Fullcast Holdings Co., Ltd. (4848) AI Stock Analysis

• Market Cap: ¥58.64B
• Dividend Yield: 3.69%
• Average Volume (3M): 47.35K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.50
• Revenue Growth: 3.47%
• EPS Growth: -0.05%
• Country: JP
• Employees: 1,178
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 35.20
• Shares Outstanding: 35,215,450
• 10 Day Avg. Volume: 47,360
• 30 Day Avg. Volume: 47,353
• PEG Ratio: -1.74
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 10.28
• 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: 72 Outperform
• Price Target: ¥1,926.00 ▲(14.51% Upside)

The overall stock score is driven primarily by strong financial performance, characterized by stable revenues and robust cash flow generation. The valuation is attractive with a low P/E ratio and a solid dividend yield. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Stable Revenue Streams

The diverse revenue streams from staffing services and consulting provide stability and reduce dependency on a single source, enhancing resilience against market fluctuations.

Strong Balance Sheet

A strong balance sheet with minimal leverage ensures financial stability, allowing the company to invest in growth opportunities without excessive risk.

Cash Flow Generation

Consistent positive cash flow generation supports operational flexibility and the ability to fund future investments or reduce debt, enhancing long-term growth prospects.

Negative Factors

Earnings Decline

A decline in revenue, even if slight, can indicate challenges in maintaining growth momentum, potentially affecting future profitability and market position.

Earnings Per Share Decline

A significant decline in earnings per share suggests potential issues in cost management or revenue generation, which could impact investor confidence and future earnings potential.

Profit Margin Fluctuations

While margins are stable, minor fluctuations could indicate volatility in cost structures or pricing power, which may affect long-term profitability if not managed effectively.

Fullcast Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Fullcast Holdings Co., Ltd., together with its subsidiaries, provides human resource solutions in Japan. It operates through Short-Term Operational Support Business; Sales Support Business; and Security, Other Businesses segments. The company offers short-term personnel services; human resource services for event operation, and payroll management; security services primarily for public facilities and general companies; and sales support for telecommunications products, and call center operations services. It also provides short-term human resources services in various business fields, including distribution, warehouses, retail, services, and call centers; and charged employment placement services. In addition, the company offers human resources services to an active senior primarily in the Tokyo metropolitan area; human resources services specializing in drivers; and staffing services primarily for foreign nationals. Further, Fullcast Holdings Co., Ltd. provides data entry, order management contracting, credit screening agency services, invoice agency and processing, payment management operations, order management, and book keeping and accounting contracting services. Additionally, it provides housekeeping, manned guarding, street and traffic security services, etc.; and human resources services for reception, as well as real estate leasing, payroll management outsourcing, and management advisory services. Fullcast Holdings Co., Ltd. was incorporated in 1990 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fullcast generates revenue through multiple streams, primarily from its staffing services, which include temporary and permanent placements for various industries. The company earns fees from client companies for each worker placed, and these fees can vary based on the type of work and duration of employment. Additionally, Fullcast engages in consulting services, charging clients for expertise in workforce management and optimization. Significant partnerships with businesses across multiple sectors enhance its earning potential by providing a steady flow of client contracts. The company also focuses on leveraging technology to improve efficiency in staffing processes, which can help reduce operational costs and increase profit margins.

Fullcast Holdings Co., Ltd. Financial Statement Overview

Summary

Fullcast Holdings Co., Ltd. presents a strong financial profile with stable revenues, healthy profitability margins, and a robust balance sheet with minimal leverage. The company's solid cash flow generation enhances its financial flexibility, positioning it well for sustainable growth.

Income Statement

The company has shown consistent revenue growth over the years, although the latest year saw a slight decline. Gross and net profit margins have been stable, with a strong EBIT and EBITDA margin indicating efficient operations. The overall profitability remains robust despite minor fluctuations.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating minimal leverage. The equity ratio is healthy, reflecting a strong capital base. Return on equity is solid, showcasing efficient use of shareholder funds. The company is in a stable financial position with low financial risk.

