Fulltech Co. Ltd. (6546) AI Stock Analysis

• Market Cap: ¥6.48B
• Dividend Yield: 2.65%
• Average Volume (3M): 2.36K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.21
• Revenue Growth: 2.49%
• EPS Growth: -32.03%
• Country: JP
• Employees: 719
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 10.53
• Shares Outstanding: 5,367,800
• 10 Day Avg. Volume: 2,910
• 30 Day Avg. Volume: 2,356
• PEG Ratio: 0.15
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 9.75
• 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: 76 Outperform
• Price Target: ¥1,349.00 ▲(12.32% Upside)

Fulltech Co. Ltd. achieves a solid overall stock score driven primarily by its strong financial performance, characterized by consistent revenue and profit growth, and robust cash flow generation. The technical analysis suggests moderate market conditions with potential for upward momentum. Valuation metrics indicate the stock is fairly valued with an attractive dividend yield, making it appealing to income investors. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, allowing for strategic investments and effective debt management, supporting long-term stability.

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, reinforcing the company's competitive position and potential for future expansion.

Balance Sheet Health

Low leverage risk and a strong equity base provide financial stability, reducing vulnerability to economic fluctuations and supporting sustainable growth.

Negative Factors

Return on Equity

A modest return on equity suggests limited efficiency in generating returns for shareholders, which may impact investor confidence and long-term shareholder value.

Profit Margin

While improving, the net profit margin remains relatively low, indicating potential challenges in cost management or pricing power that could affect profitability.

Industry Competition

Operating in highly competitive sectors may pressure margins and require continuous innovation to maintain market position, posing a long-term challenge.

Fulltech Co. Ltd. Business Overview & Revenue Model

Company Description

Fulltech Co.Ltd. manufactures, sells, constructs, and maintains hardware and related products. The company's products include automatic doors, automatic door peripheral products, stainless steel sash products, smoking area systems, security products, and others. It also engages in the sale, operation, and management of the bicycle parking racks and systems. The company was founded in 1963 and is headquartered in Sapporo, Japan.

How the Company Makes Money

Fulltech Co. Ltd. generates revenue through multiple streams, primarily by manufacturing and selling electronic components to various industries, including consumer electronics and telecommunications. The company earns money by supplying integrated circuits and sensors to original equipment manufacturers (OEMs) and other technology firms. Additionally, Fulltech engages in long-term contracts with key partners to provide customized solutions, which ensures a steady revenue flow. The company's strategic partnerships with leading technology firms enhance its market reach and facilitate joint ventures that contribute to its earnings. Furthermore, Fulltech invests in research and development to innovate and expand its product offerings, thereby attracting new customers and increasing sales.

Fulltech Co. Ltd. Financial Statement Overview

Summary

Fulltech Co. Ltd. presents a strong financial profile with consistent revenue and profit growth, solid balance sheet management, and impressive cash flow generation. The company has effectively managed its operational costs and leverage, leading to improved profitability and financial stability. While return on equity could be enhanced, the current financials indicate a well-managed and financially sound company poised for future growth.

Income Statement

Fulltech Co. Ltd. demonstrates strong revenue growth with a notable increase from ¥11.92 billion in 2022 to ¥13.81 billion in 2024, reflecting a positive trajectory. The company maintains robust gross and net profit margins, with the gross profit margin at approximately 33.7% and net profit margin improving to 3.3% by 2024. EBIT and EBITDA margins further underline strong operational performance, with the EBITDA margin improving to 6.0% in 2024. These figures suggest effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects stability with a favorable debt-to-equity ratio of approximately 0.10 in 2024, indicating low leverage risk. The equity ratio remains healthy at around 54.6%, signifying a strong equity base relative to total assets. Return on equity is modest at 6.8%, showing room for improvement in generating returns for shareholders. Overall, the company's financial position is stable with prudent debt management.

Cash Flow

Fulltech Co. Ltd. exhibits robust cash flow generation, with free cash flow growing significantly from ¥150 million in 2022 to ¥644 million in 2024, representing a strong free cash flow growth rate. The operating cash flow to net income ratio is healthy, indicating effective conversion of earnings into cash. The free cash flow to net income ratio is also positive, reflecting good cash efficiency. Such strong cash flows provide flexibility for future investments and debt management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.52B	13.81B	12.78B	11.94B	11.51B	11.67B
Gross Profit	4.70B	4.65B	4.05B	3.57B	4.04B	3.83B
EBITDA	778.04M	825.00M	582.76M	318.18M	811.47M	589.57M
Net Income	398.48M	457.90M	239.21M	94.05M	436.61M	277.93M
Balance Sheet
Total Assets	11.07B	12.23B	12.00B	10.84B	11.06B	10.41B
Cash, Cash Equivalents and Short-Term Investments	2.14B	2.84B	2.65B	1.81B	1.86B	1.90B
Total Debt	593.00M	696.84M	751.66M	92.09M	211.31M	279.35M
Total Liabilities	4.27B	5.55B	5.59B	4.69B	4.61B	4.24B
Stockholders Equity	6.80B	6.69B	6.41B	6.15B	6.45B	6.17B
Cash Flow
Free Cash Flow	0.00	632.72M	355.02M	150.28M	199.18M	-323.42M
Operating Cash Flow	0.00	753.16M	649.01M	376.44M	490.10M	445.98M
Investing Cash Flow	0.00	-66.83M	-318.51M	-136.83M	-312.15M	-782.34M
Financing Cash Flow	0.00	-503.30M	509.28M	-287.79M	-212.99M	-252.24M

Fulltech Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1201.00
• 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:6546, the sentiment is Neutral. The current price of 1201 is below the 20-day moving average (MA) of 1209.15, above the 50-day MA of 1199.56, and above the 200-day MA of 1143.82, indicating a neutral trend. The MACD of 4.48 indicates Positive momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 36.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6546.

Fulltech Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6546	76 Outperform	¥6.48B	21.05	―	2.65%	2.49%	-32.03%
6286	76 Outperform	¥8.67B	7.57	―	1.60%	11.62%	16.48%
6229	76 Outperform	¥7.93B	11.55	―	2.58%	8.69%	14.63%
6391	69 Neutral	¥5.59B	11.73	―	1.18%	-14.09%	-36.08%
6158	68 Neutral	¥5.54B	18.33	―	4.06%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6155	58 Neutral	¥5.16B	-39.27	―	2.10%	-0.59%	89.24%