Fuji Seiki Co., Ltd. (6400) AI Stock Analysis

• Market Cap: ¥2.43B
• Dividend Yield: 2.5%
• Average Volume (3M): 31.47K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.40
• Revenue Growth: 3.64%
• EPS Growth: 17.76%
• Country: JP
• Employees: 750
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -1.60
• Shares Outstanding: 9,054,000
• 10 Day Avg. Volume: 34,670
• 30 Day Avg. Volume: 31,470
• PEG Ratio: 0.15
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 7.35
• 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: 66 Neutral
• Price Target: ¥352.00 ▲(20.55% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is led by strong technical uptrend signals (price above key moving averages with positive MACD) and reasonable valuation (low P/E with a moderate dividend). Offsetting these positives, financial performance is only mid-range due to low net margins, meaningful leverage, and uneven free-cash-flow consistency.

Positive Factors

Improving operating profitability

The year-over-year rise in EBIT margin to ~5.4% shows the company is recovering operating leverage or controlling costs. Sustained higher operating profitability improves internal funding for reinvestment and buffers earnings through industrial cycles, supporting long-term earnings quality.

Solid operating cash flow

Robust operating cash flow (~¥928M) provides the business with recurring internal liquidity to fund maintenance capex, working capital and service debt without full reliance on external financing. That cash-flow capacity supports long-term operational stability and execution of capital programs.

Balance-sheet resilience improving

Steady equity growth and lower leverage versus earlier years indicate gradual balance-sheet repair. A stronger equity base increases financial flexibility, helps absorb cyclical revenue swings common in machinery manufacturing, and supports investment or distribution policies over multiple years.

Negative Factors

Low net margin

A net margin near 2.6% leaves limited cushion for unexpected cost inflation, price competition, or demand weakness. Narrow after-tax profitability constrains retained earnings for reinvestment, reduces the firm's capacity to build reserves, and makes returns more sensitive to small revenue swings over the medium term.

Meaningful leverage

Debt roughly equal to equity raises fixed-charge and refinancing exposure for a cyclical industrial manufacturer. Meaningful leverage limits financial flexibility for M&A or large capex, increases interest-cost sensitivity to rate moves, and heightens solvency risk during prolonged demand slowdowns.

Inconsistent free cash flow and weak conversion

Thin and volatile free cash flow, with FCF only ~33% of net income, signals working capital or capex demands that can absorb earnings. Weak cash conversion reduces ability to consistently fund dividends, pay down debt, or invest in growth without external funding, raising medium-term execution risk.

Fuji Seiki Co., Ltd. Business Overview & Revenue Model

Company Description

Fuji Seiki Co., Ltd. (6400) is a Japanese company specializing in the manufacturing and sale of precision measuring instruments and equipment. Operating primarily within the industrial sector, the company focuses on providing high-quality products such as measuring machines, gauges, and inspection systems that cater to various industries, including automotive, aerospace, and electronics. With a commitment to innovation and technological advancement, Fuji Seiki aims to enhance production efficiency and quality control for its clients.

How the Company Makes Money

Fuji Seiki Co., Ltd. generates revenue through the sale of its precision measuring instruments and equipment. The company's primary revenue streams include direct sales of measuring machines and inspection systems to manufacturers in various sectors. Additionally, Fuji Seiki may earn income from after-sales services, which include maintenance, calibration, and support for its products. Key partnerships with industrial firms and distributors also play a significant role in expanding its market reach and driving sales. Furthermore, the company may benefit from investments in research and development, allowing it to introduce innovative products that meet emerging market needs, thus contributing to sustainable revenue growth.

Fuji Seiki Co., Ltd. Financial Statement Overview

Summary

Year-over-year profitability improved in 2025 (EBIT margin ~5.4% vs. ~4.3% in 2024) and operating cash flow was solid, but overall quality is held back by low net margin (~2.6%), meaningful leverage (debt-to-equity ~1.02), and inconsistent free cash flow (~¥307M with prior swings).

Income Statement

Revenue re-accelerated in 2025 (+1.45% vs. flat in 2024), but the multi-year trend shows uneven momentum after the strong 2021 rebound. Profitability has compressed versus 2021: gross margin fell to ~20.7% in 2025 from ~23.3% (2021), and net margin is low at ~2.6% despite improving from 2024 (~1.7%). Operating profitability is modest but improved year over year (EBIT margin ~5.4% in 2025 vs. ~4.3% in 2024), suggesting some cost/price recovery, though overall margins remain below earlier-cycle levels.

Balance Sheet

Leverage is the key constraint: debt is slightly above equity in 2025 (debt-to-equity ~1.02), which is improved from 2020–2021 when leverage was materially higher. Equity has grown steadily (supporting balance sheet resilience), and returns on equity are positive but modest in 2025 (~6.2%) and below peak levels (e.g., ~23.0% in 2021). Overall, the balance sheet looks more stable than a few years ago, but still carries meaningful debt for a machinery business with cyclical earnings.

Cash Flow

Cash generation is positive but inconsistent. Operating cash flow was solid in 2025 (~¥928M) and improved from 2024, yet free cash flow is relatively thin (~¥307M) and has swung sharply in prior years (including negative free cash flow in 2020 and a big step-down in 2024 vs. 2023). Cash conversion also looks weaker recently: free cash flow is only ~33% of net income in 2025 (down from ~53% in 2023), indicating that working capital and/or capital spending can meaningfully absorb cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.59B	8.72B	8.25B	8.26B	7.83B	7.47B
Gross Profit	1.71B	1.80B	1.60B	1.58B	1.55B	1.74B
EBITDA	1.07B	1.06B	968.46M	1.02B	1.10B	1.29B
Net Income	255.03M	230.78M	139.23M	232.87M	338.93M	505.51M
Balance Sheet
Total Assets	9.52B	9.80B	9.44B	8.50B	8.79B	8.18B
Cash, Cash Equivalents and Short-Term Investments	1.79B	1.87B	1.46B	1.16B	942.13M	899.11M
Total Debt	3.81B	3.79B	3.53B	3.38B	3.71B	3.71B
Total Liabilities	6.16B	6.09B	5.93B	5.32B	5.99B	5.98B
Stockholders Equity	3.37B	3.70B	3.51B	3.18B	2.80B	2.20B
Cash Flow
Free Cash Flow	0.00	307.18M	168.93M	581.38M	120.73M	373.69M
Operating Cash Flow	0.00	927.90M	855.61M	1.10B	593.31M	886.27M
Investing Cash Flow	0.00	-626.89M	-617.54M	-517.21M	-442.43M	-422.97M
Financing Cash Flow	0.00	113.51M	-19.58M	-404.27M	-190.44M	-375.08M

Fuji Seiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 292.00
• 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:6400, the sentiment is Positive. The current price of 292 is below the 20-day moving average (MA) of 314.35, below the 50-day MA of 296.80, and above the 200-day MA of 279.16, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6400.

Fuji Seiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	79 Outperform	¥5.01B	14.96	―	1.19%	-6.39%	-3.86%
6248	74 Outperform	¥3.51B	9.96	―	4.50%	4.73%	9.23%
6334	68 Neutral	¥4.68B	27.25	―	1.22%	12.31%	138.05%
6400	66 Neutral	¥2.43B	10.70	7.95%	2.50%	3.64%	17.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6217	57 Neutral	¥4.15B	-15.85	―	―	-5.76%	-120.95%
6347	54 Neutral	¥3.89B	429.94	―	1.67%	-13.82%	81.18%