Fujitec Co., Ltd. (6406) AI Stock Analysis

• Market Cap: ¥431.72B
• Dividend Yield: 2.98%
• Average Volume (3M): 226.94K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.49
• Revenue Growth: 0.32%
• EPS Growth: -15.41%
• Country: JP
• Employees: 11,818
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 68.06
• Shares Outstanding: 78,900,000
• 10 Day Avg. Volume: 256,990
• 30 Day Avg. Volume: 226,943
• PEG Ratio: -1.71
• Price to Book (P/B): 2.96
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 51.57
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥6,232.00 ▲(9.16% Upside)

Fujitec Co., Ltd. is well-positioned with strong financial stability and consistent revenue growth. However, challenges in profitability margins and cash flow management, along with a high P/E ratio, moderate the overall attractiveness of the stock. The technical indicators suggest stable market conditions, supporting a balanced outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, enhancing long-term stability and expansion potential.

Balance Sheet Health

A robust balance sheet with low leverage and high equity ratio provides financial flexibility and resilience against economic downturns.

Competitive Advantage

Investment in R&D fosters innovation, allowing Fujitec to maintain a competitive advantage and meet evolving customer needs effectively.

Negative Factors

Profitability Margins

Declining net profit margins suggest challenges in cost management or increased expenses, which could impact long-term profitability.

Cash Flow Management

Reduced free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Earnings Growth

Negative EPS growth reflects declining profitability, which could affect investor confidence and the company's ability to reinvest in its operations.

Fujitec Co., Ltd. Business Overview & Revenue Model

Company Description

Fujitec 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 Money

Fujitec generates revenue primarily through the sale of elevator and escalator systems, which includes both new installations and modernization of existing equipment. The company's revenue model is diversified into several key streams: first, the manufacturing and installation of new units, which constitutes a significant portion of its earnings; second, ongoing maintenance and repair services, which provide a steady income through long-term service contracts; third, modernization projects that enhance the efficiency and safety of older systems. Additionally, Fujitec has established strategic partnerships with construction companies and property developers, further solidifying its market presence and expanding its customer base. The company's focus on R&D enables it to introduce advanced technologies, thus attracting more clients and enhancing its competitive edge in the industry.

Fujitec Co., Ltd. Financial Statement Overview

Summary

Fujitec Co., Ltd. shows strong financial stability with a robust balance sheet and consistent revenue growth. However, profitability margins are under pressure, and cash flow management needs improvement, particularly in sustaining free cash flow levels.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	241.80B	241.25B	229.40B	207.59B	187.02B	169.57B
Gross Profit	55.77B	54.44B	48.41B	42.16B	41.57B	39.88B
EBITDA	21.97B	25.09B	19.26B	16.65B	19.70B	18.63B
Net Income	14.48B	14.51B	17.83B	8.43B	10.84B	9.29B
Balance Sheet
Total Assets	250.60B	262.26B	256.40B	230.10B	220.61B	205.20B
Cash, Cash Equivalents and Short-Term Investments	81.18B	82.94B	80.56B	58.30B	76.96B	68.35B
Total Debt	4.25B	4.29B	5.86B	9.81B	3.87B	3.13B
Total Liabilities	88.33B	91.62B	91.23B	85.98B	80.13B	79.93B
Stockholders Equity	148.16B	155.65B	148.39B	127.93B	125.52B	112.45B
Cash Flow
Free Cash Flow	0.00	8.94B	14.29B	-6.30B	6.38B	18.44B
Operating Cash Flow	0.00	15.40B	17.50B	-2.35B	9.85B	21.54B
Investing Cash Flow	0.00	16.51B	-1.73B	1.95B	-3.99B	-7.96B
Financing Cash Flow	0.00	-19.27B	-11.77B	-10.67B	-6.52B	-5.87B

Fujitec Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5709.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6406, the sentiment is Positive. The current price of 5709 is above the 20-day moving average (MA) of 5692.00, above the 50-day MA of 5675.32, and below the 200-day MA of 5752.01, indicating a neutral trend. The MACD of 6.80 indicates Positive momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6406.

Fujitec Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6406	70 Outperform	¥431.72B	30.66	―	2.98%	0.32%	-15.41%
6113	70 Outperform	¥576.27B	21.12	5.14%	3.41%	-1.14%	-19.79%
6268	65 Neutral	$451.94B	28.30	5.25%	2.12%	-2.23%	130.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5631	59 Neutral	€724.49B	38.70	11.66%	0.90%	10.11%	41.98%
6302	59 Neutral	¥527.25B	155.64	0.59%	2.90%	-2.67%	-85.21%
6481	53 Neutral	$466.79B	70.03	1.88%	6.05%	1.98%	-48.28%

Fujitec Co., Ltd. Corporate Events

Fujitec Sets Record Date for Potential Extraordinary Shareholders’ Meeting

Fujitec Co., Ltd. has announced the designation of a record date for an extraordinary shareholders’ meeting scheduled for late February 2026. This meeting is contingent upon the outcome of a tender offer by Bospolder 1 K.K. for Fujitec’s shares. If the tender offer does not result in the acquisition of all targeted shares, the meeting will address proposals for share consolidation and amendments to the company’s Articles of Incorporation. The decision to set a record date is a preparatory step, with further details to be announced later.

Fujitec Supports Tender Offer by Bospolder 1 K.K. for Share Acquisition

Fujitec Co., Ltd. announced its support for a tender offer by Bospolder 1 K.K. to acquire its common shares, excluding those already held by the offeror and treasury shares. The board of directors resolved to leave the decision to participate in the tender offer to the shareholders and stock acquisition rights holders, with the intention of delisting the shares as part of the transaction. This move could impact Fujitec’s market presence and stakeholder interests by transitioning the company to a privately held entity.

Bospolder 1 K.K. Initiates Tender Offer for Fujitec Co., Ltd.

Bospolder 1 K.K. has announced the commencement of a tender offer to acquire all common shares of Fujitec Co., Ltd., following the satisfaction of conditions precedent. This move is part of a strategic acquisition plan by Bospolder 1 K.K., a subsidiary of Bospolder 2 K.K., to control and manage Fujitec’s business activities, potentially impacting the company’s market positioning and stakeholder interests.

Fujitec Achieves Record Orders and Income in Q2 FY2025

Fujitec Co., Ltd. reported record-high orders and operating income for the second quarter of FY2025, despite a slight decrease in net sales. The company achieved significant growth in Japan, South Asia, and the Americas & Europe, with notable advancements in their ‘Ele Glance’ product line and skill development initiatives.

Fujitec Reports Strong Operational Growth Amid Slight Sales Decline

Fujitec Co., Ltd. reported its consolidated business results for the second quarter ended September 30, 2025, showing a slight decline in net sales by 1.1% compared to the previous year. However, the company experienced significant growth in operating income by 28.8% and ordinary income by 18%, indicating improved operational efficiency. The profit attributable to owners of the parent increased by 11.9%, reflecting a positive financial performance. Despite the drop in comprehensive income, Fujitec maintains a strong financial position with a shareholders’ equity ratio of 60.6%. The company has not revised its business performance forecasts for the fiscal year ending March 31, 2026, suggesting confidence in its strategic direction.

Fujitec Co., Ltd. Abolishes Shareholder Benefit Program Amid Tender Offer

Fujitec Co., Ltd. has announced the abolition of its shareholder benefit program following a resolution by its Board of Directors. This decision is linked to the tender offer by Bospolder 1 K.K., which aims to acquire all common shares of Fujitec, potentially leading to the company’s delisting. The move reflects a strategic shift in Fujitec’s operations, impacting its shareholder engagement and market positioning.