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

• Market Cap: ¥307.68B
• Dividend Yield: 1.23%
• Average Volume (3M): 88.52K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.87
• Revenue Growth: 8.80%
• EPS Growth: 33.39%
• Country: JP
• Employees: 930
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 108.02
• 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): 367.57
• Revenue Forecast (FY): ¥76.83B

• Rating: 79 Outperform
• Price Target: ¥9,996.00 ▲(56.43% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven primarily by strong fundamentals—high margins, improving profitability, and a low-leverage balance sheet—supported by a bullish technical uptrend. These positives are tempered by only moderate valuation (P/E ~20.8 and ~1.0% yield) and historically volatile cash flow/revenue momentum.

Positive Factors

High profitability

Sustained, above-average margins indicate durable pricing power and favourable product mix in specialty and electronic/functional materials. High margins support reinvestment, cushion earnings through cycles, and enable consistent return on capital, strengthening long-term earnings quality.

Conservative balance sheet

Very low leverage and a large equity base provide financial flexibility to fund capex or weather downturns without forced refinancing. This conservatism reduces solvency risk and preserves strategic optionality for investments or partnerships over the next several quarters.

Strong trailing cash generation

Robust TTM operating and free cash flow (FCF ~83% of net income) shows the business can convert profits into cash for dividends, debt paydown, or targeted investment. Consistent cash conversion underpins sustainable returns and lowers reliance on external financing.

Negative Factors

Top-line volatility

Choppy revenue trends and a FY2024 decline signal demand sensitivity in industrial and electronics end markets. Persistent top-line volatility can impede predictable capacity utilization and hamper multi-quarter planning for R&D or capacity expansion, increasing execution risk.

Cash flow swings

Material swings in operating cash and occasional negative FCF expose the company to working-capital stress and irregular funding needs. This variability complicates capital allocation, may force reactive balance-sheet moves, and limits predictability of shareholder returns.

Step-up in absolute debt

An increase in absolute debt, despite low D/E, raises medium-term refinancing and interest exposure if cyclical pressures recur. Higher nominal debt can constrain strategic flexibility and modestly elevate financial risk during industry downturns or capex cycles.

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 primarily by manufacturing and selling specialty chemical products to corporate customers (B2B). Its main earnings driver is product sales, where it captures value through (1) formulation and process know-how for higher-value, performance-sensitive chemicals, (2) manufacturing scale and quality control required for industrial and electronics-grade specifications, and (3) recurring demand from customers that incorporate its materials into their own production lines. Revenue is typically recognized upon delivery of products under supply contracts or purchase orders; pricing is influenced by product specifications, volume, and raw-material cost pass-through mechanisms where applicable. Beyond direct product sales, any additional revenue streams (e.g., licensing, toll manufacturing, services, or material partnerships) are null due to insufficient specific public detail provided in the prompt.

Fuso Chemical Co., Ltd. Financial Statement Overview

Summary

Strong profitability (TTM gross margin ~37.7%, operating margin ~24.6%, net margin ~17.5%) and a conservatively positioned balance sheet (debt-to-equity ~0.16) support a high score. Key offsets are uneven revenue momentum historically (FY2024 decline) and volatile free cash flow, despite a strong TTM rebound (FCF ~¥18.1B; ~83% of net income).

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability with gross margin ~37.7%, operating margin ~24.6%, and net margin ~17.5%. Revenue is growing (TTM ~3.5%) and margins improved versus FY2025, indicating solid operating leverage. The main weakness is choppier top-line momentum over the last few years (FY2024 revenue decline), suggesting earnings power can be sensitive to demand/pricing cycles.

Balance Sheet

The balance sheet is conservatively positioned with low leverage (TTM debt-to-equity ~0.16) and a sizable equity base (TTM equity ~¥113B). Returns on equity are healthy (TTM ~12.2%) and improved from FY2024–FY2025, pointing to better capital efficiency. A watch-out is the noticeable step-up in absolute debt versus earlier years, even though leverage remains very manageable.

Cash Flow

Cash generation is strong in TTM (operating cash flow ~¥21.8B; free cash flow ~¥18.1B) with free cash flow rebounding sharply versus FY2025. Cash conversion is solid but not perfect, with free cash flow running at ~83% of net income in TTM. The key weakness is volatility: FY2024 saw weak operating cash flow and negative free cash flow, highlighting that working capital and/or investment spending can swing results materially.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	75.01B	69.50B	58.97B	68.46B	55.76B	42.21B
Gross Profit	28.31B	25.97B	20.57B	28.41B	23.08B	16.35B
EBITDA	28.44B	24.71B	19.29B	24.42B	20.17B	14.76B
Net Income	13.14B	11.62B	8.34B	14.13B	10.89B	6.81B
Balance Sheet
Total Assets	149.42B	141.50B	133.74B	113.53B	92.01B	76.03B
Cash, Cash Equivalents and Short-Term Investments	36.73B	31.30B	31.47B	23.41B	24.36B	25.71B
Total Debt	18.00B	20.07B	20.01B	24.82M	19.77M	21.87M
Total Liabilities	36.28B	37.45B	38.72B	26.03B	16.71B	9.86B
Stockholders Equity	113.14B	104.05B	95.03B	87.50B	75.30B	66.17B
Cash Flow
Free Cash Flow	18.12B	4.38B	-7.87B	498.10M	973.26M	11.00B
Operating Cash Flow	21.78B	22.73B	7.08B	13.93B	10.20B	12.82B
Investing Cash Flow	-8.85B	-20.57B	-18.60B	-13.42B	-9.38B	-2.62B
Financing Cash Flow	-4.80B	-2.41B	17.66B	-2.12B	-2.88B	-1.64B

