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Stock Analysis & ValuationFUJITA Corp. Co.,Ltd. (3370.T)

Professional Stock Screener
Previous Close
¥419.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)255.77-39
Intrinsic value (DCF)116.80-72
Graham-Dodd Method198.34-53
Graham Formula409.67-2

Strategic Investment Analysis

Company Overview

FUJITA CORPORATION Co., Ltd. is a Japan-based company primarily engaged in the fast-food restaurant industry. Headquartered in Tomakomai, the company operates and franchises fast-food restaurants while also manufacturing and selling food products such as cheese, ham, bacon, and ice cream. Founded in 1978 and formerly known as Family Foods Co., Ltd., FUJITA CORPORATION rebranded in 1996 to reflect its diversified business model. The company operates in the consumer cyclical sector, catering to Japan's dynamic foodservice market. With a market capitalization of approximately ¥1.02 billion, FUJITA CORPORATION combines restaurant operations with food production, offering a vertically integrated approach that enhances supply chain efficiency. The company's dual focus on retail and wholesale food distribution positions it uniquely within Japan's competitive fast-food landscape.

Investment Summary

FUJITA CORPORATION presents a niche investment opportunity within Japan's fast-food and food manufacturing sectors. The company's modest market cap (¥1.02B) and low beta (0.12) suggest lower volatility relative to the broader market, which may appeal to conservative investors. However, with diluted EPS of ¥12.89 and net income of ¥52.58M on revenues of ¥4.59B, profitability appears thin, and the high total debt (¥2.19B) relative to cash (¥514.86M) raises liquidity concerns. Operating cash flow (¥221.59M) marginally covers capital expenditures (¥-157.53M), indicating limited reinvestment capacity. The dividend yield is minimal (¥2 per share), reducing income appeal. Investors should weigh the company's integrated business model against its financial constraints and Japan's competitive fast-food market.

Competitive Analysis

FUJITA CORPORATION operates in a highly competitive segment dominated by global giants and local players. Its competitive advantage lies in its vertical integration—combining restaurant operations with in-house food production—which can improve margins and supply chain control. However, the company's small scale (¥4.59B revenue) limits its bargaining power compared to larger peers. Unlike multinational fast-food chains, FUJITA lacks international diversification, exposing it to Japan's saturated domestic market. Its product focus (cheese, ham, bacon) is somewhat niche, which may limit mass-market appeal but could carve out a specialized segment. The franchise model provides scalability, but high debt levels may constrain expansion. Competitively, FUJITA must contend with brands that have stronger marketing budgets, digital ordering infrastructure, and economies of scale. Its low beta suggests resilience to market swings, but operational efficiency and debt management remain critical challenges.

Major Competitors

  • Fast Retailing Co., Ltd. (9983.T): Fast Retailing, parent company of Uniqlo, is not a direct competitor but exemplifies Japan's retail giants with vast scale and global reach. FUJITA lacks comparable brand recognition or diversification. Fast Retailing's strengths include a strong balance sheet and international presence, while its weakness in food services is FUJITA's opportunity.
  • McDonald's Holdings Company (Japan), Ltd. (2702.T): McDonald's Japan is a dominant force in fast food, with superior brand equity and nationwide penetration. FUJITA cannot match its marketing spend or digital capabilities. However, McDonald's reliance on imported ingredients contrasts with FUJITA's local production, which may appeal to consumers preferring domestic sourcing.
  • Skylark Holdings Co., Ltd. (3197.T): Skylark operates family restaurants (e.g., Gusto) and competes in Japan's casual dining segment. Its larger scale (¥300B+ revenue) dwarfs FUJITA, but Skylark's broader menu focus differs from FUJITA's fast-food specialization. Skylark's debt-heavy structure mirrors FUJITA's, but its diversified brands mitigate risk.
  • Ringer Hut Co., Ltd. (8200.T): Ringer Hut, a noodle chain, competes in Japan's value-oriented fast-casual segment. Its regional focus and lower pricing overlap with FUJITA's market. Ringer Hut's profitability struggles (thin margins) mirror FUJITA's, but its simpler menu may offer cost advantages.
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