Fuyo General Lease Co., Ltd. (8424) AI Stock Analysis

• Market Cap: ¥394.92B
• Dividend Yield: 3.72%
• Average Volume (3M): 143.63K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.72
• Revenue Growth: -3.25%
• EPS Growth: 1.65%
• Country: JP
• Employees: 3,503
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 147.41
• Shares Outstanding: 90,863,430
• 10 Day Avg. Volume: 138,260
• 30 Day Avg. Volume: 143,626
• PEG Ratio: -1.82
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -2.49
• 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: 64 Neutral
• Price Target: ¥4,415.00 ▲(8.26% Upside)

Fuyo General Lease Co., Ltd. scores well due to its strong valuation metrics, including a low P/E ratio and solid dividend yield. However, financial performance is hindered by high leverage and negative cash flow, and technical indicators suggest bearish momentum.

Fuyo General Lease Co., Ltd. Business Overview & Revenue Model

Company Description

Fuyo General Lease Co., Ltd. engages in leasing and installment sales business in Japan and internationally. It is involved in the lease and installment sale of IT and office equipment, industrial machinery/machine tools, commercial/service equipment, medical devices, civil engineering and construction machinery, etc.; and transportation equipment, including ships, aircraft, automobiles, etc. The company also offers various leases comprising finance, operating, PC eco and value, auto, vendor, building, and space leases. In addition, it provides installment sales schemes for properties; and rental estate financing services consisting of non-recourse real estate loans and other financing schemes. Further, the company provides aircraft operating leases; life insurance consulting services; and Web-based data and contract management service, and asset management services. It provides consulting services that identify the issues and needs inherent in customers' management and financial strategies; leasing and financing for overseas expansions; and ESCO service that comprises technology, facilities, and funds required by the customers. Fuyo General Lease Co., Ltd. was incorporated in 1969 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Fuyo General Lease generates revenue primarily through its leasing operations, which involve providing capital for the acquisition of equipment and property. The company earns money through leasing fees paid by clients over the duration of the lease agreements. Additionally, Fuyo General Lease benefits from residual value gains when leased assets are sold after the lease term ends. The company may also receive interest income from financing arrangements and fees for ancillary services, such as maintenance and insurance. Strategic partnerships with manufacturers and service providers can enhance its offerings and expand its client base, contributing to its overall earnings.

Fuyo General Lease Co., Ltd. Financial Statement Overview

Summary

Fuyo General Lease Co., Ltd. shows strong revenue growth and profitability. However, the high leverage and negative free cash flow are concerns. The net profit margin needs improvement, and there's inconsistency in cash flow generation.

Income Statement

Fuyo General Lease Co., Ltd. has demonstrated consistent revenue growth over the years, with a modest increase from the previous year. The company maintains a strong gross profit margin and has improved its EBIT and EBITDA margins. However, the net profit margin showed a slight decrease, which suggests some room for improvement in cost management.

Balance Sheet

The company's balance sheet reflects a substantial increase in stockholders' equity over the years, supporting a healthy equity ratio. However, the debt-to-equity ratio remains high due to significant leverage, which could pose risks in volatile market conditions. The return on equity has steadily improved, indicating effective utilization of equity.

Cash Flow

Fuyo General Lease Co., Ltd. faces challenges with negative free cash flow, which could be a concern for liquidity. The operating cash flow to net income ratio has shown volatility, suggesting inconsistency in cash generation relative to earnings. However, capital expenditures are managed within reasonable limits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	689.50B	678.39B	708.54B	688.65B	657.85B	740.26B
Gross Profit	119.64B	119.63B	109.57B	97.32B	88.86B	82.74B
EBITDA	113.33B	123.11B	113.90B	99.07B	100.34B	92.03B
Net Income	48.62B	45.28B	47.22B	38.94B	33.89B	29.57B
Balance Sheet
Total Assets	3.60T	3.57T	3.39T	3.15T	2.95T	2.98T
Cash, Cash Equivalents and Short-Term Investments	658.79B	614.71B	632.27B	576.19B	395.18B	382.13B
Total Debt	2.85T	2.81T	2.69T	2.52T	2.38T	2.45T
Total Liabilities	3.07T	3.04T	2.91T	2.74T	2.58T	2.63T
Stockholders Equity	473.38B	475.56B	431.96B	367.18B	333.48B	305.27B
Cash Flow
Free Cash Flow	-85.20B	-139.81B	-115.37B	-26.82B	86.80B	-39.26B
Operating Cash Flow	-81.77B	-136.38B	-112.10B	-24.15B	88.97B	-35.08B
Investing Cash Flow	-35.66B	-35.66B	-3.06B	-12.39B	-15.67B	-5.97B
Financing Cash Flow	97.99B	97.99B	131.80B	84.04B	-101.53B	63.41B

Fuyo General Lease Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4078.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8424, the sentiment is Negative. The current price of 4078 is below the 20-day moving average (MA) of 4281.55, below the 50-day MA of 4326.95, and above the 200-day MA of 3930.40, indicating a neutral trend. The MACD of -53.64 indicates Positive momentum. The RSI at 29.30 is Positive, neither overbought nor oversold. The STOCH value of 1.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8424.

Fuyo General Lease Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	―	¥47.12B	9.33	―	3.83%	-9.58%	13.22%
8439	―	¥903.23B	10.64	―	3.73%	2.26%	9.98%
9763	―	¥11.23B	8.55	―	3.95%	9.16%	6.01%
8596	―	¥31.14B	8.43	―	3.91%	-19.27%	9.04%
8424	―	¥394.92B	7.99	―	3.72%	-3.25%	1.65%
5834	―	¥40.40B	7.77	―	4.38%	0.17%	58.03%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Fuyo General Lease Co., Ltd. Corporate Events

Fuyo General Lease Revises Earnings Forecast Amid Receivable Risks

Fuyo General Lease Co., Ltd. has announced a revision of its full-year consolidated earnings forecast due to losses from the risk of uncollectible or delayed receivables. These financial challenges are linked to their involvement with counterparties engaged in renewable energy projects in Europe, highlighting potential impacts on the company’s financial performance and strategic positioning in the renewable energy sector.

The most recent analyst rating on (JP:8424) stock is a Buy with a Yen4855.00 price target. To see the full list of analyst forecasts on Fuyo General Lease Co., Ltd. stock, see the JP:8424 Stock Forecast page.

Fuyo General Lease Reports Strong Q1 2025 Results and Executes Stock Split

Fuyo General Lease Co., Ltd. reported a notable increase in its financial performance for the three months ending June 30, 2025, with net sales rising by 6.9% and profit attributable to owners of the parent increasing by 33.5% compared to the same period last year. The company also executed a 3-for-1 stock split on April 1, 2025, which impacted earnings per share calculations and reflects a strategic move to enhance stock liquidity and shareholder value.