FUJI OOZX Inc. (7299) AI Stock Analysis

• Market Cap: ¥20.29B
• Dividend Yield: 2.86%
• Average Volume (3M): 8.40K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.89
• Revenue Growth: 19.42%
• EPS Growth: 74.63%
• Country: JP
• Employees: 1,161
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 50.61
• Shares Outstanding: 10,279,750
• 10 Day Avg. Volume: 6,620
• 30 Day Avg. Volume: 8,396
• PEG Ratio: -0.46
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 10.90
• 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: 79 Outperform
• Price Target: ¥2,260.00 ▲(17.77% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

FUJI OOZX Inc. shows strong financial performance and technical indicators, supported by a favorable valuation. The company's robust revenue growth and operational efficiency are key strengths, while the undervalued P/E ratio and solid dividend yield enhance its investment appeal. Challenges include declining net profit margins and free cash flow, but the overall outlook remains positive.

Positive Factors

Strong balance sheet / low leverage

An equity ratio of 82.16% and a debt-to-equity of 0.07 show very low leverage and high capital resilience. This durable capital structure reduces refinancing and solvency risk, preserves strategic optionality, and supports operations through cycles over the next several months.

Consistent revenue growth

A recurring double-digit revenue increase demonstrates expanding sales or market penetration. Sustained top-line growth underpins margin absorption, funds reinvestment, and strengthens competitive positioning, making revenue trends a durable positive for the business over 2-6 months.

Healthy operating cash generation

Operating cash flow nearly doubles reported earnings, indicating strong cash conversion and earnings quality. Even with FCF headwinds, a 1.87 OCF/NI ratio supports capex, dividends and working capital needs, sustaining operations and investments over the medium term.

Negative Factors

Declining net profit margin

A fall in net margin from 8.26% to 6.05% indicates rising costs or non-operating pressures that compress bottom-line profitability. If persistent, margin erosion can weaken cash available for reinvestment or returns and may signal cost structure or pricing challenges.

Material drop in free cash flow

A >50% decline in free cash flow materially reduces funds for growth, dividends and debt reduction. Even with positive operating cash conversion, shrinking FCF constrains capital allocation flexibility and could force tougher trade-offs over the coming 2-6 months.

Modest return on equity

An ROE near 5% indicates limited effectiveness in turning equity into earnings. Over time this can limit shareholder value creation and indicate either low asset leverage or underutilized capital, constraining long-term returns despite solid balance-sheet strength.

FUJI OOZX Inc. Business Overview & Revenue Model

Company Description

Fuji Oozx Inc. engages in the manufacturing and sale of engine valves and other engine related components in Japan and internationally. The company offers engine valves, titanium valves, hollow valves, cotters/retainers, and valve seats and rotators. It also involved in processing of steel material, and sales of processed products; and tools and jigs, as well as engages in the sale, purchasing, repair, and lending of machine tools and equipment installment contract. The company was formerly known as Fuji Valve, Co., Ltd. and changed its name to Fuji Oozx Inc. in December 1992. Fuji Oozx Inc. was incorporated in 1951 and is headquartered in Kikugawa, Japan.

How the Company Makes Money

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FUJI OOZX Inc. Financial Statement Overview

Summary

FUJI OOZX Inc. demonstrates strong revenue growth and operational efficiency with a 9.25% increase in revenue and high gross and EBITDA margins. However, challenges include declining net profit margins and reduced free cash flow growth.

Income Statement

FUJI OOZX Inc. has shown a positive trend in revenue growth, with a 9.25% increase in the latest year. The gross profit margin stands at 23.8%, indicating effective cost management. However, the net profit margin has decreased to 6.05% from 8.26% in the previous year, suggesting rising expenses or other costs. The EBIT margin of 10.24% and EBITDA margin of 19.64% are strong, showcasing operational efficiency.

Balance Sheet

The company maintains a strong equity ratio of 82.16%, reflecting a solid capital structure with low reliance on debt. The debt-to-equity ratio is low at 0.07, indicating minimal leverage, which reduces financial risk. The return on equity stands at 5.08%, which is modest but stable, suggesting steady returns to shareholders.

Cash Flow

Free cash flow has decreased by 52.98% in the latest year, which could impact future investments. However, the operating cash flow to net income ratio is robust at 1.87, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio is 0.83, showing that the company can cover its net income with cash flow, but with a declining trend.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.26B	25.54B	23.38B	21.61B	22.27B	19.12B
Gross Profit	6.27B	6.24B	5.11B	3.82B	4.72B	3.33B
EBITDA	5.10B	5.03B	3.98B	3.19B	4.18B	3.08B
Net Income	1.91B	1.55B	1.93B	594.95M	985.25M	613.59M
Balance Sheet
Total Assets	36.06B	37.04B	36.89B	34.30B	34.74B	36.02B
Cash, Cash Equivalents and Short-Term Investments	5.23B	6.51B	7.08B	5.50B	5.55B	5.39B
Total Debt	100.00M	2.12B	1.88B	2.67B	3.41B	6.27B
Total Liabilities	5.13B	6.07B	6.76B	6.44B	7.38B	10.28B
Stockholders Equity	30.40B	30.44B	29.63B	27.39B	26.92B	25.30B
Cash Flow
Free Cash Flow	0.00	1.28B	2.77B	1.13B	3.48B	3.44B
Operating Cash Flow	0.00	2.89B	4.23B	2.69B	3.95B	4.09B
Investing Cash Flow	0.00	-2.65B	-1.58B	-1.59B	-500.26M	-656.84M
Financing Cash Flow	0.00	-846.50M	-1.28B	-1.19B	-3.46B	-1.13B

FUJI OOZX Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1919.00
• 50DMA: Negative
• 100DMA: Positive
• 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:7299, the sentiment is Negative. The current price of 1919 is below the 20-day moving average (MA) of 2068.40, below the 50-day MA of 2056.18, and above the 200-day MA of 1712.57, indicating a neutral trend. The MACD of -26.71 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 18.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7299.

FUJI OOZX Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7299	79 Outperform	¥20.29B	9.48	―	2.86%	19.42%	74.63%
7247	75 Outperform	¥13.69B	6.74	―	3.90%	-1.72%	168.62%
7266	71 Outperform	¥18.75B	8.04	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥8.11B	4.65	―	4.24%	-7.88%	-73.98%
7214	58 Neutral	¥5.09B	2.75	―	4.51%	0.61%	-453.99%
7294	57 Neutral	¥18.89B	18.77	―	3.19%	-8.99%	-62.26%