Furubayashi Shiko Co., Ltd. (3944) AI Stock Analysis

• Market Cap: ¥2.88B
• Dividend Yield: 2.09%
• Average Volume (3M): 776.00
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.26
• Revenue Growth: 2.37%
• EPS Growth: 98.09%
• Country: JP
• Employees: 548
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 10.50
• Shares Outstanding: 1,776,820
• 10 Day Avg. Volume: 640
• 30 Day Avg. Volume: 776
• PEG Ratio: -0.19
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -2.69
• 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: 73 Outperform
• Price Target: ¥2,913.00 ▲(23.96% Upside)

The overall stock score is driven by strong technical indicators and attractive valuation, suggesting potential upside. However, financial performance is a concern due to profitability challenges and cash flow issues, which could impact future growth.

Positive Factors

Balance sheet stability and manageable leverage

A stable equity base and manageable debt-to-equity ratio provide enduring financial flexibility for a distributor. This supports procurement commitments, working capital needs, and resilience to supply-chain volatility, enabling the company to service operations without immediate refinancing risk.

Consistent, moderate revenue growth

Sustained modest top-line growth indicates ongoing demand for the company's sourcing and distribution services in the electronics supply chain. This steady revenue trend supports recurring cash generation and underpins customer relationships and inventory turnover over the medium term.

Positive operating margins (EBIT/EBITDA)

Maintaining positive EBIT and EBITDA margins shows the business can generate operating profit despite margin pressures. Persisting operating profitability supports reinvestment, debt service and strategic initiatives, and signals underlying commercial viability in distribution operations.

Negative Factors

Negative free cash flow and deteriorating OCF

Negative free cash flow and falling operating cash flow limit the firm’s ability to self-fund working capital and capex. Over months this forces reliance on external financing, constrains capital allocation, and increases vulnerability to interest rate or liquidity shocks.

Declining gross and net profit margins

Eroding gross and net margins imply reduced pricing power or rising input costs for the distributor. Persistently lower margins compress cash generation and return on capital, making it harder to invest in higher-value services or withstand prolonged industry cost pressures.

Rising total debt risk

An uptick in debt levels, combined with weak cash conversion, raises leverage risk over time. Higher debt burdens increase interest expense and reduce strategic flexibility, heightening refinancing and liquidity risks if operating performance does not improve.

Furubayashi Shiko Co., Ltd. Business Overview & Revenue Model

Company Description

Furubayashi Shiko Co.,Ltd. plans, designs, manufactures, and sells packaging products in Japan and internationally. The company offers gift boxes for gifts, special moisture-proof papers, paper tubes, carry cartons, decorative cardboard boxes, bag-in-cartons, system cartons, etc., as well as printed paper for packing food, beverages, confectionery, medicines, soaps, detergents, cosmetics, miscellaneous goods, electronics, and agricultural products. It also provides packaging materials through cellophane, resin film, metal foil, laminate film, etc. for liquids, solids, powders, etc., as well as bags, standing pouches, labels, etc. In addition, the company offers laminations comprising paperboards, papers, resin films, metal foils, and barrier coatings; molded containers, which include synthetic resin containers, synthetic resins, and paperboards; and commercial printed matter, such as leaflets, catalogs, posters, POP, storefront displays, etc. Further, it provides filling, packaging, and multi-pack packaging machineries; labeling systems and labelers; vertical/horizontal cartoning and integrated packaging machines; and rationalization and engineering services, as well as contract packaging services for confectionery, food, cosmetics, miscellaneous goods, etc. Furubayashi Shiko Co.,Ltd. was founded in 1934 and is headquartered in Osaka, Japan.

How the Company Makes Money

Furubayashi Shiko Co., Ltd. generates revenue primarily through the sale of its paper products, which cater to both domestic and international markets. Key revenue streams include the production of specialty printing paper used in high-quality publications, as well as packaging solutions that meet the needs of various clients across different sectors. The company also capitalizes on partnerships with distributors and manufacturers, enhancing its market reach and ensuring a steady flow of orders. Additionally, the growing trend towards eco-friendly products has allowed Furubayashi Shiko to tap into niche markets focused on sustainable materials, further diversifying its revenue sources.

Furubayashi Shiko Co., Ltd. Financial Statement Overview

Summary

Furubayashi Shiko Co., Ltd. shows moderate revenue growth but faces profitability challenges with declining profit margins. The balance sheet is stable, though rising debt levels may require careful management. Cash flow issues are notable, with negative free cash flow indicating liquidity constraints.

Income Statement

The company shows modest revenue growth with an increase from the previous year, although gross profit has decreased, leading to a lower gross profit margin. The net profit margin also declined due to a significant drop in net income. EBIT and EBITDA margins remain positive but have seen a reduction, indicating pressure on operational profitability.

Balance Sheet

The balance sheet reflects a stable equity position with an increase in stockholders' equity. The debt-to-equity ratio remains manageable, suggesting a balanced leverage approach. However, a slight increase in total debt could pose future risks if not controlled.

Cash Flow

The cash flow situation is concerning due to negative free cash flow, which has deteriorated further from the previous year. Operating cash flow has decreased, impacting the company's ability to self-fund its operations. The free cash flow to net income ratio indicates challenges in converting profits into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.88B	18.10B	17.91B	17.06B	16.15B	16.80B
Gross Profit	2.90B	2.66B	2.96B	2.68B	2.41B	2.81B
EBITDA	1.21B	1.10B	1.16B	957.28M	646.52M	504.64M
Net Income	359.00M	248.32M	439.29M	330.70M	135.97M	11.74M
Balance Sheet
Total Assets	19.45B	20.65B	19.01B	17.01B	17.01B	17.51B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.08B	1.91B	1.61B	1.23B	1.24B
Total Debt	2.95B	3.64B	2.77B	2.16B	2.96B	2.64B
Total Liabilities	9.15B	10.41B	9.57B	8.44B	8.58B	8.65B
Stockholders Equity	9.49B	9.38B	8.67B	7.89B	7.78B	8.24B
Cash Flow
Free Cash Flow	0.00	-766.94M	-274.26M	1.20B	-266.55M	-69.75M
Operating Cash Flow	0.00	392.75M	655.84M	1.51B	259.47M	581.56M
Investing Cash Flow	0.00	-1.02B	-919.52M	-283.92M	-507.53M	-368.51M
Financing Cash Flow	0.00	608.61M	523.73M	-858.59M	202.87M	-143.14M

Furubayashi Shiko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2350.00
• 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:3944, the sentiment is Positive. The current price of 2350 is below the 20-day moving average (MA) of 2443.15, below the 50-day MA of 2378.56, and above the 200-day MA of 2168.37, indicating a bullish trend. The MACD of 73.88 indicates Negative momentum. The RSI at 73.12 is Negative, neither overbought nor oversold. The STOCH value of 80.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3944.

Furubayashi Shiko Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3947	80 Outperform	¥24.66B	8.31	―	2.92%	8.54%	5.27%
3943	78 Outperform	¥12.10B	13.98	―	4.54%	4.38%	-12.68%
3954	76 Outperform	¥14.61B	12.11	―	1.20%	6.42%	-6.32%
3944	73 Outperform	¥2.88B	8.22	―	2.09%	2.37%	98.09%
3951	70 Outperform	¥19.26B	13.77	―	4.39%	5.06%	-15.22%
3953	63 Neutral	¥2.83B	-30.32	―	6.31%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%