Freund Corporation (6312) AI Stock Analysis

• Market Cap: ¥18.12B
• Dividend Yield: 1.85%
• Average Volume (3M): 42.44K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.56
• 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: 39,620
• 30 Day Avg. Volume: 42,436
• 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: ¥1,157.00
• Price Target Upside: 6.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,157.00 ▲(6.93% 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.

Freund Corporation Business Overview & Revenue Model

Company Description

Freund Corporation develops, manufactures, and sells granulation and coating equipment for the pharmaceutical, food, and chemical industries in Japan and internationally. The company offers granulating, coating, drying, printer, tester and analyzer, encapsulation, and dust collector machines, as well as drug formulation machines. It also offers pharmaceutical excipients, food preservatives, machinery for food preservatives, and supplement materials. The company was founded in 1964 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Freund Corporation generates revenue through the sale of its specialized machinery and equipment to pharmaceutical companies, food manufacturers, and chemical producers. Its key revenue streams include direct sales of granulation and coating machines, as well as maintenance and support services provided to their clients. The company also earns income through consulting services, helping clients optimize their production processes. Significant partnerships with pharmaceutical firms and other industrial clients contribute to its earnings by ensuring a steady demand for its high-quality machinery and technical support services.

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: 1082.00
• 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:6312, the sentiment is Positive. The current price of 1082 is above the 20-day moving average (MA) of 1079.45, above the 50-day MA of 1077.70, and above the 200-day MA of 850.70, indicating a bullish trend. The MACD of 3.17 indicates Positive momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, 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	¥13.19B	7.90	―	3.82%	-0.78%	-9.12%
6373	79 Outperform	¥14.59B	15.27	―	1.87%	2.44%	163.48%
6505	75 Outperform	¥16.92B	6.92	―	3.56%	21.20%	189.37%
6312	67 Neutral	¥18.12B	11.08	―	1.85%	17.61%	211.04%
6496	66 Neutral	¥18.11B	13.04	―	1.97%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6203	62 Neutral	¥15.88B	17.27	―	1.56%	29.02%	―

Freund Corporation Corporate Events

Yuu Corporation Initiates Tender Offer for Freund Corporation Shares

Yuu Corporation has announced its decision to acquire ordinary shares of Freund Corporation through a tender offer, aiming to take the company private. This move is part of a strategic transaction to consolidate ownership under Yuu Corporation and non-tendering shareholders, potentially impacting the company’s market presence and shareholder dynamics.

Freund Corporation Announces Management Buyout and Plans for Delisting

Freund Corporation’s Board of Directors has approved a management buyout (MBO) led by Yuu Corporation, aiming to make Freund a wholly owned subsidiary and eventually delist it from the Tokyo Stock Exchange. This move is expected to streamline operations and potentially enhance strategic decision-making, impacting shareholders who are recommended to tender their shares.