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F.C.C.Co., Ltd. (JP:7296)
:7296
Japanese Market
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F.C.C.Co., Ltd. (7296) AI Stock Analysis

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JP:7296

F.C.C.Co., Ltd.

(7296)

Rating:78Outperform
Price Target:
¥3,186.00
▲(10.01%Upside)
F.C.C.Co., Ltd. is well-positioned with strong financial performance and an attractive valuation, driven by a low P/E ratio and high dividend yield. Technical analysis presents mixed signals with potential short-term volatility, but the company's financial health and valuation provide a solid foundation for investment.

F.C.C.Co., Ltd. (7296) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionF.C.C. Co., Ltd. manufactures and sells clutches, facings, and catalysts for automobiles, motorcycles, and general-purpose machinery in Japan and internationally. Its clutches for motorcycles comprise wet-type multi-disc, wet-type multi-disc assisted and slipper, wet-type and dry centrifugal, and racing clutches, as well as pulleys for belt converters for use in motorcycles, scooters, road sports bikes, ATVs, and racing vehicles. The company's automobiles clutches include automatic transmission, CVT, torque converter lockup, manual transmission, and 4WD vehicle clutches. In addition, its general-purpose clutches consist of FCCTRAC, a cam-type torque-sensitive limited slip differential for four-wheel ATVs; and hydraulic static transmissions for snow throwers and lawn mowers. The company was formerly known as Fuji Chemical Co., Ltd. and changed its name to F.C.C. Co., Ltd. in July 1984. F.C.C. Co., Ltd. was incorporated in 1939 and is headquartered in Hamamatsu, Japan.
How the Company Makes MoneyF.C.C. Co., Ltd. generates revenue through the production and sale of clutches and other automotive components. The company's revenue model is primarily based on supplying these components to major automotive manufacturers and aftermarket suppliers. Key revenue streams include the sale of clutch assemblies for motorcycles, passenger vehicles, and commercial vehicles. Additionally, F.C.C. Co., Ltd. may engage in strategic partnerships with automotive OEMs (Original Equipment Manufacturers) to secure long-term supply contracts, which contribute significantly to its earnings. Factors such as advancements in automotive technology and increased vehicle production globally also play a role in driving the company's revenue growth.

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

Summary
F.C.C.Co., Ltd. demonstrates strong financial performance characterized by steady revenue growth, robust profitability margins, and a solid balance sheet. While cash flow management shows a slight dip in free cash flow growth, the company maintains strong cash generation. The low leverage enhances financial stability, making it well-positioned for future growth in the auto parts industry.
Income Statement
80
Positive
F.C.C.Co., Ltd. has shown robust revenue growth with a 6.8% increase from 2024 to 2025 and consistent improvements over the years. The gross profit margin improved to 19.2%, indicating efficient cost management. Net profit margin also increased, standing at 6.2%. EBIT and EBITDA margins are healthy at 6.9% and 12.8% respectively, highlighting strong operational performance.
Balance Sheet
85
Very Positive
The company's balance sheet displays strong financial stability with a low debt-to-equity ratio of 0.02, suggesting minimal leverage risk. ROE has improved to 8.6%, reflecting enhanced profitability from equity. The equity ratio is stable at 74.8%, indicating a solid capital structure.
Cash Flow
75
Positive
Cash flow analysis shows a decline in operating cash flow, but free cash flow remains positive at ¥13.2 billion. The free cash flow to net income ratio is 0.83, demonstrating strong cash generation relative to profit. However, the free cash flow growth rate is negative due to increased capital expenditures.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue256.62B240.28B218.94B170.97B146.16B
Gross Profit49.31B42.05B32.99B27.74B22.87B
EBITDA32.78B32.06B25.58B22.96B21.30B
Net Income15.86B12.23B9.57B8.55B4.46B
Balance Sheet
Total Assets246.21B245.00B210.63B195.36B175.64B
Cash, Cash Equivalents and Short-Term Investments68.50B86.21B57.64B47.04B44.10B
Total Debt3.00B6.10B6.10B6.10B7.21B
Total Liabilities60.76B58.40B48.50B46.83B43.65B
Stockholders Equity184.22B185.32B160.06B146.63B130.24B
Cash Flow
Free Cash Flow13.21B26.51B12.47B4.55B6.03B
Operating Cash Flow27.93B35.38B21.01B15.46B12.97B
Investing Cash Flow-25.77B-7.43B-10.31B-9.63B-8.52B
Financing Cash Flow-14.63B-4.82B-3.23B-4.20B-3.17B

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

Technical Analysis Sentiment
Neutral
Last Price2896.00
Price Trends
50DMA
2839.70
Positive
100DMA
2883.90
Positive
200DMA
2877.77
Positive
Market Momentum
MACD
48.82
Positive
RSI
46.34
Neutral
STOCH
56.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7296, the sentiment is Neutral. The current price of 2896 is below the 20-day moving average (MA) of 2954.05, above the 50-day MA of 2839.70, and above the 200-day MA of 2877.77, indicating a neutral trend. The MACD of 48.82 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 56.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7296.

