FCE Inc. (9564) AI Stock Analysis

• Market Cap: ¥11.92B
• Dividend Yield: 1.11%
• Average Volume (3M): 109.83K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.31
• Revenue Growth: 21.85%
• EPS Growth: 13.02%
• Country: JP
• Employees: 229
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 10.45
• Shares Outstanding: 22,074,000
• 10 Day Avg. Volume: 92,980
• 30 Day Avg. Volume: 109,826
• PEG Ratio: 1.67
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 15.69
• 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: 65 Neutral
• Price Target: ¥581.00 ▼(-16.64% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily supported by strong financial performance (profitability, low leverage, and strong cash flow), but it is held back by weak technical conditions (price below key moving averages with negative momentum). Valuation is neutral-to-slightly supportive with a mid-range P/E and modest dividend yield.

Positive Factors

Low leverage / strong balance sheet

Very low leverage and a high equity ratio provide durable financial flexibility: the company can fund capex, strategic M&A or dividends with limited refinancing risk. This capital structure supports resilience through downturns and preserves credit optionality over months.

Robust cash generation

Sustained operating and free cash flow well above net income indicates high quality earnings and internal funding capacity. Strong cash conversion reduces reliance on external financing and supports repeatable investment, dividends, or balance sheet strengthening over time.

High margins and consistent profitability

Very healthy gross and net margins point to structural pricing power or low-cost operations across segments. Combined with consistent profitability, margins support sustainable ROE and internal reinvestment ability, underpinning multi-month stability in fundamentals.

Negative Factors

Recent revenue deceleration

The most recent year shows modest revenue growth relative to longer-term performance, suggesting potential demand softening or slower organic expansion. If this slower revenue trend persists it could compress future operating leverage and slow reinvestment capacity.

Slightly rising debt trend

Although leverage is low today, the noted gradual rise in total debt erodes the margin of safety if continued. A persistent uptick could reduce financial flexibility and increase interest exposure, limiting strategic options and raising long-term funding risk.

Small employee base vs conglomerate scope

A relatively small workforce for a diversified conglomerate can constrain scaling, cross-segment execution and increase operational concentration risk. Limited headcount raises dependency on key personnel and may slow capacity to pursue multiple large initiatives concurrently.

FCE Inc. Business Overview & Revenue Model

Company Description

FCE Inc., through its subsidiaries, engages in the DX promotion, education and training, and publishing businesses in Japan. The company offers IT tools, consulting, and support to promote corporate DX for robotic process automation; and programs and services to schools and cram schools. It also provides human resource development consulting and training; and e-learning tools services for education and HR fields. In addition, the company publishes books and offers self-coaching programs. FCE Inc., was incorporated in 2017 and is based in Tokyo, Japan.

How the Company Makes Money

FCE Inc. generates revenue through multiple streams, primarily focusing on the sale of its electronic components and systems to various industry players. The company operates on a business-to-business (B2B) model, where it supplies products to manufacturers and OEMs (original equipment manufacturers), thereby establishing long-term contracts that provide steady income. Additionally, FCE Inc. earns revenue from research and development partnerships with other technology firms, which often lead to joint ventures and collaborative projects. Licensing agreements for proprietary technologies also contribute to the revenue, allowing other companies to utilize FCE's innovations for a fee. Furthermore, the company may engage in after-sales services and maintenance contracts, providing ongoing support and generating supplementary income.

FCE Inc. Financial Statement Overview

Summary

Strong overall fundamentals supported by solid income statement performance (revenue growth and healthy margins), a low-leverage balance sheet (debt-to-equity 0.07; strong equity ratio), and robust cash generation (operating and free cash flow running well above net income).

Income Statement

FCE Inc. has demonstrated consistent revenue growth, with a 3.98% increase in the most recent year. The company maintains strong profitability metrics, with a gross profit margin of 66.9% and a net profit margin of 10.87% for the latest period. EBIT and EBITDA margins are healthy, indicating efficient operations. Overall, the income statement reflects robust financial performance with positive growth trends.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.07, indicating low leverage and financial stability. Return on equity is strong at 17.44%, reflecting effective use of shareholder funds. The equity ratio of 66.3% suggests a well-capitalized company. However, the slight increase in total debt over the years warrants monitoring.

