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Fukuda Corporation (1899) AI Stock Analysis

JP:1899

Fukuda Corporation

(TSE/TYO:1899)

Select Model
Rating:74Outperform
Price Target:JPY 5,482.00â–²(12.68% Upside)
Action:upgraded
Date:08/17/26

Fukuda's overall score of 74 reflects a solid financial foundation with a robust balance sheet and improving profitability, offset by recent cash flow weakness. The stock exhibits strong technical momentum, though overbought signals suggest caution. Valuation is attractive with a moderate P/E and healthy dividend yield. Investors should monitor cash flow trends and potential consolidation in the share price.

Positive Factors
Extremely Low LeverageThe exceptionally conservative balance sheet reduces refinancing and solvency risk, while providing financial flexibility to withstand construction-cycle volatility, fund projects, and maintain shareholder distributions without relying heavily on external debt.
Negative Factors
Sharp Revenue ContractionThe steep revenue decline demonstrates meaningful exposure to project timing and cyclical demand. Even with margins holding up, sustained top-line weakness could reduce operating scale, limit earnings visibility, and make future growth less predictable.

Fukuda Corporation (1899) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%60%JP:1899+44.76%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 79.79B
Dividend Yield
2.67%
Average Volume (3M)
57.61K
Price to Earnings (P/E)
10.9
Beta (1Y)
0.95
Revenue Growth
6.50%
EPS Growth
36.50%
Country
Japan
Employees
2,226
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Fukuda Corporation Business Overview & Revenue Model

Company Description

Headquartered in Niigata, Japan, Fukuda Corporation has been a prominent entity in the Japanese construction industry since its inception in 1902. The company undertakes a wide array of construction-related activities, including the planning, design,...

Fukuda Corporation Financial Statement Overview

Summary

Income statement shows improving profitability (score 72) with gross margin at 11.0%, the highest in six years. Balance sheet is strong (score 88) with minimal debt (debt-to-equity 1.1%) and growing equity. However, cash flow weakened significantly (score 38) in FY2025, with operating cash flow down 56% year-over-year. Overall financial health is sound but cash flow concerns weigh.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue169.56B167.96B166.59B162.24B154.36B179.85B
Gross Profit19.23B18.53B17.82B14.96B15.17B18.74B
EBITDA9.69B9.34B9.26B6.66B7.05B10.35B
Net Income6.02B5.55B5.31B3.39B3.65B5.86B
Balance Sheet
Total Assets149.28B147.48B142.81B136.73B134.35B130.75B
Cash, Cash Equivalents and Short-Term Investments31.20B30.82B32.85B29.47B28.51B23.29B
Total Debt914.00M1.01B1.57B1.86B3.78B1.54B
Total Liabilities59.08B57.31B57.40B56.39B55.84B54.34B
Stockholders Equity89.85B89.81B84.66B79.62B77.83B75.77B
Cash Flow
Free Cash Flow0776.00M4.52B5.29B3.73B6.75B
Operating Cash Flow02.57B5.88B7.49B5.02B7.80B
Investing Cash Flow0-1.13B-1.98B-1.88B-1.13B-1.50B
Financing Cash Flow0-2.57B-1.37B-4.35B970.00M-6.13B

Fukuda Corporation Technical Analysis

Technical Analysis SentimentPositive
Last Price4865.00

Price Trends

50DMA4770.90Positive
100DMA4344.55Positive
200DMA4169.87Positive

Market Momentum

MACD66.66Positive
RSI51.69Neutral
STOCH56.84Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1899, the sentiment is Positive. The current price of 4865.00 is above the 20-day moving average (MA) of 4844.75, above the 50-day MA of 4770.90, and above the 200-day MA of 4169.87, indicating a bullish trend. The MACD of 66.66 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 56.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1899.

Fukuda Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:1899 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1921JP:192184OutperformJPY 64.71B10.87―1.87%3.35%-49.91%
JP:1822JP:182279OutperformJPY 65.47B13.54―4.39%0.75%46.28%
JP:1899JP:189974OutperformJPY 80.66B10.92―2.67%6.50%36.50%
JP:1888JP:188870OutperformJPY 44.89B8.05―3.91%24.08%44.92%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:1811JP:181160NeutralJPY 53.07B9.99―1.70%-6.91%-46.52%
JP:1815JP:181555NeutralJPY 62.75B10.36―8.06%-5.15%115.86%

* Industrials Sector Average

Performance Comparison

-20%0%20%40%JP:1899JP:1811JP:1815JP:1822JP:1888JP:1921Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:1899 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1899Fukuda Corporation4865.001484.8843.93%
JP:1811Zenitaka Corporation7050.00-1113.60-13.64%
JP:1815Tekken Corporation2108.00303.0916.79%
JP:1822Daiho Corporation775.0011.331.48%
JP:1888Wakachiku Construction Co., Ltd.3455.00-1231.92-26.28%
JP:1921Tomoe Corporation1989.00203.4311.39%

Fukuda Corporation Corporate Events

Fukuda Corporation Launches Share Buyback to Boost Capital Efficiency

Aug 7, 2026

Fukuda Corporation has executed a share buyback as part of its stated strategy to improve capital efficiency and bolster shareholder returns. The construction-focused company repurchased 118,000 shares of its common stock for a total of ¥499,140...

Fukuda Corporation Launches ¥2 Billion Share Buyback via ToSTNeT-3

Aug 6, 2026

Fukuda Corporation has approved a share repurchase program under Japan’s Companies Act, with an initial off-auction buyback of 118,200 common shares scheduled via the Tokyo Stock Exchange’s ToSTNeT-3 system at the August 6 closing price o...

Fukuda Corp Launches ¥2 Billion Share Buyback Under Medium-Term Plan

Aug 6, 2026

Fukuda Corporation’s board has approved a share buyback of up to 526,000 common shares, representing about 3.2% of its outstanding stock, for a total amount not exceeding ¥2 billion. The repurchase will run from August 7 to December 30, 20...

Fukuda Outlines Q2 Results and 2026 Outlook in New Financial Presentation

Aug 6, 2026

Fukuda Corporation has released its presentation of consolidated financial results for the second quarter of the fiscal year ending December 2026, outlining profit and loss, segment performance, and balance sheet highlights. The materials also detail...

Fukuda Lifts 2026 Earnings Outlook and Dividend on Strong Construction Orders

Aug 6, 2026

Fukuda Corporation has sharply upgraded its full-year 2026 guidance, projecting consolidated net sales of ¥190.5 billion and profit attributable to owners of parent of ¥6.4 billion, representing double-digit gains over its previous forecast...

Fukuda lifts earnings outlook on sharp profit gains and higher dividend plan

Aug 6, 2026

Fukuda Corporation reported strong interim results for the six months ended June 30, 2026, with net sales rising 14.7% year on year to ¥88.86 billion and operating profit surging 61.8% to ¥5.82 billion. Ordinary profit climbed 59.8% to &#16...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026