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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥149.06B9.37
3.49%2.11%16.65%
61
Neutral
$16.08B9.94-8.64%3.35%1.36%-20.44%
€970.02M11.186.70%3.44%
77
Outperform
¥213.24B8.24
3.87%-1.35%21.33%
77
Outperform
¥199.14B7.31
2.93%0.49%27.98%
70
Outperform
¥214.37B27.53
1.53%-0.78%-2.01%
67
Neutral
¥219.07B25.99
4.52%3.58%-17.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7296
F.C.C.Co., Ltd.
2,896.00
1,021.64
54.51%
DE:60V
KYB Corporation
19.20
6.15
47.13%
JP:5191
Sumitomo Riko Company Limited
1,918.00
725.82
60.88%
JP:6995
TOKAI RIKA CO., LTD.
2,471.00
815.00
49.21%
JP:7220
Musashi Seimitsu Industry Co., Ltd.
3,270.00
1,721.87
111.22%
JP:7313
TS Tech Co., Ltd.
1,837.00
252.33
15.92%

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

F.C.C. Co., Ltd. Revises Earnings and Dividend Forecasts Amid U.S. Tariff Impact
Aug 1, 2025

F.C.C. Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 31, 2026, due to the impact of a newly announced 15% tariff on automobiles and parts imported from Japan to the United States. The company anticipates a negative impact of 1,740 million yen on its operating profit due to these tariffs, and has adjusted its financial expectations accordingly. The revised forecasts reflect the current status of negotiations and market conditions, highlighting the company’s efforts to navigate the challenging trade environment.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2950.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Reports Q1 2025 Financial Results and Dividend Forecast Revision
Aug 1, 2025

F.C.C. Co., Ltd. reported a decrease in revenue for the three months ended June 30, 2025, with a 5.3% decline compared to the previous year. Despite this, the company saw a slight increase in operating profit, indicating some resilience in its operations. The company has revised its cash dividend forecast, reflecting a reduction in expected dividends for the fiscal year ending March 31, 2026, which may impact shareholder returns.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2950.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Receives $15 Million Dividend from Vietnamese Subsidiary
Jul 28, 2025

F.C.C. Co., Ltd. announced the receipt of a $15 million dividend from its subsidiary, FCC (Vietnam) Co., Ltd., which will be recorded as non-operating income in its non-consolidated financial statements for the fiscal year ending March 2026. This dividend will not impact the company’s consolidated earnings for the same fiscal year.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Receives Significant Dividends from Subsidiary
Jul 25, 2025

F.C.C. Co., Ltd. announced the receipt of dividends from its consolidated subsidiary, PT. FCC Indonesia, amounting to approximately 2.6 billion JPY. This dividend will be recorded as non-operating income in the company’s non-consolidated financial statements for the fiscal year ending March 2026, but it will not impact the consolidated earnings for the same period.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Completes Treasury Stock Disposal for Compensation
Jul 23, 2025

F.C.C. Co., Ltd. has completed the payment for the disposal of its treasury stock as part of its restricted share compensation plan. This move, resolved in a Board of Directors meeting on June 24, 2025, involves the disposal of 12,132 shares at a price of 2,701 yen per share, totaling 32,768,532 yen, and is aimed at compensating certain directors and managing officers.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Maintains Independence Amid Strong Ties with Honda
Jun 27, 2025

F.C.C. Co., Ltd. has announced its continued stable relationship with Honda Motor Co., Ltd., an affiliated company holding a significant portion of its voting rights. Despite this affiliation, F.C.C. maintains operational independence and bases its business decisions on its own judgment. The company engages in substantial transactions with Honda, including the sale of its products and the purchase of raw materials, contributing significantly to its revenue.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Announces Treasury Stock Disposal for Executive Compensation
Jun 24, 2025

F.C.C. Co., Ltd. announced the disposal of 12,132 shares of its treasury stock as part of a Restricted Share Compensation Plan for its directors and managing officers. This initiative aims to align the interests of the company’s leadership with its shareholders by providing incentives to increase corporate value sustainably. The plan involves a monetary remuneration claim of 32,768,532 yen, with restrictions on the transfer of shares until the recipients resign from their positions.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Receives Dividends from Thai Subsidiary
Jun 17, 2025

F.C.C. Co., Ltd. announced the receipt of dividends amounting to 480 million THB from its consolidated subsidiary, FCC (Thailand) Co., Ltd. This dividend will be recorded as non-operating income in the company’s non-consolidated financial statements for the fiscal year ending March 2026, with no impact on consolidated earnings.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.

F.C.C. Co., Ltd. Records Significant Warranty Compensation Cost
May 9, 2025

F.C.C. Co., Ltd. announced it has recorded a compensation cost for product warranty in the fourth quarter of the fiscal year ending March 31, 2025, due to defects in products delivered to a U.S. customer. This decision, resulting in a provision of ¥3,516 million, reflects the company’s response to an extended warranty period for affected vehicles and impacts its consolidated financial results for the fiscal year.

F.C.C. Co., Ltd. Announces Commemorative Year-End Dividend
May 9, 2025

F.C.C. Co., Ltd. announced a year-end dividend of 101 yen per share, including a commemorative dividend of 63 yen, to celebrate its 20th anniversary of listing on the TSE. This decision reflects the company’s commitment to returning profits to shareholders and maintaining a stable dividend policy, aiming for a total shareholder return ratio of 40% or more, which underscores its strategy to enhance corporate value through investments and R&D.

F.C.C. Co., Ltd. Reports Strong Financial Performance and Increased Dividends
May 9, 2025

F.C.C. Co., Ltd. reported a 6.8% increase in revenue for the fiscal year ending March 31, 2025, with significant growth in operating profit and profit attributable to owners of the parent. The company also announced a substantial increase in annual cash dividends per share, reflecting a strong financial performance and commitment to shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025