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Fukuda Denshi Co., Ltd.

6960.THIGHScore: 71.6

Core · Weight: 8%· Data as of 2026-04-17

¥9,860-1.99%
6-month daily

Investment Thesis

Duopoly-stability play in Japanese patient monitoring. Higher-quality peer to Nihon Kohden (6849): OpMar 17.97% vs 9.2%, FCF ¥20.5B (7.3% FCF yield), net cash. Home Oxygen Therapy rental business is a hidden annuity riding Japan's 29.3% aging-society demographic. PE 15.87x with dividend +8.3% YoY signals quality on sale.

Risk

1) Revenue -1.42% YoY (flat top line). 2) Domestic-only, no FX tailwind or global growth lever. 3) Small-cap/illiquid (¥279B). 4) Next NHI fee revision could cut HOT reimbursement.

Monitoring Trigger

If HOT/rental revenue exceeds 40% of total at FY2025 results (May 2026), ADD to 10%. If OpMar drops below 15% for two quarters, TRIM to 5%.

Key Dates

2026-05
2026-11

Key Metrics

15.87
PE
15.66
Fwd PE
1.54
P/B
8.6%
ROE
18.0%
Op Margin
19.0%
D/E
1.7%
Div Yield
+¥21B
FCF
¥279B
Mkt Cap

Business Segments

SegmentRevenueShareDescription
Physiological diagnostic equipment
Patient monitoring
Medical treatment equipment
Consumables + Home medical

Supply Chain Evidence

EvidenceCustomerProductDetail
confirmedJapanese hospitals (Prime + Regional)Patient monitors, ECG, defibrillatorsDuopoly with Nihon Kohden (6849.T)
confirmedJapanese home-care patients (via NHI)HOT oxygen concentrator rental + consumablesFH-100/5L HOT system reimbursed by social insurance
confirmedPatient monitoring, ECGDirect duopoly competitor in Japan

Sources & References