Fuso Chemical Co., Ltd. (4368) AI Stock Analysis

• Market Cap: ¥159.48B
• Dividend Yield: 1.57%
• Average Volume (3M): 83.16K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.84
• Revenue Growth: 12.70%
• EPS Growth: 34.96%
• Country: JP
• Employees: 930
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 88.07
• Shares Outstanding: 35,511,000
• 10 Day Avg. Volume: 94,170
• 30 Day Avg. Volume: 83,160
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,685.00
• Price Target Upside: 3.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥4,685.00 ▲(3.54% Upside)

Fuso Chemical Co., Ltd. scores well due to its strong financial performance and solid technical indicators, suggesting bullish momentum. The valuation metrics also indicate potential undervaluation. However, technical indicators suggest caution as the stock may be overbought in the short term.

Fuso Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Fuso Chemical Co., Ltd. (4368) is a Japanese chemical company that specializes in the production and distribution of specialty chemicals and related products. The company operates mainly in the sectors of electronic materials, fine chemicals, and life sciences. Its core products include chemical intermediates, electronic materials, and functional materials, which are used in a variety of industries, including electronics, pharmaceuticals, and agriculture.

How the Company Makes Money

Fuso Chemical Co., Ltd. generates revenue through the sale of its chemical products to various industries. The company earns money primarily by supplying high-purity chemicals and materials used in the manufacturing of semiconductors and other electronic components. Additionally, Fuso Chemical produces fine chemicals that serve as raw materials for pharmaceuticals and agrochemicals. The company also benefits from strategic partnerships and collaborations with other firms to enhance its product offerings and reach new markets. By focusing on innovation and the development of advanced materials, Fuso Chemical is able to maintain a steady demand for its products in both domestic and international markets.

Fuso Chemical Co., Ltd. Financial Statement Overview

Summary

Fuso Chemical Co., Ltd. demonstrates strong financial health with a high revenue growth rate, solid profit margins, low leverage, and positive cash flow. The company is effectively utilizing resources and maintaining operational efficiency.

Income Statement

Fuso Chemical Co., Ltd. has demonstrated strong revenue growth, with a Revenue Growth Rate of 17.87% from 2024 to 2025. The Gross Profit Margin is robust at 37.36%, and the Net Profit Margin is healthy at 16.72%. The company also boasts a solid EBITDA Margin of 35.56% and an EBIT Margin of 23.35%, indicating efficient operations and strong profitability.

Balance Sheet

The company maintains a strong financial position with a Debt-to-Equity Ratio of 0.19, showcasing low leverage. The Equity Ratio stands at 73.53%, reflecting a high level of equity financing. Return on Equity (ROE) is impressive at 11.17%, indicating effective use of equity to generate profits.

Cash Flow

Fuso Chemical Co., Ltd. has shown significant improvement in Free Cash Flow, which turned positive to 4,375,566,000 JPY in 2025. The Operating Cash Flow to Net Income Ratio is 1.95, suggesting strong cash generation relative to earnings. The Free Cash Flow to Net Income Ratio is 0.38, indicating a healthy cash conversion from profits.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	69.50B	58.97B	68.46B	55.76B	42.21B
Gross Profit	25.97B	20.57B	28.41B	23.08B	16.35B
EBITDA	24.71B	18.24B	24.42B	19.49B	14.76B
Net Income	11.62B	8.34B	14.13B	10.89B	6.81B
Balance Sheet
Total Assets	141.50B	133.74B	113.53B	92.01B	76.03B
Cash, Cash Equivalents and Short-Term Investments	31.30B	31.47B	23.41B	24.36B	25.71B
Total Debt	20.00B	20.00B	24.82M	19.77M	21.87M
Total Liabilities	37.45B	38.72B	26.03B	16.71B	9.86B
Stockholders Equity	104.05B	95.03B	87.50B	75.30B	66.17B
Cash Flow
Free Cash Flow	4.38B	-10.52B	291.18M	577.39M	10.61B
Operating Cash Flow	22.73B	7.06B	13.93B	10.20B	12.82B
Investing Cash Flow	-20.57B	-18.58B	-13.42B	-9.38B	-2.62B
Financing Cash Flow	-2.41B	17.66B	-2.12B	-2.88B	-1.64B

Fuso Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4525.00
• 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:4368, the sentiment is Positive. The current price of 4525 is above the 20-day moving average (MA) of 4298.75, above the 50-day MA of 4033.80, and above the 200-day MA of 3603.90, indicating a bullish trend. The MACD of 138.75 indicates Negative momentum. The RSI at 78.63 is Negative, neither overbought nor oversold. The STOCH value of 59.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4368.

Fuso Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4368	78 Outperform	¥159.48B	13.47		1.57%	12.70%	34.96%
4041	78 Outperform	¥185.94B	13.20		2.40%	3.26%	-13.75%
4189	77 Outperform	¥101.43B	11.18		3.60%	8.18%	28.35%
4272	74 Outperform	€217.53B	12.16	7.16%	4.35%	8.14%	274.53%
4045	74 Outperform	¥164.86B	15.60	5.09%	4.21%	1.45%	-20.28%
Sector *	70 Outperform	¥179.96B	11.27	5.69%	3.08%	2.68%	-12.79%
4061	54 Neutral	¥190.79B	15.29	-3.41%	4.52%	0.61%	-180.24%

Fuso Chemical Co., Ltd. Corporate Events

Fuso Chemical Completes Treasury Stock Disposal for Director Compensation

Fuso Chemical Co., Ltd. has completed the allotment procedure for the disposal of treasury stock as restricted stock compensation, which was resolved at a Board of Directors meeting on July 15, 2025. This disposal involves 8,595 shares of the company’s common stock, valued at 4,000 yen per share, and is intended as compensation for the company’s directors, excluding audit, supervisory, and external board directors.

Fuso Chemical Reports Increased Sales but Faces Profit Margin Challenges

Fuso Chemical Co., Ltd. reported a 7% increase in net sales for the three months ending June 30, 2025, compared to the same period in the previous year. Despite a decrease in comprehensive income, the company showed growth in operating profit and profit attributable to owners, indicating a positive operational performance. The financial outlook for the year ending March 31, 2026, suggests a slight increase in net sales but a decrease in profits, reflecting potential challenges in maintaining profit margins.

Fuso Chemical Implements Restricted Stock Compensation Plan

Fuso Chemical Co., Ltd. has announced the disposal of treasury stock as part of a Restricted Stock Compensation Plan aimed at providing incentives for its directors to increase corporate value. This move aligns the interests of directors with shareholders and involves the allotment of 8,595 shares to seven directors, with specific conditions set for the transfer and acquisition of these shares.