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

• Market Cap: ¥2.24B
• Dividend Yield: 2.5%
• Average Volume (3M): 31.47K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.41
• 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: ¥302.00 ▲(3.42% 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

Revenue Momentum

A re-acceleration of revenue in 2025 shows renewed demand and stabilizing top-line momentum for the industrial machinery business. Durable revenue gains support aftermarket growth, spare-parts sales and recurring service contracts, improving predictability and enabling reinvestment over the next several quarters.

Operating Cash Generation

Solid operating cash flow indicates the core manufacturing operations convert earnings into cash, supporting working capital needs, capex and debt servicing. Persistent positive OCF strengthens long-term liquidity and financial flexibility even if free cash flow fluctuates across cycles.

Balance Sheet Stabilization

An improving balance sheet with steady equity growth and reduced historical leverage enhances resilience to cyclical downturns. Lower relative leverage versus peak years reduces refinancing risk and provides a firmer platform for capital allocation and modest organic investment over the medium term.

Negative Factors

Low Net Margin

Very thin net margins constrain the firm's ability to absorb cost shocks, fund R&D or expand services. In a cyclical machinery sector, low post-tax profitability limits retained earnings and reduces the margin of safety for capital spending, dividends and debt reduction over multiple quarters.

Meaningful Leverage

A debt-to-equity ratio around 1.0 represents meaningful leverage for a cyclical industrial manufacturer. Higher leverage increases interest burdens and reduces financial flexibility, making the company more vulnerable to demand slowdowns and limiting capacity for opportunistic investments or rapid strategic responses.

Inconsistent Free Cash Flow

Volatile free cash flow indicates working capital swings and capex can materially absorb cash in some years. That inconsistency undermines reliable funding for growth initiatives, aftermarket expansion or sustained debt paydown, raising execution risk across 2–6 month planning horizons.

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 makes money primarily by selling manufactured industrial machinery and equipment to business customers (B2B). Revenue is typically generated through (1) one-time equipment sales (recognizing revenue upon delivery/acceptance based on contract terms), and (2) ongoing aftermarket revenue such as maintenance, repair, replacement parts, and servicing tied to installed equipment bases. Depending on contract structure, it may also earn revenue from engineering/customization work, installation, and commissioning bundled with equipment deliveries. Specific revenue breakdowns by segment, major customer industries, material partnerships, or named recurring-service programs are null because they are not available from the information provided.

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	3.72B	3.76B	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: Negative
• Last Price: 292.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 292 is below the 20-day moving average (MA) of 294.75, below the 50-day MA of 300.72, and above the 200-day MA of 281.99, indicating a neutral trend. The MACD of -6.44 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6104	81 Outperform	¥83.95B	136.93	5.02%	3.23%	-10.00%	-51.92%
6381	75 Outperform	¥65.23B	13.24	―	3.95%	-1.67%	-4.39%
6118	74 Outperform	¥60.50B	24.26	―	2.54%	2.00%	39.80%
6143	69 Neutral	¥69.40B	10.78	7.00%	3.02%	15.78%	―
6400	66 Neutral	¥2.24B	9.79	7.95%	2.50%	3.64%	17.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥28.84B	-53.89	―	3.56%	-3.85%	-45.64%