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

JP:4368

Fuso Chemical Co., Ltd.

(TSE/TYO:4368)

Select Model
Rating:70Outperform
Price Target:JPY 3,178.00â–²(0.41% Upside)
Action:reiterated
Date:11/01/26

Fuso Chemical's score of 70 is primarily driven by its exceptional financial performance, highlighted by expanding profit margins (22.1% net margin), a rock-solid balance sheet with minimal debt, and robust free cash flow generation. However, this fundamental strength is heavily offset by negative technicals, as the stock is in a clear downtrend trading below all major moving averages. A fair valuation with a P/E of 17.08 makes it a compelling consideration for investors seeking long-term fundamental stability despite current bearish price action.

Positive Factors
Strong ProfitabilityFuso Chemical is converting revenue into substantial gross, operating, and net profits, indicating strong economics for its specialty-chemical portfolio. Improving net margins can support reinvestment, resilience through demand cycles, and sustained earnings capacity over the next several quarters.
Negative Factors
Uneven Revenue GrowthRevenue growth has recovered but remains inconsistent across reporting periods, with a notable FY2024 decline followed by more moderate TTM growth. This uneven top-line trajectory can make capacity planning and earnings expansion less predictable, limiting confidence in sustained momentum.

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

-25%0%25%50%75%100%125%150%175%JP:4368+74.24%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 334.85B
Dividend Yield
0.87%
Average Volume (3M)
794.29K
Price to Earnings (P/E)
17.5
Beta (1Y)
1.11
Revenue Growth
17.07%
EPS Growth
48.05%
Country
Japan
Employees
956
Sector
Basic Materials
Sector Strength
61
Industry
Chemicals - Specialty

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. T...

Fuso Chemical Co., Ltd. Financial Statement Overview

Summary

Fuso Chemical demonstrates exceptional financial strength across the board. The company boasts robust revenue growth with expanding net profit margins (22.1%), an incredibly strong balance sheet with a minimal debt-to-equity ratio of 0.13, and surging free cash flow generation.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

88Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue84.82B76.93B69.50B58.97B68.46B55.76B
Gross Profit33.70B29.32B25.97B20.57B28.41B23.08B
EBITDA35.55B30.59B24.71B19.29B24.42B20.17B
Net Income19.10B14.31B11.62B8.34B14.13B10.89B
Balance Sheet
Total Assets171.81B152.26B141.50B133.74B113.53B92.01B
Cash, Cash Equivalents and Short-Term Investments48.45B41.01B31.30B31.47B23.41B24.36B
Total Debt14.90B16.90B20.07B20.01B24.82M19.77M
Total Liabilities44.34B35.04B37.45B38.72B26.03B16.71B
Stockholders Equity127.47B117.22B104.05B95.03B87.50B75.30B
Cash Flow
Free Cash Flow23.56B17.44B4.38B-7.87B498.10M973.26M
Operating Cash Flow31.17B24.79B22.73B7.08B13.93B10.20B
Investing Cash Flow-11.65B-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 SentimentPositive
Last Price3165.00

Price Trends

50DMA3061.41Positive
100DMA3532.06Negative
200DMA3309.15Negative

Market Momentum

MACD-51.23Positive
RSI52.61Neutral
STOCH69.12Neutral

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 3165.00 is above the 20-day moving average (MA) of 3164.10, above the 50-day MA of 3061.41, and below the 200-day MA of 3309.15, indicating a neutral trend. The MACD of -51.23 indicates Positive momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 69.12 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

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4368 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4114JP:411475OutperformJPY 382.15B16.71―5.19%3.57%35.54%
JP:4042JP:404275OutperformJPY 807.46B14.566.64%3.92%-0.63%15.92%
JP:4041JP:404174OutperformJPY 195.64B10.54―4.75%-1.25%34.70%
JP:4368JP:436870OutperformJPY 307.00B17.54―0.87%17.07%48.05%
JP:4021JP:402167NeutralJPY 1.04T19.5821.36%2.63%9.89%18.20%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
JP:4061JP:406149NeutralJPY 263.27B19.514.48%3.26%-2.99%―

* Basic Materials Sector Average

Performance Comparison

0%50%100%150%JP:4368JP:4061JP:4021JP:4042JP:4041JP:4114Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4368 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4368Fuso Chemical Co., Ltd.3165.001292.3969.02%
JP:4061Denka Co 3064.00895.8941.32%
JP:4021Nissan Chemical Corporation7672.002684.5753.83%
JP:4042Tosoh Corporation2549.50404.5318.86%
JP:4041Nippon Soda Co., Ltd.3580.00318.829.78%
JP:4114Nippon Shokubai Co., Ltd.2565.00883.9852.59%

Fuso Chemical Co., Ltd. Corporate Events

Fuso Chemical Posts Strong First-Half Earnings and Raises Full-Year Forecast

Oct 30, 2026

Fuso Chemical reported strong results for the six months ended September 30, 2026, with net sales rising 20.9% year on year to ¥45.6 billion and operating profit jumping 36.4% to ¥13.3 billion. Profit attributable to owners of parent surged...

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 an...

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. Earn...

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: Nov 01, 2026