Fujimak Corporation (5965) AI Stock Analysis

• Market Cap: ¥16.25B
• Dividend Yield: 4.2%
• Average Volume (3M): 10.61K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 1,141
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 80.67
• Shares Outstanding: 14,272,000
• 10 Day Avg. Volume: 8,480
• 30 Day Avg. Volume: 10,606
• PEG Ratio: 1.74
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -16.66
• 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: 75 Outperform
• Price Target: ¥1,388.00 ▲(32.32% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong valuation (low P/E and solid dividend yield) and constructive technical momentum (price above key moving averages with a positive MACD). Offsetting these strengths, the financial profile is capped by weak and volatile cash generation in 2025 (negative free cash flow), despite otherwise solid profitability and low leverage.

Positive Factors

Diversified revenue streams

Fujimak’s business combines product sales, project-based kitchen system delivery, and after-sales maintenance. This mix supports recurring service revenue, enhances customer stickiness via installed-base servicing, and reduces reliance on single transaction cycles—benefits that support steadier revenue over multiple quarters.

Conservative balance sheet

Low leverage and a strengthening equity base give Fujimak financial flexibility to fund projects, invest selectively, and withstand cyclical downturns in institutional capex. Sustained conservative leverage limits refinancing risk and preserves capacity for strategic investments over the medium term.

Stable margins and revenue regain

Revenue recovery in 2025 alongside stable gross margins indicates product pricing and cost structures are resilient. Maintaining gross margins near the low-to-mid 30% band supports operating profitability and suggests the company can sustain earnings as volumes normalize, benefiting medium-term cash generation if execution holds.

Negative Factors

Weak, volatile cash generation

Sharp OCF decline and negative free cash flow in 2025 show working-capital strain or elevated investment; historical swings in FCF increase execution risk. Persistent cash volatility can constrain reinvestment, dividend sustainability, and the company’s ability to self-fund larger integrated projects over multiple quarters.

Softening operating profitability

A decline in operating margins signals pressure on cost absorption or project mix deterioration. If structural, lower EBITDA/EBIT margins reduce operating leverage and cash conversion potential, raising the bar for revenue growth to achieve the same earnings and stressing medium-term margin recovery plans.

Cyclicality from customer capex

Revenue and project awards depend on institutional and foodservice capex cycles. This exposes Fujimak to uneven order timing and working-capital swings tied to large projects. Over a 2–6 month horizon, capex cyclicality can create revenue volatility and pressure cash flow predictability for project execution.

Fujimak Corporation Business Overview & Revenue Model

Company Description

Fujimak Corporation manufactures, sells, and services kitchen equipment in Japan and internationally. The company offers heating equipment, including combi oven series, VarioCooking center series, ovens, gas and induction heating stoves, griddles/salamanders, fryers, steamers, noodle boilers, dumpling grillers, warmers, package cookers, braising pans/rotary cooking kettles, and Chinese ranges, as well as electric ranges, tables, and stoves. It also provides cooling equipment, such as blast chillers and freezers, showcases, foods coolers, prefabricated refrigerators, and other cooling equipment; bakery equipment, such as convection and deck ovens, dough conditioners and proofers, mixers, molders, and reverse seat and shaping machine; rice cookers, storage/washers, and warmer/table top rice cooker equipment; washing and sterilizing equipment, such as dish washers and sterilizer cabinets; vacuum packing machines; and carts. The company serves institutions, schools, hospitals, hotels, restaurants, amusement parks, fast foods, convenience stores, factories/CK, canteens, ship kitchens, and others, as well as the government/public fields. Fujimak Corporation was founded in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fujimak makes money primarily by selling commercial kitchen equipment and kitchen system solutions to business and institutional customers. Revenue is generated from (1) product sales of professional kitchen machinery and fixtures used for cooking, preparation, washing, and sanitation in large kitchens; (2) project-based delivery of integrated kitchen systems, where the company supplies multiple equipment items as part of a designed kitchen layout and coordinates delivery/installation; and (3) after-sales services tied to its installed base, such as maintenance, inspections, repairs, and replacement parts. Earnings are influenced by customer capital-expenditure cycles in foodservice and institutional catering (e.g., new openings, renovations, and kitchen upgrades) and by the company’s ability to win large kitchen projects that bundle equipment and service work. Specific breakdowns of revenue by segment, named major customers/partners, and precise contract structures are not available from the provided information and are therefore null.

