Fenwal Controls of Japan, Ltd. (6870) AI Stock Analysis

• Market Cap: ¥11.41B
• Dividend Yield: 3.98%
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.19
• Revenue Growth: 4.35%
• EPS Growth: 7.25%
• Country: JP
• Employees: 275
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 41.66
• Shares Outstanding: 5,893,000
• 10 Day Avg. Volume: 1,760
• 30 Day Avg. Volume: 1,306
• PEG Ratio: 0.69
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -21.64
• 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: 74 Outperform
• Price Target: ¥2,168.00 ▲(20.04% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by strong valuation (low P/E and solid dividend yield) and constructive technical momentum (price above key moving averages with positive MACD). These positives are moderated by financial performance risk centered on weak cash conversion and negative 2025 free cash flow despite improved profitability, even though the balance sheet is very strong.

Positive Factors

Conservative balance sheet

Very low and falling leverage provides durable financial flexibility: with debt-to-equity near 0.04 the company can fund investment, absorb shocks, or pursue opportunistic M&A without stressing capital structure. This supports long-term resilience and strategic optionality.

Negative Factors

Weak cash conversion

Earnings are not translating into cash: an OCF-to-net-income ratio near 0.11 and negative FCF in 2025 reduce internal funding, constrain reinvestment ability, and raise reliance on external financing or asset sales to sustain dividends or capex over the medium term.

Fenwal Controls of Japan, Ltd. Business Overview & Revenue Model

Company Description

Fenwal Controls of Japan, Ltd. designs, develops, manufactures, and sells fire prevention, temperature control, and medical equipment in Japan. It offers residential use fire alarm, industrial explosion protection, fire extinguishing, smoke detect...

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Fenwal Controls of Japan, Ltd. designs, develops, manufactures, and sells fire prevention, temperature control, and medical equipment in Japan. It offers residential use fire alarm, industrial explosion protection, fire extinguishing, smoke detect...

How the Company Makes Money

Fenwal Controls generates revenue primarily through the sale of its control systems, sensors, and automation solutions. The company has established key revenue streams from direct sales to industrial clients and long-term contracts with manufactur...

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Fenwal Controls generates revenue primarily through the sale of its control systems, sensors, and automation solutions. The company has established key revenue streams from direct sales to industrial clients and long-term contracts with manufactur...

Fenwal Controls of Japan, Ltd. Financial Statement Overview

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.54B	12.91B	12.52B	12.60B	12.40B	12.37B
Gross Profit	4.09B	4.16B	4.14B	4.01B	4.05B	3.90B
EBITDA	1.88B	1.50B	1.58B	929.57M	1.45B	1.07B
Net Income	1.10B	1.25B	1.12B	385.00M	826.57M	387.57M
Balance Sheet
Total Assets	19.36B	19.23B	19.52B	19.46B	19.10B	18.69B
Cash, Cash Equivalents and Short-Term Investments	6.76B	4.83B	6.29B	7.32B	6.32B	6.89B
Total Debt	1.49B	622.95M	1.24B	1.54B	1.78B	2.11B
Total Liabilities	5.45B	4.62B	5.94B	6.78B	6.79B	6.76B
Stockholders Equity	13.91B	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

• Technical Analysis Sentiment: Positive
• Last Price: 1806.00
• 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:6870, the sentiment is Positive. The current price of 1806 is below the 20-day moving average (MA) of 1997.10, below the 50-day MA of 1931.86, and above the 200-day MA of 1762.71, indicating a bullish trend. The MACD of 12.02 indicates Positive momentum. The RSI at 59.16 is Neutral, neither overbought nor oversold. The STOCH value of 56.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6870.

Fenwal Controls of Japan, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6809	81 Outperform	¥65.19B	8.62	―	3.69%	4.46%	127.52%
1909	80 Outperform	¥76.31B	8.04	―	0.82%	7.10%	36.47%
6744	76 Outperform	¥259.91B	14.78	―	2.42%	9.55%	9.52%
6870	74 Outperform	¥11.41B	8.12	―	3.98%	4.35%	7.25%
9735	73 Outperform	¥2.62T	19.24	8.35%	1.77%	5.39%	4.89%
7734	73 Outperform	¥150.67B	14.99	―	1.39%	11.23%	16.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%