FURYU Corporation engages in planning, developing, manufacturing, and selling photo sticker machines in Japan. The company is also involved in the planning and development of mobile services for young women; planning, development, manufacturing, and selling of amusement prizes; and planning, development, and selling of video and smart phone games. In addition, it offers charms of contents and characters, such as plush toys, cartoon figures, games, and anime products. FURYU Corporation was founded in 1997 and is headquartered in Tokyo, Japan.

Japan

FURYU Corporation

Consumer Cyclical

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been strong and significantly above its peers. At the same time, the average five-year yield has been significantly lower, at very close to zero. 

6238.T reported revenue of JPY 44 306mn in the last 12 months, up 1% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 5% from FY24 to JPY 61.48. Market expects EPS to reach JPY 72.98 in FY25.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 11ppts and its growth accelerated by 0ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 9.8% in the last 12 months, a decline from 10.1% in FY24. 

Historically, 6238.T has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 3.7%, a growth from 3.5% in FY24. 

FURYU Corporation reported a return on equity (RoE) of 7.3% in the last 12 months, up from 7.0% in FY24. The market consensus projects an RoE of 4.8% in FY25, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) grew to 7.2%, below the peers. The consensus estimate for FY25 for RoCE is 6.8%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to 5.8% in the last 12 months, an increase from 5.5% in FY24. The market analysts predict that RoA will be 3.8% in FY25, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.3 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

6238.T has below average trading liquidity. The average private investor can sell his common position in the stock in a single trading day under normal market conditions. Liquidity is usually quite stable and remains favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, and negligible return on capital.

In highly turbulent market conditions, 6238.T is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, 6238.T is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to mild. 

From both historical and forecast perspectives, the stock is moderately underpriced compared to similar stocks. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, overpriced on P/FCF. 

FURYU Corporation

¥ 980

6

FURYU Corporation

¥ 980

6

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

¥ 980

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