Freund Corporation (6312) AI Stock Analysis

• Market Cap: ¥18.00B
• Dividend Yield: 1.86%
• Average Volume (3M): 13.34K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.54
• Revenue Growth: 17.61%
• EPS Growth: 211.04%
• Country: JP
• Employees: 417
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 35.45
• Shares Outstanding: 18,400,000
• 10 Day Avg. Volume: 3,310
• 30 Day Avg. Volume: 13,340
• PEG Ratio: -1.19
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 8.64
• 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): 10,137.24
• Revenue Forecast (FY): ¥3.88T

• Rating: 67 Neutral
• Price Target: ¥1,157.00 ▲(7.53% Upside)

Freund Corporation has a solid financial foundation with strong revenue growth and a robust balance sheet. The technical indicators suggest strong bullish momentum, though caution is warranted due to overbought signals. The valuation is reasonable, but the low dividend yield may deter income-focused investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Freund's machinery and services, supporting long-term business expansion and market presence.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Cash Flow Generation

Positive operating cash flow indicates effective earnings conversion to cash, supporting operational needs and potential reinvestment in growth.

Negative Factors

Operating Margin Challenges

Declining margins may impact profitability, requiring strategic cost management to sustain long-term financial health and competitive positioning.

Free Cash Flow Volatility

Inconsistent free cash flow can limit financial flexibility, affecting the company's ability to invest in growth and manage unexpected expenses.

Potential Delisting Impact

Delisting could reduce market transparency and liquidity for shareholders, impacting investor perception and access to capital markets.

Freund Corporation Business Overview & Revenue Model

Company Description

Freund Corporation (6312) is a leading manufacturer and supplier of advanced materials and solutions, primarily operating in the sectors of pharmaceuticals, food, and industrial applications. The company specializes in the development and production of high-performance excipients, active pharmaceutical ingredients (APIs), and various functional materials that enhance product performance and stability. With a strong emphasis on innovation and quality, Freund Corporation serves a global clientele, providing tailored solutions that meet the specific needs of its diverse markets.

How the Company Makes Money

Freund Corporation generates revenue through the sale of its core products, which include excipients and APIs used in pharmaceuticals, as well as functional materials for food and industrial applications. The company operates a multi-faceted revenue model that encompasses direct sales to pharmaceutical and food manufacturers, licensing agreements, and strategic partnerships with key industry players. Additionally, Freund often engages in research and development collaborations, which can lead to joint ventures or co-development opportunities, further enhancing its revenue streams. The company's focus on high-quality, innovative solutions allows it to command premium pricing, contributing significantly to its profitability.

Freund Corporation Financial Statement Overview

Summary

Freund Corporation demonstrates a strong financial foundation with steady revenue growth and effective equity management. The company benefits from a solid balance sheet with low debt levels. However, there are areas for improvement, particularly in stabilizing operating margins and free cash flow.

Income Statement

Freund Corporation has shown a steady revenue growth trajectory, with a notable increase from the previous year. The gross profit margin is strong, indicating effective cost management. However, the EBIT and net profit margins have slightly declined, suggesting challenges in maintaining profitability at the operating level. Despite this, the revenue growth offers a positive outlook.

Balance Sheet

The balance sheet is robust, characterized by a healthy equity ratio and low debt levels, which indicate financial stability. The debt-to-equity ratio is low, suggesting prudent financial management. Return on equity has improved, reflecting enhanced shareholder returns. Overall, the company maintains a strong financial position with low leverage risks.

Cash Flow

Operating cash flow is positive and improving, which is a good sign of liquidity. Free cash flow growth, however, has been inconsistent, with fluctuations in capital expenditure affecting cash generation. The cash flow to net income ratios are solid, indicating efficient conversion of earnings to cash. The company should focus on stabilizing free cash flow to strengthen its cash position further.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.82B	23.40B	22.90B	19.66B	17.63B	16.77B
Gross Profit	8.65B	8.07B	6.78B	5.99B	6.01B	5.64B
EBITDA	2.56B	1.81B	1.71B	270.89M	1.48B	1.77B
Net Income	1.14B	637.60M	764.97M	-538.42M	543.57M	970.60M
Balance Sheet
Total Assets	25.62B	26.56B	25.79B	22.76B	22.27B	20.58B
Cash, Cash Equivalents and Short-Term Investments	4.43B	5.15B	4.74B	3.92B	4.15B	4.71B
Total Debt	417.02M	461.07M	895.99M	1.30B	403.43M	450.16M
Total Liabilities	10.48B	11.12B	10.77B	8.64B	7.92B	6.72B
Stockholders Equity	15.14B	15.44B	15.02B	14.12B	14.35B	13.86B
Cash Flow
Free Cash Flow	0.00	1.49B	1.62B	-803.83M	2.10M	1.80B
Operating Cash Flow	0.00	1.75B	2.37B	-196.05M	701.93M	2.28B
Investing Cash Flow	0.00	-459.67M	-739.89M	-666.66M	-680.28M	-1.73B
Financing Cash Flow	0.00	-855.69M	-874.00M	451.68M	-427.65M	-371.97M

