| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1687519123.26 | 59904732 |
| Intrinsic value (DCF) | 1687517598.54 | 59904678 |
| Graham-Dodd Method | 1926.61 | -32 |
| Graham Formula | 2267.97 | -19 |
Fuji Corporation (7605.T) is a Japan-based automotive parts and accessories company specializing in tires, wheels, and a wide range of aftermarket components for imported and domestic vehicles. Founded in 1968 and headquartered in Tomiya, Japan, the company operates in the consumer cyclical sector, catering to car enthusiasts and repair shops through both physical stores and e-commerce channels. Fuji Corporation's diverse product portfolio includes suspensions, brake pads, exhaust systems, interior accessories, and performance-enhancing parts, positioning it as a one-stop shop for automotive customization and maintenance. With a strong domestic presence and a market capitalization of approximately ¥36.2 billion, the company benefits from Japan's robust automotive aftermarket industry. Fuji Corporation's omni-channel distribution strategy—combining retail stores, mail order, and online sales—ensures broad customer reach in a competitive industry. The company's focus on imported car parts also differentiates it from competitors, as Japan's luxury and foreign car market continues to grow.
Fuji Corporation presents a stable investment opportunity with moderate growth potential in Japan's automotive aftermarket sector. The company's low beta (0.341) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a net income of ¥4.05 billion and strong operating cash flow (¥6.15 billion), Fuji demonstrates solid profitability. However, its reliance on Japan's domestic market and the cyclical nature of auto parts demand pose risks. The dividend yield (approximately 1.24% based on a ¥45 per share dividend) is modest but sustainable given the company's healthy cash position (¥5.09 billion) and manageable debt (¥723 million). Investors should monitor e-commerce growth and potential expansion into Southeast Asian markets for upside potential.
Fuji Corporation competes in Japan's fragmented automotive aftermarket industry, where differentiation comes from product breadth, distribution efficiency, and specialization in imported car parts. The company's key competitive advantage lies in its extensive catalog of niche components—such as hub rings, throttle controllers, and engine sound kits—which attract car enthusiasts and professional tuners. Its dual retail and e-commerce model provides flexibility, though it faces pressure from pure-play online competitors. Fuji's focus on imported vehicles (a growing segment in Japan) helps it avoid direct competition with mass-market domestic parts suppliers. However, its smaller scale compared to global aftermarket giants limits pricing power and R&D capabilities. The company's financial stability (low debt, positive cash flow) allows for steady inventory investment but may constrain aggressive expansion. Unlike competitors with manufacturing capabilities, Fuji relies on sourcing, which exposes it to supply chain risks but also provides agility in product selection. Its regional concentration in Japan is both a strength (deep market knowledge) and a weakness (limited diversification).