F-Tech Inc. (7212) AI Stock Analysis

• Market Cap: ¥14.61B
• Dividend Yield: 2.54%
• Average Volume (3M): 48.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -2.67%
• EPS Growth: 33.63%
• Country: JP
• Employees: 7,787
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -219.79
• Shares Outstanding: 18,712,244
• 10 Day Avg. Volume: 39,310
• 30 Day Avg. Volume: 48,200
• PEG Ratio: <0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 1.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥779.00 ▼(-0.89% Downside)

The overall stock score of 54 reflects mixed financial performance with significant profitability challenges, moderate technical analysis indicators, and a challenging valuation due to negative earnings. The stable balance sheet and robust cash flow generation are positive aspects, but rising leverage and declining free cash flow trends are concerns.

Positive Factors

Operational Efficiency

Improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Cash Flow Generation

Strong cash flow generation, despite net losses, suggests effective management and the ability to fund operations and investments, supporting long-term growth.

Stable Balance Sheet

A stable balance sheet with consistent equity growth provides a solid foundation for future investments and resilience against economic fluctuations.

Negative Factors

Rising Leverage

Increased leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities or weather downturns.

Declining Free Cash Flow

A declining free cash flow trend could constrain the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.

Profitability Challenges

Deteriorating net profit margins highlight ongoing profitability issues, which could hinder the company's ability to reinvest in its business and sustain growth.

F-Tech Inc. Business Overview & Revenue Model

Company Description

F-Tech Inc. designs, develops, manufactures, and sells automotive parts, related dies, machinery, and equipment in Japan, rest of Asia, and North America. The company's products include various subframes; suspensions and beams comprising rear suspension beams, rear axle beams, trailing arms, and lower arms; control parts, including organ-type accelerator pedals, foot parking brakes, and adjustable pedals; and chassis systems. It also provides stamped parts, body frame parts, and fuel tanks for motorcycles; and aluminum die-castings and plastic components. The company was formerly known as Fukuda Press Kogyo Inc. and changed its name to F-Tech Inc. in 1988. F-Tech Inc. was founded in 1947 and is headquartered in Kuki, Japan.

How the Company Makes Money

F-Tech Inc. generates revenue primarily through the sale of its software licensing, subscription services, and professional consulting. The company operates a tiered pricing model for its software products, allowing businesses to choose from various plans based on their needs. Additionally, F-Tech earns significant income from cloud service subscriptions, which provide clients with scalable solutions for data storage and management. Professional services, including installation, customization, and ongoing support, also contribute to the revenue stream. Strategic partnerships with major technology providers and telecommunications firms enhance F-Tech's market reach and facilitate cross-selling opportunities, further bolstering its earnings.

F-Tech Inc. Financial Statement Overview

Summary

F-Tech Inc. shows mixed financial performance. Revenue growth and operational efficiency have improved, but profitability is a significant issue, particularly with a notable net loss in the latest period. The balance sheet is stable, but rising leverage is concerning. Cash flow generation is robust, though the declining free cash flow trend warrants attention.

Income Statement

The income statement shows a mixed performance. While the gross profit margin is stable at around 8.4%, the net profit margin has deteriorated significantly, turning negative in 2025 due to a substantial net loss. Revenue growth is positive over the years, showing a steady increase, but profitability issues, particularly in the latest period, are concerning. The EBIT and EBITDA margins improved in the most recent year, indicating better operational efficiency, but the net income loss overshadows this improvement.

Balance Sheet

The balance sheet reflects a stable equity base, with stockholders' equity consistently growing over time. The debt-to-equity ratio has increased, indicating higher leverage, which poses a risk if the company cannot manage its debt obligations. The equity ratio remains stable, suggesting a balanced capital structure. However, the increasing debt levels could become a concern if not matched by growth in earnings.

Cash Flow

Cash flows are generally positive, with the company generating healthy operating cash flows. The free cash flow, although positive, shows a declining trend due to increased capital expenditures and lower net income. The ability to convert operating cash flow into free cash flow is a positive sign, but the declining trend needs monitoring. The operating cash flow to net income ratio is strong, indicating effective cash generation despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	295.69B	300.83B	298.76B	261.16B	191.89B	183.65B
Gross Profit	27.06B	25.33B	22.32B	18.74B	15.60B	17.03B
EBITDA	20.65B	11.90B	20.48B	18.17B	12.72B	12.16B
Net Income	-6.18B	-6.92B	1.68B	1.73B	209.00M	-1.17B
Balance Sheet
Total Assets	167.71B	177.56B	191.77B	176.14B	160.93B	136.71B
Cash, Cash Equivalents and Short-Term Investments	13.87B	14.36B	12.20B	5.49B	1.98B	3.71B
Total Debt	67.91B	72.59B	76.24B	74.15B	65.00B	49.60B
Total Liabilities	106.06B	113.31B	120.03B	111.38B	100.35B	81.68B
Stockholders Equity	49.11B	51.51B	55.83B	50.04B	45.10B	40.30B
Cash Flow
Free Cash Flow	0.00	6.71B	10.60B	1.75B	-14.15B	-342.00M
Operating Cash Flow	0.00	14.76B	19.47B	17.43B	1.79B	9.96B
Investing Cash Flow	0.00	-7.87B	-8.90B	-16.34B	-15.64B	-10.73B
Financing Cash Flow	0.00	-5.73B	-4.26B	2.34B	11.57B	-4.36B

F-Tech Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 786.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7212, the sentiment is Positive. The current price of 786 is above the 20-day moving average (MA) of 755.90, above the 50-day MA of 749.78, and above the 200-day MA of 667.89, indicating a bullish trend. The MACD of 11.84 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 80.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7212.

F-Tech Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7299	79 Outperform	¥19.24B	8.16	―	2.88%	19.42%	74.63%
7247	75 Outperform	¥11.98B	4.25	―	3.92%	-1.72%	168.62%
7218	74 Outperform	¥11.64B	6.44	―	2.93%	-3.24%	-26.11%
7266	64 Neutral	¥19.23B	15.38	―	2.75%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7277	56 Neutral	¥11.47B	33.40	―	2.22%	-4.06%	―
7212	54 Neutral	¥14.61B	-8.26	―	2.54%	-2.67%	33.63%