Fuso Chemical Co., Ltd. (4368) AI Stock Analysis

• Market Cap: ¥173.22B
• Dividend Yield: 1.48%
• Average Volume (3M): 88.52K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.85
• Revenue Growth: 12.70%
• EPS Growth: 34.96%
• Country: JP
• Employees: 930
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 107.05
• Shares Outstanding: 35,511,000
• 10 Day Avg. Volume: 99,450
• 30 Day Avg. Volume: 88,523
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥5,763.00 ▲(12.56% Upside)

Fuso Chemical Co., Ltd. shows strong financial performance with robust profitability and a stable balance sheet, despite concerns about declining free cash flow. The technical analysis supports a positive trend, and the valuation is fair. These factors collectively contribute to a solid overall stock score.

Fuso Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Fuso Chemical Co., Ltd. (4368) is a Japan-based company primarily engaged in the manufacturing and distribution of specialty chemicals. The company operates across various sectors, including electronics, automotive, and pharmaceuticals, providing innovative solutions and high-performance materials. Fuso Chemical's core products include chemical intermediates, electronic materials, and fine chemicals, catering to a diverse range of industries and applications.

How the Company Makes Money

Fuso Chemical generates revenue through the sale of its specialty chemicals and materials to various industries. The company's revenue model is built around multiple key revenue streams, including direct sales to manufacturers in the electronics and automotive sectors, as well as partnerships with pharmaceutical companies for the supply of fine chemicals. Additionally, Fuso Chemical benefits from long-term contracts and collaborations with key clients, which provide stable income and foster customer loyalty. The company also invests in research and development to innovate and expand its product offerings, which helps in capturing new market opportunities and driving growth.

Fuso Chemical Co., Ltd. Financial Statement Overview

Summary

Fuso Chemical Co., Ltd. shows strong profitability and a stable balance sheet with a low debt-to-equity ratio. However, the declining free cash flow is a concern, potentially impacting future investments or debt repayments.

Income Statement

Fuso Chemical Co., Ltd. demonstrates strong profitability with a consistent gross profit margin around 37% and a net profit margin of approximately 16.7% in the TTM. The company has shown positive revenue growth, albeit modest, indicating a stable growth trajectory. EBIT and EBITDA margins are healthy, reflecting efficient operations and cost management.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.19, indicating low leverage and financial stability. Return on equity is solid at 11.5%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a well-capitalized company with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, which is a concern. However, the operating cash flow to net income ratio is above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is low, suggesting limited free cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.73B	69.50B	58.97B	68.46B	55.76B	42.21B
Gross Profit	26.94B	25.97B	20.57B	28.41B	23.08B	16.35B
EBITDA	24.56B	24.71B	19.29B	24.42B	19.49B	14.66B
Net Income	11.84B	11.62B	8.34B	14.13B	10.89B	6.81B
Balance Sheet
Total Assets	137.15B	141.50B	133.74B	113.53B	92.01B	76.03B
Cash, Cash Equivalents and Short-Term Investments	27.87B	31.30B	31.47B	23.41B	24.36B	25.71B
Total Debt	19.90B	20.00B	20.00B	24.82M	19.77M	21.87M
Total Liabilities	31.71B	37.45B	38.72B	26.03B	16.71B	9.86B
Stockholders Equity	105.45B	104.05B	95.03B	87.50B	75.30B	66.17B
Cash Flow
Free Cash Flow	819.26M	4.38B	-10.52B	291.18M	577.39M	10.61B
Operating Cash Flow	20.16B	22.73B	7.06B	13.93B	10.20B	12.82B
Investing Cash Flow	-21.45B	-20.57B	-18.58B	-13.42B	-9.38B	-2.62B
Financing Cash Flow	-2.69B	-2.41B	17.66B	-2.12B	-2.88B	-1.64B

Fuso Chemical Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5120.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4368, the sentiment is Positive. The current price of 5120 is above the 20-day moving average (MA) of 5001.25, above the 50-day MA of 4848.60, and above the 200-day MA of 3934.04, indicating a bullish trend. The MACD of 43.14 indicates Positive momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 75.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4368.

Fuso Chemical Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4272	―	€218.71B	12.23	7.16%	4.79%	8.14%	274.53%
4368	―	¥173.22B	14.29	―	1.48%	12.70%	34.96%
4041	―	¥187.06B	13.18	―	4.40%	3.26%	-13.75%
4045	―	$172.05B	16.28	4.41%	4.08%	-1.50%	-32.46%
4189	―	¥99.69B	10.99	―	3.57%	8.18%	28.35%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4061	―	€195.28B	15.29	-3.41%	4.39%	0.61%	-180.24%

Fuso Chemical Co., Ltd. Corporate Events

Fuso Chemical Co., Ltd. Increases Dividend Forecasts for FY3/2026

Fuso Chemical Co., Ltd. has announced an increase in its interim and year-end dividend forecasts for the fiscal year ending March 2026. The decision, made during a Board of Directors meeting, reflects the company’s revised earnings forecasts and commitment to progressive dividends, resulting in an annual dividend forecast of ¥82 per share, up from the previous forecast of ¥76.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen5239.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Co., Ltd. Revises Earnings Forecasts Upward Amid Strong Semiconductor Market Performance

Fuso Chemical Co., Ltd. has revised its earnings and dividend forecasts for the fiscal year ending March 2026, citing strong sales of colloidal silica in the semiconductor market and favorable foreign exchange conditions. The company has reported higher-than-expected profits and sales, driven by increased demand in the semiconductor industry and advantageous currency fluctuations, leading to an upward revision of its full-year earnings forecasts.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen5239.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Reports Strong Financial Growth and Dividend Increase

Fuso Chemical Co., Ltd. reported a notable increase in its consolidated financial results for the six months ended September 30, 2025, with net sales rising by 8.5% and operating profit by 19.7% compared to the previous year. The company also announced a revision in its cash dividend forecast, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen5239.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Announces Strategic Personnel Changes

Fuso Chemical Co., Ltd. announced several personnel changes effective October 1, 2025, aimed at strengthening its production and business planning divisions. These changes include new department manager appointments in key areas such as electronic materials quality assurance and production engineering management, which are expected to enhance the company’s operational efficiency and strategic positioning in the chemical industry.

The most recent analyst rating on (JP:4368) stock is a Buy with a Yen5239.00 price target. To see the full list of analyst forecasts on Fuso Chemical Co., Ltd. stock, see the JP:4368 Stock Forecast page.

Fuso Chemical Completes Treasury Stock Disposal for Director Compensation

Fuso Chemical Co., Ltd. has completed the allotment procedure for the disposal of treasury stock as restricted stock compensation, which was resolved at a Board of Directors meeting on July 15, 2025. This disposal involves 8,595 shares of the company’s common stock, valued at 4,000 yen per share, and is intended as compensation for the company’s directors, excluding audit, supervisory, and external board directors.

Fuso Chemical Reports Increased Sales but Faces Profit Margin Challenges

Fuso Chemical Co., Ltd. reported a 7% increase in net sales for the three months ending June 30, 2025, compared to the same period in the previous year. Despite a decrease in comprehensive income, the company showed growth in operating profit and profit attributable to owners, indicating a positive operational performance. The financial outlook for the year ending March 31, 2026, suggests a slight increase in net sales but a decrease in profits, reflecting potential challenges in maintaining profit margins.