Fuji Seal International (7864) AI Stock Analysis

• Market Cap: $149.80B
• Dividend Yield: 2.39%
• Average Volume (3M): 152.94K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.64
• Revenue Growth: 4.56%
• EPS Growth: 49.23%
• Country: JP
• Employees: 5,692
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 90.32
• Shares Outstanding: 60,161,957
• 10 Day Avg. Volume: 144,600
• 30 Day Avg. Volume: 152,939
• PEG Ratio: 0.59
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 9.65
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 4.42
• 1Y Price Target: $3,808.78
• Price Target Upside: 24.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,393.00 ▲(10.88% Upside)

Fuji Seal International's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust revenue growth, efficient cost management, and solid balance sheet are key strengths. The stock's technical momentum is positive, although caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly valued, offering a reasonable investment opportunity.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, strengthening the company's competitive position.

Cash Flow Management

Strong cash flow growth supports operational and strategic initiatives, providing financial flexibility and stability.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative leverage, enhancing financial stability and reducing risk.

Negative Factors

Return on Equity

While effective, there is room for improvement in ROE to further enhance shareholder value and competitive positioning.

Margin Sustainability

Although margins are healthy, sustaining them amidst rising costs and competitive pressures remains a challenge.

Technical Weakness

Technical weakness may reflect underlying market concerns, potentially impacting investor confidence and stock performance.

Fuji Seal International Business Overview & Revenue Model

Company Description

Fuji Seal International, Inc. provides packaging solutions primarily for food, beverages, dairy, home and personal care, and pharmaceutical products. The company offers shrink sleeve labels for containers; self-adhesive labels/pressure sensitive labels used in promotional and advertising campaign tools; spouted pouches; rotary machines, linear machines, hybrid steam tunnels, pressure-sensitive labelers, and PSL labeling systems; and packaging services, as well as offers spare and wear parts, training, and support services. It operates in Japan, the United States, Europe, and ASEAN countries. The company was formerly known as Fuji Seal, Inc. and changed its name to Fuji Seal International, Inc. in 2004. Fuji Seal International, Inc. was founded in 1897 and is headquartered in Osaka, Japan.

How the Company Makes Money

Fuji Seal International generates revenue primarily through the sale of its packaging products, including labels, flexible packaging solutions, and sealing products. The company employs a business-to-business (B2B) model, supplying its products to manufacturers in various industries such as food and beverage, pharmaceuticals, and personal care. Key revenue streams include long-term contracts with major clients, which provide a steady income flow, as well as custom packaging solutions that cater to specific client needs. Additionally, Fuji Seal benefits from partnerships with distributors and strategic alliances that expand its market reach and enhance its product offerings. The company's commitment to innovation and sustainability also helps attract new customers and retain existing ones, further contributing to its revenue growth.

Fuji Seal International Financial Statement Overview

Summary

Fuji Seal International demonstrates strong financial health with robust revenue growth, efficient cost management, and a solid balance sheet. The company has a low debt-to-equity ratio and strong cash flow generation, supporting its operations and growth initiatives. However, there is room for improvement in return on equity to further enhance shareholder value.

Income Statement

Fuji Seal International has demonstrated strong revenue growth with a TTM increase of 15.8%. The company maintains healthy margins, with a gross profit margin of 21.16% and a net profit margin of 5.74% in the TTM period. EBIT and EBITDA margins have also improved, indicating efficient cost management and operational performance. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.067, indicating conservative leverage. The return on equity is 8.61%, reflecting effective use of equity to generate profits. The equity ratio stands at a healthy level, suggesting a stable capital structure. However, there is room for improvement in ROE to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals a positive trend with a 12.12% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to earnings. The free cash flow to net income ratio of 0.69 suggests effective conversion of profits into cash. Overall, cash flow management appears robust, supporting operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	214.80B	212.34B	196.62B	184.03B	170.32B	163.64B
Gross Profit	47.07B	44.89B	35.86B	29.68B	30.64B	31.30B
EBITDA	27.96B	27.01B	22.70B	15.62B	17.64B	19.80B
Net Income	12.88B	12.20B	10.28B	6.87B	6.12B	8.38B
Balance Sheet
Total Assets	209.27B	209.82B	192.68B	180.00B	164.65B	159.37B
Cash, Cash Equivalents and Short-Term Investments	32.65B	34.39B	22.81B	22.03B	25.86B	21.69B
Total Debt	7.60B	9.81B	6.78B	11.96B	12.03B	11.83B
Total Liabilities	65.64B	64.55B	60.54B	59.43B	55.15B	56.29B
Stockholders Equity	143.63B	145.27B	132.14B	120.57B	109.49B	103.08B
Cash Flow
Free Cash Flow	16.43B	14.69B	13.63B	-3.36B	2.84B	12.09B
Operating Cash Flow	24.86B	21.34B	19.93B	8.27B	14.02B	18.85B
Investing Cash Flow	-11.98B	-12.46B	-10.57B	-11.01B	-7.80B	-6.58B
Financing Cash Flow	-5.67B	-3.42B	-4.34B	-5.79B	-4.83B	-2.09B

Fuji Seal International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3060.00
• 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:7864, the sentiment is Positive. The current price of 3060 is above the 20-day moving average (MA) of 2980.60, above the 50-day MA of 2856.09, and above the 200-day MA of 2711.00, indicating a bullish trend. The MACD of 82.70 indicates Negative momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 56.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7864.

Fuji Seal International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	82 Outperform	¥74.79B	12.41	―	6.79%	2.85%	-9.13%
7864	78 Outperform	$149.80B	11.46	10.46%	2.39%	4.56%	49.23%
7917	78 Outperform	¥86.80B	12.24	7.53%	3.08%	5.44%	45.99%
5902	76 Outperform	¥26.11B	8.53	―	4.40%	-1.28%	30.53%
7942	73 Outperform	¥69.19B	11.37	―	3.45%	0.83%	-9.16%
7504	72 Outperform	¥54.76B	15.28	―	2.94%	12.39%	9.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%