Breaking Down Fuyo General Lease Co., Ltd. Financial Health: Key Insights for Investors

Considering Fuyo General Lease's latest quarter and trailing figures, investors should note revenue of ¥171.06 billion in Q3 (Sept 30, 2025) with TTM revenue at ¥689.93 billion and FY Mar 31, 2025 revenue of ¥678.40 billion, while net income TTM is ¥27.09 billion and EPS stands at ¥299.90; profitability shows a net profit margin of 3.93% and operating margin of 5.32% with ROE of 5.76% and ROA of 0.65%, but balance-sheet and liquidity metrics raise flags-total debt is ¥2.89 trillion against book equity of ¥521.30 billion (debt-to-equity 5.55, equity ratio 13.3%), an Altman Z-Score of 0.68, and a Piotroski F-Score of 2-operating cash flow is negative ¥127.45 billion and free cash flow negative ¥131.65 billion despite cash & equivalents of ¥90.80 billion; valuation multiples include a trailing P/E of 14.13, forward P/E of 7.96, P/B 0.73 and P/S 0.55, market cap ≈ ¥382.12 billion and enterprise value ¥3.24 trillion, while growth sparks interest-analysts forecast a 6.5% CAGR revenue run-rate over the next five years supported by technology-driven services, international leasing operations and strategic partnerships-read on for a detailed breakdown of these figures, risks and upside drivers.

Fuyo General Lease Co., Ltd. (8424.T) - Revenue Analysis

• Quarter (Q2 FY2026 ending Sep 30, 2025) revenue: ¥171.06 billion (+0.25% QoQ)
• Trailing twelve months (TTM) revenue: ¥689.93 billion (-0.03% YoY)
• Fiscal year (FY ending Mar 31, 2025) revenue: ¥678.40 billion (-4.25% YoY)
• Revenue growth history: FY 2023 +4.68%; FY 2024 -4.25% (inconsistent growth)
• Employees: 4,095; revenue per employee ≈ ¥168.48 million

Revenue composition and recent dynamics suggest a company operating with relatively stable topline volume but facing downward pressure year-over-year for the fiscal period ending March 2025. For complementary investor context and shareholder activity, see Exploring Fuyo General Lease Co., Ltd. Investor Profile: Who's Buying and Why?

Fuyo General Lease Co., Ltd. (8424.T) - Profitability Metrics

Key profitability indicators for Fuyo General Lease Co., Ltd. (8424.T) show mixed but generally modest returns relative to peers in the leasing and financial services sector. Below are the primary metrics for the trailing twelve months (TTM) and most recent reporting period.

• Net profit margin (TTM): 3.93% - the company retains approximately 3.93% of revenue as net income.
• Operating margin: 5.32% - core operations generate 5.32% operating profit on revenue.
• Return on equity (ROE): 5.76% - moderate returns to shareholders' equity.
• Return on assets (ROA): 0.65% - indicates limited profit generation from total assets.
• Earnings per share (EPS): ¥299.90.
• Trailing twelve months net income: ¥27.09 billion.
• Profit margin (reported): 7.05% - shown in some disclosures as an alternate profit-margin measure.

Interpretation highlights:

• Margins indicate that while operating efficiency (5.32%) supports profitability, net margin compression (3.93%) and low ROA (0.65%) reflect capital intensity and financing costs typical of lease-focused business models.
• ROE at 5.76% suggests the company produces moderate returns for equity investors compared with higher-return financial peers.
• EPS of ¥299.90 and consolidated net income of ¥27.09 billion provide concrete earnings scale for valuation multiples and per-share analysis.

For further context on investors and ownership trends, see: Exploring Fuyo General Lease Co., Ltd. Investor Profile: Who's Buying and Why?

Fuyo General Lease Co., Ltd. (8424.T) - Debt vs. Equity Structure

• Debt-to-equity ratio: 5.55 - substantial leverage relative to book equity.
• Total debt: ¥2.89 trillion.
• Equity (book value): ¥521.30 billion.
• Equity ratio: 13.3% (up from 12.7% at prior fiscal year-end).
• Interest-bearing debt (excluding lease obligations): ¥2,808.2 billion - a 4.7% increase vs. prior fiscal year-end.
• Altman Z-Score: 0.68 - a level associated with elevated bankruptcy risk.

