Fujikura Kasei Co., Ltd. (4620) AI Stock Analysis

• Market Cap: ¥18.37B
• Dividend Yield: 2.94%
• Average Volume (3M): 72.35K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.73
• Revenue Growth: -3.46%
• EPS Growth: -52.24%
• Country: JP
• Employees: 1,236
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 12.69
• Shares Outstanding: 30,850,000
• 10 Day Avg. Volume: 64,810
• 30 Day Avg. Volume: 72,346
• PEG Ratio: -0.59
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 7.80
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥643.00 ▲(5.24% Upside)

Fujikura Kasei Co., Ltd. demonstrates a stable financial position with strong equity and cash flow generation, which is a significant strength. Technical indicators suggest a neutral to slightly bullish outlook, while valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Cash Flow Generation

Strong cash flow generation supports the company's ability to fund operations, invest in R&D, and return value to shareholders, ensuring long-term sustainability.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and adapt to customer needs, which is crucial for maintaining competitive advantage.

Negative Factors

Low Profit Margins

Low profit margins indicate challenges in cost management and pricing power, which can limit the company's ability to reinvest in growth and improve shareholder returns.

Decline in Net Income

Decreasing net income may signal operational inefficiencies or increased competition, potentially impacting the company's long-term financial health and strategic initiatives.

Low Return on Equity

A low ROE suggests the company is not effectively utilizing its equity base to generate profits, which can deter investors seeking higher returns and impact future capital raising efforts.

Fujikura Kasei Co., Ltd. Business Overview & Revenue Model

Company Description

Fujikura Kasei Co., Ltd. manufactures and sells specialty chemical products in Japan and internationally. It provides plastic coatings for use in automotive interior and exterior products, automotive electronics, cosmetic containers, household appliances, mobile terminals, and automotive electronics components; and film paintings for use in agriculture, optic, and other industries, as well as paintings for hobby fields. The company also offers architectural coatings for use in detached housing exterior finishing materials; polymers and resins for use in adhesives, printer toners, molding materials, stationery materials, electronic component materials, and others; medical materials for in-vitro diagnostic pharmaceutical and research reagents fields; and synthetic resins. In addition, it provides electronic materials, such as adhesives for welding and soldering; wiring for printed circuit boards, electrodes, and contact materials; paste materials for flexible base materials; conductive and insulation paste materials for touch panels; and electromagnetic wave shields. The company was formerly known as Fujikura Kagaku Mfg. Co., Ltd. and changed its name to Fujikura Kasei Co., Ltd. in December 1958. Fujikura Kasei Co., Ltd. was founded in 1938 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fujikura Kasei Co., Ltd. generates revenue through the manufacture and sale of its specialized chemical and polymer products. The company's primary revenue streams include the production of industrial materials used in automotive and electronic applications, as well as consumer products that leverage advanced polymer technology. The company benefits from long-term contracts with key clients in various industries, which provide stable income. Additionally, Fujikura Kasei invests in research and development to create innovative products, enhancing its market position and driving sales growth. Strategic partnerships with other companies in technology and manufacturing further contribute to its earnings by expanding its market reach and product offerings.

Fujikura Kasei Co., Ltd. Financial Statement Overview

Summary

Fujikura Kasei Co., Ltd. shows a stable financial position with strong equity and cash flow generation capability. The income statement reflects moderate growth but highlights challenges in enhancing profitability and operational efficiency. The balance sheet is a strong point, showcasing low leverage and a healthy capital structure, while cash flow management indicates resilience despite fluctuations in profitability.

Income Statement

Fujikura Kasei Co., Ltd. demonstrated a moderate financial performance in the TTM. The company displayed a gross profit margin of 27.8% and a net profit margin of 0.9%. Revenue growth was consistent with a 5.5% increase compared to the previous year. However, a decline in net income over the years suggests challenges in maintaining profitability. The EBIT margin was 2.4%, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Fujikura Kasei Co., Ltd. reflects strong equity with a debt-to-equity ratio of 0.07, suggesting low leverage and financial stability. The equity ratio stands at 69.2%, indicating a solid capital structure. The return on equity (ROE) was relatively low at 1.2%, pointing to challenges in generating returns for shareholders despite a robust equity base.

Cash Flow

The cash flow situation is stable, with a free cash flow growth rate of 31.6% in the latest period. The operating cash flow to net income ratio was 6.4, showing strong cash generation relative to net income. However, the free cash flow to net income ratio of 3.9 reflects some volatility in cash flow generation over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.70B	55.53B	52.61B	50.84B	48.21B	49.50B
Gross Profit	16.06B	15.43B	15.40B	14.12B	14.19B	13.64B
EBITDA	2.52B	3.06B	3.70B	2.11B	2.97B	3.38B
Net Income	614.46M	510.81M	1.07B	9.90M	741.10M	1.22B
Balance Sheet
Total Assets	59.11B	59.05B	57.61B	54.91B	52.76B	53.80B
Cash, Cash Equivalents and Short-Term Investments	13.48B	13.93B	12.34B	12.21B	13.53B	12.73B
Total Debt	3.13B	2.95B	3.36B	3.63B	3.18B	3.20B
Total Liabilities	16.05B	15.85B	16.03B	15.31B	14.24B	17.29B
Stockholders Equity	40.84B	40.89B	39.26B	36.66B	35.79B	33.87B
Cash Flow
Free Cash Flow	0.00	1.98B	1.50B	-758.81M	1.27B	358.29M
Operating Cash Flow	0.00	3.28B	3.28B	951.64M	2.58B	1.59B
Investing Cash Flow	0.00	-1.53B	-1.23B	-1.18B	-811.51M	-1.08B
Financing Cash Flow	0.00	-1.92B	-2.30B	-1.24B	-922.64M	-381.86M

Fujikura Kasei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 611.00
• 50DMA: Negative
• 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:4620, the sentiment is Positive. The current price of 611 is below the 20-day moving average (MA) of 615.60, below the 50-day MA of 614.06, and above the 200-day MA of 544.71, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 38.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4620.

Fujikura Kasei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4628	74 Outperform	¥158.75B	12.31	6.87%	1.15%	2.88%	16.60%
4611	74 Outperform	¥36.91B	4.57	―	3.76%	14.83%	51.42%
4626	73 Outperform	¥571.65B	43.76	―	3.18%	11.78%	8.98%
4623	72 Outperform	¥6.50B	10.40	―	3.50%	-8.27%	-3.23%
4635	69 Neutral	¥19.41B	11.58	―	3.51%	8.85%	110.05%
4620	64 Neutral	¥18.37B	27.73	―	2.94%	-3.46%	-52.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%