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

• Market Cap: ¥1.88B
• Dividend Yield: 0.6%
• Average Volume (3M): 55.34K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.56
• 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: ¥526.00 ▲(19.55% 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

Consistent revenue growth near 6% shows continued demand and market traction for core offerings. Over a 2-6 month horizon this revenue momentum supports scale benefits, provides a foundation for margin improvement, and reduces execution risk for medium-term initiatives.

Gross Margin Strength

A 59.1% gross margin indicates the company retains a large share of revenue after direct costs, reflecting structural operational efficiency or pricing power in core operations. This high gross margin provides a durable buffer against cost inflation if overheads are controlled.

High Return on Equity

ROE of 40.6% shows management converts the equity base into significant returns, implying effective capital allocation and operational leverage. Over months this indicates the business can generate attractive returns on limited equity, supporting reinvestment or strategic options.

Negative Factors

Very High Leverage

Extremely high debt-to-equity (8.66) creates persistent financial risk: higher interest burden, refinancing exposure, and constrained strategic flexibility. Over 2-6 months rising rates or revenue shocks would materially pressure cash flow and solvency metrics.

Weak Cash Conversion

An OCF-to-net-income of 0.29 and negative free cash flow growth show profits are not translating into available cash. This durable weakness limits the firm's ability to service debt, fund capex, or return capital without external funding, raising financing and liquidity risk.

Thin Net Profitability

Despite strong gross margins, a net margin under 2% means operating and financing costs substantially erode earnings. Structurally low net profitability reduces the company's capacity to build reserves, invest in growth, or absorb adverse shocks over the medium term.

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.

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	2.70B	2.93B	3.11B
Cash, Cash Equivalents and Short-Term Investments	391.81M	365.42M	514.86M	597.50M	510.14M	555.62M
Total Debt	2.14B	2.07B	2.19B	2.13B	2.46B	2.47B
Total Liabilities	2.60B	2.56B	2.71B	2.61B	2.93B	3.06B
Stockholders Equity	226.33M	238.51M	139.36M	85.23M	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: Positive
• RSI: Neutral
• 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 532.40, below the 50-day MA of 461.88, and above the 200-day MA of 389.42, indicating a bullish trend. The MACD of 15.19 indicates Positive momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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	¥3.78B	11.39	―	―	6.16%	86.76%
138A	67 Neutral	¥2.88B	25.95	―	1.59%	11.33%	-21.04%
3358	63 Neutral	¥4.26B	12.53	―	―	3.85%	-59.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3370	56 Neutral	¥1.88B	7.09	―	0.60%	4.19%	87.44%
3067	51 Neutral	¥4.19B	6.85	―	―	-2.70%	98.30%
2762	46 Neutral	¥3.90B	-7.98	―	―	3.26%	4.62%