FULUHASHI EPO CORPORATION (9221) AI Stock Analysis

• Market Cap: ¥16.76B
• Dividend Yield: 2.4%
• Average Volume (3M): 36.66K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.44
• Revenue Growth: 8.36%
• EPS Growth: 327.58%
• Country: JP
• Employees: 452
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 16.76
• Shares Outstanding: 11,779,600
• 10 Day Avg. Volume: 102,790
• 30 Day Avg. Volume: 36,663
• PEG Ratio: 0.03
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -10.08
• 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: 77 Outperform
• Price Target: ¥1,615.00 ▲(23.38% Upside)

The overall stock score of 77 reflects strong financial performance and bullish technical indicators. The company's stable financial position and reasonable valuation further support the score. However, the high RSI suggests caution due to potential overbought conditions, and negative free cash flow requires monitoring.

Positive Factors

Revenue Growth

Consistent mid-single-digit revenue growth (7.2% in 2025) signals durable demand for industrial and commercial recycling services. Over the medium term this supports higher capacity utilization, steadier contract renewals, and a stronger base for reinvestment and margin expansion.

Margin Sustainability

Robust gross, EBITDA and net margins demonstrate efficient processing and pricing power in core recycling operations. Sustainable margins strengthen long-term cash generation, fund maintenance/capex needs, and provide a competitive buffer against input cost or commodity price swings.

Balance Sheet / Capital Efficiency

A healthy equity ratio and elevated ROE with moderate leverage indicate effective capital deployment and a resilient capital structure. This durability provides funding headroom for facility upgrades, lowers refinancing strain, and supports multi-year investments in processing capacity.

Negative Factors

Negative Free Cash Flow

Negative free cash flow in 2025 points to capital spending or working capital absorption exceeding operating cash generation. If persistent, this can force external financing, constrain dividends or strategic investments, and weaken financial flexibility over the medium term.

Significant Absolute Debt

Despite a moderate debt/equity ratio, the analysis flags significant absolute debt. Large nominal debt levels increase interest expense sensitivity and reduce room for strategic maneuvers, raising risk if growth slows or margins compress during cyclical downturns.

Commodity Price / Revenue Exposure

Revenue and cash depend in part on proceeds from selling recovered materials, exposing results to commodity price volatility. This structural exposure can materially swing margins and cash realization, complicating long-term forecasting and capital planning.

FULUHASHI EPO CORPORATION Business Overview & Revenue Model

Company Description

Fuluhashi EPO Corporation engages in the processing and recycling of wood waste in Japan. The company is involved in the sale of recycled wood chips; recycling of construction by-product; and production and sale of pallet. It also engages in the biomass power generation business; and vacant house management and support business. The company was formerly known as FULUHASHI CORPORATION and changed its name to Fuluhashi Epo Corporation in April 2008. Fuluhashi Epo Corporation was founded in 1947 and is headquartered in Nagoya, Japan.

How the Company Makes Money

FULUHASHI EPO CORPORATION generates revenue primarily through the sale of its electronic components and materials to various industries, including automotive and consumer electronics. The company benefits from a diversified revenue model, with significant streams coming from both domestic and international markets. Key revenue drivers include long-term contracts with major manufacturers, strategic partnerships with technology firms, and a growing demand for advanced electronic solutions. Additionally, the company invests in research and development to create innovative products, which helps to maintain competitive pricing and expand its market share.

FULUHASHI EPO CORPORATION Financial Statement Overview

Summary

The company demonstrates strong revenue and profit growth with efficient cost management, leading to improved profitability. The balance sheet is stable with manageable leverage, but there are concerns about negative free cash flow, which requires attention to capital expenditure management.

Income Statement

The company displayed strong revenue growth, with a 7.2% increase in 2025 compared to 2024. Gross profit margin is robust at 45.75%, indicating efficient cost management. Net profit margin improved significantly to 11.01%, showcasing enhanced profitability. EBITDA margin is strong at 22.49%, reflecting healthy operating performance. Overall, the income statement indicates a positive growth trajectory with solid profitability.

Balance Sheet

The debt-to-equity ratio is moderate at 0.68, reflecting balanced leverage. Return on equity (ROE) improved to 18.47%, indicating effective use of equity. The equity ratio is healthy at 45.96%, suggesting a stable financial position. However, the total debt is significant, which could pose potential risks if not managed properly.

Cash Flow

Free cash flow turned negative in 2025, indicating potential challenges in cash generation. The operating cash flow to net income ratio is strong at 1.28, suggesting good cash generation relative to net income. However, the negative free cash flow to net income ratio highlights potential concerns over capital expenditures and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.66B	9.38B	8.75B	8.08B	7.72B	7.69B
Gross Profit	4.42B	4.30B	4.03B	3.57B	3.39B	3.16B
EBITDA	1.91B	2.11B	1.25B	1.64B	1.33B	1.15B
Net Income	926.18M	1.03B	263.26M	743.72M	569.71M	411.03M
Balance Sheet
Total Assets	12.55B	12.17B	11.33B	11.31B	9.26B	8.96B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.11B	2.43B	2.60B	653.60M	768.85M
Total Debt	4.07B	3.80B	3.39B	4.04B	4.97B	4.96B
Total Liabilities	6.95B	6.58B	6.30B	6.26B	7.14B	7.23B
Stockholders Equity	5.60B	5.59B	5.02B	5.05B	2.12B	1.73B
Cash Flow
Free Cash Flow	0.00	-1.03B	1.04B	812.93M	228.18M	859.32M
Operating Cash Flow	0.00	1.32B	1.74B	1.28B	816.81M	1.05B
Investing Cash Flow	0.00	-2.30B	-634.61M	-444.46M	-481.72M	-156.08M
Financing Cash Flow	0.00	-349.99M	-1.25B	1.11B	-379.78M	-877.34M

FULUHASHI EPO CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1309.00
• 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:9221, the sentiment is Positive. The current price of 1309 is below the 20-day moving average (MA) of 1407.85, above the 50-day MA of 1285.72, and above the 200-day MA of 1131.90, indicating a bullish trend. The MACD of 44.57 indicates Positive momentum. The RSI at 62.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9221.

FULUHASHI EPO CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9221	77 Outperform	¥16.76B	17.38	―	2.40%	8.36%	327.58%
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
6566	73 Outperform	¥23.12B	15.11	―	1.92%	4.09%	9.96%
6403	71 Outperform	¥14.07B	23.94	―	1.79%	23.19%	-37.04%
4245	67 Neutral	¥9.12B	38.56	―	3.34%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%