Risk factor
Poor trading liquidity
Profitability factor
Undervalued vs peers
About
Fukoku Co.,Ltd. operates internationally as a manufacturer and supplier of a wide array of rubber and resin-based products. Their diverse portfolio includes specialized rubber wiper blades, vital for automotive, railway, marine, and aerospace applications. The company also engineers an extensive range of sealing components, such as brake booster diaphragms, radiator gaskets, duty valves, piston seals, and constant velocity joints, which are critical for automotive brake and fuel systems, air intake/exhaust assemblies, pneumatic tools, and general industrial machinery. Furthermore, Fukoku provides advanced anti-vibration solutions, encompassing suspension parts, torsional vibration dampers, couplings, engine and cabin mounts, shock absorbers, and ballast mats. These products are designed to reduce noise and vibrations in construction, civil engineering, and industrial machinery sectors, as well as for rail cars and railway systems. The company also develops ultrasonic motors, offered in various designs including encoder-equipped, vacuum, hollow, non-magnetic, and ring types. These precision motors power key functionalities in SLR camera autofocus mechanisms, luxury car headrests, and semiconductor equipment stages. Completing their offerings are bio-related parts, such as medical infusion bags (including culture and cell rinsing bags) and centrifuge adaptors. Established in Ageo, Japan, in 1953, the company initially operated as Fukoku Rubber Industry Co., Ltd. before rebranding to Fukoku Co.,Ltd. in January 1986.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITD.