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

• Market Cap: ¥160.77B
• Dividend Yield: 4.47%
• Average Volume (3M): 140.22K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.85
• Revenue Growth: 2.01%
• EPS Growth: 25.09%
• Country: JP
• Employees: 7,819
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• 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: 74 Outperform
• Price Target: ¥3,723.00 ▲(1.31% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is primarily driven by strong financial fundamentals (notably very low leverage and improved profitability) and favorable valuation (low P/E and high dividend yield). These positives are tempered by weaker recent cash flow conversion and a mixed technical picture with negative MACD and near-term price softness.

Positive Factors

Conservative balance sheet / very low leverage

The company's extremely low leverage and growing equity base give durable financial flexibility: they lower bankruptcy risk, allow continued supplier and OEM support through cycles, and enable funding of capex, dividends or strategic moves without reliance on costly external financing.

Multi-year revenue growth with improved profitability

Sustained top-line expansion and rising margins reflect durable demand for drivetrain components and operational scale. This trend supports long-term cash generation potential, strengthens OEM relationships, and increases resilience versus isolated model-year cycles in vehicle production.

Diversified OEM + aftermarket revenue and global footprint

A business mix combining OEM supply, aftermarket parts, and overseas operations reduces reliance on any single market or customer. The geographic and lifecycle diversification smooths demand swings, supports stable volumes, and preserves revenue durability through varying regional auto cycles.

Negative Factors

Weakened cash conversion and falling FCF

Material decline in operating cash flow and free cash flow indicates weaker cash conversion of earnings. Over months this can constrain internal funding for capex, dividends or working capital, raising the risk of increased external financing or deferred investments if the trend persists.

Recent margin softening versus prior year

A downward shift in gross and operating margins suggests rising input costs, pricing pressure, or mix changes. If structural, sustained margin compression would reduce profitability and returns, weakening the company's ability to reinvest or maintain payouts over the medium term.

Returns on equity remain modest despite improvement

ROE improving but still in single digits indicates only moderate capital efficiency. Over time modest returns can limit shareholder value creation relative to peers and constrain the pace at which retained earnings compound into higher long-term profitability.

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

Company Description

F.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 Money

F.C.C.Co., Ltd. generates revenue primarily by manufacturing and selling clutches and related drivetrain/friction components to vehicle manufacturers (OEM supply). A major part of its earnings typically comes from supplying motorcycle clutches and components to motorcycle makers, and automobile clutch components to automakers and transmission-related customers. In addition to OEM production, the company also earns revenue from aftermarket/replacement parts sales where applicable, benefiting from ongoing maintenance and replacement demand over the vehicle lifecycle. Profitability and revenue are influenced by vehicle production volumes (especially motorcycles), model mix, pricing and cost competitiveness, capacity utilization across its plants, and the scale of overseas operations that enable supply to global production footprints. Specific significant partnerships, customer concentration details, and exact revenue breakdown by segment are null.

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

Summary

Strong multi-year revenue growth with improved profitability versus earlier years, supported by a very conservative balance sheet (very low leverage). The key offset is weakening cash conversion: TTM operating cash flow and free cash flow are down versus FY2025, and free cash flow is below net income.

Income Statement

Revenue has expanded strongly over the last several years (annual revenue up from 146.2B in 2021 to 256.6B in 2025; TTM (Trailing-Twelve-Months) growth is exceptionally high), and profitability has improved versus earlier years, with net margin rising from ~3.1% (2021) to ~6.2% (2025). That said, margins softened in TTM (Trailing-Twelve-Months) versus FY2025 (gross, EBIT, and net margins all down modestly), suggesting some recent cost or pricing pressure despite the top-line strength.

Balance Sheet

The balance sheet is conservatively financed, with very low leverage (debt-to-equity roughly 1.6%–5.3% across the period; TTM (Trailing-Twelve-Months) ~2.6%) and a steadily growing equity base. Returns on equity have also improved versus earlier years (about 3.4% in 2021 to ~8.6% in FY2025 and ~9.2% in TTM (Trailing-Twelve-Months)), though overall returns remain solid rather than exceptional.

Cash Flow

Cash generation is positive, but conversion has weakened recently. Operating cash flow and free cash flow are materially lower in TTM (Trailing-Twelve-Months) versus FY2025 (OCF 22.4B vs 27.9B; FCF 7.9B vs 13.2B), and free cash flow is below net income (about 35% of net income in TTM (Trailing-Twelve-Months)). A key watch item is that recent free cash flow growth is sharply negative, indicating higher investment needs or working-capital drag despite healthy reported earnings.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	259.96B	256.62B	240.28B	218.94B	170.97B	146.16B
Gross Profit	49.26B	49.31B	42.05B	32.99B	27.74B	22.87B
EBITDA	30.10B	32.77B	32.05B	27.07B	24.77B	21.90B
Net Income	14.68B	15.86B	12.23B	9.57B	8.55B	4.46B
Balance Sheet
Total Assets	256.84B	246.21B	245.00B	210.63B	195.36B	175.64B
Cash, Cash Equivalents and Short-Term Investments	69.76B	68.50B	86.14B	57.57B	44.63B	40.59B
Total Debt	4.24B	5.20B	7.66B	7.51B	7.75B	8.88B
Total Liabilities	58.31B	60.76B	58.40B	48.50B	46.83B	43.65B
Stockholders Equity	197.25B	184.22B	185.32B	160.06B	146.63B	130.24B
Cash Flow
Free Cash Flow	7.95B	13.21B	27.01B	13.24B	5.60B	7.48B
Operating Cash Flow	22.39B	27.93B	35.38B	21.01B	15.46B	12.97B
Investing Cash Flow	-15.24B	-25.77B	-8.72B	-10.31B	-9.63B	-8.52B
Financing Cash Flow	-8.69B	-14.63B	-3.53B	-3.23B	-4.20B	-3.17B

