvest in competitive initiatives.

FUJITA CORPORATION Co., Ltd. Business Overview & Revenue Model

Company Description

FUJITA CORPORATION Co.,Ltd. operates and manages fast food restaurants in Japan. The company manufactures, processes, and sells cheese, ham, bacon, ice creams, etc. It also operates merchandise stores, as well as franchises stores. The company was formerly known as Family Foods Co., Ltd. and changed its name to FUJITA CORPORATION Co.,Ltd. in April 1996. FUJITA CORPORATION Co.,Ltd. was founded in 1978 and is headquartered in Tomakomai, Japan.

How the Company Makes Money

FUJITA CORPORATION generates revenue through various streams within its construction and real estate operations. The primary revenue source comes from its construction projects, which include public infrastructure works, commercial buildings, and residential developments. The company enters contracts with both private and public sector clients, ensuring a diversified project portfolio. In addition to construction services, FUJITA earns income from real estate sales and leasing activities, managing properties developed under its brand. The company may also benefit from partnerships with local governments and private enterprises for large-scale infrastructure projects, enhancing its market reach and financial stability. Factors contributing to its earnings include the demand for residential and commercial spaces, government investments in infrastructure, and the company’s reputation for quality and reliability in construction.

FUJITA CORPORATION Co., Ltd. Financial Statement Overview

Summary

Revenue growth (5.9%) and a strong gross margin (59.1%) are positives, but profitability is thin (net margin 1.98%). Balance sheet risk is elevated due to very high leverage (debt-to-equity 8.66) and a low equity ratio, and cash conversion is weak with negative free cash flow growth and low operating cash flow to net income (0.29).

Income Statement

The company shows a positive revenue growth rate of 5.9% in the latest year, indicating a healthy expansion in sales. Gross profit margin is robust at 59.1%, reflecting efficient cost management. However, the net profit margin is relatively low at 1.98%, suggesting limited profitability after expenses. The EBIT and EBITDA margins are modest, indicating room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio is significantly high at 8.66, indicating high leverage and potential financial risk. Return on equity is strong at 40.6%, showing effective use of equity to generate profits. The equity ratio is low, suggesting a heavy reliance on debt financing, which could be a concern if interest rates rise.

Cash Flow

The company has a negative free cash flow growth rate, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 0.29, showing moderate cash generation relative to net income. The negative free cash flow to net income ratio highlights issues in converting profits into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2021
Income Statement
Total Revenue	4.98B	4.89B	4.59B	4.19B	4.02B	4.17B
Gross Profit	2.95B	2.89B	2.65B	2.54B	2.46B	2.55B
EBITDA	292.75M	311.37M	255.83M	108.34M	94.62M	16.36M
Net Income	122.00M	96.81M	52.58M	-69.88M	-110.23M	-215.26M
Balance Sheet
Total Assets	2.83B	2.80B	2.85B	2.98B	2.93B	3.11B
Cash, Cash Equivalents and Short-Term Investments	391.00M	365.42M	514.86M	597.50M	510.14M	555.62M
Total Debt	2.13B	2.07B	2.19B	2.40B	2.46B	2.47B
Total Liabilities	2.60B	2.56B	2.71B	2.90B	2.93B	3.06B
Stockholders Equity	226.00M	238.51M	139.36M	83.73M	2.56M	44.62M
Cash Flow
Free Cash Flow	0.00	-19.06M	64.06M	83.39M	-104.58M	-100.30M
Operating Cash Flow	0.00	224.92M	221.59M	172.16M	-83.26M	-32.44M
Investing Cash Flow	0.00	-236.25M	-99.49M	187.56M	-23.66M	37.95M
Financing Cash Flow	0.00	-141.11M	-204.75M	-276.55M	61.44M	189.96M

FUJITA CORPORATION Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 440.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3370, the sentiment is Positive. The current price of 440 is below the 20-day moving average (MA) of 480.85, above the 50-day MA of 405.16, and above the 200-day MA of 373.16, indicating a bullish trend. The MACD of 40.45 indicates Negative momentum. The RSI at 82.42 is Negative, neither overbought nor oversold. The STOCH value of 82.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3370.

FUJITA CORPORATION Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3077	72 Outperform	¥3.60B	10.29	―	―	6.16%	86.76%
138A	67 Neutral	¥2.87B	28.04	―	1.59%	11.33%	-21.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3358	57 Neutral	¥3.48B	50.30	―	―	3.85%	-59.79%
3370	56 Neutral	¥1.83B	16.42	―	0.60%	4.19%	87.44%
3067	51 Neutral	¥4.11B	64.71	―	―	-2.70%	98.30%
2762	46 Neutral	¥3.94B	-4.47	―	―	3.26%	4.62%