FUJI OOZX Inc. (7299) AI Stock Analysis

• Market Cap: ¥20.65B
• Dividend Yield: 2.86%
• Average Volume (3M): 8.40K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.94
• 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: ¥2,281.00 ▲(18.86% Upside)

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% and minimal debt reduce default and refinancing risk, giving management durable financial flexibility to fund capex, survive cyclicality, or pursue M&A without increasing leverage materially, supporting long-term stability.

Sustained revenue growth

Consistent top-line growth reflects expanding market penetration or demand for the company's parts. Over months, rising revenue underpins scale economies, helps amortize fixed costs, and supports reinvestment in R&D or distribution to sustain competitive position.

High gross and EBITDA margins

Healthy gross and EBITDA margins signal effective cost control and pricing power in auto parts. Persistently strong operating margins create a durable profitability buffer versus input cost swings and enable reinvestment, dividends, or strategic pricing flexibility.

Negative Factors

Declining net profit margin

A falling net margin suggests rising operating or non-operating costs that erode retained earnings. If structural, this weakens long-term cash available for growth or payouts, reduces resilience to downturns, and could force strategic cost or pricing responses.

Sharp drop in free cash flow

A >50% FCF decline materially limits the firm's ability to fund capex, dividends, debt repayment or strategic initiatives without tapping balance sheet reserves. Even with decent operating cash conversion, the trend threatens long-term investment flexibility.

Modest return on equity

ROE near 5% indicates limited efficiency in converting equity into returns versus typical industrial benchmarks. Persistently modest ROE can constrain long-term shareholder value creation and suggests management may need better asset allocation or higher-margin growth strategies.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 1919.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 1919 is below the 20-day moving average (MA) of 2014.50, above the 50-day MA of 1893.04, and above the 200-day MA of 1593.06, indicating a neutral trend. The MACD of 39.81 indicates Positive momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 37.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥20.65B	8.88	―	2.86%	19.42%	74.63%
7247	75 Outperform	¥12.85B	4.56	―	3.90%	-1.72%	168.62%
7266	64 Neutral	¥18.50B	15.30	―	2.70%	-8.63%	-55.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7294	57 Neutral	¥24.67B	-2.36	―	3.19%	-8.99%	-62.26%
7212	54 Neutral	¥14.63B	-8.41	―	2.45%	-2.67%	33.63%
6470	51 Neutral	¥24.46B	99.51	―	2.45%	4.93%	―