FDK Corporation (6955) AI Stock Analysis

• Market Cap: ¥12.91B
• Dividend Yield: N/A
• Average Volume (3M): 80.67K
• Price to Earnings (P/E): 42.3
• Beta (1Y): 0.73
• Revenue Growth: -7.38%
• EPS Growth: -39.84%
• Country: JP
• Employees: 2,418
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 6.65
• Shares Outstanding: 34,536,304
• 10 Day Avg. Volume: 55,600
• 30 Day Avg. Volume: 80,670
• PEG Ratio: 0.07
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 14.61
• 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: 61 Neutral
• Price Target: ¥407.00 ▲(16.29% Upside)

Score is driven primarily by mixed financial performance (thin profitability, negative revenue growth, and weak cash conversion despite improved FCF) and a demanding valuation (high P/E). Technicals are supportive with strong trend momentum, but overbought signals temper the outlook.

Positive Factors

Stable gross margin

Maintained gross margin near 18% TTM demonstrates durable cost control and product-level pricing power in batteries and components. That margin floor helps absorb revenue volatility, supports ongoing R&D and reinvestment, and underpins sustainable operating performance over the medium term.

Improving leverage

A debt-to-equity around 0.91 reflects a moderate, improving leverage profile that preserves financial flexibility. Lower relative leverage reduces refinancing and solvency risk, enabling the company to fund capex and R&D while maintaining strategic optionality across business cycles.

Free cash flow growth

FCF growth of +13.48% TTM signals improving cash generation capacity, strengthening the firm's ability to self-fund capex, R&D and working capital. Consistent FCF expansion enhances resilience, lowers dependence on external financing, and supports longer-term investment in battery technologies.

Negative Factors

Negative revenue trend

A ~7.4% TTM revenue decline indicates weakening top-line momentum or market share erosion in core product lines. Persistent sales contraction undermines scale economics, pressures margins and R&D funding, and complicates execution of medium-term growth strategies absent a clear recovery.

Thin profitability & low ROE

Net margin under 1% and ROE near 2.6% point to very limited profitability and weak shareholder returns. Such thin earnings provide little cushion for cyclical shocks, constrain reinvestment or dividend capacity, and suggest structural cost, pricing, or mix issues needing strategic remediation.

Poor cash conversion

Operating cash flow equals only ~0.11x net income, indicating earnings convert poorly to cash—likely due to working capital or noncash items. Weak cash conversion limits liquidity, increases reliance on external financing for operations and capex, and reduces resilience to adverse shocks over months.

FDK Corporation Business Overview & Revenue Model

Company Description

FDK Corporation (6955) is a Japan-based company that specializes in manufacturing and selling batteries and electronic components. The company operates primarily in the fields of energy solutions, including rechargeable batteries, capacitors, and other electronic materials. FDK serves a variety of sectors including automotive, industrial, and consumer electronics, providing innovative products that meet the growing demand for efficient power sources.

How the Company Makes Money

FDK Corporation generates revenue primarily through the sale of its battery products, which include lithium-ion batteries, nickel-metal hydride batteries, and primary batteries. The company also earns money from its electronic components and materials, which are sold to manufacturers in the automotive and consumer electronics industries. Key revenue streams include direct sales to large OEMs (original equipment manufacturers) and partnerships with technology firms that require custom battery solutions. Additionally, FDK benefits from long-term contracts and agreements with major clients, ensuring a stable flow of income. The company's focus on R&D also allows it to innovate and develop new products that cater to emerging markets, further enhancing its revenue potential.

FDK Corporation Financial Statement Overview

Summary

FDK Corporation demonstrates a stable financial foundation with manageable leverage and reasonable gross margins. However, the company faces challenges in profitability and cash flow generation, with declining revenue growth and low net profit margins. Improvements in operational efficiency and cash flow management are necessary to enhance financial performance.

Income Statement

FDK Corporation's income statement shows mixed performance. The TTM gross profit margin is healthy at 18.03%, but the net profit margin is low at 0.85%, indicating challenges in converting revenue into profit. Revenue growth has been negative recently, with a decline of 2.00% in the TTM period. EBIT and EBITDA margins are modest, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.90, indicating manageable leverage. Return on equity is low at 3.30%, suggesting limited profitability from shareholders' investments. The equity ratio is reasonable, showing a balanced capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -24.44% in the TTM period. The operating cash flow to net income ratio is 0.13, indicating moderate cash generation relative to net income. Free cash flow to net income ratio is 0.25, suggesting limited free cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.29B	63.17B	62.68B	62.78B	61.46B	61.54B
Gross Profit	10.93B	11.39B	9.93B	10.12B	11.65B	11.42B
EBITDA	3.16B	3.40B	3.17B	3.31B	3.69B	4.33B
Net Income	305.00M	537.00M	120.00M	318.00M	740.00M	2.01B
Balance Sheet
Total Assets	46.71B	46.34B	51.56B	47.13B	46.90B	48.06B
Cash, Cash Equivalents and Short-Term Investments	4.54B	4.60B	3.71B	2.57B	2.76B	7.00B
Total Debt	15.29B	14.71B	14.55B	12.22B	12.34B	15.12B
Total Liabilities	29.71B	29.92B	35.91B	33.93B	34.44B	37.18B
Stockholders Equity	16.88B	16.30B	15.54B	13.19B	12.45B	10.88B
Cash Flow
Free Cash Flow	800.00M	933.00M	-438.00M	-204.00M	-1.79B	-161.00M
Operating Cash Flow	3.46B	3.77B	1.62B	2.78B	2.18B	2.00B
Investing Cash Flow	-2.71B	-2.83B	-2.53B	-2.98B	-3.92B	-373.00M
Financing Cash Flow	301.00M	24.00M	1.81B	-116.00M	-2.78B	-4.08B

FDK Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 350.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6955, the sentiment is Positive. The current price of 350 is below the 20-day moving average (MA) of 354.05, below the 50-day MA of 355.20, and below the 200-day MA of 374.86, indicating a neutral trend. The MACD of 3.80 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6955.

FDK Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6674	79 Outperform	¥375.04B	11.92	8.89%	2.12%	3.05%	-16.11%
5310	77 Outperform	¥110.53B	15.14	7.99%	2.50%	-8.00%	-17.82%
6516	76 Outperform	¥157.54B	19.67	―	1.53%	3.37%	21.35%
5801	73 Outperform	¥704.90B	20.09	10.06%	1.21%	10.52%	60.75%
5805	72 Outperform	¥327.93B	21.49	18.26%	1.64%	7.08%	65.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6955	61 Neutral	¥12.91B	42.31	1.83%	―	-7.38%	-39.84%