Cash Flow

Free cash flow has been consistently positive, and the operating cash flow to net income ratio suggests good cash conversion efficiency. The company has demonstrated the ability to generate substantial free cash flow consistently, contributing to financial stability and supporting potential future investments or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.62B	68.56B	68.97B	64.64B	52.37B	43.23B
Gross Profit	24.82B	24.52B	23.01B	21.46B	18.03B	17.72B
EBITDA	8.40B	9.60B	9.83B	10.32B	8.06B	6.60B
Net Income	4.81B	5.49B	5.89B	6.62B	5.01B	4.11B
Balance Sheet
Total Assets	42.83B	41.47B	38.98B	35.60B	29.48B	23.95B
Cash, Cash Equivalents and Short-Term Investments	12.35B	17.53B	14.47B	20.63B	17.41B	13.31B
Total Debt	1.83B	1.00B	1.00B	1.00B	1.00B	1.00B
Total Liabilities	12.88B	12.60B	12.19B	10.68B	8.90B	6.56B
Stockholders Equity	29.94B	28.87B	25.60B	23.88B	19.66B	16.66B
Cash Flow
Free Cash Flow	0.00	5.08B	4.86B	6.51B	6.19B	3.70B
Operating Cash Flow	0.00	5.76B	5.16B	6.80B	6.37B	3.98B
Investing Cash Flow	0.00	175.00M	-6.37B	-958.00M	-99.00M	-89.00M
Financing Cash Flow	0.00	-2.87B	-4.95B	-2.62B	-2.17B	-2.47B

Fullcast Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1682.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4848, the sentiment is Positive. The current price of 1682 is above the 20-day moving average (MA) of 1676.20, below the 50-day MA of 1692.46, and above the 200-day MA of 1669.46, indicating a neutral trend. The MACD of -6.35 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 73.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4848.

Fullcast Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2146	79 Outperform	¥116.01B	19.60	―	7.56%	8.28%	-36.32%
4848	72 Outperform	¥58.64B	10.87	―	3.69%	3.47%	-0.05%
4318	72 Outperform	¥50.38B	16.37	―	3.69%	8.08%	-19.45%
7088	70 Outperform	¥89.50B	28.31	―	3.51%	9.97%	22.68%
4641	66 Neutral	¥44.88B	13.39	―	3.35%	8.57%	14.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2168	42 Neutral	¥72.47B	-9.29	-6.02%	0.78%	-9.70%	-108.59%

Fullcast Holdings Co., Ltd. Corporate Events

Fullcast Holdings Forms Strategic Alliance with Zenken Corporation

Fullcast Holdings Co., Ltd. has announced a capital and business alliance with Zenken Corporation, which involves acquiring a portion of Zenken’s shares. This strategic partnership aims to enhance business synergies by combining Zenken’s expertise in overseas human resources and language education with Fullcast’s customer base. The alliance is expected to improve the company’s offerings in the foreign worker domain and address structural issues in Japan’s labor market, contributing to sustainable growth and increased corporate value.

Fullcast Holdings Reports Strong Growth in First Three Quarters of 2025

Fullcast Holdings Co., Ltd. announced its consolidated financial results for the first three quarters of the fiscal year ending December 31, 2025, showing a 5.9% increase in net sales and a 16.7% rise in operating profit compared to the previous year. Despite a slight decrease in profit attributable to owners of the parent, the company maintains a strong equity-to-asset ratio and has not revised its business forecasts, indicating stable operations and a positive outlook for stakeholders.

Fullcast Holdings Forms Strategic Alliance with Zenken Corporation

Fullcast Holdings Co., Ltd. has entered into a strategic business alliance with Zenken Corporation to enhance its staffing services by integrating Zenken’s expertise in language education and recruitment of skilled professionals from India. This partnership aims to improve the quality of foreign workers’ communication skills, expand service offerings, and ultimately contribute to solving Japan’s labor market challenges while boosting customer satisfaction and corporate value.