F&M Co., Ltd. (4771) AI Stock Analysis

• Market Cap: ¥35.53B
• Dividend Yield: 1.72%
• Average Volume (3M): 20.83K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.30
• Revenue Growth: 23.94%
• EPS Growth: 47.11%
• Country: JP
• Employees: 834
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 75.74
• Shares Outstanding: 15,714,400
• 10 Day Avg. Volume: 22,400
• 30 Day Avg. Volume: 20,833
• PEG Ratio: 1.39
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 8.43
• 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: 70 Outperform
• Price Target: ¥2,630.00 ▲(10.00% Upside)

The score is driven primarily by strong financial quality (steady growth, high margins, and a near-zero-debt balance sheet). This is tempered by weak technicals (price below key moving averages and negative MACD) and only moderate valuation support (P/E ~17.3 with a ~1.7% dividend yield).

Positive Factors

Revenue Growth

Consistent revenue growth over multiple years indicates strong market demand and effective business strategies, supporting long-term stability.

Margin Sustainability

High and stable margins reflect efficient operations and pricing power, which are crucial for sustaining profitability in the long term.

Balance Sheet Health

A near-zero-debt balance sheet enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities.

Negative Factors

Net Margin Volatility

Fluctuating net margins suggest potential cost pressures or unfavorable sales mix, which could impact profitability consistency.

Free Cash Flow Variability

Inconsistent free cash flow generation can limit the company's ability to fund operations and growth initiatives without external financing.

Net Margin Cooling

Cooling net margins despite revenue growth may indicate rising costs or competitive pressures, affecting future profit potential.

F&M Co., Ltd. Business Overview & Revenue Model

Company Description

F&M Co.,Ltd. provides management support and accounting services for medium and small businesses, and individual business owners. It operates through Accounting Service Business, Consulting Business, Business Solution Business, and Real Estate Leasing Business segments. The company offers consulting services, such as financial situation analysis, risk hedging, human resource development, and others; information and practical support, such as subsidy application and business enhancement planning support projects for accounting firms; social insurance labor support services; ISO/P mark certification acquisition services; and a support program that reduces the period, cost, and human load. In addition, it operates a computer classroom for seniors. The company was formerly known as The Flower Co. and changed its name to F&M Co.,Ltd. in December 1993. F&M Co.,Ltd. was incorporated in 1990 and is headquartered in Osaka, Japan.

How the Company Makes Money

F&M Co., Ltd. generates revenue through its diverse portfolio of consulting and outsourcing services, which cater to the specific needs of SMEs. The company charges fees for its accounting and tax services, helping businesses with financial management and regulatory compliance. Additionally, F&M Co., Ltd. provides human resources consulting, assisting companies in optimizing their workforce management. The company may also engage in strategic partnerships with other firms to expand its service offerings and client base, thereby increasing its revenue potential.

F&M Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth (2020–2025) and consistently high gross margins (~66–71%) with solid EBIT margins (mid-teens to ~21%). Balance sheet is exceptionally conservative with effectively zero debt and growing equity. Main offsets are net margin cooling since 2023 and uneven free-cash-flow conversion (notably weak in 2024 despite a rebound in 2025).

Income Statement

Revenue has grown steadily from 2020–2025, with a stronger step-up in 2022 and continued growth in 2025. Profitability is consistently high for the industry: gross margin remains ~66–71% and operating profitability is solid (EBIT margin mostly mid-teens to ~21%). The main weakness is net margin volatility—peaking in 2022–2023 (~14–15%) and moderating to ~10–11% in 2024–2025—suggesting higher costs or mix effects despite higher sales.

Balance Sheet

The balance sheet is very conservative: total debt is effectively zero from 2022–2025 (and minimal in 2020–2021), resulting in near-zero leverage. Equity has grown materially over time alongside asset growth, supporting financial flexibility. Returns on equity are healthy (roughly low-to-high teens), though they have eased from the 2023 peak, indicating profitability is still strong but not accelerating.

Cash Flow

Operating cash flow is consistently positive and has expanded meaningfully over time, with cash generation generally tracking earnings well (operating cash flow to net income near ~1.0 in 2021–2025). Free cash flow is positive in most years and surged in 2025, but it has been uneven—negative in 2020 and comparatively weak in 2024 (free cash flow covered only a fraction of net income). This variability suggests periodic working-capital or investment swings that can affect near-term cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.65B	17.07B	14.86B	12.70B	10.88B	8.16B
Gross Profit	11.97B	11.59B	9.79B	8.69B	7.35B	5.60B
EBITDA	4.41B	4.37B	3.42B	3.59B	3.01B	1.76B
Net Income	1.85B	1.81B	1.61B	1.88B	1.55B	843.43M
Balance Sheet
Total Assets	16.66B	17.31B	15.20B	13.53B	12.05B	9.74B
Cash, Cash Equivalents and Short-Term Investments	4.87B	5.93B	5.32B	4.91B	4.39B	3.51B
Total Debt	0.00	0.00	0.00	0.00	0.00	24.86M
Total Liabilities	3.47B	4.09B	3.58B	2.97B	2.91B	1.76B
Stockholders Equity	13.20B	13.21B	11.62B	10.57B	9.14B	7.98B
Cash Flow
Free Cash Flow	0.00	3.55B	1.05B	1.19B	1.30B	506.04M
Operating Cash Flow	0.00	3.74B	3.26B	2.99B	2.88B	1.71B
Investing Cash Flow	0.00	-2.91B	-2.42B	-1.90B	-1.70B	-1.31B
Financing Cash Flow	0.00	-225.13M	-524.98M	-467.96M	-397.40M	-421.60M

F&M Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2391.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4771, the sentiment is Positive. The current price of 2391 is above the 20-day moving average (MA) of 2372.70, below the 50-day MA of 2403.42, and below the 200-day MA of 2525.62, indicating a neutral trend. The MACD of -5.68 indicates Negative momentum. The RSI at 61.52 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4771.

F&M Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4658	79 Outperform	¥51.25B	15.09	―	3.33%	9.63%	11.40%
2498	77 Outperform	¥39.44B	10.27	―	3.79%	10.53%	49.66%
9368	74 Outperform	¥43.04B	10.48	―	3.83%	-1.58%	5.54%
4809	72 Outperform	¥20.52B	10.01	―	3.27%	7.63%	11.84%
4771	70 Outperform	¥35.53B	15.36	―	1.72%	23.94%	47.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4376	46 Neutral	¥9.54B	-4.00	―	―	-9.23%	-882.64%