Fukoku Co., Ltd. (5185) AI Stock Analysis

• Market Cap: ¥30.05B
• Dividend Yield: 4.29%
• Average Volume (3M): 36.98K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.90
• Revenue Growth: 0.65%
• EPS Growth: -21.13%
• Country: JP
• Employees: 4,594
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 30.59
• Shares Outstanding: 17,609,130
• 10 Day Avg. Volume: 32,950
• 30 Day Avg. Volume: 36,976
• PEG Ratio: -2.33
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 32.39
• 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: ¥2,059.00 ▲(10.46% Upside)

Fukoku Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's solid revenue growth, operational efficiency, and appealing dividend yield are significant strengths. Technical analysis indicates some short-term weakness, but the long-term trend remains positive. The absence of earnings call data and corporate events does not impact the score.

Fukoku Co., Ltd. Business Overview & Revenue Model

Company Description

Fukoku Co.,Ltd. produces and sells rubber and resin products in Japan and internationally. The company offers wiper blade rubbers that are used in automobiles, trains, ships, and aircrafts; and seal products, including brake booster diaphragms, radiator gaskets, duty valves, piston seals, and constant velocity joints, which are used in automotive brake systems and fuel systems, as well as air intake and exhaust systems, and pneumatic tools and industrial machinery. It also provides anti-vibration products comprising suspension parts, torsional vibration dampers, couplings, engine mounts, cabin mounts, shock absorbers and ballast mats, and other parts functioning to reduce vibrations and noise in construction, civil engineering, and industrial machinery industries, as well as anti-vibration products for rail cars and rail roads. In addition, the company provides ultrasonic motors, such as motors with encoders, vacuum-type motors, hollow-type motors, non-magnetic motors, and ring-type motors that are used for driving the autofocus mechanism in SLR cameras, the headrests in luxury cars, and stages of semiconductor equipment. Further, it offers bio related parts, such as medical infusion bags consisting of culture bags, cell rinsing bags, and adaptors for centrifuge. The company was formerly known as Fukoku Rubber Industry Co., Ltd. and changed its name to Fukoku Co.,Ltd. in January 1986. Fukoku Co.,Ltd. was founded in 1953 and is headquartered in Ageo, Japan.

How the Company Makes Money

Fukoku Co., Ltd. generates revenue primarily through the sale of its rubber products to various industries, including automotive and electronics. The company has established long-term contracts with major clients, ensuring a stable revenue stream. Key revenue streams include the production of custom rubber components tailored to client specifications, as well as standard products sold in bulk. Additionally, Fukoku benefits from partnerships with leading manufacturers and distributors, which enhances its market reach and allows for collaborative product development. The company's focus on research and development also enables it to introduce new products, thereby creating additional revenue opportunities.

Fukoku Co., Ltd. Financial Statement Overview

Summary

Fukoku Co., Ltd. demonstrates financial strength with steady revenue growth and improved operational margins. The company maintains a strong equity base and manageable debt levels, though attention to free cash flow conversion is advised.

Income Statement

Fukoku Co., Ltd. has shown strong revenue growth with a consistent upward trajectory in total revenue over the past five years, highlighted by a 10.3% increase from 2022 to 2023. The company maintains a stable gross profit margin around 18.5% in 2025, despite slight fluctuations in net profit. The EBIT and EBITDA margins have improved, indicating enhanced operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.29 in 2025, showing financial stability. Return on equity remains healthy at 6.8%, indicating good returns for shareholders. However, there is a gradual increase in total debt, which needs monitoring.

Cash Flow

Fukoku's cash flow is robust, with a positive trend in free cash flow growth. The operating cash flow to net income ratio is favorable, suggesting efficient cash conversion. The company has managed to turn a negative free cash flow in 2023 to a positive in 2025, although the free cash flow to net income ratio is lower than optimal.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.15B	89.66B	88.85B	82.32B	71.50B	63.21B
Gross Profit	17.40B	16.59B	15.09B	12.88B	11.51B	9.42B
EBITDA	9.55B	9.69B	8.98B	8.14B	7.02B	5.87B
Net Income	2.69B	2.93B	3.05B	2.13B	2.08B	1.25B
Balance Sheet
Total Assets	75.58B	79.40B	76.03B	71.53B	65.04B	63.82B
Cash, Cash Equivalents and Short-Term Investments	10.69B	12.42B	12.01B	9.97B	9.30B	8.99B
Total Debt	11.10B	13.30B	12.42B	13.53B	11.52B	12.34B
Total Liabilities	31.54B	33.46B	34.02B	33.58B	30.66B	31.50B
Stockholders Equity	41.46B	43.27B	39.54B	35.62B	32.22B	30.09B
Cash Flow
Free Cash Flow	0.00	830.00M	4.36B	-1.14B	2.45B	366.00M
Operating Cash Flow	0.00	6.63B	8.84B	3.52B	5.34B	4.75B
Investing Cash Flow	0.00	-5.83B	-4.47B	-3.99B	-2.85B	-4.03B
Financing Cash Flow	0.00	-640.00M	-2.78B	753.00M	-2.81B	-859.00M

Fukoku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1864.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5185, the sentiment is Positive. The current price of 1864 is above the 20-day moving average (MA) of 1842.26, above the 50-day MA of 1842.06, and above the 200-day MA of 1672.53, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5185.

Fukoku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5121	80 Outperform	¥45.74B	9.15	―	3.21%	11.45%	36.70%
7247	79 Outperform	¥12.11B	4.83	―	3.67%	0.85%	94.79%
5185	75 Outperform	¥30.05B	10.87	―	4.29%	0.65%	-21.13%
5189	72 Outperform	¥4.32B	9.30	―	2.65%	-2.63%	-27.45%
5161	67 Neutral	¥115.92B	31.61	―	6.04%	-1.11%	-33.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7266	51 Neutral	¥16.34B	7.96	―	3.18%	-7.01%	-108.77%

Fukoku Co., Ltd. Corporate Events

Fukoku Co., Ltd. Reports Mixed Financial Results for Q2 2025

Fukoku Co., Ltd. reported its financial results for the three-month period ending June 30, 2025, showing a slight increase in net sales by 2.2% compared to the previous year. However, the company experienced a significant decline in ordinary profit by 28.8% and profit attributable to owners by 33.2%, indicating challenges in maintaining profitability despite steady sales. The company’s financial position remains stable with a shareholders’ equity ratio of 54.9%, and they have maintained their dividend forecast for the fiscal year ending March 31, 2026, suggesting confidence in future performance.

Fukoku Co., Ltd. Completes Treasury Stock Disposal for Compensation

Fukoku Co., Ltd. has completed the disposal of 7,600 shares of its treasury stock as restricted stock compensation to five directors, excluding non-residents and certain other directors. This move, resolved in a board meeting on June 25, 2025, reflects the company’s strategic approach to align executive interests with shareholder value.