Fuyo General Lease Co., Ltd. (8424) AI Stock Analysis

• Market Cap: ¥389.85B
• Dividend Yield: 3.43%
• Average Volume (3M): 136.14K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.72
• Revenue Growth: -3.25%
• EPS Growth: 1.65%
• Country: JP
• Employees: 3,503
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 147.41
• Shares Outstanding: 90,863,430
• 10 Day Avg. Volume: 184,930
• 30 Day Avg. Volume: 136,140
• PEG Ratio: -1.82
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -2.49
• 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: ¥4,294.00
• Price Target Upside: 0.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥4,294.00 ▲(0.94% Upside)

The stock's strong valuation and solid financial performance are key strengths, though high leverage and negative free cash flow pose risks. Neutral technical indicators suggest watching for further momentum signals.

Fuyo General Lease Co., Ltd. Business Overview & Revenue Model

Company Description

Fuyo General Lease Co., Ltd. engages in leasing and installment sales business in Japan and internationally. It is involved in the lease and installment sale of IT and office equipment, industrial machinery/machine tools, commercial/service equipment, medical devices, civil engineering and construction machinery, etc.; and transportation equipment, including ships, aircraft, automobiles, etc. The company also offers various leases comprising finance, operating, PC eco and value, auto, vendor, building, and space leases. In addition, it provides installment sales schemes for properties; and rental estate financing services consisting of non-recourse real estate loans and other financing schemes. Further, the company provides aircraft operating leases; life insurance consulting services; and Web-based data and contract management service, and asset management services. It provides consulting services that identify the issues and needs inherent in customers' management and financial strategies; leasing and financing for overseas expansions; and ESCO service that comprises technology, facilities, and funds required by the customers. Fuyo General Lease Co., Ltd. was incorporated in 1969 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fuyo General Lease Co., Ltd. generates revenue through multiple streams, primarily centered around its leasing and installment sales services. The company earns money by leasing equipment, vehicles, and real estate properties to businesses, allowing clients to use these assets without the need for upfront capital investment. In addition to lease payments, the company also profits from installment sales, where customers pay for goods over time. Fuyo General Lease further enhances its revenue through partnerships and collaborations with financial institutions, manufacturers, and vendors to offer comprehensive financial solutions. These partnerships enable the company to expand its customer base and offer competitive leasing terms while managing risk effectively.

Fuyo General Lease Co., Ltd. Financial Statement Overview

Summary

Fuyo General Lease Co., Ltd. shows strong revenue growth and profitability. However, the high leverage and negative free cash flow are concerns. The net profit margin needs improvement, and there's inconsistency in cash flow generation.

Income Statement

Fuyo General Lease Co., Ltd. has demonstrated consistent revenue growth over the years, with a modest increase from the previous year. The company maintains a strong gross profit margin and has improved its EBIT and EBITDA margins. However, the net profit margin showed a slight decrease, which suggests some room for improvement in cost management.

Balance Sheet

The company's balance sheet reflects a substantial increase in stockholders' equity over the years, supporting a healthy equity ratio. However, the debt-to-equity ratio remains high due to significant leverage, which could pose risks in volatile market conditions. The return on equity has steadily improved, indicating effective utilization of equity.

Cash Flow

Fuyo General Lease Co., Ltd. faces challenges with negative free cash flow, which could be a concern for liquidity. The operating cash flow to net income ratio has shown volatility, suggesting inconsistency in cash generation relative to earnings. However, capital expenditures are managed within reasonable limits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	689.50B	678.39B	708.54B	688.65B	657.85B	740.26B
Gross Profit	119.64B	119.63B	109.57B	97.32B	88.86B	82.74B
EBITDA	113.33B	123.11B	113.90B	99.07B	100.34B	92.03B
Net Income	48.62B	45.28B	47.22B	38.94B	33.89B	29.57B
Balance Sheet
Total Assets	3.60T	3.57T	3.39T	3.15T	2.95T	2.98T
Cash, Cash Equivalents and Short-Term Investments	658.79B	614.71B	632.27B	576.19B	395.18B	382.13B
Total Debt	2.85T	2.81T	2.69T	2.52T	2.38T	2.45T
Total Liabilities	3.07T	3.04T	2.91T	2.74T	2.58T	2.63T
Stockholders Equity	473.38B	475.56B	431.96B	367.18B	333.48B	305.27B
Cash Flow
Free Cash Flow	-85.20B	-139.81B	-115.37B	-26.82B	86.80B	-39.26B
Operating Cash Flow	-81.77B	-136.38B	-112.10B	-24.15B	88.97B	-35.08B
Investing Cash Flow	-35.66B	-35.66B	-3.06B	-12.39B	-15.67B	-5.97B
Financing Cash Flow	97.99B	97.99B	131.80B	84.04B	-101.53B	63.41B

Fuyo General Lease Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4254.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8424, the sentiment is Neutral. The current price of 4254 is below the 20-day moving average (MA) of 4384.64, above the 50-day MA of 4249.45, and above the 200-day MA of 3875.25, indicating a neutral trend. The MACD of 26.58 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8424.

Fuyo General Lease Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	80 Outperform	¥46.11B	9.30	6.85%	3.96%	-9.58%	13.22%
8596	78 Outperform	¥29.93B	8.27	8.40%	3.96%	-19.27%	9.04%
8439	74 Outperform	¥886.28B	10.70	8.26%	3.71%	2.26%	9.98%
9763	71 Outperform	¥11.03B	8.41	7.24%	4.11%	9.16%	6.01%
5834	70 Outperform	¥38.49B	7.40	17.43%	4.53%	14.18%	45.35%
8424	70 Outperform	¥389.85B	7.99	―	3.43%	-3.25%	1.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fuyo General Lease Co., Ltd. Corporate Events

Fuyo General Lease Reports Strong Q1 2025 Results and Executes Stock Split

Fuyo General Lease Co., Ltd. reported a notable increase in its financial performance for the three months ending June 30, 2025, with net sales rising by 6.9% and profit attributable to owners of the parent increasing by 33.5% compared to the same period last year. The company also executed a 3-for-1 stock split on April 1, 2025, which impacted earnings per share calculations and reflects a strategic move to enhance stock liquidity and shareholder value.

Fuyo General Lease Announces Changes in Board and Supervisory Members

Fuyo General Lease Co., Ltd. has announced changes in its board of directors and audit & supervisory board members, with new appointments scheduled to be confirmed at the upcoming annual general meeting. These changes include the appointment of Kazuya Masu as an outside director and Eimei Ookubo as an outside audit & supervisory board member, reflecting the company’s strategic move to strengthen its governance and oversight capabilities.

Fuyo General Lease Increases Year-End Dividend to ¥230

Fuyo General Lease Co., Ltd. has announced an increase in its year-end dividend to ¥230 per share, up from the previous forecast of ¥225, reflecting its commitment to returning profits to shareholders while maintaining a stable financial base. This decision, driven by recent business performance trends, highlights the company’s focus on enhancing shareholder value and meeting investor expectations.

Fuyo General Lease Reports Mixed Financial Results Amid Strategic Changes

Fuyo General Lease Co., Ltd. reported a decrease in net sales and profit attributable to owners for the fiscal year ended March 31, 2025, compared to the previous year. Despite the decline in net sales by 4.3%, the company achieved a 7.9% increase in operating profit, indicating improved operational efficiency. The company also conducted a 3-for-1 stock split on April 1, 2025, which impacted earnings per share calculations. The financial results reflect strategic changes, including significant changes in the scope of consolidation and adjustments in accounting policies, which may influence the company’s future financial performance and stakeholder interests.