Fujisash Co., Ltd. (5940) AI Stock Analysis

• Market Cap: ¥12.62B
• Dividend Yield: 2.89%
• Average Volume (3M): 27.85K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.74
• Revenue Growth: 2.56%
• EPS Growth: 17.52%
• Country: JP
• Employees: 2,919
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 13.66
• Shares Outstanding: 12,626,782
• 10 Day Avg. Volume: 18,540
• 30 Day Avg. Volume: 27,853
• PEG Ratio: 0.13
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -3.90
• 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: 74 Outperform
• Price Target: ¥1,098.00 ▲(19.61% Upside)
• Action: Upgraded Date: 11/28/25
• Date: Action: Upgraded 11/28/25

Fujisash Co., Ltd. benefits from strong technical indicators and an attractive valuation, with a low P/E ratio and solid dividend yield. Financial performance is stable, though cash flow management needs improvement. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth Trend

A steady revenue increase demonstrates persistent demand and business continuity in core construction operations. This trend supports capacity utilization and backlog stability, underpinning near-term topline resilience and predictable cash needs over the next several months.

Improving Operational Margins

Rising EBIT and EBITDA margins indicate better operational efficiency and cost control, which are durable drivers of free cash flow and competitiveness. Sustained margin improvement enhances ability to absorb cyclical headwinds and fund reinvestment without relying solely on financing.

Manageable Leverage & Improving ROE

Moderate leverage paired with an improving ROE signals a balanced capital structure and improving shareholder returns. This provides financial flexibility for project financing or strategic investments while keeping interest burden at manageable levels over the medium term.

Negative Factors

Weak Cash Conversion

Earnings not translating into operating cash suggests working capital pressure or timing differences on collections and payables. This structural cash conversion weakness constrains the company's ability to self-fund capex, repay debt, or sustain dividends without external financing over coming quarters.

Declining Free Cash Flow

A marked drop and volatility in free cash flow reduces internal funding for growth and increases reliance on debt or equity. For a construction firm, this impairs bidding flexibility, limits buffer for cost overruns, and raises refinancing risk if the trend persists beyond a single fiscal year.

Low Net Profit Margins

Thin net margins limit retained earnings and the capacity to withstand input-cost inflation or pricing pressure. In a cyclical industry, low profitability reduces shock absorption, making sustained investment, dividend policy, and balance sheet strengthening more difficult over the medium term.

Fujisash Co., Ltd. Business Overview & Revenue Model

Company Description

Fujisash Co.,Ltd. manufactures and sells sash and curtain walls in Japan and internationally. It offers sashes and curtain walls for buildings; building renewal services to various apartments and office buildings; frontage products, such as entrances of apartments and offices, as well as aperture facades of shops and showrooms; housing construction materials, including eco shutters and eco grilles; multipurpose prefabricated house modules, storages for disaster mitigation, and housing equipment; and LED modules. The company also provides urban waste processing systems to manufacturer and sales agents; fly ash treatment plants for urban waste incineration; and plant engineering of recycling and large-sized waste disposal facilities, as well as produces building materials, semiconductor manufacturing equipment, automotive products, home appliances, office equipment, and commodities as a supplier of light metals of aluminum. In addition, it is involved in the research and development of extrusion processing technology for lightweight magnesium alloys among industrial metals. Fujisash Co.,Ltd. was founded in 1930 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Fujisash Co., Ltd. Financial Statement Overview

Summary

Fujisash Co., Ltd. shows solid revenue growth and improved operational efficiency, as seen in better EBIT and EBITDA margins. However, low net profit margins and cash flow challenges, including negative free cash flow to net income ratio, indicate potential issues in cash management.

Income Statement

Fujisash Co., Ltd. has shown consistent revenue growth, with a 3.45% increase from 2024 to 2025. Gross profit margins have been stable around 15-16%, indicating efficient cost management. However, net profit margins are relatively low at around 2%, reflecting potential challenges in managing overall expenses or competitive pricing pressures in the construction industry. EBIT and EBITDA margins have improved over the years, indicating better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is approximately 1.04 in 2025, suggesting moderate leverage. The equity ratio is around 27.7%, indicating a reasonable level of equity financing. Return on Equity (ROE) has improved to 9.52%, showcasing enhanced profitability for shareholders. Overall, the balance sheet displays a stable financial structure with manageable debt levels.

Cash Flow

Free cash flow has shown volatility, with a significant decline in 2025. The operating cash flow to net income ratio is negative in 2025, reflecting challenges in converting earnings into cash flows. The free cash flow to net income ratio is also negative, indicating potential issues in covering capital expenditures. The cash flow situation suggests a need for improved cash management practices.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	78.58B	104.75B	101.26B	101.70B	90.43B	92.40B
Gross Profit	13.07B	16.34B	15.62B	13.75B	13.73B	13.46B
EBITDA	4.30B	5.36B	4.31B	2.66B	-120.00M	3.61B
Net Income	2.38B	2.23B	1.71B	338.00M	-3.33B	572.00M
Balance Sheet
Total Assets	82.87B	84.29B	89.41B	87.25B	83.31B	91.70B
Cash, Cash Equivalents and Short-Term Investments	16.09B	13.37B	16.93B	14.77B	14.52B	16.58B
Total Debt	25.30B	24.41B	25.65B	25.96B	23.79B	24.48B
Total Liabilities	60.09B	60.69B	68.46B	68.62B	65.25B	70.41B
Stockholders Equity	22.55B	23.37B	20.74B	18.44B	17.89B	21.14B
Cash Flow
Free Cash Flow	0.00	-2.16B	3.14B	-1.44B	-998.00M	802.00M
Operating Cash Flow	0.00	-74.00M	5.88B	1.55B	442.00M	3.49B
Investing Cash Flow	0.00	-1.59B	-2.49B	-3.22B	-1.51B	-2.35B
Financing Cash Flow	0.00	-1.87B	-1.32B	1.60B	-1.27B	1.09B

Fujisash Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 918.00
• 50DMA: Positive
• 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:5940, the sentiment is Neutral. The current price of 918 is below the 20-day moving average (MA) of 1027.80, below the 50-day MA of 975.16, and above the 200-day MA of 832.19, indicating a neutral trend. The MACD of 11.00 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5940.

Fujisash Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5940	74 Outperform	¥12.62B	16.74	―	2.89%	2.56%	17.52%
7943	66 Neutral	¥111.46B	13.03	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥132.80B	10.42	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5936	63 Neutral	¥6.08B	4.98	―	4.13%	2.76%	-10.23%
5932	52 Neutral	¥21.58B	-3.36	―	4.03%	1.03%	-92.80%
5938	50 Neutral	$499.76B	16.11	1.44%	4.80%	0.68%	―