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

• Market Cap: ¥184.74B
• Dividend Yield: 4.47%
• Average Volume (3M): 140.22K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.79
• 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: ¥4,171.00 ▲(13.50% 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 and a growing equity base provide durable financial flexibility. This reduces refinancing and solvency risk, supports steady capital allocation (capex, dividends), and gives the company capacity to invest in factories or absorb demand shocks without relying on external funding.

Multi-year revenue expansion

Sustained top-line growth over multiple years signals strong OEM relationships, product demand and successful market penetration. Durable revenue expansion builds scale advantages, spreads fixed costs, and underpins long-term profit improvement and investment capacity.

OEM plus aftermarket revenue mix

A mix of OEM contracts and aftermarket replacement demand diversifies revenue streams across new-vehicle cycles and product lifecycles. OEM ties secure volume and long-term contracts while aftermarket sales provide recurring, less cyclical cash flow over time.

Negative Factors

Weakened cash conversion

Declining operating and free cash flow relative to earnings signals worsening cash conversion, possibly from working-capital drag or higher investment. Persistently weaker cash generation constrains internal funding for capex, dividends and strategic initiatives over the medium term.

Recent margin softness

Margin compression in the most recent period suggests rising input costs, pricing pressure, or mix changes. If structural rather than transitory, sustained margin erosion would reduce return on capital and limit the firm's ability to convert revenue growth into durable profit expansion.

Cyclicality tied to vehicle volumes

Heavy dependence on OEM vehicle production, and particularly motorcycles, exposes earnings to automotive cycle swings. Prolonged downturns or model mix shifts can underutilize capacity, depress volumes and amplify working-capital swings, affecting long-term cash flow stability.

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

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	257.48B	256.62B	240.28B	218.94B	170.97B	146.16B
Gross Profit	48.84B	49.31B	42.05B	32.99B	27.74B	22.87B
EBITDA	29.95B	32.78B	32.06B	27.07B	24.77B	21.90B
Net Income	14.88B	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	86.21B	57.64B	44.63B	44.10B
Total Debt	5.11B	3.00B	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	26.51B	12.47B	4.55B	6.03B
Operating Cash Flow	22.39B	27.93B	35.38B	21.01B	15.46B	12.97B
Investing Cash Flow	-15.24B	-25.77B	-7.43B	-10.31B	-9.63B	-8.52B
Financing Cash Flow	-8.69B	-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: Neutral
• STOCH: Negative

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 below the 20-day moving average (MA) of 3763.25, below the 50-day MA of 3781.90, and above the 200-day MA of 3224.95, indicating a bullish trend. The MACD of 17.14 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 is Negative, 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	¥286.07B	8.91	―	3.36%	1.36%	139.77%
7242	78 Outperform	¥263.88B	7.88	12.15%	2.87%	3.95%	136.86%
7296	74 Outperform	¥184.74B	12.42	―	4.47%	2.01%	25.09%
7220	68 Neutral	¥163.76B	85.28	―	1.93%	-3.23%	24.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7313	58 Neutral	¥238.01B	45.58	―	4.77%	-3.71%	-51.81%

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

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.

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.

The most recent analyst rating on (JP:7296) stock is a Buy with a Yen3370.00 price target. To see the full list of analyst forecasts on F.C.C.Co., Ltd. stock, see the JP:7296 Stock Forecast page.