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

• Market Cap: ¥32.23B
• Dividend Yield: 3.86%
• Average Volume (3M): 40.87K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.91
• Revenue Growth: 0.65%
• EPS Growth: -21.13%
• Country: JP
• Employees: 4,594
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 30.59
• Shares Outstanding: 17,609,130
• 10 Day Avg. Volume: 30,240
• 30 Day Avg. Volume: 40,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,879.00
• Price Target Upside: -3.24% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥1,879.00 ▼(-3.24% Downside)

Fukoku Co., Ltd. scores well due to its strong financial performance and attractive valuation. The technical analysis supports a moderately bullish outlook, further enhancing the stock's attractiveness. The absence of recent earnings call data and corporate events did not impact the score.

Fukoku Co., Ltd. Business Overview & Revenue Model

Company Description

Fukoku Co., Ltd. (5185) is a Japanese company specializing in the manufacture and sale of rubber and plastic products. The company primarily operates in the automotive sector, providing a range of products such as wiper blades, seals, and anti-vibration components. Fukoku also serves other industries with its precision rubber and plastic solutions, including construction and consumer goods, leveraging its expertise in material technology and manufacturing processes.

How the Company Makes Money

Fukoku Co., Ltd. generates revenue through the production and sale of its rubber and plastic products. The company's key revenue streams are derived from its automotive sector operations, where it supplies components like wiper blades and anti-vibration systems to various automotive manufacturers. Fukoku's business model is supported by long-term partnerships with major automotive companies, ensuring a steady demand for its products. Additionally, the company expands its revenue through the development and sale of specialized rubber and plastic materials for construction and consumer goods industries, taking advantage of its advanced technology and innovation capabilities.

Fukoku Co., Ltd. Financial Statement Overview

Summary

Fukoku Co., Ltd. demonstrates financial strength with steady revenue growth and improved operational margins. The company maintains a strong equity base and manageable debt levels, though attention to free cash flow conversion is advised.

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	89.66B	89.66B	88.85B	82.32B	71.50B	63.21B
Gross Profit	16.59B	16.59B	15.09B	12.88B	11.51B	9.42B
EBITDA	9.69B	9.69B	8.98B	8.14B	7.02B	5.87B
Net Income	2.93B	2.93B	3.05B	2.13B	2.08B	1.25B
Balance Sheet
Total Assets	79.40B	79.40B	76.03B	71.53B	65.04B	63.82B
Cash, Cash Equivalents and Short-Term Investments	12.42B	12.42B	12.01B	9.97B	9.30B	8.99B
Total Debt	12.55B	12.55B	12.42B	13.53B	11.52B	12.34B
Total Liabilities	33.46B	33.46B	34.02B	33.58B	30.66B	31.50B
Stockholders Equity	43.27B	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: 1942.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1942 is above the 20-day moving average (MA) of 1907.85, above the 50-day MA of 1833.88, and above the 200-day MA of 1692.43, indicating a bullish trend. The MACD of 24.88 indicates Positive momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 89.44 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	78 Outperform	¥46.02B	9.34	11.29%	3.25%	11.45%	36.70%
5161	78 Outperform	¥122.73B	33.47	4.50%	3.71%	-1.11%	-33.77%
5185	78 Outperform	¥32.23B	11.65	―	3.86%	0.65%	-21.13%
5189	77 Outperform	¥4.41B	9.49	4.70%	2.69%	-2.63%	-27.45%
7247	74 Outperform	¥12.62B	5.03	5.71%	3.72%	0.85%	94.79%
7266	55 Neutral	¥16.83B	-65.10	-0.52%	2.56%	-7.01%	-108.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.

Fukoku Co., Ltd. Completes Treasury Stock Disposal for Compensation

Fukoku Co., Ltd. has completed the disposal of 7,600 shares of its treasury stock as restricted stock compensation to five directors, excluding non-residents and certain other directors. This move, resolved in a board meeting on June 25, 2025, reflects the company’s strategic approach to align executive interests with shareholder value.

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.