Funai Soken Holdings Incorporated (9757) AI Stock Analysis

• Market Cap: ¥110.44B
• Dividend Yield: 3.44%
• Average Volume (3M): 82.14K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.61
• Revenue Growth: 10.28%
• EPS Growth: -20.11%
• Country: JP
• Employees: 1,535
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 42.78
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 76,720
• 30 Day Avg. Volume: 82,143
• PEG Ratio: 1.56
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 3.18
• P/FCF Ratio: 14.75
• 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): 72.6
• Revenue Forecast (FY): ¥36.20B

• Rating: 72 Outperform
• Price Target: ¥1,242.00 ▲(8.38% Upside)
• Action: Upgraded Date: 02/08/26
• Date: Action: Upgraded 02/08/26

The score is driven primarily by strong financial performance (high margins, strong ROE, and minimal leverage) and supported by reasonable valuation with a solid dividend yield. These positives are partly offset by weak technical momentum, with the share price below key moving averages and negative MACD.

Positive Factors

High Profitability Margins

High and stable gross, EBIT and net margins indicate durable pricing power and an efficient cost base. Over a 2–6 month horizon strong margins support resilient cash flow, provide a buffer in downturns, and sustain operating profitability and shareholder returns.

Very Conservative Balance Sheet

Exceptionally low leverage and rising ROE provide durable financial strength. Minimal debt lowers insolvency risk, preserves flexibility for capex or buybacks, and supports stable dividends and investments even through adverse economic phases over the medium term.

Solid Cash Generation

Free cash flow tracking net income and a material rise in operating cash flow indicate reliable cash conversion potential. Durable cash generation gives management capacity to fund reinvestment and shareholder returns, supporting business stability over months ahead.

Negative Factors

Modest and Uneven Revenue Growth

Top-line growth is modest and uneven, including a 2022 contraction and only ~3.2% YoY in 2025. This suggests a more mature market position with limited organic expansion potential; absent new growth initiatives, long-term EPS gains must rely on margin or capital returns.

Variable Cash Conversion

Operating cash flow relative to reported earnings has swung below 1.0 recently, and free cash flow growth is irregular. Persistent variability in working capital or investment timing can produce episodic cash strain, complicating predictable funding for capex or dividends.

Asset vs Equity Dynamics

The balance sheet note that equity remained fairly stable while assets rose is a structural watch item. Over months this could reflect capital allocation choices, asset mix shifts or off-balance exposures that warrant monitoring for impacts on returns or financing needs.

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

Strong overall fundamentals driven by high and consistent profitability (2025 net margin ~19.6%, EBIT margin ~27.7%) and a very conservative balance sheet (debt-to-equity ~0.01, ROE ~25.3%). Cash generation is solid with good earnings quality (2025 FCF/net income ~0.91), though revenue growth is modest and uneven (including a 2022 dip) and cash conversion varies year to year.

Income Statement

Revenue has grown steadily from 2023–2025 (2025 up ~3.2% YoY), with a clear multi-year step-up versus 2020–2022 despite a notable dip in 2022. Profitability is a major strength: 2025 gross margin ~39% and net margin ~19.6% remain consistently high, and operating profitability is strong (2025 EBIT margin ~27.7%, EBITDA margin ~29.6%). The main weakness is that growth is not smooth (2022 contraction) and the latest growth rate is modest, suggesting a more mature growth profile rather than a high-growth trajectory.

Balance Sheet

The balance sheet is very conservatively financed with minimal leverage (2025 debt-to-equity ~0.01) and a large equity base (equity ~25.8B vs. debt ~0.29B). Returns to shareholders are strong and improving (ROE rising from ~14.8% in 2020 to ~25.3% in 2025), indicating the company is generating substantial profit relative to its capital base. A mild watch item is that equity has been relatively stable while assets increased, but overall financial risk appears low given the exceptionally light debt load.

