Fuji Seal International (7864) AI Stock Analysis

• Market Cap: ¥167.54B
• Dividend Yield: 2.39%
• Average Volume (3M): 152.94K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.68
• 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: 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥3,433.00 ▲(13.11% Upside)

Fuji Seal International's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its high score. The technical analysis supports a positive outlook with bullish momentum, while the valuation indicates the stock is attractively priced with a decent dividend yield. The absence of recent earnings call data and notable corporate events does not detract from the overall positive assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and customer base, supporting long-term business sustainability.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic downturns.

Profitability

Strong profitability margins reflect efficient operations and cost management, contributing to sustainable earnings and shareholder value.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth could limit the company's ability to fund new projects and return capital to shareholders, affecting long-term growth.

Cash Flow Coverage

While cash flow is strong, the coverage ratio suggests potential constraints in liquidity, which might impact future operational flexibility.

Free Cash Flow to Net Income

This ratio, while healthy, indicates that a significant portion of earnings is not converted into free cash flow, potentially affecting reinvestment capacity.

Fuji Seal International Business Overview & Revenue Model

Company Description

Fuji Seal International (7864) is a leading provider of packaging solutions, specializing in the development and production of high-quality labels, flexible packaging, and other sealing products. The company operates primarily in the food, beverage, pharmaceutical, and personal care sectors, delivering innovative packaging technologies that enhance product visibility and shelf life. With a strong focus on sustainability and customer-centric designs, Fuji Seal aims to meet the evolving needs of its diverse clientele across global markets.

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 maintains healthy margins and shows a positive cash flow trend, indicating effective operational performance and strategic cash management. 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	216.44B	212.34B	196.62B	184.03B	170.32B	163.64B
Gross Profit	48.19B	44.89B	35.86B	29.68B	30.64B	31.30B
EBITDA	29.36B	27.01B	22.70B	15.62B	17.64B	19.80B
Net Income	15.65B	12.20B	10.28B	6.87B	6.12B	8.38B
Balance Sheet
Total Assets	213.55B	209.82B	192.68B	180.00B	164.65B	159.37B
Cash, Cash Equivalents and Short-Term Investments	36.41B	34.39B	22.81B	22.03B	25.86B	21.69B
Total Debt	8.60B	9.81B	6.78B	11.96B	12.03B	11.83B
Total Liabilities	65.20B	64.55B	60.54B	59.43B	55.15B	56.29B
Stockholders Equity	148.35B	145.27B	132.14B	120.57B	109.49B	103.08B
Cash Flow
Free Cash Flow	12.32B	14.69B	13.63B	-3.36B	2.84B	12.09B
Operating Cash Flow	21.63B	21.34B	19.93B	8.27B	14.02B	18.85B
Investing Cash Flow	-8.98B	-12.46B	-10.57B	-11.01B	-7.80B	-6.58B
Financing Cash Flow	-2.18B	-3.42B	-4.34B	-5.79B	-4.83B	-2.09B

Fuji Seal International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3035.00
• 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:7864, the sentiment is Neutral. The current price of 3035 is below the 20-day moving average (MA) of 3051.45, above the 50-day MA of 2883.88, and above the 200-day MA of 2725.12, indicating a neutral trend. The MACD of 44.05 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.66 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
3950	82 Outperform	¥73.91B	12.26	―	6.83%	2.85%	-9.13%
7917	78 Outperform	¥89.19B	12.57	7.53%	3.00%	5.44%	45.99%
7864	77 Outperform	¥167.54B	10.50	10.46%	2.39%	4.56%	49.23%
5902	76 Outperform	¥27.54B	7.98	―	4.43%	-1.28%	30.53%
7942	74 Outperform	¥70.14B	11.53	―	3.40%	0.83%	-9.16%
7504	72 Outperform	¥55.67B	15.53	―	2.95%	12.39%	9.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%