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Fujitec Co., Ltd. (JP:6406)
:6406
Japanese Market
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Fujitec Co., Ltd. (6406) AI Stock Analysis

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JP:6406

Fujitec Co., Ltd.

(6406)

Rating:66Neutral
Price Target:
¥6,064.00
▲(7.40% Upside)
Fujitec's robust financial performance, characterized by strong balance sheet metrics and consistent revenue growth, significantly supports the stock score. However, technical analysis indicates bearish trends, and valuation metrics suggest potential overvaluation. Despite these challenges, the company's low leverage and reasonable dividend yield provide a solid foundation for long-term stability.

Fujitec Co., Ltd. (6406) vs. iShares MSCI Japan ETF (EWJ)

Fujitec Co., Ltd. Business Overview & Revenue Model

Company DescriptionFujitec Co., Ltd. engages in the research, development, manufacture, marketing, installation, and maintenance of elevators, escalators, moving walks, and transportation systems in Japan, the Americas, Europe, the Middle East, South Asia, and East Asia. The company's products are installed in office buildings, hotels, commercial buildings, residences, condominiums, shopping centers, and museums. Fujitec Co., Ltd. was incorporated in 1948 and is headquartered in Hikone, Japan.
How the Company Makes MoneyFujitec Co., Ltd. generates revenue primarily through the sale, installation, and maintenance of elevators, escalators, and moving walkways. The company's key revenue streams include new equipment sales, which involve the design and installation of custom solutions for buildings and infrastructure projects. In addition to equipment sales, Fujitec has a robust service segment, providing maintenance, repair, and modernization services to ensure the safety and efficiency of their products over time. This service segment is critical as it provides a recurring revenue stream. Fujitec also engages in partnerships and collaborations with construction firms and real estate developers to expand its market reach and secure large-scale projects, contributing significantly to its earnings.

Fujitec Co., Ltd. Financial Statement Overview

Summary
Fujitec demonstrates strong financial stability with a solid equity base and low leverage, as reflected in an equity ratio of 59.3% and a debt-to-equity ratio of 0.03. Revenue growth is consistent, but profitability margins are under pressure, with a decrease in net profit margin and EBITDA margin. Cash flow management could improve, as free cash flow has declined, indicating potential cash management issues.
Income Statement
78
Positive
Fujitec has demonstrated a consistent growth trajectory in revenue, with a revenue growth rate of 5.2% from 2024 to 2025. The gross profit margin improved to 22.6%, indicating an efficient cost structure. However, the net profit margin decreased to 6.0% in 2025 from 7.8% in 2024, suggesting challenges in controlling net costs or increased expenses. The EBIT margin remained stable at 6.7%, while the EBITDA margin slightly decreased to 10.4%, indicating potential areas for operational efficiency improvements.
Balance Sheet
85
Very Positive
Fujitec maintains a strong equity position with an equity ratio of 59.3%, reflecting financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and low financial risk. Return on equity is solid at 9.3%, suggesting effective use of equity to generate profits. The company's balance sheet is robust, with high cash reserves and low debt, providing a cushion for future investments and economic downturns.
Cash Flow
65
Positive
The operating cash flow decreased slightly, and free cash flow from 2024 to 2025 dropped by 24.7%, indicating potential cash management issues or increased capital expenditure. Despite this, the operating cash flow to net income ratio of 1.26 suggests good conversion of earnings into cash. However, the free cash flow to net income ratio declined to 0.84, signifying pressure on cash generation relative to net income.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue241.25B241.25B229.40B207.59B187.02B169.57B
Gross Profit54.44B54.44B48.41B42.16B41.57B39.88B
EBITDA20.85B25.09B19.26B16.65B19.70B18.63B
Net Income14.51B14.51B17.83B8.43B10.84B9.29B
Balance Sheet
Total Assets262.26B262.26B256.40B230.10B220.61B205.20B
Cash, Cash Equivalents and Short-Term Investments82.94B82.94B80.56B58.30B76.96B68.35B
Total Debt4.29B4.29B5.86B9.81B3.87B3.13B
Total Liabilities91.62B91.62B91.23B85.98B80.13B79.93B
Stockholders Equity155.65B155.65B148.39B127.93B125.52B112.45B
Cash Flow
Free Cash Flow0.008.94B14.29B-6.30B6.38B18.44B
Operating Cash Flow0.0015.40B17.50B-2.35B9.85B21.54B
Investing Cash Flow0.0016.51B-1.73B1.95B-3.99B-7.96B
Financing Cash Flow0.00-19.27B-11.77B-10.67B-6.52B-5.87B

