FDK Corporation (6955) AI Stock Analysis

• Market Cap: ¥12.18B
• Dividend Yield: N/A
• Average Volume (3M): 80.67K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.72
• 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: 55 Neutral
• Price Target: ¥363.00 ▲(3.71% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company's stable financial foundation is offset by challenges in profitability and cash flow. Technical indicators show bearish momentum, and the stock appears overvalued with a high P/E ratio and no dividend yield. These factors contribute to a cautious outlook.

Positive Factors

Stable Gross Profit Margins

Stable gross profit margins indicate effective cost management, which can support long-term profitability even amid revenue challenges.

Improved Debt Management

Improved debt management enhances financial stability, providing the company with greater flexibility to invest in growth opportunities.

Free Cash Flow Growth

Growth in free cash flow indicates better cash generation, allowing for reinvestment in the business and potential debt reduction.

Negative Factors

Negative Revenue Growth

Negative revenue growth suggests challenges in market expansion, which could hinder the company's ability to scale and compete effectively.

Declining Net Profit Margins

Declining net profit margins reflect reduced profitability, which may impact the company's ability to invest in future growth and innovation.

Low Cash Flow Conversion

Low cash flow conversion indicates potential inefficiencies in turning income into cash, which could constrain liquidity and operational flexibility.

FDK Corporation Business Overview & Revenue Model

Company Description

FDK Corporation (6955) is a Japanese company primarily engaged in the manufacturing and sale of batteries, electronic components, and related products. Operating within the electronics sector, FDK offers a range of products including alkaline batteries, rechargeable batteries, and battery management systems, serving various industries such as consumer electronics, automotive, and industrial applications. The company is also involved in the development of advanced energy solutions and has a commitment to innovation and sustainability.

How the Company Makes Money

FDK Corporation generates revenue primarily through the sale of its battery products and electronic components. Key revenue streams include the production of alkaline and rechargeable batteries, which are sold to manufacturers in consumer electronics and automotive sectors. Additionally, FDK earns income from its battery management systems and custom energy solutions, catering to specific industrial needs. The company may also benefit from strategic partnerships with technology firms and manufacturers, which help expand its market reach and enhance product offerings. Factors contributing to its earnings include ongoing demand for energy-efficient products, advancements in battery technology, and increasing applications of batteries in emerging markets.

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: Negative
• Last Price: 350.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 350 is below the 20-day moving average (MA) of 352.90, below the 50-day MA of 363.04, and below the 200-day MA of 379.93, indicating a bearish trend. The MACD of -2.37 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 17.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥376.54B	11.96	8.89%	2.13%	3.05%	-16.11%
5310	77 Outperform	€99.72B	13.66	7.99%	2.52%	-8.00%	-17.82%
6516	76 Outperform	¥150.91B	18.84	―	1.59%	3.37%	21.35%
5801	73 Outperform	¥636.98B	18.16	10.06%	1.30%	10.52%	60.75%
5805	72 Outperform	¥307.64B	20.16	18.26%	1.71%	7.08%	65.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6955	55 Neutral	¥12.18B	39.60	1.83%	―	-7.38%	-39.84%