Cash Flow

FCE Inc. has shown impressive growth in free cash flow, with a significant increase in the latest year. The operating cash flow to net income ratio of 1.54 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 1.53 further supports the company's ability to generate cash. Overall, the cash flow statement highlights strong liquidity and cash management.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	6.10B	5.01B	4.17B	3.75B	3.52B
Gross Profit	4.08B	3.46B	2.88B	2.55B	2.31B
EBITDA	1.01B	776.97M	548.11M	502.18M	356.52M
Net Income	662.66M	502.37M	318.96M	299.19M	211.21M
Balance Sheet
Total Assets	5.73B	5.08B	3.30B	2.24B	2.60B
Cash, Cash Equivalents and Short-Term Investments	3.32B	2.73B	2.39B	1.52B	1.82B
Total Debt	267.10M	301.44M	333.71M	358.52M	398.46M
Total Liabilities	1.93B	1.71B	1.59B	1.44B	1.69B
Stockholders Equity	3.80B	3.37B	1.70B	802.97M	914.80M
Cash Flow
Free Cash Flow	1.01B	434.55M	458.01M	124.18M	543.00M
Operating Cash Flow	1.02B	528.51M	501.56M	180.71M	575.58M
Investing Cash Flow	-789.47M	-794.55M	-178.04M	2.75M	-63.19M
Financing Cash Flow	-153.08M	1.12B	535.55M	-478.34M	-16.11M

FCE Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 697.00
• 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:9564, the sentiment is Negative. The current price of 697 is above the 20-day moving average (MA) of 598.05, above the 50-day MA of 651.98, and below the 200-day MA of 710.76, indicating a bearish trend. The MACD of -34.55 indicates Positive momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 42.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9564.

FCE Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7521	80 Outperform	¥17.50B	10.76	―	2.50%	23.68%	80.23%
7119	69 Neutral	¥14.72B	13.62	―	2.71%	2.13%	135.50%
3420	67 Neutral	¥12.14B	13.10	―	3.28%	3.06%	5.71%
9248	67 Neutral	¥14.80B	5.60	―	3.88%	15.50%	―
9564	65 Neutral	¥11.92B	16.55	―	1.11%	21.85%	13.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5721	48 Neutral	¥74.17B	-17.60	―	―	―	―

FCE Inc. Corporate Events

FCE Inc. Builds Stable, Recurring Revenue Base Around DX and Education

FCE Inc., listed on the TSE Standard market, has built a diversified portfolio around digital transformation and education, with DX promotion now contributing more than 50% of sales and recurring revenues accounting for roughly 80% of total turnover. Originating from an education business launched in 2004, the company has added trading, technology, publishing and global academy operations, reinforcing a stable, subscription-driven model.

The company’s mainstay DX Promotion Business centers on “RPA Robo-Pat DX,” a domestically developed “personal RPA” tool that automates computer tasks without programming skills, targeting small and mid-sized firms as well as large enterprises deploying at the departmental level. With a low churn rate of around 1% and the Education and Training Business shifting to stock-type offerings such as e-learning, FCE Inc. is strengthening its recurring income base and deepening its role in boosting client productivity and human capital efficiency.

The most recent analyst rating on (JP:9564) stock is a Hold with a Yen583.00 price target. To see the full list of analyst forecasts on FCE Inc. stock, see the JP:9564 Stock Forecast page.

FCE Inc. Highlights Human Capital Focus in FY2026 Q1 Update

FCE Inc. has released its FY2026/9 first-quarter earnings report, underscoring its mission to create a world where individuals can fully tackle challenges by maximizing human capital. The company highlights its dual focus on digital transformation promotion and education and training services as the core engines driving productivity and proactive work cultures, signaling continued emphasis on human capital development as a strategic differentiator.

The most recent analyst rating on (JP:9564) stock is a Buy with a Yen716.00 price target. To see the full list of analyst forecasts on FCE Inc. stock, see the JP:9564 Stock Forecast page.

FCE Inc. Posts Strong Quarterly Growth and Lifts Full-Year Outlook, Plans Higher Dividend

FCE Inc. reported consolidated net sales of ¥1,587 million for the quarter ended December 31, 2025, up 15.4% year on year, with operating profit rising 21.4% to ¥302 million and profit attributable to owners of parent climbing 31.4% to ¥230 million. Basic earnings per share increased to ¥10.45 following a 2-for-1 stock split, while the company’s equity-to-asset ratio improved to 71.2%, indicating a stronger balance sheet.

For the full year ending September 30, 2026, FCE forecasts net sales of ¥6,800 million, an 11.5% increase, and expects profit attributable to owners of parent to jump 30.5% to ¥865 million, driving projected basic earnings per share of ¥39.21. The company also plans to raise its annual dividend to ¥10.00 per share, up from ¥7.50 in the previous fiscal year, signaling confidence in its earnings outlook and commitment to shareholder returns.

The most recent analyst rating on (JP:9564) stock is a Buy with a Yen716.00 price target. To see the full list of analyst forecasts on FCE Inc. stock, see the JP:9564 Stock Forecast page.

FCE Inc. Reports Strong Growth in DX Promotion Business

FCE Inc. has announced the success of its DX Promotion Business, which has become a significant revenue driver, contributing to over half of the company’s total sales. The company emphasizes the stability of its operations through a high percentage of recurring revenue, and its RPA software, ‘RPA Robo-Pat DX,’ is gaining popularity among businesses due to its ease of use and low churn rate.

The most recent analyst rating on (JP:9564) stock is a Hold with a Yen779.00 price target. To see the full list of analyst forecasts on FCE Inc. stock, see the JP:9564 Stock Forecast page.