Fujitec Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5646.00
Price Trends
50DMA
5819.00
Negative
100DMA
5793.20
Negative
200DMA
5801.09
Negative
Market Momentum
MACD
-44.06
Negative
RSI
42.70
Neutral
STOCH
60.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6406, the sentiment is Neutral. The current price of 5646 is above the 20-day moving average (MA) of 5639.45, below the 50-day MA of 5819.00, and below the 200-day MA of 5801.09, indicating a neutral trend. The MACD of -44.06 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 60.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6406.

Fujitec Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥427.85B30.38
2.92%2.84%-20.37%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
$4.02B21.365.50%3.35%
€3.76B32.2510.57%
$2.57B22.904.68%4.96%
$2.83B1,101.46-0.47%4.91%
$3.05B67.502.00%11.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6406
Fujitec Co., Ltd.
5,646.00
1,124.80
24.88%
AMDWF
AMADA HOLDINGS CO
12.61
2.87
29.47%
DE:J9R
Japan Steel Works
51.00
25.22
97.83%
NCTKF
Nabtesco
15.80
-0.43
-2.65%
SOHVF
Sumitomo Heavy Industries
22.20
0.34
1.56%
THKLF
THK Co
27.24
10.42
61.95%

Fujitec Co., Ltd. Corporate Events

Fujitec Implements Long-Term Restricted Stock Plan to Align Interests
Jul 14, 2025

Fujitec Co., Ltd. has announced the disposal of 4,471 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and executive officers to enhance corporate value and align with shareholder interests. The plan, approved in 2021, involves a long-term transfer restriction period of 40 years, ensuring that eligible directors and officers maintain a vested interest in the company’s performance over the long term.

Fujitec Wins Legal Battle Over Shareholder Resolutions
Jun 19, 2025

Fujitec Co., Ltd. announced that the Otsu District Court has finalized a judgment in favor of the company regarding a lawsuit filed by Uchiyama International Co., Ltd., a shareholder, which sought to revoke resolutions from the 76th Annual General Meeting of Shareholders. The court upheld Fujitec’s actions as lawful and appropriate, dismissing the claims made by the plaintiff. This judgment, which has become final and binding, will not affect the company’s business results.

Fujitec Co., Ltd. Announces Dividend Receipts from Subsidiaries
May 14, 2025

Fujitec Co., Ltd. announced the receipt of dividends from its subsidiaries, Fujitec Singapore CORPN. LTD. and Fujitec (HK) CO., LTD., totaling 88 million yen. This will be recorded as non-operating income in the non-consolidated financial statements for the fiscal year ending March 31, 2026, without impacting the consolidated results.

Fujitec Co., Ltd. Reports Fiscal Year 2025 Results with Increased Sales and Future Growth Projections
May 14, 2025

Fujitec Co., Ltd. reported a 5.2% increase in net sales for the fiscal year ending March 31, 2025, with operating income rising by 11%. However, profit attributable to owners of the parent decreased by 18.6%. The company plans to increase its dividend payout, indicating confidence in future earnings. The financial position remains strong with a slight increase in total assets and net assets. The company projects further growth in the coming fiscal year, with expected increases in net sales and profits, suggesting a positive outlook for stakeholders.

Fujitec Co., Ltd. Secures Legal Victory as Shareholder Withdraws Appeal
May 9, 2025

Fujitec Co., Ltd. announced the withdrawal of an appeal by shareholder Takakazu Uchiyama regarding a lawsuit that challenged the validity of certain board resolutions. The Otsu District Court had previously ruled in favor of Fujitec, dismissing Uchiyama’s claims. The withdrawal of the appeal confirms the court’s original decision, ensuring that Fujitec’s business operations remain unaffected.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025