Funai Soken Holdings Incorporated (9757) AI Stock Analysis

• Market Cap: ¥108.90B
• Dividend Yield: 3.55%
• Average Volume (3M): 82.14K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.64
• Revenue Growth: 10.28%
• EPS Growth: -20.11%
• Country: JP
• Employees: 1,535
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 20.16
• Shares Outstanding: 50,000,000
• 10 Day Avg. Volume: 76,720
• 30 Day Avg. Volume: 82,143
• PEG Ratio: 0.91
• Price to Book (P/B): 4.48
• Price to Sales (P/S): 3.65
• P/FCF Ratio: 18.21
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,678.00 ▲(18.86% Upside)

Funai Soken Holdings' strong financial performance is the most significant factor, showcasing robust revenue and profit growth, efficient operations, and financial stability. However, the technical analysis indicates a bearish trend, which could pose short-term risks. The valuation is slightly high, but the dividend yield provides some compensation. The absence of recent earnings call data and notable corporate events leaves these areas unassessed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for Funai Soken's consulting services, enhancing its competitive position and potential for future expansion.

Financial Stability

Minimal leverage risk and strong equity financing provide Funai Soken with financial stability, allowing for strategic investments and resilience against economic fluctuations.

Cash Flow Management

Efficient cash generation and management ensure Funai Soken can fund operations and growth initiatives, supporting long-term sustainability and shareholder value.

Negative Factors

Earnings Decline

A decline in earnings per share suggests challenges in maintaining profitability, which could impact investor confidence and limit reinvestment capabilities.

Technical Analysis

Persistent bearish trends in stock price may reflect underlying market concerns, potentially affecting the company's ability to attract new investors.

Valuation Concerns

A high P/E ratio suggests the stock may be overvalued, which could deter potential investors and limit upside potential unless earnings growth accelerates.

Funai Soken Holdings Incorporated Business Overview & Revenue Model

Company Description

Funai Soken Holdings Incorporated provides consulting services to manufacturing and retail businesses in Japan. The company offers logistics services, including consulting, trading, and transportation; and management consulting services for various sectors, such as housing and real estate, medical, nursing care, welfare, automotive, food and distribution, retail, and direct sales, as well as certified professional, amusement, community care, and specialist services. It also provides support services, including systems design and analysis, program creation, and systems operation and management; and training and diagnostics services. The company was formerly known as Funai Consulting Incorporated and changed its name to Funai Soken Holdings Incorporated in July 2014. Funai Soken Holdings Incorporated was incorporated in 1970 and is headquartered in Osaka, Japan.

How the Company Makes Money

Funai Soken generates revenue through its consulting services, which include management consulting, IT consulting, and human resources services. The company's primary revenue streams come from fees charged for these consulting services, which are typically based on project scope or hourly rates. Additionally, Funai Soken may engage in long-term partnerships with clients, providing ongoing support and advisory services that contribute to its recurring revenue. The company also benefits from strategic alliances and partnerships with technology firms, enhancing its service offerings and enabling it to capture a wider market share.

Funai Soken Holdings Incorporated Financial Statement Overview

Summary

Funai Soken Holdings exhibits strong financial health with impressive revenue and profit growth, efficient operations, and minimal leverage risk. The balance sheet reflects financial stability, supported by a high equity ratio and strong ROE. Cash flow metrics indicate efficient cash management and alignment with profitability, positioning the company well for future growth.

Income Statement

Funai Soken Holdings has demonstrated strong revenue growth with a 8.52% increase from the previous year, along with improving profit margins. The Gross Profit Margin is 38.71%, and the Net Profit Margin is 19.56%, indicating efficient cost management and high profitability. The EBIT Margin of 27.16% and EBITDA Margin of 28.69% further highlight operational efficiency.

Balance Sheet

The company maintains a solid financial position with a low Debt-to-Equity Ratio of 0.01, reflecting minimal leverage risk. The Return on Equity (ROE) is robust at 23.98%, indicating effective use of equity to generate profits. The Equity Ratio is 79.48%, suggesting strong equity financing and financial stability.

