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

• Market Cap: ¥419.92B
• Dividend Yield: 3.62%
• Average Volume (3M): 143.63K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.69
• Revenue Growth: -0.03%
• EPS Growth: -42.34%
• Country: JP
• Employees: 3,503
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 96.34
• Shares Outstanding: 90,863,430
• 10 Day Avg. Volume: 138,260
• 30 Day Avg. Volume: 143,626
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 199.6
• Revenue Forecast (FY): ¥690.00B

• Rating: 64 Neutral
• Price Target: ¥4,961.00 ▲(15.56% Upside)
• Action: Downgraded Date: 10/25/25
• Date: Action: Downgraded 10/25/25

Fuyo General Lease Co., Ltd. scores well due to its strong valuation metrics, including a low P/E ratio and solid dividend yield. However, financial performance is hindered by high leverage and negative cash flow, and technical indicators suggest bearish momentum.

Positive Factors

Revenue Growth

Sustained ~17.5% revenue growth indicates enduring demand for leasing and financing solutions across corporate and public-sector clients. Over a 2–6 month horizon this supports recurring lease cash flows, expands fee opportunities, and provides scale to absorb operating costs, strengthening long-term earnings potential.

Margin Improvement

Improved gross, EBIT and EBITDA margins reflect better pricing, cost control, and operational leverage in the leasing franchise. Durable margin expansion enhances ability to cover financing costs and cyclicality, improving sustainable profitability and cash generation over multiple quarters.

Stronger Equity Position & ROE

A meaningful rise in shareholders' equity and an improving return on equity provide a thicker capital buffer for asset-backed lending. This structural capital improvement supports growth capacity, reduces solvency risk, and provides resilience versus cyclical stress in the leasing cycle.

Negative Factors

High Leverage

Persistently high leverage increases funding and refinancing risk for a balance-sheet-centric leasing business. Rising rates or tighter credit conditions would raise interest expense and narrow net spreads, constraining investment flexibility and amplifying earnings volatility over the medium term.

Negative Free Cash Flow

Ongoing negative free cash flow and inconsistent conversion of net income into operating cash necessitate continued external funding to buy leased assets. This structural cash deficit increases dependence on debt or capital markets, heightening liquidity and refinancing exposure across quarters.

Earnings Pressure / EPS Decline

A sharp year-over-year EPS decline and a slip in net margin point to pressure on bottom-line performance, possibly from higher financing costs or asset-related losses. Continued earnings volatility limits retained earnings accumulation and constrains balance-sheet strengthening over the medium term.

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 generates revenue primarily through its leasing operations, which involve providing capital for the acquisition of equipment and property. The company earns money through leasing fees paid by clients over the duration of the lease agreements. Additionally, Fuyo General Lease benefits from residual value gains when leased assets are sold after the lease term ends. The company may also receive interest income from financing arrangements and fees for ancillary services, such as maintenance and insurance. Strategic partnerships with manufacturers and service providers can enhance its offerings and expand its client base, contributing to its overall earnings.

Fuyo General Lease Co., Ltd. Financial Statement Overview

Summary

Fuyo General Lease Co., Ltd. shows strong revenue growth and profitability with a solid equity position. However, high leverage and negative free cash flow present risks that need addressing.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 4293.00
• 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:8424, the sentiment is Positive. The current price of 4293 is below the 20-day moving average (MA) of 4529.35, below the 50-day MA of 4431.22, and above the 200-day MA of 4171.66, indicating a bullish trend. The MACD of 52.97 indicates Positive momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 53.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥64.88B	10.98	―	4.09%	-6.09%	31.18%
9763	76 Outperform	¥16.41B	11.67	―	3.57%	6.66%	13.62%
8439	72 Outperform	¥1.10T	8.63	―	3.37%	5.24%	69.92%
8596	68 Neutral	¥34.09B	9.55	―	4.66%	-13.01%	9.74%
8424	64 Neutral	¥419.92B	15.12	―	3.62%	-0.03%	-42.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5834	62 Neutral	¥49.40B	8.18	―	3.90%	0.17%	58.30%

Fuyo General Lease Co., Ltd. Corporate Events

Fuyo General Lease Reshapes Organization and Leadership Ahead of FY2026

Fuyo General Lease Co., Ltd. has announced a broad reorganization of its internal structure effective April 1, 2026, including the creation of an Energy Business Management Division and a standalone Risk Management Division, alongside renaming and realigning several real estate-related units. The firm will also integrate its regional business promotion divisions and establish an Audit & Supervisory Board Operations Office, moves that appear aimed at strengthening governance, sharpening focus on real estate and energy, and improving operational efficiency.

Concurrently, the company will implement a series of executive officer changes on April 1, 2026, with three executives promoted to managing executive officer and six newly appointed as executive officers while retaining or slightly shifting their divisional leadership roles. These personnel moves, concentrated in corporate business, financial institutions, real estate, business creation, ICT promotion and legal and compliance functions, signal a bid to reinforce management depth and align leadership with the revamped organizational structure.

The most recent analyst rating on (JP:8424) stock is a Hold with a Yen4700.00 price target. To see the full list of analyst forecasts on Fuyo General Lease Co., Ltd. stock, see the JP:8424 Stock Forecast page.

Fuyo General Lease Releases Nine-Month FY2025 Results and Forecasts

Fuyo General Lease Co., Ltd. released a summary of its consolidated financial results for the first nine months of fiscal 2025, outlining profit definitions and key performance indicators such as profit before interest expenses and ROA based on ordinary profit and average operating assets. The company also provided earnings and dividend forecasts for the fiscal year, while cautioning that these forward-looking figures are subject to risks and uncertainties that could cause actual results to differ materially, underscoring the inherent volatility in its operating environment and performance outlook.

The most recent analyst rating on (JP:8424) stock is a Hold with a Yen4270.00 price target. To see the full list of analyst forecasts on Fuyo General Lease Co., Ltd. stock, see the JP:8424 Stock Forecast page.

Fuyo General Lease Grows Revenue but Sees Profit Halved in First Nine Months of FY2025

Fuyo General Lease reported consolidated net sales of ¥590.4 billion for the nine months ended December 31, 2025, up 22.6% year on year, but operating profit dropped 52.9% to ¥21.1 billion and profit attributable to owners of parent fell 56.9% to ¥13.3 billion, highlighting margin pressure despite strong top-line growth. The company’s total assets edged up to ¥3.66 trillion and net assets to ¥535.0 billion, with its shareholders’ equity ratio slipping slightly to 13.0%, and it reiterated its full-year earnings forecast that anticipates steep profit declines versus the prior year while maintaining its dividend plan adjusted for a 3-for-1 stock split implemented on April 1, 2025.

The most recent analyst rating on (JP:8424) stock is a Hold with a Yen4270.00 price target. To see the full list of analyst forecasts on Fuyo General Lease Co., Ltd. stock, see the JP:8424 Stock Forecast page.