Fuji Seal International (7864) AI Stock Analysis

• Market Cap: ¥157.69B
• Dividend Yield: 2.35%
• Average Volume (3M): 152.94K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.62
• Revenue Growth: 4.56%
• EPS Growth: 49.23%
• Country: JP
• Employees: 5,692
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 184.33
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥3,800.00
• Price Target Upside: 37.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 344.44
• Revenue Forecast (FY): ¥220.68B

• Rating: 70 Outperform
• Price Target: ¥3,108.00 ▲(12.45% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by strong financial quality (notably low leverage and improved profitability) and attractive valuation (low P/E with a ~2.5% yield). These positives are tempered by sharply negative TTM revenue momentum, deteriorating TTM free cash flow, and weak technicals with the price below major moving averages and bearish MACD.

Positive Factors

Improving margins and profitability

Material margin expansion (gross ~16%→22%, operating ~4%→9.6%) indicates the business has improved pricing, cost control, or mix. Sustained higher margins enhance resilience to input cost cycles, increase reinvestment capacity, and support better long-term return on capital.

Conservative balance sheet with very low leverage

Extremely low debt-to-equity (~0.06) and steadily built equity give the company financial flexibility to fund capex, weather demand slumps, or pursue selective M&A without stressing liquidity, supporting stable operations and shareholder distributions over time.

Integrated consumables + machinery + services model

The combination of recurring consumables (labels/films) plus machinery and after-sales services creates repeat revenue, higher customer stickiness, and cross-sell opportunities. This integrated model supports durable revenue streams and higher lifetime customer value.

Negative Factors

Sharply negative TTM revenue growth

A sharply negative trailing-twelve-month revenue trend suggests weakening end-market demand or lost volumes. Persistent top-line decline can erode scale benefits, pressure margins, and reduce the predictability of earnings even if unit profitability has improved.

Weakened cash conversion and falling free cash flow

Operating cash flow is low relative to reported earnings (OCF/net income ~0.38) and FCF declined ~39% YoY, indicating working-capital drag or timing issues. This reduces durable internal funding for capex, dividends, and strategic initiatives, increasing reliance on operational fixes.

Cyclicality from project-based machinery sales

A meaningful portion of revenue comes from one-off equipment projects that follow customer capex cycles. That structural cyclicality increases revenue and cash-flow volatility, complicating forecasting and making sustained growth dependent on irregular large orders.

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

Margins and profitability have improved materially (gross margin ~16% to ~22%; operating margin ~4% to ~9.6%) and the balance sheet is conservatively financed (debt-to-equity ~0.06). Offsetting this, TTM revenue growth is sharply negative and cash conversion is weak (operating cash flow to net income ~0.38) with TTM free cash flow down ~39% YoY.

Income Statement

Profitability has improved meaningfully over the cycle: gross margin rose from ~16% (FY2023) to ~22% in TTM (Trailing-Twelve-Months), while operating margin expanded from ~4% to ~9.6%, supporting a step-up in earnings. Revenue grew steadily from FY2021–FY2025, but the TTM (Trailing-Twelve-Months) revenue growth rate is sharply negative, signaling a near-term demand/volume headwind that could pressure momentum despite stronger margins.

Balance Sheet

The balance sheet looks conservatively financed, with very low leverage (debt-to-equity ~0.06 in TTM (Trailing-Twelve-Months)) and a steady build in equity over time. Returns on equity have improved to ~10.9% in TTM (Trailing-Twelve-Months) from mid-single digits earlier in the period, though the modest return profile suggests the company is more stable/defensive than high-growth.

Cash Flow

Cash generation is mixed. Operating cash flow is solid in absolute terms, but it remains low relative to profitability (operating cash flow to net income ~0.38 in both FY2025 and TTM (Trailing-Twelve-Months)), pointing to working-capital or cash conversion drag. Free cash flow was strong in FY2024–FY2025 but has weakened in TTM (Trailing-Twelve-Months) (down ~39% year over year), indicating more volatile reinvestment needs and less consistent cash available to shareholders.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	214.95B	212.34B	196.62B	184.03B	170.32B	163.64B
Gross Profit	48.16B	44.89B	35.86B	29.68B	30.64B	31.30B
EBITDA	28.43B	27.01B	22.70B	15.62B	17.64B	19.80B
Net Income	21.79B	12.20B	10.28B	6.87B	6.12B	8.38B
Balance Sheet
Total Assets	222.33B	209.82B	192.68B	180.00B	164.65B	159.37B
Cash, Cash Equivalents and Short-Term Investments	35.11B	34.39B	22.81B	22.03B	25.86B	21.69B
Total Debt	13.42B	9.81B	6.78B	11.96B	12.03B	11.83B
Total Liabilities	66.66B	64.55B	60.54B	59.43B	55.15B	56.29B
Stockholders Equity	155.67B	145.27B	132.14B	120.57B	109.49B	103.08B
Cash Flow
Free Cash Flow	7.55B	14.69B	13.63B	-3.36B	2.84B	12.09B
Operating Cash Flow	22.47B	21.34B	19.93B	8.27B	14.02B	18.85B
Investing Cash Flow	-14.28B	-12.46B	-10.57B	-11.01B	-7.80B	-6.58B
Financing Cash Flow	-2.68B	-3.42B	-4.34B	-5.79B	-4.83B	-2.09B

Fuji Seal International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2764.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7864, the sentiment is Neutral. The current price of 2764 is below the 20-day moving average (MA) of 3017.50, below the 50-day MA of 3112.80, and below the 200-day MA of 2866.69, indicating a neutral trend. The MACD of -104.07 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7864.

Fuji Seal International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5901	79 Outperform	¥549.06B	13.65	6.55%	2.71%	-0.06%	137.47%
7917	77 Outperform	¥118.55B	14.56	7.53%	3.01%	5.44%	45.99%
3954	76 Outperform	¥13.94B	11.03	―	1.20%	6.42%	-6.32%
3950	76 Outperform	¥78.67B	12.49	―	6.64%	2.85%	-9.13%
7864	70 Outperform	¥157.69B	7.06	10.46%	2.35%	4.56%	49.23%
3951	70 Outperform	¥19.56B	13.58	―	4.39%	5.06%	-15.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%