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

• Market Cap: ¥31.00B
• Dividend Yield: 4.34%
• 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 ▲(12.03% 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. produces and sells rubber and resin products in Japan and internationally. The company offers wiper blade rubbers that are used in automobiles, trains, ships, and aircrafts; and seal products, including brake booster diaphragms, radiator gaskets, duty valves, piston seals, and constant velocity joints, which are used in automotive brake systems and fuel systems, as well as air intake and exhaust systems, and pneumatic tools and industrial machinery. It also provides anti-vibration products comprising suspension parts, torsional vibration dampers, couplings, engine mounts, cabin mounts, shock absorbers and ballast mats, and other parts functioning to reduce vibrations and noise in construction, civil engineering, and industrial machinery industries, as well as anti-vibration products for rail cars and rail roads. In addition, the company provides ultrasonic motors, such as motors with encoders, vacuum-type motors, hollow-type motors, non-magnetic motors, and ring-type motors that are used for driving the autofocus mechanism in SLR cameras, the headrests in luxury cars, and stages of semiconductor equipment. Further, it offers bio related parts, such as medical infusion bags consisting of culture bags, cell rinsing bags, and adaptors for centrifuge. The company was formerly known as Fukoku Rubber Industry Co., Ltd. and changed its name to Fukoku Co.,Ltd. in January 1986. Fukoku Co.,Ltd. was founded in 1953 and is headquartered in Ageo, Japan.

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: 1845.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5185, the sentiment is Positive. The current price of 1845 is above the 20-day moving average (MA) of 1830.40, above the 50-day MA of 1832.78, and above the 200-day MA of 1700.48, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 52.18 is Neutral, 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	―	3.37%	7.18%	29.03%
5185	77 Outperform	¥31.00B	11.21	―	4.34%	-1.15%	-34.09%
7247	75 Outperform	¥13.05B	5.20	―	3.92%	-1.72%	168.62%
5189	72 Outperform	¥4.60B	9.90	―	2.64%	2.28%	41.72%
5161	71 Outperform	¥106.14B	31.31	―	5.95%	-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	―	2.83%	-8.63%	-55.68%

Fukoku Co., Ltd. Corporate Events

Fukoku Co., Ltd. Completes Share Buyback Through Tender Offer

Fukoku Co., Ltd. has completed a tender offer to acquire its own shares, a move resolved by its Board of Directors to strengthen its capital structure. This acquisition, finalized on December 4, 2025, reflects the company’s strategic decision to consolidate ownership, potentially impacting shareholder value and market perception positively.

Fukoku Co., Ltd. Announces Strategic Initiatives for Sustainable Growth

Fukoku Co., Ltd. has announced a strategic initiative to enhance its management approach by focusing on capital cost and stock price awareness, aiming for sustainable growth and increased corporate value. Despite achieving record operating profits, the company’s ROE remains below its capital cost, prompting efforts to improve profitability and investor relations. The company is implementing a new medium-term management plan from 2024 to 2027, emphasizing growth in existing and new businesses, particularly in high-growth regions and the electric vehicle market. Fukoku plans significant investments to drive these strategies, while addressing external challenges such as geopolitical risks and industry trends.

Fukoku Co., Ltd. Announces Share Buyback to Boost Shareholder Value

Fukoku Co., Ltd. has announced a decision to acquire its own shares through a tender offer, aiming to enhance shareholder returns and improve capital efficiency. This move is part of the company’s strategy to manage its capital flexibly and maintain a stable dividend payout, reflecting its commitment to shareholder value.

FUKOKU Co., Ltd. Announces Interim Dividend of 42.5 Yen Per Share

FUKOKU Co., Ltd. has announced an interim dividend of 42.5 yen per share, reflecting its policy of maintaining stable dividends while targeting a consolidated payout ratio of 30%. This decision underscores the company’s commitment to shareholder returns and aligns with its full-year earnings forecast, maintaining the projected annual dividend at 85.0 yen per share.

Fukoku Co., Ltd. Reports Decline in Semi-Annual Financial Results

Fukoku Co., Ltd. reported a decline in its financial performance for the six-month period ending September 30, 2025, with net sales slightly decreasing by 0.5% and significant drops in operating and ordinary profits by 24.8% and 31.2%, respectively. Despite the downturn, the company maintains a stable financial position with a shareholders’ equity ratio of 54.9%, and it plans to increase annual dividends, indicating a commitment to returning value to shareholders.