Fukoku Co., Ltd. (5185) AI Stock Analysis

• Market Cap: ¥31.00B
• Dividend Yield: 4.3%
• Average Volume (3M): 36.98K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.93
• Revenue Growth: -1.15%
• EPS Growth: -34.09%
• Country: JP
• Employees: 4,594
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 28.23
• Shares Outstanding: 17,609,130
• 10 Day Avg. Volume: 32,950
• 30 Day Avg. Volume: 36,976
• PEG Ratio: -2.33
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 32.39
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,067.00 ▲(11.01% Upside)

Fukoku Co., Ltd. receives a strong overall stock score driven by its solid financial performance and attractive valuation. The company's steady revenue growth, improved operational margins, and strong equity position contribute significantly to its financial health. The stock's valuation is appealing with a low P/E ratio and high dividend yield, making it attractive for value and income investors. Technical analysis shows mixed signals, with short-term bearish trends but long-term bullish potential.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong demand for Fukoku's products and effective market strategies, supporting long-term business expansion.

Operational Efficiency

Improved margins suggest better cost management and operational efficiency, which can lead to higher profitability and competitive advantage.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against economic downturns.

Negative Factors

Debt Levels

Increasing debt levels could strain financial resources and limit future investment capacity, potentially impacting long-term growth.

Free Cash Flow Conversion

Suboptimal free cash flow conversion may indicate inefficiencies in turning profits into cash, affecting liquidity and investment potential.

EPS Growth

Negative EPS growth reflects declining profitability per share, which could signal challenges in maintaining earnings momentum and shareholder returns.

Fukoku Co., Ltd. Business Overview & Revenue Model

Company Description

Fukoku Co., Ltd. (5185) is a Japanese company specializing in the manufacturing and sales of various types of rubber products, including seals, gaskets, and other industrial components. The company operates primarily in the automotive, electronics, and general industrial sectors, providing high-quality materials designed to meet the specific needs of its clients. Fukoku is known for its innovation in rubber technology and its commitment to quality and customer satisfaction.

How the Company Makes Money

Fukoku Co., Ltd. generates revenue primarily through the sale of its rubber products to various industries, including automotive and electronics. The company has established long-term contracts with major clients, ensuring a stable revenue stream. Key revenue streams include the production of custom rubber components tailored to client specifications, as well as standard products sold in bulk. Additionally, Fukoku benefits from partnerships with leading manufacturers and distributors, which enhances its market reach and allows for collaborative product development. The company's focus on research and development also enables it to introduce new products, thereby creating additional revenue opportunities.

Fukoku Co., Ltd. Financial Statement Overview

Summary

Fukoku Co., Ltd. demonstrates financial strength with steady revenue growth and improved operational margins. The company's balance sheet is solid, with a strong equity base and manageable debt levels. Cash flow performance is positive, though attention to free cash flow conversion is advised. The firm is well-positioned for future growth, with strong fundamentals and improving efficiency.

Income Statement

Fukoku Co., Ltd. has shown strong revenue growth with a consistent upward trajectory in total revenue over the past five years, highlighted by a 10.3% increase from 2022 to 2023. The company maintains a stable gross profit margin around 18.5% in 2025, despite slight fluctuations in net profit. The EBIT and EBITDA margins have improved, indicating enhanced operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.29 in 2025, showing financial stability. Return on equity remains healthy at 6.8%, indicating good returns for shareholders. However, there is a gradual increase in total debt, which needs monitoring.

Cash Flow

Fukoku's cash flow is robust, with a positive trend in free cash flow growth. The operating cash flow to net income ratio is favorable, suggesting efficient cash conversion. The company has managed to turn a negative free cash flow in 2023 to a positive in 2025, although the free cash flow to net income ratio is lower than optimal.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.15B	89.66B	88.85B	82.32B	71.50B	63.21B
Gross Profit	17.40B	16.59B	15.09B	12.88B	11.51B	9.42B
EBITDA	9.55B	9.69B	8.98B	8.14B	7.02B	5.87B
Net Income	2.69B	2.93B	3.05B	2.13B	2.08B	1.25B
Balance Sheet
Total Assets	75.58B	79.40B	76.03B	71.53B	65.04B	63.82B
Cash, Cash Equivalents and Short-Term Investments	10.69B	12.42B	12.01B	9.97B	9.30B	8.99B
Total Debt	11.10B	13.30B	12.42B	13.53B	11.52B	12.34B
Total Liabilities	31.54B	33.46B	34.02B	33.58B	30.66B	31.50B
Stockholders Equity	41.46B	43.27B	39.54B	35.62B	32.22B	30.09B
Cash Flow
Free Cash Flow	0.00	830.00M	4.36B	-1.14B	2.45B	366.00M
Operating Cash Flow	0.00	6.63B	8.84B	3.52B	5.34B	4.75B
Investing Cash Flow	0.00	-5.83B	-4.47B	-3.99B	-2.85B	-4.03B
Financing Cash Flow	0.00	-640.00M	-2.78B	753.00M	-2.81B	-859.00M

Fukoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1862.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5185, the sentiment is Positive. The current price of 1862 is above the 20-day moving average (MA) of 1823.95, above the 50-day MA of 1839.01, and above the 200-day MA of 1692.93, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 80.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5185.

Fukoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5121	81 Outperform	¥45.65B	9.27	―	3.38%	7.18%	29.03%
5185	77 Outperform	¥31.00B	11.21	―	4.30%	-1.15%	-34.09%
7247	75 Outperform	¥13.05B	5.20	―	3.60%	-1.72%	168.62%
5189	72 Outperform	¥4.60B	9.90	―	2.59%	2.28%	41.72%
5161	71 Outperform	¥106.14B	31.31	―	6.01%	-4.26%	17.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7266	51 Neutral	¥16.66B	-64.43	―	3.11%	-8.63%	-55.68%

Fukoku Co., Ltd. Corporate Events

Fukoku Co., Ltd. Reports Mixed Financial Results for Q2 2025

Fukoku Co., Ltd. reported its financial results for the three-month period ending June 30, 2025, showing a slight increase in net sales by 2.2% compared to the previous year. However, the company experienced a significant decline in ordinary profit by 28.8% and profit attributable to owners by 33.2%, indicating challenges in maintaining profitability despite steady sales. The company’s financial position remains stable with a shareholders’ equity ratio of 54.9%, and they have maintained their dividend forecast for the fiscal year ending March 31, 2026, suggesting confidence in future performance.