Freund Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1076.00
• 50DMA: Negative
• 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:6312, the sentiment is Positive. The current price of 1076 is above the 20-day moving average (MA) of 1075.75, below the 50-day MA of 1077.94, and above the 200-day MA of 901.42, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6312.

Freund Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6392	81 Outperform	¥13.31B	7.83	―	3.72%	5.78%	6.00%
6373	79 Outperform	¥14.64B	12.42	―	1.76%	1.61%	117.39%
6496	76 Outperform	¥20.46B	14.74	―	1.76%	34.70%	-8.44%
6505	72 Outperform	¥17.48B	7.15	―	3.63%	21.20%	189.37%
6312	67 Neutral	¥18.00B	11.00	―	1.86%	17.61%	211.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6203	53 Neutral	¥13.56B	42.77	―	1.81%	26.09%	―

Freund Corporation Corporate Events

Freund Corporation Announces Change in Parent Company and Major Shareholder

Freund Corporation has announced the completion of a tender offer by Yuu Corporation, resulting in a change of its parent company and largest shareholder. Yuu Corporation will hold more than 50% of the voting rights, making it the new parent company and largest shareholder, while Hiroyuki Maki will cease to be the largest shareholder. This change is expected to impact the company’s operations and stakeholder dynamics.

The most recent analyst rating on (JP:6312) stock is a Hold with a Yen1157.00 price target. To see the full list of analyst forecasts on Freund Corporation stock, see the JP:6312 Stock Forecast page.

Freund Corporation Extends Tender Offer Period Amid Management Buyout Amendments

Freund Corporation has announced amendments to its management buyout process, extending the tender offer period until October 28, 2025, to provide shareholders more time to consider tendering their shares. The company’s Board of Directors has reaffirmed its support for the tender offer, believing it will enhance corporate value and maintain fairness in terms and procedures.

The most recent analyst rating on (JP:6312) stock is a Hold with a Yen1157.00 price target. To see the full list of analyst forecasts on Freund Corporation stock, see the JP:6312 Stock Forecast page.

Freund Corporation Announces Tender Offer Amendments

Freund Corporation has announced a correction regarding the tender offer for its shares by Yuu Corporation. The tender offer period has been extended to a total of 61 business days, with the necessary amendments submitted to the Kanto Local Finance Bureau. This move is part of a strategic effort to take the company private, with Mr. Iwao Fusejima, the representative director, playing a key role in the transactions.

The most recent analyst rating on (JP:6312) stock is a Hold with a Yen1157.00 price target. To see the full list of analyst forecasts on Freund Corporation stock, see the JP:6312 Stock Forecast page.

Freund Corporation Announces Amendments to Management Buyout and Tender Offer

Freund Corporation announced amendments to its management buyout and tender offer process, with the tender offeror, led by Mr. Iwao Fusejima, aiming to privatize the company. The tender offeror has agreements with major shareholders to not tender their shares, ensuring a significant shareholding structure post-tender offer, which will impact the company’s shareholder composition and market positioning.

The most recent analyst rating on (JP:6312) stock is a Hold with a Yen1157.00 price target. To see the full list of analyst forecasts on Freund Corporation stock, see the JP:6312 Stock Forecast page.

Freund Corporation Extends MBO Tender Offer Period Amid Shareholder Negotiations

Freund Corporation announced amendments to its Management Buyout (MBO) plan, extending the tender offer period until September 30, 2025, to provide shareholders more decision-making time and increase the likelihood of completion. The tender offer involves significant negotiations with major shareholders, including Mr. Hiroyuki Maki, who holds a substantial portion of shares. The outcome of these negotiations and the tender offer could significantly alter the company’s shareholder structure, potentially leaving only the Tender Offeror and non-tendering shareholders as the remaining stakeholders.

The most recent analyst rating on (JP:6312) stock is a Hold with a Yen1157.00 price target. To see the full list of analyst forecasts on Freund Corporation stock, see the JP:6312 Stock Forecast page.