FUJI OOZX Inc. (7299) AI Stock Analysis

• Market Cap: ¥22.30B
• Dividend Yield: 2.86%
• Average Volume (3M): 8.40K
• Price to Earnings (P/E): 9.6
• 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: ¥2,478.00 ▲(29.13% 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 82% equity ratio and 0.07 debt-to-equity indicate minimal financial leverage and high solvency. This durable capital structure reduces refinancing risk, provides flexibility for capex or M&A, and helps the company withstand industry cyclicality over the next 2–6 months.

Consistent revenue growth with healthy operating margins

Sustained revenue growth alongside double-digit EBITDA and healthy gross margin signals operational efficiency and pricing ability in auto parts. These margin levels support reinvestment and cash generation, indicating durable core profitability for several quarters ahead.

Strong operating cash conversion versus earnings

Operating cash flow nearly double net income shows earnings are backed by cash, improving financial flexibility. Even with pressures on free cash flow, solid cash conversion supports working capital, dividend coverage and near-term investment without immediate external funding.

Negative Factors

Sharp decline in free cash flow

A ~53% drop in free cash flow is a material deterioration that can limit discretionary spending, dividend sustainability, or debt reduction. If driven by capex or working capital, the decline could weigh on liquidity and strategic initiatives over the coming 2–6 months.

Declining net profit margin

Net margin compression from 8.26% to 6.05% erodes bottom-line gains from revenue growth, implying rising costs or pressure on pricing. Persistent margin decline would reduce retained earnings and cash flow, challenging profitability sustainability over the medium term.

Modest return on equity

A 5.08% ROE is modest relative to capital employed and limits shareholder value creation. With a high equity base, modest ROE signals the business generates limited returns on invested capital, constraining long-term dividend growth and capital efficiency unless improved.

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

FUJI OOZX Inc. generates revenue through multiple streams, primarily by selling its core products, which include electronic components and automation systems, to various industries. The company has established significant partnerships with key players in the automotive and electronics sectors, enabling it to secure large contracts and long-term agreements that ensure steady income. Additionally, FUJI OOZX offers maintenance and support services for its equipment, which provides a continuous revenue stream. The integration of advanced technologies in its products also allows for premium pricing, contributing to higher profit margins. Furthermore, the company invests in research and development to innovate new solutions, which can lead to additional revenue opportunities in emerging markets.

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	6.28B	6.08B	4.94B	3.65B	4.56B	3.17B
EBITDA	5.11B	5.04B	4.20B	3.32B	4.30B	3.27B
Net Income	1.91B	1.55B	1.93B	594.95M	985.25M	613.59M
Balance Sheet
Total Assets	36.06B	37.04B	36.53B	34.24B	34.67B	35.97B
Cash, Cash Equivalents and Short-Term Investments	5.23B	5.96B	5.84B	4.74B	5.55B	5.38B
Total Debt	431.54M	2.12B	1.88B	2.67B	3.41B	6.27B
Total Liabilities	5.13B	6.07B	6.39B	6.37B	7.31B	10.23B
Stockholders Equity	30.40B	30.44B	29.63B	27.39B	26.92B	25.30B
Cash Flow
Free Cash Flow	0.00	1.28B	2.73B	1.09B	3.45B	3.43B
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: Positive
• Last Price: 1919.00
• 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:7299, the sentiment is Positive. The current price of 1919 is below the 20-day moving average (MA) of 2092.50, below the 50-day MA of 2016.60, and above the 200-day MA of 1660.29, indicating a bullish trend. The MACD of 46.76 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 43.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥22.30B	9.59	―	2.86%	19.42%	74.63%
7247	75 Outperform	¥14.60B	4.37	―	3.90%	-1.72%	168.62%
7266	71 Outperform	¥22.52B	11.42	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥22.82B	-3.57	―	3.19%	-8.99%	-62.26%
7212	54 Neutral	¥15.63B	-5.44	―	2.45%	-2.67%	33.63%
6470	51 Neutral	¥32.17B	130.91	―	2.45%	4.93%	―