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

• Market Cap: ¥27.42B
• Dividend Yield: 4.54%
• Average Volume (3M): 29.87K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.92
• Revenue Growth: 0.91%
• EPS Growth: -3.92%
• Country: JP
• Employees: 4,594
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 63.82
• Shares Outstanding: 17,609,130
• 10 Day Avg. Volume: 36,730
• 30 Day Avg. Volume: 29,866
• PEG Ratio: 1.84
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.48
• 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

• Rating: 74 Outperform
• Price Target: ¥1,828.00 ▲(9.00%Upside)

Fukoku Co., Ltd. receives a strong overall score driven by robust financial performance and attractive valuation. While technical indicators are neutral, the stock's low P/E ratio and high dividend yield suggest it is well-valued. Financial health is solid, but attention to growing debt and cash flow conversion is advised.

Fukoku Co., Ltd. Business Overview & Revenue Model

Company Description

Fukoku Co., Ltd. (5185) is a Japan-based company primarily engaged in the manufacture and sale of rubber and plastic products. The company operates in various sectors, including the automotive, industrial, and healthcare industries. Fukoku is known for its extensive range of products such as wiper blades, antivibration components, and sealing materials, which are integral to automotive manufacturing and other industrial applications.

How the Company Makes Money

Fukoku Co., Ltd. generates revenue primarily through the production and sale of rubber and plastic components. The company's key revenue streams include sales of automotive parts like wiper blades, antivibration components, and seals to major automotive manufacturers. Additionally, Fukoku's industrial segment contributes to its earnings through the sale of specialized rubber products used in machinery and infrastructure. The company may also engage in strategic partnerships with automotive and industrial firms to ensure a steady demand for its products. Factors such as advancements in automotive technology and increased industrial production can significantly impact Fukoku's financial performance.

Fukoku Co., Ltd. Financial Statement Overview

Summary

Fukoku Co., Ltd. demonstrates financial strength with steady revenue growth and improved operational margins. The balance sheet shows a strong equity base and manageable debt levels. Cash flow performance is positive, although attention to free cash flow conversion is advised. Overall, the company is well-positioned for future growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	89.41B	89.66B	88.85B	82.32B	71.50B	63.21B
Gross Profit	17.27B	16.59B	14.76B	12.88B	11.51B	9.42B
EBITDA	10.18B	9.69B	8.98B	8.14B	7.02B	5.87B
Net Income	3.11B	2.93B	3.05B	2.13B	2.08B	1.25B
Balance Sheet
Total Assets	77.44B	79.40B	76.03B	71.53B	65.04B	63.82B
Cash, Cash Equivalents and Short-Term Investments	12.65B	12.42B	12.01B	9.97B	9.30B	8.99B
Total Debt	13.01B	12.55B	12.42B	13.53B	11.52B	12.34B
Total Liabilities	34.02B	33.46B	34.02B	33.58B	30.66B	31.50B
Stockholders Equity	40.92B	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: 1677.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5185, the sentiment is Positive. The current price of 1677 is above the 20-day moving average (MA) of 1634.55, above the 50-day MA of 1627.10, and above the 200-day MA of 1665.36, indicating a neutral trend. The MACD of 6.96 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 78.60 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	80 Outperform	¥34.63B	7.47		4.32%	9.37%	40.96%
5161	78 Outperform	¥102.07B	25.16		6.90%	2.32%	-21.60%
5189	77 Outperform	¥3.69B	8.47		3.22%	-8.73%	-41.93%
7247	76 Outperform	¥9.56B	4.81		5.61%	1.49%	78.77%
7266	74 Outperform	¥15.66B	7.15		3.67%	-5.40%	―
5185	74 Outperform	¥27.42B	9.08		4.54%	0.91%	-3.92%
Sector *	56 Neutral	HK$23.69B	3.90	-1.57%	6.91%	0.06%	-64.88%

Fukoku Co., Ltd. Corporate Events

Fukoku Co., Ltd. Announces Treasury Stock Disposal for Director Compensation

Fukoku Co., Ltd. has announced a resolution to dispose of treasury stock as restricted stock compensation for five eligible directors. This move is part of a compensation system designed to incentivize directors to contribute to the company’s sustained growth and align their interests with shareholders. The disposal involves 7,600 shares at a price of 1,623 yen per share, totaling 12,334,800 yen. The initiative reflects the company’s commitment to enhancing corporate governance and shareholder value.

Fukoku Co., Ltd. Discloses Material Deficiencies in Financial Controls

Fukoku Co., Ltd. has identified significant deficiencies in its internal controls related to financial reporting, particularly concerning its subsidiary, Shanghai Fukoku Rubber & Plastics Industry Co., Ltd. An investigation revealed embezzlement by an employee, highlighting weaknesses in governance, risk management, and internal audit procedures. These deficiencies have raised concerns about the integrity of the company’s financial reporting and necessitated the disclosure of these issues to stakeholders.

Fukoku Co., Ltd. Announces Key Leadership Changes

Fukoku Co., Ltd. announced significant changes in its leadership, appointing Izumi Watanabe as Chief Technology Officer and Yoshisuke Matsuoka as Chief Financial Officer. These appointments are part of the company’s strategy to adapt to technological advancements and strengthen its management framework, which could impact its market positioning and stakeholder relations positively.

FUKOKU Co., Ltd. Continues Takeover Defense Measures

FUKOKU Co., Ltd. has resolved to continue its takeover defense measures, subject to shareholder approval, to protect and enhance corporate value and shareholder interests. The company plans to revise the definition of acquisitions addressed by the plan, ensuring that any large-scale acquisition proposals align with the company’s long-term value and shareholder interests.

Fukoku Co., Ltd. Announces Increased Dividend Payout for Fiscal Year 2025

Fukoku Co., Ltd. announced a resolution to pay dividends of 37.5 yen per share for the fiscal year ending March 31, 2025, resulting in annual dividends of 75.0 yen per share. This decision reflects the company’s policy of returning earnings to shareholders based on business results, achieving a payout ratio of 41.2%, which is higher than the previous year’s ratio.

Fukoku Co., Ltd. Reports Stable Financial Performance for FY2025

Fukoku Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in net sales by 0.9% to 89,657 million yen. Despite a decrease in profit attributable to owners of the parent by 3.9%, operating profit rose significantly by 29.5%. The company also announced an increase in annual dividends, reflecting a positive outlook for stakeholders. These results indicate a stable financial position with a focus on enhancing shareholder value.

Fukoku Co., Ltd. Announces Strategic Executive Changes Amidst Shanghai Subsidiary Fraud

Fukoku Co., Ltd. announced a series of executive and personnel changes aimed at strengthening its management structure, particularly in response to a fraud incident at its Shanghai subsidiary. Key changes include new leadership appointments in Shanghai Fukoku and Fukoku (Shanghai) Trading, with the aim of improving governance and operational oversight. These changes are part of a broader strategy to enhance the company’s market position and operational integrity in China.