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): 15.5
• 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: 57 Neutral
• Price Target: ¥551.00 ▲(25.23% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is held back primarily by high leverage and weak free cash flow despite solid revenue growth and strong gross margins. Technicals are supportive with price above key moving averages, but overbought momentum signals raise near-term risk. Valuation is reasonable (P/E 13.43), while the low dividend yield offers limited support.

Positive Factors

High Gross Margin

A 59.1% gross margin signals strong unit economics and likely pricing power in its restaurant operations. That margin provides a durable buffer against cost inflation for ingredients and labor, enabling sustained contribution to covering fixed costs and funding reinvestment if SG&A remains controlled.

Consistent Revenue Growth

Steady top-line growth near 5-6% indicates persistent customer demand and successful sales expansion over time. This durable revenue trajectory supports economies of scale, potential network effects in restaurant footprint, and provides a platform for margin recovery and long-term investment planning.

Strong Return on Equity

A 40.6% ROE shows management has historically generated high returns on shareholder capital, reflecting operational effectiveness or capital-light expansion strategies. Over the medium term this indicates efficient allocation of equity and potential for attractive shareholder returns if profitability and capital structure remain stable.

Negative Factors

Very High Leverage

An 8.66 debt-to-equity ratio represents material financial leverage that reduces flexibility and raises refinancing and interest-rate sensitivity. Over months, high leverage can constrain capital investments, elevate default risk in downturns, and force strategic trade-offs between growth, dividends, and deleveraging.

Negative Free Cash Flow Growth

Persistent negative free cash flow growth and an OCF-to-net-income ratio of 0.29 signal weak cash conversion. This undermines the firm's ability to self-fund capex, pay down debt, or build cash reserves, increasing reliance on external financing and heightening vulnerability to tighter credit conditions.

Thin Net Profit Margin

A net margin under 2% despite strong gross margins indicates elevated operating, interest, or other expenses that erode profits. Structurally low bottom-line margins limit retained earnings for reinvestment, make earnings volatile to cost shocks, and weaken the company's capacity to build sustained equity over time.

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

Mixed fundamentals: revenue growth is positive (5.9%) and gross margin is strong (59.1%), but profitability is thin (net margin 1.98%), leverage is very high (debt-to-equity 8.66), and cash conversion is weak with negative free cash flow growth.

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: Neutral

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 465.20, above the 50-day MA of 395.10, and above the 200-day MA of 370.23, indicating a bullish trend. The MACD of 33.56 indicates Negative momentum. The RSI at 76.22 is Negative, neither overbought nor oversold. The STOCH value of 74.88 is Neutral, 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	10.27	―	―	6.16%	86.76%
138A	67 Neutral	¥2.87B	27.71	―	1.59%	11.33%	-21.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3370	57 Neutral	¥1.83B	15.53	―	0.60%	4.19%	87.44%
3358	57 Neutral	¥3.48B	49.80	―	―	3.85%	-59.79%
3067	51 Neutral	¥4.11B	64.85	―	―	-2.70%	98.30%
2762	46 Neutral	¥3.94B	-4.43	―	―	3.26%	4.62%