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

• Market Cap: ¥3.29B
• Dividend Yield: N/A
• Average Volume (3M): 8.86K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.12
• Revenue Growth: 13.48%
• EPS Growth: 61.77%
• Country: JP
• Employees: 106
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 31.43
• Shares Outstanding: 1,279,300
• 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: ¥2,473.00 ▼(-8.98% Downside)

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

Revenue Growth

The company's strong revenue growth indicates its ability to expand market reach and enhance product adoption, supporting long-term business sustainability.

Balance Sheet Strength

A strong balance sheet with low debt levels enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Profitability

Improved profitability margins indicate effective cost management and operational efficiency, which are crucial for sustaining competitive advantage.

Negative Factors

Cash Flow Management

Declining free cash flow poses challenges in funding operations and growth initiatives, potentially impacting long-term financial health.

Cash Generation Efficiency

Moderate cash generation efficiency suggests potential difficulties in converting earnings into cash, which may limit reinvestment capabilities.

Free Cash Flow Challenges

Negative free cash flow to net income ratio indicates inefficiencies in cash conversion, which could hinder the company's ability to finance growth and operations.

Fusic Co.,Ltd. Business Overview & Revenue Model

Company Description

Fusic Co., Ltd. (5256) is a technology company that operates in the software development sector. The company specializes in providing innovative IT solutions, including cloud computing, web application development, and system integration services. Fusic Co., Ltd. is dedicated to enhancing business processes through cutting-edge technology and customized software services tailored to meet the specific needs of its clients.

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

Fusic Co.,Ltd. shows strong revenue growth and profitability with a robust balance sheet. However, cash flow management is a concern due to negative free cash flow growth. The company should focus on improving cash flow efficiency to support its growth.

Income Statement

Fusic Co.,Ltd. has demonstrated strong revenue growth, with a 17.35% increase from 2023 to 2024. The gross profit margin is robust at 37.06%, and the net profit margin has improved to 8.62%, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 11.52% and 12.61%, respectively, showcasing efficient operational management. However, the company should continue to focus on maintaining these margins amidst competitive industry pressures.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 67.26%, reflecting financial stability. The debt-to-equity ratio is low at 0.04, indicating minimal financial leverage and risk. Return on equity has improved to 16.02%, suggesting effective utilization of shareholder funds. While the balance sheet is strong, maintaining a balance between growth and leverage will be crucial for future sustainability.

Cash Flow

Fusic Co.,Ltd. has experienced a decline in free cash flow, with a negative growth rate from 2023 to 2024. The operating cash flow to net income ratio is 0.37, indicating moderate cash generation efficiency. The free cash flow to net income ratio is negative, highlighting potential challenges in converting profits into cash. The company should focus on improving cash flow management to support ongoing operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.95B	1.95B	1.80B	1.53B	1.12B	762.23M
Gross Profit	771.92M	772.78M	666.34M	526.76M	389.12M	204.08M
EBITDA	287.37M	290.62M	226.83M	157.08M	71.49M	-35.12M
Net Income	193.29M	193.95M	154.99M	101.82M	44.03M	-25.95M
Balance Sheet
Total Assets	1.57B	1.57B	1.44B	1.23B	677.87M	734.67M
Cash, Cash Equivalents and Short-Term Investments	785.17M	785.17M	776.36M	847.95M	391.21M	423.48M
Total Debt	0.00	0.00	43.35M	80.01M	165.68M	165.68M
Total Liabilities	433.18M	433.18M	471.00M	433.35M	431.35M	532.29M
Stockholders Equity	1.14B	1.14B	967.09M	799.03M	246.52M	202.38M
Cash Flow
Free Cash Flow	0.00	125.92M	-7.27M	110.20M	79.82M	18.75M
Operating Cash Flow	0.00	134.96M	56.67M	115.50M	83.09M	28.75M
Investing Cash Flow	0.00	-32.06M	-104.67M	-10.78M	5.05M	-13.67M
Financing Cash Flow	0.00	-94.09M	-23.59M	352.01M	-120.40M	141.85M

Fusic Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2717.00
• 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:5256, the sentiment is Positive. The current price of 2717 is above the 20-day moving average (MA) of 2273.50, above the 50-day MA of 2369.24, and above the 200-day MA of 2392.41, indicating a bullish trend. The MACD of 24.94 indicates Negative momentum. The RSI at 69.64 is Neutral, neither overbought nor oversold. The STOCH value of 82.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5256.

Fusic Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5028	70 Outperform	¥3.40B	20.80	―	―	33.55%	293.32%
5256	69 Neutral	¥3.29B	15.51	―	―	13.48%	61.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4052	55 Neutral	¥1.74B	-29.00	―	―	-9.71%	-1076.54%
4166	53 Neutral	¥2.27B	-16.80	―	―	12.27%	73.45%
4199	43 Neutral	¥3.88B	-29.43	―	―	-5.44%	-242.43%