F.C.C.Co., Ltd. (7296) AI Stock Analysis

• Market Cap: ¥181.10B
• Dividend Yield: 4.44%
• Average Volume (3M): 140.22K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.81
• Revenue Growth: 2.01%
• EPS Growth: 25.09%
• Country: JP
• Employees: 7,819
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 96.63
• Shares Outstanding: 52,056,530
• 10 Day Avg. Volume: 135,340
• 30 Day Avg. Volume: 140,223
• PEG Ratio: 0.30
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 11.52
• 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: 80 Outperform
• Price Target: ¥4,226.00 ▲(14.99% Upside)

F.C.C. Co., Ltd. receives a strong overall stock score driven by robust financial performance and attractive valuation. The company's solid revenue growth and profitability margins, combined with a low debt-to-equity ratio, enhance its financial stability. The technical analysis indicates positive momentum, though caution is advised due to nearing overbought conditions. The attractive P/E ratio and high dividend yield further support the stock's appeal. However, attention should be paid to improving cash flow management.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates strong demand for F.C.C.'s products, enhancing its market position and supporting long-term business expansion.

Financial Stability

A low debt-to-equity ratio reflects conservative financial management, providing stability and flexibility for future investments and growth.

Profitability Margins

Healthy profit margins indicate effective cost management and operational efficiency, supporting sustainable profitability over the long term.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to reinvest in the business and manage unexpected expenses, impacting long-term financial health.

Operating Efficiency

Decreasing operating margins suggest potential inefficiencies, which could affect profitability if not addressed, impacting long-term competitiveness.

Cash Flow Management

Improving cash flow management is crucial for maintaining liquidity and supporting strategic initiatives, essential for long-term sustainability.

F.C.C.Co., Ltd. Business Overview & Revenue Model

Company Description

F.C.C.Co., Ltd. (7296) is a leading company in the automotive parts and components sector, specializing in the manufacturing of high-quality brake systems and related products. With a strong presence in both domestic and international markets, F.C.C.Co. serves a diverse range of clients, including automotive manufacturers and aftermarket suppliers. The company is committed to innovation and quality, ensuring that its products meet stringent safety and performance standards.

How the Company Makes Money

F.C.C.Co., Ltd. generates revenue primarily through the sale of its automotive brake systems and components. The company's revenue model is based on a combination of direct sales to automotive manufacturers, as well as distribution to aftermarket retailers. Key revenue streams include contracts with major automotive OEMs (Original Equipment Manufacturers), which provide a stable income through bulk orders. Additionally, F.C.C.Co. benefits from aftermarket sales as vehicles equipped with their systems require replacement parts over time. Strategic partnerships with automotive manufacturers enhance their market reach and contribute to consistent earnings. The company also invests in research and development to innovate new products, which can lead to increased sales and market share.

F.C.C.Co., Ltd. Financial Statement Overview

Summary

F.C.C.Co., Ltd. demonstrates solid financial health with strong operational efficiency and a robust balance sheet. However, declining revenue growth and free cash flow warrant attention. The company is well-positioned in terms of leverage and equity, but improving profitability and cash flow generation will be key to sustaining long-term growth.

Income Statement

F.C.C.Co., Ltd. shows a stable gross profit margin of around 19% in the TTM, indicating efficient cost management. However, the net profit margin is relatively low at 6.18%, suggesting room for improvement in profitability. The revenue growth rate has declined by 1.33% in the TTM, which could be a concern if the trend continues. EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.016, indicating minimal leverage and financial risk. The return on equity is decent at 8.45%, showing effective use of shareholder funds. The equity ratio is robust, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow is strong, but free cash flow has decreased by 28.28% in the TTM, which could impact future investments or debt repayments. The operating cash flow to net income ratio is moderate, suggesting that earnings are well-supported by cash flow. However, the free cash flow to net income ratio indicates some pressure on cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	255.67B	256.62B	240.28B	218.94B	170.97B	146.16B
Gross Profit	48.60B	49.31B	42.05B	32.99B	27.74B	22.87B
EBITDA	31.09B	32.78B	32.06B	27.07B	24.77B	21.90B
Net Income	17.12B	15.86B	12.23B	9.57B	8.55B	4.46B
Balance Sheet
Total Assets	248.70B	246.21B	245.00B	210.63B	195.36B	175.64B
Cash, Cash Equivalents and Short-Term Investments	75.39B	68.50B	86.21B	57.64B	44.63B	44.10B
Total Debt	3.90B	3.00B	7.66B	7.51B	7.75B	8.88B
Total Liabilities	58.16B	60.76B	58.40B	48.50B	46.83B	43.65B
Stockholders Equity	189.30B	184.22B	185.32B	160.06B	146.63B	130.24B
Cash Flow
Free Cash Flow	8.24B	13.21B	26.51B	12.47B	4.55B	6.03B
Operating Cash Flow	26.20B	27.93B	35.38B	21.01B	15.46B	12.97B
Investing Cash Flow	-30.20B	-25.77B	-7.43B	-10.31B	-9.63B	-8.52B
Financing Cash Flow	-12.97B	-14.63B	-4.82B	-3.23B	-4.20B	-3.17B

F.C.C.Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3675.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7296, the sentiment is Positive. The current price of 3675 is above the 20-day moving average (MA) of 3563.75, above the 50-day MA of 3331.00, and above the 200-day MA of 3022.43, indicating a bullish trend. The MACD of 123.24 indicates Negative momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 75.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7296.

F.C.C.Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6995	81 Outperform	¥270.97B	7.48	―	3.34%	1.36%	139.77%
7296	80 Outperform	¥181.10B	10.62	―	4.44%	2.01%	25.09%
5191	79 Outperform	¥268.49B	9.22	―	2.94%	2.19%	27.44%
7242	78 Outperform	¥231.46B	8.03	12.15%	2.83%	3.95%	136.86%
7313	65 Neutral	¥215.57B	40.52	―	4.74%	-3.71%	-51.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7220	61 Neutral	¥172.94B	18.91	―	1.90%	-3.23%	24.93%

F.C.C.Co., Ltd. Corporate Events

F.C.C. Co., Ltd. Reports Strong First Half FY2026 Results and Strategic Progress

F.C.C. Co., Ltd. reported strong financial results for the first half of FY2026, with significant revenue and profit growth driven by increased sales in motorcycles and automobiles, particularly in India, China, and North America. The company achieved record operating profit due to higher revenue and reduced quality costs, and it has revised its full-year forecast upward. The company is progressing with its mid-term management plan, focusing on transforming its business portfolio and strengthening its management foundation, with a target for a high shareholder return ratio.

F.C.C. CO., LTD. Revises Earnings Forecast and Dividends Amid Strong Performance

F.C.C. CO., LTD. announced a notable difference between its previously forecasted and actual earnings for the second quarter of the fiscal year ending March 2026, attributed to increased sales in North America and India and favorable exchange rates. The company has revised its full-year earnings forecast upwards and adjusted its dividend payouts, reflecting improved financial performance and strategic adjustments to currency assumptions and market conditions.

F.C.C. Co., Ltd. Reports Stable Profits Amid Slight Revenue Decline

F.C.C. Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decrease in revenue by 0.7% compared to the previous year. Despite this, the company experienced an increase in profit attributable to owners of the parent by 16.4%, indicating improved operational efficiency. The company also revised its cash dividend forecast, reflecting a strategic adjustment in its financial planning. This announcement suggests a stable financial position and a commitment to shareholder returns, which could positively impact investor confidence.