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

• Market Cap: ¥224.15B
• Dividend Yield: 1.24%
• Average Volume (3M): 88.52K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.86
• Revenue Growth: 8.80%
• EPS Growth: 33.39%
• Country: JP
• Employees: 930
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 107.05
• Shares Outstanding: 35,511,000
• 10 Day Avg. Volume: 99,450
• 30 Day Avg. Volume: 88,523
• PEG Ratio: 0.27
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 27.72
• 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: 76 Outperform
• Price Target: ¥7,205.00 ▲(12.75% Upside)

Fuso Chemical Co., Ltd. scores well due to its strong financial performance and positive technical indicators. The company's solid financial foundation and upward price trend are significant strengths. The valuation is reasonable, supporting the stock's overall attractiveness. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong demand across key sectors like electronics and automotive, supporting long-term expansion.

Financial Health

Low leverage enhances financial stability, providing flexibility for strategic investments and weathering economic downturns.

Cash Flow Generation

Strong cash generation relative to net income supports reinvestment in R&D and capital projects, driving future growth.

Negative Factors

Cash Flow to Net Income Ratio

Low free cash flow to net income ratio may indicate high capital expenditures, potentially limiting cash available for other uses.

Reinvestment Needs

High reinvestment needs could strain cash reserves and impact the ability to fund new projects or return capital to shareholders.

Cash Flow to Net Income Ratio

Improving this ratio is crucial for ensuring sufficient liquidity and maintaining financial health in the long term.

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

Company Description

Fuso Chemical Co., Ltd. (4368) is a Japan-based company primarily engaged in the manufacturing and distribution of specialty chemicals. The company operates across various sectors, including electronics, automotive, and pharmaceuticals, providing innovative solutions and high-performance materials. Fuso Chemical's core products include chemical intermediates, electronic materials, and fine chemicals, catering to a diverse range of industries and applications.

How the Company Makes Money

Fuso Chemical generates revenue through the sale of its specialty chemicals and materials to various industries. The company's revenue model is built around multiple key revenue streams, including direct sales to manufacturers in the electronics and automotive sectors, as well as partnerships with pharmaceutical companies for the supply of fine chemicals. Additionally, Fuso Chemical benefits from long-term contracts and collaborations with key clients, which provide stable income and foster customer loyalty. The company also invests in research and development to innovate and expand its product offerings, which helps in capturing new market opportunities and driving growth.

Fuso Chemical Co., Ltd. Financial Statement Overview

Summary

Fuso Chemical Co., Ltd. shows strong profitability with healthy margins and a robust balance sheet. However, declining free cash flow is a concern, which could impact future investments.

Income Statement

Fuso Chemical Co., Ltd. demonstrates strong profitability with a consistent gross profit margin around 37% and a net profit margin of approximately 16.7% in the TTM. The company has shown positive revenue growth, albeit modest, indicating a stable growth trajectory. EBIT and EBITDA margins are healthy, reflecting efficient operations and cost management.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.19, indicating low leverage and financial stability. Return on equity is solid at 11.5%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a well-capitalized company with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, which is a concern. However, the operating cash flow to net income ratio is above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is low, suggesting limited free cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.45B	69.50B	58.97B	68.46B	55.76B	42.21B
Gross Profit	27.89B	25.97B	20.57B	28.41B	23.08B	16.35B
EBITDA	26.60B	24.71B	19.29B	24.42B	19.49B	14.66B
Net Income	12.89B	11.62B	8.34B	14.13B	10.89B	6.81B
Balance Sheet
Total Assets	144.45B	141.50B	133.74B	113.53B	92.01B	76.03B
Cash, Cash Equivalents and Short-Term Investments	33.46B	31.30B	31.47B	23.41B	24.36B	25.71B
Total Debt	18.90B	20.00B	20.00B	24.82M	19.77M	21.87M
Total Liabilities	34.66B	37.45B	38.72B	26.03B	16.71B	9.86B
Stockholders Equity	109.79B	104.05B	95.03B	87.50B	75.30B	66.17B
Cash Flow
Free Cash Flow	7.21B	4.38B	-10.52B	291.18M	577.39M	10.61B
Operating Cash Flow	19.73B	22.73B	7.06B	13.93B	10.20B	12.82B
Investing Cash Flow	-14.59B	-20.57B	-18.58B	-13.42B	-9.38B	-2.62B
Financing Cash Flow	-3.69B	-2.41B	17.66B	-2.12B	-2.88B	-1.64B

Fuso Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6390.00
• 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:4368, the sentiment is Positive. The current price of 6390 is above the 20-day moving average (MA) of 6299.50, above the 50-day MA of 5695.10, and above the 200-day MA of 4373.83, indicating a bullish trend. The MACD of 227.15 indicates Positive momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.01 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	76 Outperform	¥224.15B	17.39	―	1.24%	8.80%	33.39%
4041	74 Outperform	¥200.18B	12.74	―	4.20%	1.69%	0.94%
4045	74 Outperform	¥181.30B	19.02	4.41%	3.86%	-1.50%	-32.46%
4272	73 Outperform	¥266.66B	11.54	8.79%	4.02%	6.60%	503.36%
4061	64 Neutral	¥228.93B	-19.45	-4.00%	3.80%	0.24%	-234.36%
4189	64 Neutral	¥92.67B	10.03	―	3.92%	2.61%	30.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Fuso Chemical Co., Ltd. Corporate Events

Fuso Chemical Co., Ltd. Increases Dividend Forecasts for FY3/2026

Fuso Chemical Co., Ltd. has announced an increase in its interim and year-end dividend forecasts for the fiscal year ending March 2026. The decision, made during a Board of Directors meeting, reflects the company’s revised earnings forecasts and commitment to progressive dividends, resulting in an annual dividend forecast of ¥82 per share, up from the previous forecast of ¥76.

Fuso Chemical Co., Ltd. Revises Earnings Forecasts Upward Amid Strong Semiconductor Market Performance

Fuso Chemical Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 2026, citing strong sales of colloidal silica in the semiconductor market and favorable foreign exchange conditions. The company has reported higher-than-expected profits and sales, driven by increased demand in the semiconductor industry and advantageous currency fluctuations, leading to an upward revision of its full-year earnings forecasts.

Fuso Chemical Reports Strong Financial Growth and Dividend Increase

Fuso Chemical Co., Ltd. reported a notable increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 8.5% and operating profit by 19.7% compared to the previous year. The company also announced a revision in its cash dividend forecast, indicating a positive outlook for stakeholders.

Fuso Chemical Announces Strategic Personnel Changes

Fuso Chemical Co., Ltd. announced several personnel changes effective October 1, 2025, aimed at strengthening its production and business planning divisions. These changes include new department manager appointments in key areas such as electronic materials quality assurance and production engineering management, which are expected to enhance the company’s operational efficiency and strategic positioning in the chemical industry.