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

• Market Cap: ¥17.61B
• Dividend Yield: 3.09%
• Average Volume (3M): 7.52K
• Price to Earnings (P/E): 7.1
• 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): 33.17
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,013.00 ▲(8.34% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Fukuvi Chemical Industry's overall score of 75 is driven primarily by strong financial performance, with a robust balance sheet and solid cash flow offsetting weaker profitability. Valuation is attractive with a reasonable P/E ratio and good dividend yield, while technical indicators show steady upward momentum. The score reflects a stable investment with growth potential if profitability improves.

Positive Factors

Balance Sheet Strength

Fukuvi's high equity ratio and low leverage provide durable financial flexibility, reducing refinancing and solvency risk. This stronger capital structure supports continued capex, working-capital needs and dividend capacity through construction market cycles, enhancing resilience.

Operating Cash Generation

Consistently positive operating cash flow and a strong OCF-to-net-income ratio indicate high earnings quality and internal funding capacity. Reliable cash generation sustains maintenance capex, working capital and shareholder returns without heavy reliance on external financing.

Stable Revenue & Profitability Trends

Sustained revenue growth with healthy gross margins and notable EPS expansion points to effective cost control and product mix. These trends support reinvestment and improved per-share economics, bolstering medium-term earnings power if the company keeps margin discipline.

Negative Factors

Margin Compression Risk

Eroding EBIT/EBITDA margins indicate rising input or overhead costs or weakened pricing power. If persistent, margin compression reduces free cash flow and investment capacity, constraining R&D, capex or dividends and weakening long-term profitability resilience.

Free Cash Flow Variability

Inconsistent free cash flow growth creates uncertainty around the cash available after capex. Persistent FCF volatility can limit strategic spending, increase dependence on working-capital management or external funding, and reduce confidence in sustained shareholder distributions.

Recent Revenue and ROE Softness

A recent revenue dip and a modest ROE decline from lower net income may signal demand weakness or unfavorable product mix in construction end-markets. Continued softness would impair growth and returns on capital, pressuring medium-term earnings momentum.

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 a balanced financial profile with a strong balance sheet (score: 85) due to low debt and high equity, solid cash flow (score: 75) driven by exceptional growth, and moderate income statement performance (score: 65) limited by thin margins and slow revenue growth. The score reflects stability with room for profitability improvement.

Income Statement

Fukuvi Chemical Industry shows moderate performance in its income statement. Revenue growth from 2024 to 2025 was minimal at 0.6%, indicating a stable but slow trajectory. Gross Profit Margin for 2025 stands at 30.0%, reflecting decent cost control, while Net Profit Margin is at 3.7%, which is relatively low for the industry, suggesting limited profitability. EBIT Margin (3.9%) and EBITDA Margin (8.4%) are also modest, highlighting operational efficiency challenges. Strengths include consistent revenue, but weaknesses lie in thin margins and limited profit growth.

Balance Sheet

The balance sheet of Fukuvi Chemical Industry is strong, with a low Debt-to-Equity Ratio of 0.04 in 2025, indicating minimal leverage and financial stability. Return on Equity (ROE) is 4.0%, which is moderate, reflecting reasonable returns for shareholders. The Equity Ratio stands at a robust 68.7%, showcasing a solid capital structure with high ownership control. Strengths include low debt and high equity, while a potential weakness is the modest ROE, suggesting room for better utilization of equity.

Cash Flow

Cash flow performance is solid for Fukuvi Chemical Industry. Free Cash Flow Growth Rate surged significantly from 2024 to 2025 by over 15,000%, driven by a sharp increase in Free Cash Flow to 3.64 billion. Operating Cash Flow to Net Income Ratio for 2025 is 3.03, indicating strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio is also healthy at 2.48. Strengths include excellent cash flow growth and conversion, though the dramatic year-over-year fluctuation raises questions about sustainability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	926.00M	691.00M	931.00M
Total Liabilities	15.92B	15.72B	16.91B	16.50B	16.12B	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: Negative
• Last Price: 935.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 935 is above the 20-day moving average (MA) of 909.05, above the 50-day MA of 922.72, and above the 200-day MA of 881.10, indicating a bearish trend. The MACD of -16.80 indicates Positive momentum. The RSI at 31.56 is Neutral, neither overbought nor oversold. The STOCH value of 21.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
5351	80 Outperform	¥97.67B	0.94	―	4.28%	12.87%	-13.69%
4026	76 Outperform	¥16.09B	7.85	―	2.81%	0.23%	-8.64%
7871	75 Outperform	¥17.61B	7.05	―	3.09%	0.27%	7.57%
5273	75 Outperform	¥98.39B	9.90	―	1.92%	12.72%	28.48%
4216	68 Neutral	¥101.31B	25.05	―	2.17%	-2.39%	-29.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4212	60 Neutral	¥66.53B	12.73	―	3.27%	12.09%	5.46%

Fukuvi Chemical Industry Co., Ltd. Corporate Events

Fukuvi Chemical Lifts Profit, Confirms Outlook and Higher Dividend Despite Flat Sales

Fukuvi Chemical Industry reported consolidated net sales of ¥30.2 billion for the nine months ended Dec. 31, 2025, up 0.5% year on year, with operating profit slipping 1.7% to ¥1.25 billion but ordinary profit edging 1.3% higher and profit attributable to owners of the parent jumping 19.5%. Earnings per share rose to ¥63.62, equity-to-asset ratio improved to 71.2%, and the company kept its dividend policy on track, maintaining a full-year forecast of ¥41.46 billion in sales and a 36.8% rise in operating profit, underlining expectations of profit growth and continued shareholder returns despite modest top-line expansion.

The board plans total annual dividends of ¥27 per share for the fiscal year ending March 31, 2026, up from ¥26 a year earlier, signaling confidence in cash flow and profitability. With no changes in accounting policies or consolidation scope and a stable share count aside from a modest reduction in treasury shares, the guidance implies stronger margins and reinforces Fukuvi’s positioning as a financially robust player, which could support valuation and reassure stakeholders amid a relatively flat revenue environment.

The most recent analyst rating on (JP:7871) stock is a Hold with a Yen1013.00 price target. To see the full list of analyst forecasts on Fukuvi Chemical Industry Co., Ltd. stock, see the JP:7871 Stock Forecast page.