Fujimi Incorporated (5384) AI Stock Analysis

• Market Cap: ¥207.89B
• Dividend Yield: 3.09%
• Average Volume (3M): 272.94K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.23
• Revenue Growth: 14.85%
• EPS Growth: 29.86%
• Country: JP
• Employees: 1,110
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 41.72
• Shares Outstanding: 80,098,500
• 10 Day Avg. Volume: 320,980
• 30 Day Avg. Volume: 272,943
• PEG Ratio: 0.33
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 339.84
• 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: ¥2,996.67
• Price Target Upside: 9.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 136.91
• Revenue Forecast (FY): ¥69.37B

• Rating: 78 Outperform
• Price Target: ¥3,742.00 ▲(37.02% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven primarily by strong financial performance (healthy profitability and a very strong, low-leverage balance sheet). Technicals are supportive with a strong uptrend, but overbought signals raise near-term risk. Valuation is somewhat expensive on P/E, though the dividend yield provides partial support.

Positive Factors

Strong balance sheet

Fujimi's minimal leverage and high equity ratio provide durable financial flexibility. With a ROE near 12.4%, the company can fund R&D, capex and support customers without heavy borrowing, reducing solvency risk and enabling steady long-term investment even through cyclical downturns.

Sustained profitability

High operating and net margins reflect pricing power in specialized abrasives and efficient cost control. These margins generate operating surplus to fund reinvestment and buffer against input cost volatility, supporting durable return generation versus lower-margin commodity peers.

Stable, specialized revenue streams

Fujimi's focus on polishing slurries and high-spec abrasives, plus long-term customer relationships in semiconductor and precision industries, creates sticky demand and recurring sales. Product specialization supports premium pricing and continuity of revenue across typical supplier churn.

Negative Factors

Weak cash conversion

Despite solid operating cash flow, a low free-cash-flow-to-net-income ratio indicates earnings convert into less free cash. Persistent weak conversion limits self-funded growth, constrains flexible capital allocation and dividend stability, and raises reliance on operational improvements or external funding.

Eroding gross margin trend

A gradual decline in gross margin suggests pressure on core unit economics, from input cost rises or competitive pricing. If sustained, it will compress operating profitability and force either price increases, cost cutting or product mix shifts to preserve long-term margin sustainability.

End-market concentration & cyclicality

Heavy exposure to semiconductor and electronics end markets makes revenue sensitive to capex cycles and demand swings. Even with long-term contracts, multi-quarter industry downturns can reduce volumes and utilization, creating durable downside risk to revenue and margin stability.

Fujimi Incorporated Business Overview & Revenue Model

Company Description

Fujimi Incorporated manufactures and sells synthetic precision abrasives in Japan, rest of Asia, North America, Oceanica, and Europe. The company offers various products for slicing crystal silicon ingots, lapping, and polishing silicon wafers; abrasives for use in the production of semiconductor devices, such as CMP slurry and other materials; and polishing products for magnetic disks of the hard disk drives. It also provides specialty materials, including lapping, polishing, and diamond products, as well as catalyst carriers for use in electronic components, lighting and LED products, automobiles, lenses, power semiconductors, and other industries. In addition, the company offers thermal spray materials for use in aerospace, semiconductor, liquid crystal, steel, energy, chemical, and other industries. Fujimi Incorporated was founded in 1950 and is headquartered in Kiyosu, Japan.

How the Company Makes Money

Fujimi generates revenue through the sale of its specialized abrasive materials and chemical products to various industries, including semiconductor manufacturing, electronics, and optical components. Key revenue streams include the direct sale of polishing slurries and abrasives, which are critical in the manufacturing processes of semiconductors and other precision components. The company also benefits from long-term contracts and partnerships with major players in the semiconductor industry, providing a stable revenue base. Additionally, Fujimi invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and attract new customers. The company's focus on high-quality, specialized products allows for premium pricing, further contributing to its profitability.

Fujimi Incorporated Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth (+3.42% latest year) and solid profitability (15.09% net margin; 19.61% EBIT margin) supported by a very strong balance sheet with minimal leverage. Main weakness is cash conversion, with a relatively low free-cash-flow-to-net-income ratio and a slightly declining gross margin trend.

