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Fuso Chemical Co., Ltd. (JP:4368)
:4368
Japanese Market
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Fuso Chemical Co., Ltd. (4368) AI Stock Analysis

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JP:4368

Fuso Chemical Co., Ltd.

(4368)

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Neutral 66 (OpenAI - Gpt-5.6Sol)
Rating:66Neutral
Price Target:
¥3,397.00
▼(-2.94% Downside)
Action:Downgraded
Date:08/20/26
The score is driven primarily by strong financial performance (high and improving margins, healthy ROE, and conservative leverage), partially offset by weaker cash conversion and past cash-flow volatility. Technical indicators are a significant drag due to a clear downtrend (below key moving averages and negative MACD), while valuation is neutral-to-slightly supportive with a moderate P/E but low dividend yield.
Positive Factors
Strong Specialty-Chemical Profitability
High gross, operating, and net margins indicate meaningful product value and operating efficiency. Their improvement over prior years provides a durable earnings buffer and may help Fuso Chemical fund investment while absorbing moderate cost or demand pressure.
Negative Factors
Weak and Volatile Cash Conversion
Profit is not consistently converting into cash at the same rate, indicating working-capital or investment demands. The mismatch can constrain reinvestment and shareholder returns, while volatile multi-year free cash flow increases planning risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Specialty-Chemical Profitability
High gross, operating, and net margins indicate meaningful product value and operating efficiency. Their improvement over prior years provides a durable earnings buffer and may help Fuso Chemical fund investment while absorbing moderate cost or demand pressure.
Read all positive factors

Fuso Chemical Co., Ltd. (4368) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Established in 1952 and headquartered in Osaka, Japan, Fuso Chemical Co.,Ltd. operates globally, specializing in the manufacturing and distribution of a diverse portfolio spanning life science, electronic material, and functional chemical products...
How the Company Makes Money
Fuso Chemical Co., Ltd. generates revenue primarily through the sale of specialty chemical products it manufactures and supplies to business customers. Its core revenue stream is product sales (typically under long-term supply relationships in B2B...

Fuso Chemical Co., Ltd. Financial Statement Overview

Summary
Strong and improving profitability (TTM gross margin ~38.5%, net margin ~22.1%, EBIT margin ~26.2%) and healthy returns (ROE ~15.5%) support a high score. Balance sheet leverage remains conservative (debt-to-equity ~0.13), but cash flow quality is a constraint due to volatile multi-year FCF (including FY2024 weakness) and weaker cash conversion (operating cash flow to net income ~0.85; FCF to net income ~0.74).
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue81.09B76.93B69.50B58.97B68.46B55.76B
Gross Profit31.21B29.32B25.97B20.57B28.41B23.08B
EBITDA33.01B30.59B24.71B19.29B24.42B20.17B
Net Income17.90B14.31B11.62B8.34B14.13B10.89B
Balance Sheet
Total Assets166.83B152.26B141.50B133.74B113.53B92.01B
Cash, Cash Equivalents and Short-Term Investments38.29B41.01B31.30B31.47B23.41B24.36B
Total Debt15.90B16.90B20.07B20.01B24.82M19.77M
Total Liabilities43.83B35.04B37.45B38.72B26.03B16.71B
Stockholders Equity123.00B117.22B104.05B95.03B87.50B75.30B
Cash Flow
Free Cash Flow18.71B17.44B4.38B-7.87B498.10M973.26M
Operating Cash Flow25.25B24.79B22.73B7.08B13.93B10.20B
Investing Cash Flow-10.63B-11.07B-20.57B-18.60B-13.42B-9.38B
Financing Cash Flow-6.91B-5.91B-2.41B17.66B-2.12B-2.88B

Fuso Chemical Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3500.00
Price Trends
50DMA
3709.24
Negative
100DMA
3762.81
Negative
200DMA
3133.11
Negative
Market Momentum
MACD
-243.07
Positive
RSI
34.95
Neutral
STOCH
9.98
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4368, the sentiment is Negative. The current price of 3500 is above the 20-day moving average (MA) of 3173.85, below the 50-day MA of 3709.24, and above the 200-day MA of 3133.11, indicating a bearish trend. The MACD of -243.07 indicates Positive momentum. The RSI at 34.95 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4368.

Fuso Chemical Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥385.51B16.855.17%3.57%35.54%
75
Outperform
¥845.01B15.176.64%3.78%-0.63%15.92%
74
Outperform
¥1.06T20.1721.36%2.54%9.89%18.20%
74
Outperform
¥210.59B11.414.36%-1.25%34.70%
66
Neutral
¥306.36B17.040.94%14.65%51.06%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
48
Neutral
¥279.64B20.664.48%3.04%-2.99%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4368
Fuso Chemical Co., Ltd.
2,883.00
1,310.27
83.31%
JP:4061
Denka Co
3,245.00
944.75
41.07%
JP:4021
Nissan Chemical
7,902.00
2,699.23
51.88%
JP:4042
Tosoh
2,655.50
382.15
16.81%
JP:4041
Nippon Soda Co., Ltd.
3,875.00
515.19
15.33%
JP:4114
Nippon Shokubai Co., Ltd.
2,586.00
754.49
41.20%

Fuso Chemical Co., Ltd. Corporate Events

Fuso Chemical Completes Treasury Stock Disposal for Restricted Share Compensation
Aug 14, 2026
Fuso Chemical Co., Ltd., a Prime Market-listed Japanese chemical manufacturer under securities code 4368, produces specialized chemical materials and operates with a conventional governance structure that includes a board of directors and an audit...
Fuso Chemical Posts Profit Surge in First Quarter, Keeps Full-Year Outlook Intact
Aug 7, 2026
Fuso Chemical Co., Ltd. reported strong consolidated results for the quarter ended June 30, 2026, with net sales rising 22.3% year on year to ¥22.8 billion and profit attributable to owners of parent more than doubling to ¥6.7 billion. E...
Fuso Chemical to Grant Restricted Treasury Shares to Directors Under Equity Compensation Plan
Jul 15, 2026
Fuso Chemical will dispose of 8,481 shares of its treasury stock as restricted stock compensation for seven internal Board Directors, effective August 14, 2026. The disposal, based on a fair value of 4,055 yen per share and representing about 0.01...
Fuso Chemical Gains Supply-Chain Subsidy, Lifts Profit Outlook for FY 2027
Jun 17, 2026
Fuso Chemical Co., Ltd. has secured approval under Japan’s Program for Promoting Investment to Strengthen Supply Chains for ultra high purity colloidal silica facilities at its Kyoto Plant. The project, aimed at producing key CMP slurry abra...
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 20, 2026