Fukuvi Chemical Industry Co., Ltd. (7871) AI Stock Analysis

• Market Cap: ¥19.57B
• Dividend Yield: 3.06%
• Average Volume (3M): 7.52K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.51
• Revenue Growth: 0.27%
• EPS Growth: 7.57%
• Country: JP
• Employees: 981
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 13.58
• Shares Outstanding: 20,688,423
• 10 Day Avg. Volume: 4,820
• 30 Day Avg. Volume: 7,523
• PEG Ratio: -0.81
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.49
• 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: 80 Outperform
• Price Target: ¥1,033.00 ▲(8.97% Upside)

Fukuvi Chemical Industry's strong financial performance, positive technical indicators, and attractive valuation drive a favorable stock score. The company's robust balance sheet and efficient cash generation are significant strengths, while the positive market momentum and appealing P/E ratio further enhance its investment appeal.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio provides financial stability and reduces reliance on debt, supporting long-term growth.

Efficient Cash Generation

Efficient cash generation relative to net earnings indicates the company's ability to fund operations and investments without relying heavily on external financing.

Stable Revenue Growth

Consistent revenue growth reflects the company's ability to maintain its market position and adapt to industry demands, ensuring long-term sustainability.

Negative Factors

Declining EBIT and EBITDA Margins

Decreasing margins may indicate rising costs or competitive pricing pressures, which could impact profitability and require strategic adjustments.

Cash Flow Variability

Fluctuating free cash flow growth can signal inconsistent capital expenditure management, potentially affecting long-term investment capabilities.

EPS Decline

A decline in EPS growth suggests challenges in maintaining profitability, which could affect investor confidence and the company's ability to reinvest in growth.

Fukuvi Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Fukuvi Chemical Industry Co.,Ltd. manufactures and sells plastic extrusion of construction and industrial products under the Fukuvi brands in Japan and internationally. The company also provides skirting boards, wood plastic composite products, multi-layer flooring products, inspection opening frames, plastic transitions, and rustication strips, as well as corner beads for walls and ceilings. It serves original equipment manufacturer. Fukuvi Chemical Industry Co.,Ltd. was incorporated in 1947 and is headquartered in Fukui, Japan.

How the Company Makes Money

Fukuvi Chemical Industry Co., Ltd. generates revenue primarily through the sale of its wide range of plastic and resin products to various industries, including construction and automotive. The company operates on a business-to-business (B2B) model, supplying materials to manufacturers and construction companies that utilize Fukuvi's products in their own applications. Key revenue streams include sales of PVC sheets, plastic building materials, and other specialty plastic products. Additionally, Fukuvi engages in partnerships with other companies for collaborative development projects, which can lead to new product lines and expanded market reach, further enhancing its revenue potential.

Fukuvi Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Fukuvi Chemical Industry shows financial resilience with stable revenue growth, a strong balance sheet, and efficient cash generation. However, challenges in maintaining operational margins and managing cash flow variability need addressing.

Income Statement

Fukuvi Chemical Industry has demonstrated stable revenue growth over the years, with a slight dip in the most recent year. The gross profit margin remains healthy, indicating effective cost management. However, the declining EBIT and EBITDA margins suggest increasing operational costs or pricing pressures. The net profit margin shows resilience, albeit with a slight decrease compared to previous years.

Balance Sheet

The company's balance sheet is robust with a strong equity base and low leverage, as indicated by a favorable debt-to-equity ratio. The equity ratio is high, highlighting financial stability and low reliance on debt financing. Return on equity shows positive profitability, although there's a slight decline due to reduced net income.

Cash Flow

The cash flow statement reflects positive operational cash flows, although there's variability in free cash flow growth, which may indicate fluctuating capital expenditures. The operating cash flow to net income ratio is strong, showing efficient cash generation relative to net earnings. However, the free cash flow to net income ratio suggests room for improvement in cash surplus management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.04B	39.97B	39.73B	39.57B	36.74B	35.64B
Gross Profit	12.08B	11.99B	12.07B	11.61B	10.73B	10.04B
EBITDA	3.19B	3.36B	3.66B	3.40B	2.56B	2.22B
Net Income	1.45B	1.47B	1.70B	1.48B	1.14B	915.00M
Balance Sheet
Total Assets	53.18B	53.24B	54.08B	50.76B	49.38B	47.52B
Cash, Cash Equivalents and Short-Term Investments	14.15B	14.18B	11.20B	12.12B	12.34B	11.53B
Total Debt	1.09B	1.08B	1.19B	668.00M	691.00M	697.00M
Total Liabilities	15.92B	15.72B	16.91B	16.51B	16.13B	15.23B
Stockholders Equity	36.65B	36.60B	36.33B	33.52B	32.60B	31.69B
Cash Flow
Free Cash Flow	0.00	3.64B	24.00M	891.00M	1.30B	1.80B
Operating Cash Flow	0.00	4.43B	795.00M	1.78B	2.06B	2.59B
Investing Cash Flow	0.00	-381.00M	-817.00M	-908.00M	-753.00M	-777.00M
Financing Cash Flow	0.00	-1.15B	-978.00M	-1.19B	-631.00M	-626.00M

Fukuvi Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 948.00
• 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:7871, the sentiment is Positive. The current price of 948 is above the 20-day moving average (MA) of 932.60, above the 50-day MA of 920.44, and above the 200-day MA of 834.50, indicating a bullish trend. The MACD of 6.24 indicates Negative momentum. The RSI at 57.14 is Neutral, neither overbought nor oversold. The STOCH value of 73.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7871.

Fukuvi Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5958	80 Outperform	¥14.31B	8.74	―	3.67%	-3.74%	3.99%
7871	80 Outperform	¥19.57B	11.88	―	3.06%	0.27%	7.57%
4026	74 Outperform	¥13.97B	9.18	―	2.81%	0.23%	-8.64%
1972	74 Outperform	¥27.95B	9.19	―	7.72%	8.01%	13.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7820	55 Neutral	¥20.45B	-6.87	―	4.40%	-4.00%	-386.52%
5932	52 Neutral	¥19.22B	-6.25	―	4.09%	1.03%	-92.80%

Fukuvi Chemical Industry Co., Ltd. Corporate Events

Fukuvi Chemical Industry Co., Ltd. Issues Corrections to Financial Results

Fukuvi Chemical Industry Co., Ltd. has announced corrections to its previously released financial results for the three months ending June 30, 2025. The corrections were made due to errors identified in the quarterly consolidated balance sheet and related disclosures, impacting the company’s reported financial position.

Fukuvi Chemical Industry Reports Strong Profit Growth Despite Slight Sales Decline

Fukuvi Chemical Industry Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decrease in net sales by 0.5% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 13.3%, 25.5%, and 27.6% respectively. The equity-to-asset ratio improved to 70.1%, indicating a stronger financial position. The company also announced an increase in dividends, reflecting confidence in its financial stability and future prospects.