Corporate Events

In Q1-2025, Fuji Kosan reported 18.46B yen in total revenues, which represents an increase of 5.7% compared to the corresponding quarter last year. Additionally, the company became profitable, generating a net income of 252M yen, as opposed to a net loss of 45M yen a year before. In terms of profitability, the company's gross margin was 6.7%, below the sector median of 29.8%, and the net margin was 1.4%, also below the sector median of 5.3%. Moreover, the company's Return on Capital Employed (ROCE) was 9.7% on a trailing twelve-month basis, versus 9.7% a year ago, but still above the sector median of 8.3%. ROCE measures how effectively a company uses its capital to generate profit, which is crucial for capital-intensive energy companies.

In Q1-2025, Fuji Kosan generated 84M yen in cash flow from operations (CFFO), a decrease of 86% from the corresponding quarter last year. Free cash flow (FCF), which represents the cash available to both equity holders and debt holders after investing in the business, totaled 12M yen, a decrease of 96.4% year-over-year. It's worthwhile to note that for an energy company like Fuji Kosan, cash flows can be highly volatile, largely due to fluctuations in energy commodity prices. High prices can significantly boost cash flows from operations, while low prices can sharply reduce them. In total, the company's cash balance increased by 1.44B yen during the quarter, driven primarily by its cash flow from financing activities, which led to a cash and cash equivalents balance of 5.74B yen at the end of the period.

Moving to the balance sheet, Fuji Kosan's balance sheet increased by 9.5% and currently stands at 20.93B yen. From a liquidity perspective, Fuji Kosan's current ratio is 1.63, suggesting that the company is in a strong position to meet its short-term obligations comfortably. In terms of leverage, the company's total debt totals 2.03B yen, a 6666.7% increase year-over-year. Moreover, the company's debt-to-capital ratio is 17.4%, below the sector median of 30.6%. This metric is useful for assessing Fuji Kosan's financial leverage, especially in the energy sector which is known for its high capital expenditures and long-term project investments that typically require significant amounts of debt financing to sustain operations and growth.

From a valuation perspective, Fuji Kosan is currently trading at a Price-to-Earnings (P/E) ratio of 11x, marking a decrease of 42.3% compared to the same quarter last year. This suggests that investors are willing to pay less for every dollar of earnings generated by the company.