Fuso Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 6390 is below the 20-day moving average (MA) of 9178.50, below the 50-day MA of 8273.60, and above the 200-day MA of 5786.94, indicating a neutral trend. The MACD of 162.64 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 61.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	¥307.68B	14.74	―	1.23%	8.80%	33.39%
4021	75 Outperform	¥824.32B	14.76	19.69%	3.15%	10.06%	18.03%
4041	74 Outperform	¥204.37B	8.69	―	4.09%	1.69%	0.94%
4114	69 Neutral	¥346.60B	10.96	―	5.28%	-0.47%	25.41%
4042	66 Neutral	¥742.38B	10.74	4.79%	4.21%	-1.21%	-27.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4061	60 Neutral	¥282.66B	36.21	-4.00%	3.71%	0.24%	-234.36%

Fuso Chemical Co., Ltd. Corporate Events

Fuso Chemical to Invest ¥40 Billion in Kyoto Plant to Boost Semiconductor Materials Output

Fuso Chemical Co., Ltd. has approved a major capital investment to expand production of ultra-high-purity colloidal silica at its Kyoto Plant, responding to sustained global growth in semiconductor demand. The company has already completed earlier expansion phases at its Kyoto and Kashima plants and plans a further price increase of 5–10 percent from the next fiscal year, reflecting tight market conditions.

The new facilities in Fukuchiyama, Kyoto will require an investment of 40 billion yen, financed with capital, and are scheduled to start operations in February 2029. Once online, the project is expected to raise the company’s production capacity for ultra-high-purity colloidal silica by about 20 percent versus fiscal 2025 levels, strengthening its supply capability to major semiconductor manufacturers without affecting results for the year ending March 31, 2026.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen10557.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Restructures Growth Strategy, Disbands Business Development Department

Fuso Chemical Co., Ltd. has announced an internal reorganization in which its Business Development Department will be discontinued, with responsibility for developing the company’s third core strategic area transferred to the Life Science Business Unit and the Electronic Materials Business Unit. The move centralizes growth strategy within operating units, suggesting a push to embed new-business development more directly into core segments.

In line with this change, Managing Director Atsushi Fujioka will relinquish his concurrent role as Department Manager of the Business Development Department while remaining Department Manager of the Corporate Planning Department. The organizational and personnel changes, approved by the Board of Directors on February 25, 2026, will take effect on April 1, 2026, signaling a streamlined structure that may enhance strategic focus and operational efficiency.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen10534.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Announces Structural Overhaul and Leadership Realignment

Fuso Chemical Co., Ltd. will restructure parts of its Life Science and Electronic Materials business units from April 1, 2026, integrating overseas subsidiaries directly under the Life Science Business Unit, creating a new Purchasing and Sales Administration Office, and reallocating order processing for electronic materials to strengthen governance and streamline its supply chain. The company will also dissolve its wholly owned subsidiary Fuso Corporation Co., Ltd., which previously transferred all operations to the parent, while renaming its IT function to clarify group-wide IT strategy, steps that collectively are designed to accelerate decision-making without affecting consolidated financial results.

Alongside the organizational overhaul, the board approved a series of top-level personnel changes, including expanding responsibilities for director Motoki Sugimoto, appointing a new external director and audit and supervisory committee member, and reassigning several executive and departmental leaders across Japan and China. These shifts realign leadership around the revamped structure, particularly in the Life Science and Electronic Materials businesses and Chinese subsidiaries, signaling a push for tighter global coordination, improved governance and more efficient business promotion in key growth areas.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen8862.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Announces Three-for-One Stock Split and Tripling of Authorized Shares

Fuso Chemical Co., Ltd. will implement a three-for-one stock split of its common shares, effective April 1, 2026, for shareholders of record on March 31, 2026, tripling the number of issued shares from 35,511,000 to 106,533,000 while leaving total shareholders’ equity unchanged and paying the year-end dividend for the fiscal year ending March 31, 2026, based on the pre-split share count. In conjunction with the split, the company will amend its Articles of Incorporation to increase its authorized share capital from 95,000,000 to 285,000,000 shares, a move aimed at lowering the per-unit investment price, making the stock more accessible, and broadening its investor base, which could improve liquidity and support its market positioning over the longer term.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen8254.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Delivers Higher Nine-Month Profits and Confirms Upgraded Dividend Payout

Fuso Chemical reported solid growth for the nine months ended 31 December 2025, with net sales rising 10.5% year-on-year to ¥57.93 billion and profit attributable to owners of parent climbing 16.6% to ¥10.69 billion, underscoring improved profitability and strengthened balance sheet metrics, including a higher equity ratio of 75.7%. The company maintained its full-year forecast for fiscal 2025, targeting ¥75.5 billion in sales and a 5.0% increase in full-year profit to ¥12.2 billion, and confirmed its plan to raise total annual dividends to ¥82 per share, signaling confidence in earnings resilience and continued shareholder returns despite moderating growth rates compared with the previous year’s sharp gains.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen8254.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.