FDK Corporation (6955) AI Stock Analysis

• Market Cap: ¥13.32B
• Dividend Yield: N/A
• Average Volume (3M): 80.67K
• Price to Earnings (P/E): 166.5
• 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): 3.51
• 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: 49 Neutral
• Price Target: ¥376.00 ▲(7.43% Upside)

The score is held back primarily by very weak profitability and returns (near-zero net margin, low ROE) and an expensive valuation (P/E ~163). Partially offsetting this are improving balance-sheet leverage and a return to positive free cash flow, while technical indicators are broadly mixed/neutral.

Positive Factors

Diversified OEM and end-market exposure

Serving automotive, industrial and consumer OEMs and holding long-term client contracts provides multi-sector demand anchors. Combined with an R&D focus for custom battery solutions, this durable diversification supports steadier mid-term revenue and reduces dependence on any single cyclical end market.

Improving balance-sheet leverage

Leverage falling to below parity materially improves financial flexibility and lowers refinancing and interest risk. A stronger equity base reduces insolvency risk in downturns and gives management room to fund capex or R&D, supporting resilience over the next several quarters.

Return to positive free cash flow

A shift to positive and growing FCF signals restored operational cash generation, enabling reinvestment, debt paydown or strategic R&D without sole reliance on external funding. This improvement is a durable enhancer of financial durability if sustained beyond transient cycles.

Negative Factors

Very thin profitability

Margins at near-breakeven leave minimal buffer for raw-material or pricing shocks and limit internal funding for growth. Persistently thin profitability constrains ROE improvement and undermines the company's ability to build durable excess returns over competitors across the medium term.

Declining revenue trends

Negative recent revenue growth and a modest TTM decline indicate pressure on top-line scale. Shrinking sales reduce operating leverage, weaken pricing power and make margin recovery harder, posing a sustained challenge to rebuilding profitability over several quarters.

Earnings volatility and weak cash conversion

Steep EPS declines and low FCF-to-net-income signal earnings quality problems and working-capital swings. This volatility hinders planning, constrains reinvestment capacity and raises the risk that occasional earnings gains won’t translate into durable cash available for capex or debt reduction.

FDK Corporation Business Overview & Revenue Model

Company Description

FDK Corporation manufactures and sells batteries, rechargeable batteries, battery devices, and electronic components and devices in Japan. The company offers alkaline, Ni-MH, lithium, and carbon-zinc batteries; and power storage systems, electric lights, and production systems for batteries. It also provides switching power supplies, DC-DC power modules, toners, and signal processing modules for LCDs. The company also exports its products. The company was founded in 1950 and is headquartered in Tokyo, Japan. FDK Corporation is a subsidiary of Fujitsu Limited.

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

Financials are stable but weak in quality: TTM revenue is slightly down (-1.5%) and profitability is extremely thin (net margin ~0.1%, EBIT margin ~1.0%), driving very low ROE (~0.5%). Offsetting this, leverage has improved (debt-to-equity ~0.89 vs ~1.39 in FY2021) and TTM free cash flow has turned positive (~¥0.9B), though cash conversion remains weak (FCF ~0.27x net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down (-1.5%), and profitability is very thin: net margin is ~0.1% with EBIT margin around ~1.0%, pointing to meaningful cost/price pressure. While gross margin has held in the high-teens, earnings have been volatile versus prior annual periods (net margin was ~0.9% in FY2025 and ~3.3% in FY2021), suggesting the business is struggling to consistently convert sales into bottom-line profit.

Balance Sheet

Leverage looks manageable but not light, with debt running at just under equity (debt-to-equity ~0.89 in TTM (Trailing-Twelve-Months)), an improvement from the more elevated level in FY2021 (~1.39). Equity has grown over time, supporting the balance sheet; however, returns on equity are currently very low in TTM (Trailing-Twelve-Months) (~0.5%), reflecting weak recent profitability and limiting financial flexibility if conditions worsen.

Cash Flow

Cash generation has improved from earlier years when free cash flow was negative (FY2022–FY2024), with TTM (Trailing-Twelve-Months) free cash flow turning positive (~¥0.9B) and growing strongly versus the prior period. That said, operating cash flow is modest relative to the business scale, and cash conversion vs. earnings remains weak (TTM (Trailing-Twelve-Months) free cash flow is only ~0.27x net income), suggesting working-capital swings and/or capital spending still constrain cash build.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	59.37B	63.17B	62.68B	62.78B	61.46B	61.54B
Gross Profit	10.89B	11.39B	9.93B	10.12B	11.65B	11.42B
EBITDA	2.91B	3.40B	3.17B	3.31B	3.69B	4.33B
Net Income	82.00M	537.00M	120.00M	318.00M	740.00M	2.01B
Balance Sheet
Total Assets	48.31B	46.34B	51.56B	47.13B	46.90B	48.06B
Cash, Cash Equivalents and Short-Term Investments	5.40B	4.60B	3.71B	2.57B	2.76B	7.00B
Total Debt	15.83B	14.71B	14.55B	12.22B	12.34B	15.12B
Total Liabilities	30.48B	29.92B	35.91B	33.93B	34.44B	37.18B
Stockholders Equity	17.70B	16.30B	15.54B	13.19B	12.45B	10.88B
Cash Flow
Free Cash Flow	889.00M	933.00M	-438.00M	-204.00M	-1.79B	-161.00M
Operating Cash Flow	3.35B	3.77B	1.62B	2.78B	2.18B	2.00B
Investing Cash Flow	-2.53B	-2.83B	-2.53B	-2.98B	-3.92B	-373.00M
Financing Cash Flow	247.00M	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: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 389.50, below the 50-day MA of 366.60, and below the 200-day MA of 376.35, indicating a neutral trend. The MACD of 10.46 indicates Positive momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 19.17 is Positive, 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	$359.79B	11.43	8.89%	2.12%	3.05%	-16.11%
5310	77 Outperform	¥113.25B	15.51	7.99%	2.50%	-8.00%	-17.82%
6516	75 Outperform	¥157.35B	20.00	―	1.53%	3.37%	21.35%
5805	72 Outperform	¥344.34B	22.57	18.26%	1.64%	7.08%	65.71%
5801	67 Neutral	¥952.30B	27.14	10.06%	1.21%	10.52%	60.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6955	49 Neutral	¥13.32B	166.49	1.83%	―	-7.38%	-39.84%