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

• Market Cap: ¥155.68B
• Dividend Yield: 5.03%
• Average Volume (3M): 140.22K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.80
• 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: ¥2,950.00
• Price Target Upside: -9.65% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,370.00 ▲(3.22% Upside)

F.C.C.Co., Ltd. scores well due to its strong valuation metrics, particularly the low P/E ratio and high dividend yield, which suggest the stock is undervalued. Financial performance is solid, with a strong balance sheet and operational efficiency, though declining revenue growth and free cash flow are concerns. Technical analysis indicates weak momentum, which could pose short-term risks.

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 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	253.19B	256.62B	240.28B	218.94B	170.97B	146.16B
Gross Profit	48.57B	49.31B	42.05B	32.99B	27.74B	22.87B
EBITDA	30.75B	32.78B	32.06B	27.07B	24.77B	21.90B
Net Income	15.94B	15.86B	12.23B	9.57B	8.55B	4.46B
Balance Sheet
Total Assets	241.27B	246.21B	245.00B	210.63B	195.36B	175.64B
Cash, Cash Equivalents and Short-Term Investments	64.62B	68.50B	86.21B	57.64B	44.63B	44.10B
Total Debt	3.95B	3.00B	6.10B	7.51B	7.75B	8.88B
Total Liabilities	58.61B	60.76B	58.40B	48.50B	46.83B	43.65B
Stockholders Equity	181.35B	184.22B	185.32B	160.06B	146.63B	130.24B
Cash Flow
Free Cash Flow	9.47B	13.21B	26.51B	12.47B	4.55B	6.03B
Operating Cash Flow	26.30B	27.93B	35.38B	21.01B	15.46B	12.97B
Investing Cash Flow	-26.50B	-25.77B	-7.43B	-10.31B	-9.63B	-8.52B
Financing Cash Flow	-15.99B	-14.63B	-4.82B	-3.23B	-4.20B	-3.17B

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

• Technical Analysis Sentiment: Positive
• Last Price: 3265.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 3265 is above the 20-day moving average (MA) of 3135.75, above the 50-day MA of 3150.87, and above the 200-day MA of 2950.32, indicating a bullish trend. The MACD of 30.64 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.36 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
7242	77 Outperform	¥206.58B	8.56	10.75%	2.80%	-0.17%	72.81%
5191	73 Outperform	¥269.43B	9.25	―	2.93%	2.19%	27.44%
6995	72 Outperform	¥247.33B	6.83	―	3.57%	1.36%	139.77%
7296	71 Outperform	¥155.68B	9.83	―	5.03%	2.01%	25.09%
7313	65 Neutral	¥222.06B	33.42	―	4.66%	-2.24%	-43.32%
7220	64 Neutral	¥234.70B	36.04	―	1.54%	-4.23%	-28.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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

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

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

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

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

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

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.