Income Statement

Fujimi Incorporated has demonstrated consistent revenue growth with a 3.42% increase in the latest year, following a recovery from a slight dip in the previous year. The company maintains strong profitability with a net profit margin of 15.09% and an EBIT margin of 19.61%, indicating efficient cost management. However, the gross profit margin has slightly decreased over the years, which could be a point of concern if the trend continues.

Balance Sheet

The company exhibits a robust financial position with a very low debt-to-equity ratio, indicating minimal leverage and a strong equity base. The return on equity stands at 12.39%, reflecting effective utilization of shareholder funds. The equity ratio is healthy, suggesting a stable capital structure with a high proportion of assets financed by equity.

Cash Flow

Fujimi Incorporated's cash flow performance is mixed. While the operating cash flow is strong, the free cash flow growth rate is exceptionally high due to a low base effect. The free cash flow to net income ratio is relatively low, suggesting that a smaller portion of net income is being converted into free cash flow, which could impact future investment capabilities.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	64.16B	62.50B	51.42B	58.39B	51.73B	41.96B
Gross Profit	28.54B	26.34B	21.22B	26.34B	23.53B	18.14B
EBITDA	14.47B	13.80B	10.31B	14.97B	13.72B	9.33B
Net Income	9.21B	9.43B	6.50B	10.59B	9.16B	5.61B
Balance Sheet
Total Assets	100.09B	90.91B	84.14B	80.10B	76.32B	66.26B
Cash, Cash Equivalents and Short-Term Investments	27.02B	27.86B	34.93B	36.24B	36.56B	31.32B
Total Debt	10.00B	494.00M	291.00M	352.00M	262.00M	144.00M
Total Liabilities	23.20B	14.01B	11.57B	11.09B	13.35B	10.17B
Stockholders Equity	76.09B	76.12B	72.58B	69.01B	62.97B	56.09B
Cash Flow
Free Cash Flow	0.00	413.00M	3.77B	5.63B	7.74B	7.55B
Operating Cash Flow	0.00	12.99B	7.45B	7.38B	9.30B	8.74B
Investing Cash Flow	0.00	-15.87B	-5.31B	-822.00M	-1.10B	-42.00M
Financing Cash Flow	0.00	-5.64B	-5.64B	-6.14B	-3.83B	-2.48B

Fujimi Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2731.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5384, the sentiment is Neutral. The current price of 2731 is below the 20-day moving average (MA) of 3045.15, below the 50-day MA of 2904.86, and above the 200-day MA of 2362.41, indicating a neutral trend. The MACD of -17.18 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 66.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5384.

Fujimi Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6855	81 Outperform	¥88.07B	6.87	―	1.72%	36.31%	101.77%
5384	78 Outperform	¥207.89B	14.21	―	3.09%	14.85%	29.86%
6890	76 Outperform	$269.92B	15.35	5.77%	3.28%	11.15%	-19.39%
6315	71 Outperform	¥179.14B	51.88	10.10%	1.00%	-12.50%	-26.08%
6871	71 Outperform	¥391.02B	22.63	―	1.02%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6966	50 Neutral	¥103.07B	43.14	―	2.45%	4.60%	-21.64%

Fujimi Incorporated Corporate Events

Fujimi Posts Higher Nine-Month Profits and Reaffirms Earnings, Dividend Outlook

Fujimi Incorporated reported solid growth for the nine months ended 31 December 2025, with net sales rising 9.9% year on year to ¥51.45 billion and operating profit climbing 15.9% to ¥10.50 billion, while profit attributable to owners of the parent increased 6.9% to ¥7.77 billion. The company’s equity expanded to ¥81.18 billion and total assets to ¥121.13 billion, although its equity ratio declined to 67.0% from 83.7% due to balance sheet expansion, and earnings per share rose to ¥104.70. Fujimi kept its dividend policy unchanged, paying an interim ¥36.67 per share and forecasting a full-year total of ¥73.34, and it reaffirmed its full-year outlook for fiscal 2026, targeting 8.6% growth in net sales and a 10.4% increase in operating profit, while expecting essentially flat full-year net profit, signaling steady but moderating earnings momentum for shareholders and other stakeholders.

The most recent analyst rating on (JP:5384) stock is a Buy with a Yen3099.00 price target. To see the full list of analyst forecasts on Fujimi Incorporated stock, see the JP:5384 Stock Forecast page.