Fusic Co.,Ltd. (5256) AI Stock Analysis

• Market Cap: ¥2.92B
• Dividend Yield: N/A
• Average Volume (3M): 8.86K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.13
• Revenue Growth: 13.48%
• EPS Growth: 61.77%
• Country: JP
• Employees: 106
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 1,280,300
• 10 Day Avg. Volume: 4,270
• 30 Day Avg. Volume: 8,856
• PEG Ratio: 0.52
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 21.75
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,720.00 ▲(0.11% Upside)
• Action: Downgraded Date: 01/04/26
• Date: Action: Downgraded 01/04/26

Score is driven mainly by solid financial performance (profitability and a strengthened, debt-free balance sheet), supported by a reasonable P/E valuation. These positives are offset by weak technicals (below key moving averages and negative MACD) and watch items around cash conversion consistency and slowing revenue growth.

Positive Factors

Debt-free, conservative balance sheet

A virtually debt-free balance sheet with rising equity and ~17% ROE provides durable financial flexibility. This reduces solvency risk, supports investment or selective M&A without adding leverage, and enables the company to fund growth or shareholder returns from internal resources over time.

Improved margins and profitability

Material margin expansion reflects stronger unit economics and pricing or cost discipline. Sustained gross and operating margins create predictable operating cash potential, supporting long-term R&D and sales investments, and strengthening competitive positioning even if top-line growth moderates.

Meaningful revenue scaling since 2021

A near-tripling of revenue from 2021 to 2025 indicates successful commercial scaling and likely product-market fit. A larger revenue base improves fixed-cost absorption, supports operating leverage, and provides a platform to expand services or pursue adjacent market opportunities over the medium term.

Negative Factors

Slowing revenue growth

Top-line deceleration to ~4.2% in 2025 reduces the pace at which the company can compound equity and realize operating leverage. Slower organic growth raises pressure on margins or forces reliance on acquisitions or new product launches to sustain return on invested capital over the medium term.

Inconsistent cash conversion

Volatile cash conversion and wide swings in free cash flow point to working capital timing issues or one-off effects. This unpredictability undermines the reliability of earnings as a funding source, complicates capital allocation decisions, and can constrain sustained investment or steady distributions.

Small employee base limits scaling

A headcount of ~106 suggests limited internal capacity to scale sales, product development and customer support simultaneously. This raises execution risk when pursuing larger enterprise accounts or new markets, increases dependence on key personnel, and can slow product rollouts or geographic expansion.

Fusic Co.,Ltd. Business Overview & Revenue Model

Company Description

Fusic Co., Ltd. provides software development, and AI machine learning/IoT system development services in Japan. The company primarily develops web systems; smartphone applications; and IoT system, including device selection, server-side construction, data analysis using AI and machine learning, and management system construction. It also provides cloud infrastructure building, and consulting services, such as business strategy, business reform, IT, and organizational personnel. In addition, the company offers 360 Sanrokumaru, a personnel evaluation service tool; sigfy, a contact network service mainly for schools and nursery schools; mockmock, an IoT system development support service; and Yagula, a domain/SSL expiration management tool that monitor the life and death of website. Fusic Co., Ltd. was founded in 2002 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

Fusic Co., Ltd. generates revenue primarily through the development and sale of software solutions and IT services. The company's key revenue streams include project-based fees for custom software development, subscription fees from cloud-based services, and maintenance contracts for system integration solutions. Additionally, Fusic Co., Ltd. may engage in strategic partnerships with other technology firms to expand its service offerings and reach a broader customer base. By leveraging its expertise in cloud computing and web applications, the company positions itself as a valuable partner for businesses seeking to improve operational efficiency and digital transformation.

Fusic Co.,Ltd. Financial Statement Overview

Summary

Strong profitability turnaround and margin expansion, with a very conservative balance sheet now essentially debt-free and healthy ROE (~17%). Main concern is uneven cash conversion (operating cash flow light vs earnings and prior-year volatility), plus slowing revenue growth in 2025.

Income Statement

Revenue has scaled strongly over the last several years (from 0.76B in 2021 to 1.95B in 2025), with growth still positive in 2025 (+4.2%) after a sharp slowdown in 2024. Profitability has improved materially: net margin moved from negative in 2021 to ~9.9% in 2025, while gross margin expanded to ~39.6% and operating margin rose to ~14.0%. The key weakness is decelerating top-line momentum versus prior years, which could pressure future operating leverage if demand softens.

Balance Sheet

The balance sheet is conservative and has strengthened over time, with debt reduced from 166M (2021–2022) to 43M in 2024 and effectively zero in 2025, driving debt-to-equity to 0. Equity has grown meaningfully to 1.14B in 2025 alongside rising assets (1.57B). Returns on equity are healthy (~17.1% in 2025), indicating strong profitability on a low-leverage base; the main drawback is that rapid revenue growth is now slowing, which can limit the pace of further equity compounding.

Cash Flow

Cash generation is improving but still somewhat uneven. Free cash flow rebounded strongly in 2025 (126M) after turning negative in 2024 (-7M), and 2025 free cash flow was close to net income (about 0.93x), which is a positive quality signal. However, operating cash flow has been relatively light versus earnings (about 0.33x in 2025 and 0.13x in 2024), suggesting working-capital swings or timing effects that make cash conversion less consistent year to year.

Breakdown	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.95B	1.80B	1.53B	1.12B	762.23M
Gross Profit	772.78M	666.34M	526.76M	389.12M	204.08M
EBITDA	290.62M	226.83M	157.08M	71.49M	-35.12M
Net Income	193.95M	154.99M	101.82M	44.03M	-25.95M
Balance Sheet
Total Assets	1.57B	1.44B	1.23B	677.87M	734.67M
Cash, Cash Equivalents and Short-Term Investments	785.17M	776.36M	847.95M	391.21M	423.48M
Total Debt	0.00	43.35M	80.01M	165.68M	165.68M
Total Liabilities	433.18M	471.00M	433.35M	431.35M	532.29M
Stockholders Equity	1.14B	967.09M	799.03M	246.52M	202.38M
Cash Flow
Free Cash Flow	125.92M	-7.27M	110.20M	79.82M	18.75M
Operating Cash Flow	134.96M	56.67M	115.50M	83.09M	28.75M
Investing Cash Flow	-32.06M	-104.67M	-10.78M	5.05M	-13.67M
Financing Cash Flow	-94.09M	-23.59M	352.01M	-120.40M	141.85M

Fusic Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2717.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5256, the sentiment is Negative. The current price of 2717 is above the 20-day moving average (MA) of 2286.80, above the 50-day MA of 2348.68, and above the 200-day MA of 2372.89, indicating a bearish trend. The MACD of -40.27 indicates Negative momentum. The RSI at 47.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5256.

Fusic Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3816	71 Outperform	¥4.61B	12.67	7.21%	1.70%	-0.23%	23.25%
3826	70 Outperform	¥5.64B	7.44	―	2.28%	―	―
3853	70 Outperform	¥21.03B	19.00	―	0.82%	―	―
5256	69 Neutral	¥2.92B	16.36	―	―	13.48%	61.77%
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7527	47 Neutral	¥5.17B	-12.18	―	―	-40.57%	83.14%