FULUHASHI EPO CORPORATION (9221) AI Stock Analysis

• Market Cap: ¥14.51B
• Dividend Yield: 2.4%
• Average Volume (3M): 36.66K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.43
• Revenue Growth: 8.36%
• EPS Growth: 327.58%
• Country: JP
• Employees: 452
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 18.67
• 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: ¥1,639.00 ▲(25.21% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

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

Gross margin strength

A 45.75% gross margin signals durable processing efficiency and pricing power in recycling operations. High gross margins support reinvestment in sorting/processing capacity, provide a buffer against input cost swings, and underpin long-term profitability even if volumes fluctuate.

Consistent revenue growth

Steady top-line growth (7.2% y/y) reflects expanding service volumes or pricing in core recycling contracts. Durable revenue expansion improves scale economics, boosts fixed-cost absorption, and supports margin sustainability and capacity to fund strategic investment over the next several quarters.

Balanced capital structure and strong ROE

Moderate leverage and a ~46% equity ratio combined with an 18.47% ROE indicate effective capital use with financial flexibility. This balance supports continued investment in processing assets and lowers refinancing pressure, enabling strategic growth without excessive funding strain.

Negative Factors

Negative free cash flow

Negative free cash flow in 2025 suggests capex or working capital demands outpaced cash generation. Over the medium term this can limit internal funding for expansion, constrain deleveraging or dividends, and increase reliance on external financing if not reversed.

Significant total debt (absolute level)

While leverage ratios are moderate, a sizeable absolute debt stock raises refinancing and interest-rate risks under adverse conditions. If volumes or recovered-material prices soften, debt servicing could pressure cash flows and limit strategic flexibility over the coming quarters.

Revenue exposure to recovered commodity prices

A material portion of revenue derives from sale prices of recovered materials. Structural volatility in commodity markets can compress margins and revenue predictability, making earnings and cash flow sensitive to commodity cycles beyond the firm's operational control.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.66B	9.38B	8.75B	8.08B	7.72B	7.69B
Gross Profit	4.43B	4.30B	4.03B	3.57B	3.39B	3.16B
EBITDA	1.85B	1.76B	1.59B	1.34B	1.25B	1.09B
Net Income	926.35M	1.03B	263.26M	743.72M	569.71M	411.03M
Balance Sheet
Total Assets	12.55B	12.19B	11.35B	11.33B	9.28B	8.98B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.11B	2.43B	2.60B	653.60M	768.85M
Total Debt	3.88B	3.80B	3.40B	4.08B	5.02B	5.03B
Total Liabilities	6.95B	6.60B	6.33B	6.28B	7.16B	7.25B
Stockholders Equity	5.60B	5.59B	5.02B	5.05B	2.12B	1.73B
Cash Flow
Free Cash Flow	0.00	-1.03B	1.05B	820.21M	233.15M	880.53M
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: Negative
• Last Price: 1309.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9221, the sentiment is Negative. The current price of 1309 is above the 20-day moving average (MA) of 1273.00, below the 50-day MA of 1369.46, and above the 200-day MA of 1192.66, indicating a neutral trend. The MACD of -31.27 indicates Negative momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 28.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥14.51B	17.53	―	2.40%	8.36%	327.58%
9247	76 Outperform	¥81.68B	5.37	―	2.77%	24.61%	185.90%
9793	73 Outperform	¥186.47B	17.31	11.00%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥28.89B	7.02	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥387.08B	25.33	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2195	56 Neutral	¥5.76B	16.59	―	1.36%	3.68%	-24.83%