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

• Technical Analysis Sentiment: Negative
• Last Price: 3675.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7296, the sentiment is Negative. The current price of 3675 is above the 20-day moving average (MA) of 3599.50, below the 50-day MA of 3720.30, and above the 200-day MA of 3284.17, indicating a neutral trend. The MACD of -107.26 indicates Positive momentum. The RSI at 31.24 is Neutral, neither overbought nor oversold. The STOCH value of 11.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
7296	74 Outperform	¥160.77B	13.70	―	4.47%	2.01%	25.09%
7220	71 Outperform	¥176.15B	-8.32	―	1.93%	-3.23%	24.93%
7278	69 Neutral	¥206.70B	10.65	7.50%	5.39%	-2.26%	―
6471	68 Neutral	¥568.03B	28.26	―	3.52%	1.43%	83.34%
6473	63 Neutral	¥531.62B	15.03	3.35%	3.18%	0.44%	-11.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7259	54 Neutral	¥1.67T	14.23	8.34%	2.03%	4.33%	524.86%

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

F.C.C. Overhauls Board Lineup Ahead of June Shareholders’ Meeting

F.C.C. Co., Ltd. has approved a slate of board nominees ahead of its 96th Annual General Meeting of Shareholders scheduled for late June 2026, including the reappointment of President and Representative Director Yoshitaka Saito and the promotion of several current managing and senior operating officers to director roles. The company is also refreshing its audit and supervisory framework with new and reappointed outside directors who qualify as independent under Tokyo Stock Exchange rules, while several senior directors are set to retire or transition to senior advisor roles, signaling a broader generational shift in governance aimed at strengthening oversight and continuity.

The changes include new director candidates Toshinari Mohara and Yoshifumi Fuchigami as managing officers and Mikinobu Nagasaka as senior operating officer, alongside the reappointment of outside directors Kunihiro Koshizuka and Kazunori Kobayashi. On the audit side, incumbents Akira Tsuboi, Mayumi Yamamoto, and Tae Kawashima will stand for re-election, and new outside director candidate Kazutoshi Shibayama will join, while long-serving executives such as Senior Managing Director Kazuto Suzuki and Managing Directors Atsuhiro Mukoyama and Satoshi Nakaya step down, with the latter two moving into senior advisor roles.

These boardroom moves reflect F.C.C.’s effort to balance continuity in top management with an expanded cadre of independent oversight as governance expectations rise for TSE-listed manufacturers. For investors and other stakeholders, the transition suggests a deliberate handover of operational responsibility to a new generation of leaders while maintaining institutional knowledge and strengthening compliance and audit functions.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen3999.00 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. to Book ¥6.5 Billion Non-Consolidated Dividend from North American Unit

F.C.C. Co., Ltd. has announced it will receive a surplus dividend of 42.8 million U.S. dollars, approximately 6.5 billion yen, from its consolidated subsidiary FCC (North America), Inc., following a resolution on February 18, 2026. The dividend, scheduled to be received on March 12, 2026, will be recorded as non-operating dividend income in the parent company’s non-consolidated accounts for the fiscal year ending March 2026.

Because the dividend comes from a consolidated subsidiary, it will not affect F.C.C.’s consolidated earnings for the same fiscal year, limiting the impact to the parent-only financial statements prepared under JGAAP. This treatment underscores the distinction between the company’s non-consolidated and consolidated performance, and signals an internal capital return from its North American operations without changing the group’s overall profit profile.

The most recent analyst rating on (JP:7296) stock is a Hold with a Yen3999.00 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. Maintains Sales but Cuts Profit Outlook and Dividend After Strong Prior Year

F.C.C. Co., Ltd. reported consolidated revenue of ¥190.6 billion for the nine months ended December 31, 2025, a slight 0.5% year-on-year increase, while operating profit fell 11.4% to ¥13.9 billion and profit attributable to owners of parent declined 7.4% to ¥12.2 billion, indicating pressure on margins despite broadly stable sales. The company’s equity position strengthened, with total assets rising to ¥256.8 billion and the equity ratio improving to 76.8%, and it confirmed a reduced but still substantial annual dividend forecast of ¥134 per share for the fiscal year ending March 31, 2026, following the prior year’s higher payout that included commemorative dividends; at the same time, F.C.C. revised its full-year forecast downward, now expecting slight declines in revenue and operating profit and a near 20% drop in profit attributable to owners, signaling a more cautious earnings outlook for stakeholders.

The most recent analyst rating on (JP:7296) stock is a Buy with a Yen3876.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.