Fuyo General Lease Co., Ltd. (8424.T) - Liquidity and Solvency

• Current ratio: 1.47 - adequate coverage of short-term obligations.
• Operating cash flow: ¥-127.45 billion - negative cash generation from core operations.
• Free cash flow: ¥-131.65 billion - cash after capital expenditures remains negative.
• Cash & cash equivalents: ¥90.80 billion - available liquid reserves on the balance sheet.
• Piotroski F-Score: 2 - signals weak overall financial health and low fundamental quality.
• Financing channels: established institutional and capital-market access that provide liquidity backstops despite operational cash deficits.

• Key strength: positive current ratio and sizable cash reserve provide immediate liquidity cushioning.
• Key risk: large negative operating and free cash flows increase dependence on debt/equity financing and can pressure credit metrics if sustained.
• Credit/solvency consideration: Piotroski F-Score of 2 warrants heightened attention to earnings quality, balance-sheet trends, and covenant exposure.

Fuyo General Lease Co., Ltd. (8424.T) - Valuation Analysis

Key valuation metrics for Fuyo General Lease Co., Ltd. (8424.T) indicate a stock that appears attractively priced on several traditional multiples, with a mixed growth-adjusted picture. Below are the principal figures investors typically use when assessing relative value and capital structure.

• Trailing P/E: 14.13 - historical earnings multiple.
• Forward P/E: 7.96 - market-implied earnings multiple for next fiscal estimates.
• P/B: 0.73 - trading below book value, signaling potential asset-backed undervaluation.
• P/S: 0.55 - low revenue multiple versus peers.
• PEG: 1.01 - roughly fair when adjusting P/E for expected growth.
• Market Capitalization: ¥382.12 billion.
• Enterprise Value (EV): ¥3.24 trillion - reflects total claim value including debt and minority interests.

These multiples suggest potential undervaluation on a raw P/E, P/B and P/S basis while the PEG (~1.01) tempers that view by aligning price with expected growth. The large gap between market cap (¥382.12B) and EV (¥3.24T) highlights significant leverage or other non-equity claims embedded in the capital structure - a factor investors should analyze alongside asset quality, earnings sustainability and funding costs. For corporate background and context that can affect valuation drivers, see Fuyo General Lease Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money.

Fuyo General Lease Co., Ltd. (8424.T) - Risk Factors

• Negative free cash flow: FCF has been negative for multiple consecutive years, constraining capacity for deleveraging, dividends, or strategic investment.
• High leverage: The company carries a materially elevated debt-to-equity ratio, increasing sensitivity to rising interest rates and credit-market shocks.
• Altman Z‑Score: At 0.68, the score places the company in the distress zone, implying a higher statistical probability of bankruptcy relative to healthy peers.
• Piotroski F‑Score: A score of 2 signals weak fundamental health (poor profitability, low quality of earnings, and balance-sheet deterioration).
• Operating cash flow: Operating cash flow is negative, indicating difficulty converting reported earnings into actual cash.
• Revenue trajectory: Revenue growth has been inconsistent and shows a slight decline over recent reporting periods, reducing margin for error in a leveraged capital structure.

Fuyo General Lease Co., Ltd. (8424.T) - Growth Opportunities

• Strategic partnerships: Fuyo General Lease has established alliances with banks, manufacturers and technology firms to expand leasing, finance and energy services, increasing cross-sell opportunities and reducing customer-acquisition costs.
• Brand & service breadth: An established brand reputation in Japan with a diverse service portfolio (operating leases, finance leases, installment sales, ESCO and asset services) supports resilient demand across economic cycles.
• Technology-driven differentiation: Investment in web-based contract management, digital customer portals and energy-saving ESCO solutions improves operational efficiency, shortens sales cycles and raises recurring revenue potential.
• International operations & geographic diversification: Aircraft and equipment leasing activities outside Japan provide exposure to global demand drivers, currency diversification and multi-jurisdictional revenue streams.
• Consultative client approach: Financial- and lifecycle-oriented consulting for corporate clients fosters long-term contracts, repeat business and higher-margin advisory fees.