Cash Flow

Cash flow analysis reveals positive trends with a substantial free cash flow growth rate of 27.30%. The Operating Cash Flow to Net Income Ratio is 1.17, showcasing the company's ability to generate cash from operations. The Free Cash Flow to Net Income Ratio is 1.03, indicating that cash generation is aligned with profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.29B	30.65B	28.24B	25.64B	28.81B	25.03B
Gross Profit	12.68B	11.86B	10.72B	10.15B	9.30B	8.00B
EBITDA	7.08B	8.75B	7.68B	7.48B	6.69B	5.50B
Net Income	4.70B	5.99B	5.20B	4.99B	4.38B	3.50B
Balance Sheet
Total Assets	31.79B	31.44B	31.63B	33.01B	30.88B	27.95B
Cash, Cash Equivalents and Short-Term Investments	15.05B	12.05B	13.20B	17.44B	14.78B	12.52B
Total Debt	510.58M	300.00M	300.00M	300.00M	300.00M	300.00M
Total Liabilities	6.82B	6.45B	5.90B	5.31B	5.20B	4.26B
Stockholders Equity	24.97B	24.99B	25.73B	27.70B	25.69B	23.69B
Cash Flow
Free Cash Flow	0.00	6.15B	4.98B	4.64B	5.00B	3.29B
Operating Cash Flow	0.00	7.01B	5.48B	5.00B	5.21B	3.52B
Investing Cash Flow	0.00	-2.60B	-2.23B	348.35M	-219.77M	263.44M
Financing Cash Flow	0.00	-6.97B	-7.39B	-3.00B	-2.55B	-3.19B

Funai Soken Holdings Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2253.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9757, the sentiment is Negative. The current price of 2253 is below the 20-day moving average (MA) of 2372.70, below the 50-day MA of 2452.38, and below the 200-day MA of 2388.60, indicating a bearish trend. The MACD of -46.14 indicates Positive momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 17.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9757.

Funai Soken Holdings Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9644	72 Outperform	¥23.69B	21.44	―	3.63%	15.91%	36.39%
9757	69 Neutral	¥108.90B	23.20	―	3.55%	10.28%	-20.11%
9168	67 Neutral	¥21.05B	13.41	―	1.11%	23.25%	14.29%
4792	66 Neutral	¥32.63B	13.72	―	4.48%	2.46%	-31.77%
4763	66 Neutral	¥32.55B	10.31	―	2.87%	4.27%	27.62%
7033	66 Neutral	¥22.29B	11.66	―	2.27%	17.87%	5.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Funai Soken Holdings Incorporated Corporate Events

Funai Soken Holdings Completes Share Buyback Program

Funai Soken Holdings Inc., a company listed on the Tokyo Stock Exchange, has completed a share buyback program. The company acquired 310,700 common shares at a total cost of 755,671,100 yen, as part of a board-approved resolution aimed at purchasing up to 1,100,000 shares. This move is expected to impact the company’s stock value and shareholder equity positively.

Funai Soken Holdings Restructures to Enhance HR Solutions

Funai Soken Holdings Inc. announced a strategic restructuring involving the absorption of human capital consulting functions from its subsidiary, Funai Consulting, into another subsidiary, HR Force, which will be renamed Funai Soken Human Capital Consulting Inc. This move is designed to enhance the company’s ability to offer a full spectrum of specialized HR solutions, thereby strengthening its business operations and expanding its market presence.

Funai Soken Holdings Expands Supply Chain Consulting Services

Funai Soken Holdings Inc. has announced a change in the trade name of its subsidiary from Funai Soken Logistics Inc. to Funai Soken Supply Chain Consulting Inc. This change reflects the company’s strategic shift to expand its consulting services beyond logistics to cover the entire supply chain, addressing the growing need for supply chain restructuring and supporting clients in overcoming business challenges.

Funai Soken Holdings Announces Share Split and Buyback Amendment

Funai Soken Holdings Inc., a company listed on the Tokyo Stock Exchange, has announced a share split to enhance investment accessibility and increase share liquidity. The split will double the number of shares, effective January 1, 2026, and will not alter the company’s capital. Additionally, the shareholder rewards program will be expanded, and the maximum number of shares to be acquired in their share buyback plan has been adjusted to reflect the split.

Funai Soken Holdings Reports Q3 2025 Financial Results with Increased Sales but Lower Net Income

Funai Soken Holdings reported a 10.3% increase in net sales for the third quarter of 2025, although net income attributable to owners of the parent decreased by 36.1% compared to the previous year. Despite the decline in net income, the company maintains a strong equity ratio of 72.7%, indicating robust financial health. The company forecasts a full-year net income increase of 10.1%, suggesting confidence in its future performance.