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

• Market Cap: ¥166.35B
• Dividend Yield: 1.5%
• Average Volume (3M): 90.81K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.84
• Revenue Growth: 12.70%
• EPS Growth: 34.96%
• Country: JP
• Employees: 930
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 88.07
• Shares Outstanding: 35,511,000
• 10 Day Avg. Volume: 94,030
• 30 Day Avg. Volume: 90,813
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,239.00
• Price Target Upside: 11.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥5,239.00 ▲(11.00% Upside)

Fuso Chemical Co., Ltd. has a strong financial foundation with robust profitability and a stable balance sheet, which are the most significant factors in its score. The technical analysis suggests bullish momentum, though caution is advised due to potential overbought conditions. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

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

Company Description

Fuso Chemical Co.,Ltd. manufactures and sells life science, electronic material, and functional chemical products worldwide. Its life science products include malic acid and derivatives, citric acid and derivatives, L-tartaric acid and derivatives, lactic acid and derivatives, gluconic acid and derivatives, other acid derivatives, ascorbic and isoascorbic acids, and amino acid and derivatives, as well as water soluble rust proof agents/water soluble grinding and cutting fluids. The company's electronic material products comprise ultra-high purity colloidal silica and high purity organo silica sol; and functional chemical products that consist of oxidation and reduction products, as well as benzoic acid derivatives. It also exports its products. Fuso Chemical Co.,Ltd. was founded in 1952 and is headquartered in Osaka, Japan.

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. shows strong profitability and a stable balance sheet with a low debt-to-equity ratio. However, the declining free cash flow is a concern, potentially impacting future investments or debt repayments.

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	70.73B	69.50B	58.97B	68.46B	55.76B	42.21B
Gross Profit	26.94B	25.97B	20.57B	28.41B	23.08B	16.35B
EBITDA	24.56B	24.71B	19.29B	24.42B	19.49B	14.66B
Net Income	11.84B	11.62B	8.34B	14.13B	10.89B	6.81B
Balance Sheet
Total Assets	137.15B	141.50B	133.74B	113.53B	92.01B	76.03B
Cash, Cash Equivalents and Short-Term Investments	27.87B	31.30B	31.47B	23.41B	24.36B	25.71B
Total Debt	19.90B	20.00B	20.00B	24.82M	19.77M	21.87M
Total Liabilities	31.71B	37.45B	38.72B	26.03B	16.71B	9.86B
Stockholders Equity	105.45B	104.05B	95.03B	87.50B	75.30B	66.17B
Cash Flow
Free Cash Flow	819.26M	4.38B	-10.52B	291.18M	577.39M	10.61B
Operating Cash Flow	20.16B	22.73B	7.06B	13.93B	10.20B	12.82B
Investing Cash Flow	-21.45B	-20.57B	-18.58B	-13.42B	-9.38B	-2.62B
Financing Cash Flow	-2.69B	-2.41B	17.66B	-2.12B	-2.88B	-1.64B

Fuso Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4720.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4720 is above the 20-day moving average (MA) of 4636.50, above the 50-day MA of 4312.70, and above the 200-day MA of 3686.73, indicating a bullish trend. The MACD of 111.57 indicates Positive momentum. The RSI at 75.71 is Negative, neither overbought nor oversold. The STOCH value of 70.64 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	72 Outperform	¥166.35B	14.05		1.50%	12.70%	34.96%
Sector *	62 Neutral	$10.36B	6.35	0.80%	2.84%	3.10%	-36.03%
DIK	―	€1.18B	14.99	-3.41%	―	―	―
NP7	―	€1.32B	11.75	7.16%	―	―	―
TOAGF	―	$1.17B	16.24	5.09%	6.26%	―	―
4041	78 Outperform	¥194.88B	13.84		2.29%	3.26%	-13.75%
4189	77 Outperform	¥104.99B	11.57		3.45%	8.18%	28.35%

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.