Cash Flow

Cash generation is solid and supports earnings quality: free cash flow tracks net income closely (2025 free cash flow to net income ~0.91). Operating cash flow is also strong in absolute terms and improved over time (2025 ~7.9B vs. ~3.5B in 2020). The key weakness is variability in cash conversion versus earnings—operating cash flow relative to net income moved from above 1.0 in 2024 (~1.12) to below 1.0 in 2025 (~0.93)—and free cash flow growth has been uneven across years, indicating periodic working-capital or investment swings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.29B	33.33B	30.65B	28.24B	25.64B	28.81B
Gross Profit	12.68B	13.05B	11.86B	10.72B	10.15B	9.30B
EBITDA	7.08B	9.87B	8.75B	7.68B	7.48B	6.69B
Net Income	4.70B	6.53B	5.99B	5.20B	4.99B	4.38B
Balance Sheet
Total Assets	31.79B	34.49B	31.44B	31.63B	33.01B	30.88B
Cash, Cash Equivalents and Short-Term Investments	15.05B	15.36B	12.05B	13.20B	17.44B	14.78B
Total Debt	510.58M	285.01M	300.00M	300.00M	300.00M	300.00M
Total Liabilities	6.82B	8.71B	6.45B	5.90B	5.31B	5.20B
Stockholders Equity	24.97B	25.77B	24.99B	25.73B	27.70B	25.69B
Cash Flow
Free Cash Flow	0.00	7.17B	6.15B	4.98B	4.64B	5.00B
Operating Cash Flow	0.00	7.91B	7.01B	5.48B	5.00B	5.21B
Investing Cash Flow	0.00	1.97B	-2.60B	-2.23B	348.35M	-219.77M
Financing Cash Flow	0.00	-6.86B	-6.97B	-7.39B	-3.00B	-2.55B

Funai Soken Holdings Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1146.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9757, the sentiment is Neutral. The current price of 1146 is above the 20-day moving average (MA) of 1128.55, above the 50-day MA of 1142.32, and below the 200-day MA of 1179.04, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 80.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9757	72 Outperform	¥110.44B	16.36	―	3.44%	10.28%	-20.11%
9644	72 Outperform	¥24.84B	23.09	―	3.50%	15.91%	36.39%
7033	71 Outperform	¥24.55B	13.23	―	2.18%	17.87%	5.31%
9168	68 Neutral	¥12.54B	8.54	―	1.04%	23.25%	14.29%
4763	66 Neutral	¥32.75B	9.46	―	2.71%	4.27%	27.62%
4792	64 Neutral	¥32.30B	14.32	―	4.39%	2.46%	-31.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Funai Soken Holdings Incorporated Corporate Events

Funai Soken Sets 2026–2028 Plan to Lead Mid-Market Consulting and Lift Earnings

Funai Soken Holdings Inc. has unveiled a new three-year mid-range business plan for 2026–2028 aimed at positioning the group as the leading consulting provider for Japan’s mid-market companies, a segment identified as both a government policy focus and a high-growth market. The plan centers on expanding AI and digital transformation consulting, accelerating growth in its management workshop membership base, and evolving into a comprehensive transformation consulting group for mid-market leaders and emerging firms. Financially, the company is targeting an increase in consolidated net sales from ¥33.3 billion in FY2025 to ¥46.0 billion in FY2028, operating income growth from ¥8.8 billion to ¥11.5 billion, and an improvement in ROE from 26.5% to 30%, while maintaining robust shareholder returns with a return-to-shareholders ratio of at least 65% and a dividend payout ratio of at least 60%.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2666.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.

Funai Soken Delivers Higher Earnings, Raises Dividend Ahead of Share Split

Funai Soken Holdings reported solid earnings growth for the fiscal year ended December 31, 2025, with net sales rising 8.8% to ¥33,330 million and net income attributable to owners of the parent up 8.9% to ¥6,526 million, while maintaining high profitability metrics, including a return on equity of 26.5%. The group strengthened its financial position with higher total assets and cash balances and increased annual dividends to ¥85 per share before a 2-for-1 stock split effective January 1, 2026, while forecasting continued top-line expansion in 2026 alongside modest profit growth, signaling ongoing but more moderate earnings momentum and a continued emphasis on shareholder returns.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2666.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.

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.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2678.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.

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.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2678.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.

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.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2678.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.

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.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2678.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.

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.

The most recent analyst rating on (JP:9757) stock is a Hold with a Yen2678.00 price target. To see the full list of analyst forecasts on Funai Soken Holdings Incorporated stock, see the JP:9757 Stock Forecast page.