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Fenwal Controls of Japan, Ltd.
(6870)
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Rating:64Neutral
Price Target:
¥2,385.00
▲(32.06% Upside)
Action:Downgraded
Date:08/04/26
The score is driven primarily by strong balance-sheet quality and improved recent profitability, partially offset by weak cash conversion and negative 2025 free cash flow. Technical indicators are currently unfavorable (below major moving averages with negative MACD and low RSI), while valuation is supportive with a reasonable P/E and ~3% dividend yield.
Positive Factors
Conservative leverage
Very low and declining leverage provides durable financial flexibility. A ~0.04 debt-to-equity ratio supports capital spending, dividend maintenance, or opportunistic M&A without stressing the balance sheet, reducing solvency risk and enabling strategic actions over months.
Negative Factors
Poor cash conversion
Earnings are not translating into cash: OCF/NI ~0.11 and negative free cash flow in 2025 constrain financial flexibility. This raises risk that the company cannot fund capex, dividends, or debt repayment from operations and may need external funding or cutbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Very low and declining leverage provides durable financial flexibility. A ~0.04 debt-to-equity ratio supports capital spending, dividend maintenance, or opportunistic M&A without stressing the balance sheet, reducing solvency risk and enabling strategic actions over months.
Read all positive factors
Fenwal Controls of Japan, Ltd. (6870) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥14.87B
Dividend Yield2.96%
Average Volume (3M)1.31K
Price to Earnings (P/E)16.6
Beta (1Y)0.22
Revenue Growth7.73%
EPS Growth-19.23%
CountryJP
Employees271
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)193.40
Shares Outstanding5,893,000
10 Day Avg. Volume1,760
30 Day Avg. Volume1,306
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)0.69
Price to Sales (P/S)0.78
P/FCF Ratio-21.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fenwal Controls of Japan, Ltd. Business Overview & Revenue Model
Company Description
Fenwal Controls of Japan Ltd. engages in the development, sale, design, construction, and maintenance of thermal control systems. It operates through the following segments: Safety Security Protection (SSP), Thermal, Medical, and Printed Wiring Bo...
How the Company Makes Money
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Fenwal Controls of Japan, Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.30B | 12.91B | 12.52B | 12.60B | 12.40B | 12.37B |
| Gross Profit | 4.40B | 4.16B | 4.14B | 4.01B | 4.05B | 3.90B |
| EBITDA | 1.75B | 1.50B | 1.58B | 929.57M | 1.45B | 1.07B |
| Net Income | 1.08B | 1.25B | 1.12B | 385.00M | 826.57M | 387.57M |
Balance Sheet | ||||||
| Total Assets | 19.89B | 19.23B | 19.52B | 19.46B | 19.10B | 18.69B |
| Cash, Cash Equivalents and Short-Term Investments | 5.05B | 4.83B | 6.29B | 7.32B | 6.32B | 6.89B |
| Total Debt | 838.25M | 622.95M | 1.24B | 1.54B | 1.78B | 2.11B |
| Total Liabilities | 4.82B | 4.62B | 5.94B | 6.78B | 6.79B | 6.76B |
| Stockholders Equity | 15.06B | 14.61B | 13.59B | 12.68B | 12.31B | 11.92B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -468.06M | 293.62M | 936.00M | 55.01M | 859.69M |
| Operating Cash Flow | 0.00 | 342.48M | 949.44M | 1.11B | 401.18M | 1.20B |
| Investing Cash Flow | 0.00 | -1.29B | -659.28M | 940.68M | -80.91M | -1.27B |
| Financing Cash Flow | 0.00 | -1.04B | -920.32M | -646.00M | -714.24M | 226.09M |
Fenwal Controls of Japan, Ltd. Technical Analysis
Negative
1806.00
Price Trends
2481.47
Negative
2289.27
Negative
2038.29
Positive
Market Momentum
-70.76
Positive
39.88
Neutral
14.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6870, the sentiment is Negative. The current price of 1806 is below the 20-day moving average (MA) of 2495.30, below the 50-day MA of 2481.47, and below the 200-day MA of 2038.29, indicating a neutral trend. The MACD of -70.76 indicates Positive momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 14.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6870.
Fenwal Controls of Japan, Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥105.34B | 19.46 | ― | 0.82% | 8.60% | 28.39% | |
82 Outperform | ¥164.05B | 16.08 | ― | 1.39% | 12.59% | 26.40% | |
75 Outperform | ¥268.35B | 19.19 | ― | 2.42% | 4.46% | 23.01% | |
70 Outperform | ¥56.48B | 15.37 | ― | 3.69% | 9.40% | 33.63% | |
64 Neutral | ¥14.87B | 16.62 | ― | 3.98% | 7.73% | -19.23% | |
64 Neutral | ¥3.05T | 24.91 | 8.87% | 1.45% | 4.75% | 6.29% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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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.