Fujimak Corporation Financial Statement Overview

Summary

Profitability and growth are solid with stable gross margin and a conservative balance sheet (low debt-to-equity). However, cash-flow quality is a major weakness: 2025 operating cash flow dropped sharply and free cash flow turned negative, with a volatile history of cash generation.

Income Statement

Profitability and growth look solid overall. Revenue expanded meaningfully in 2025 (annual) after a strong multi-year rebound from 2020’s weak base, while gross margin stayed fairly stable in the low-to-mid 30% range. Operating profitability softened modestly in 2025 versus 2024 (lower EBITDA and EBIT margins), but net margin held steady around ~5%, indicating resilient bottom-line performance despite some pressure above net income.

Balance Sheet

The balance sheet appears conservative with low leverage: debt-to-equity stayed around ~0.18–0.21 across recent years, and equity has been building as the business recovered. Return on equity improved materially from near-zero in 2020 to roughly high-single-digits by 2024, supporting healthier capital efficiency. A key watch-out is that assets and equity rose alongside growth, so sustaining returns will depend on keeping margins and utilization from slipping.

Cash Flow

Cash generation is the weakest part of the profile. Operating cash flow fell sharply in 2025 (annual) versus 2024 and covered only a small portion of net income, while free cash flow turned negative—suggesting working-capital drag and/or elevated investment needs. The history is also volatile (free cash flow swinging from strongly positive in 2021 to negative in 2022 and 2025), which increases execution risk even with improving earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.95B	47.44B	45.64B	38.46B	32.38B	29.39B
Gross Profit	15.45B	15.36B	14.83B	12.43B	10.53B	9.74B
EBITDA	4.07B	3.98B	4.18B	2.84B	1.83B	1.56B
Net Income	2.24B	2.34B	2.27B	1.67B	992.59M	649.58M
Balance Sheet
Total Assets	45.15B	45.86B	45.52B	41.62B	35.73B	34.44B
Cash, Cash Equivalents and Short-Term Investments	8.83B	7.65B	9.54B	8.44B	8.47B	9.34B
Total Debt	5.33B	4.73B	5.03B	4.44B	3.68B	3.86B
Total Liabilities	20.25B	19.42B	21.10B	19.73B	15.62B	15.37B
Stockholders Equity	24.81B	26.31B	24.33B	21.89B	20.11B	19.07B
Cash Flow
Free Cash Flow	0.00	-839.21M	1.08B	1.41B	-310.97M	2.25B
Operating Cash Flow	0.00	944.36M	3.14B	2.85B	290.48M	2.60B
Investing Cash Flow	0.00	-2.03B	-2.70B	-3.39B	-446.18M	-1.93B
Financing Cash Flow	0.00	-906.85M	70.42M	464.60M	-450.54M	-445.90M

Fujimak Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5947	76 Outperform	¥535.12B	11.76	8.51%	2.25%	3.33%	9.57%
5965	75 Outperform	¥16.25B	3.31	―	4.20%	―	―
7955	75 Outperform	¥37.69B	3.81	―	3.56%	3.03%	160.39%
7981	72 Outperform	¥183.31B	8.20	―	3.41%	6.17%	61.39%
5946	67 Neutral	¥67.81B	31.55	1.61%	2.27%	1.82%	-32.79%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5909	56 Neutral	¥29.01B	3.93	―	2.94%	0.41%	-51.02%