A Look At Fuyo General Lease (TSE:8424) Valuation After Nine Month Earnings Show Higher Sales But Lower Profits

Why the latest earnings matter for Fuyo General Lease Fuyo General Lease (TSE:8424) released nine month results to December 31, 2025, with sales of ¥590,436 million compared with ¥481,761 million a year earlier, while net income and earnings per share were significantly lower. See our latest analysis for Fuyo General Lease. The latest nine month earnings sit against a share price of ¥4,552 and a 90 day share price return of 13.66%, while the 1 year total shareholder return of 26.27% and 5 year total shareholder return of 128.50% point to momentum that has held up over a longer period despite the recent drop in net income and earnings per share. If this earnings update has you reassessing financial stocks, it may be a useful moment to widen your search and look at 12 top founder-led companies. So, with revenues at ¥590,436 million, sharply lower earnings and a share price that has still delivered strong multi year returns, is Fuyo General Lease now trading below its worth, or is the market already pricing in future growth? Preferred P/E of 14.8x: Is it justified? On Simply Wall St's numbers, Fuyo General Lease screens as good value overall, yet its current P/E of 14.8x sits above both peer and industry averages. The P/E ratio compares the share price to earnings per share and is a quick way of seeing how much investors are paying for each unit of profit. For a diversified financials business like Fuyo General Lease, it often reflects what the market expects from future earnings, as well as how reliable those earnings are seen to be over time. Here, the market is currently paying a higher P/E multiple than the JP Diversified Financial industry average of 13.2x and the peer average of 11.2x. That points to investors accepting a richer price for earnings, even though recent profit margins of 3.5% are below last year’s 5.7% and Return on Equity sits at a relatively low 5.7%. At the same time, the estimated fair P/E of 18.8x is meaningfully higher than today’s 14.8x. This suggests room for the multiple to move closer to that level if the company’s earnings profile lines up with those fair value assumptions. Explore the SWS fair ratio for Fuyo General Lease Result: Price-to-Earnings of 14.8x (ABOUT RIGHT) Alongside the P/E view, the SWS DCF model points to a different angle on valuation, with an estimated future cash flow value of ¥9,138.61 per share versus the last close of ¥4,552. The DCF framework projects future cash flows and discounts them back to today using a required return, which gives a single estimate of what those future streams might be worth in present value terms. For Fuyo General Lease, that approach is being applied to a business with high quality earnings, expected earnings growth of around 36% per year and revenue that is forecast to decline by 1.2% per year, so the model is putting more weight on profitability than on top line expansion. Look into how the SWS DCF model arrives at its fair value. Result: DCF Fair value of ¥9,138.61 (UNDERVALUED) However, you also need to weigh risks such as a 1.2% decline in revenue growth and a share price already trading above the ¥4,100 analyst target. Find out about the key risks to this Fuyo General Lease narrative. Another Angle on Value While the SWS DCF model suggests a fair value of ¥9,138.61 per share compared to the current ¥4,552, the market is rarely that neat. Cash flow models lean heavily on long term assumptions, so the question for you is simple: how much faith do you put in those inputs? Look into how the SWS DCF model arrives at its fair value. 8424 Discounted Cash Flow as at Feb 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fuyo General Lease for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Build Your Own Fuyo General Lease Narrative If you look at these numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a custom thesis in just a few minutes and Do it your way. A great starting point for your Fuyo General Lease research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? Once you have sized up Fuyo General Lease, do not stop there. A broader watchlist can help you spot opportunities earlier than most investors. Target potential value opportunities by reviewing companies our screener flags as 19 high quality undervalued stocks, and see which ones line up with your own thesis. Strengthen the quality of your watchlist by focusing on businesses from our solid balance sheet and fundamentals stocks screener (35 results) that pair financial resilience with sensible fundamentals. Get ahead of the crowd by scanning our screener containing 62 high quality undiscovered gems, where lesser known names with strong fundamentals might not stay under the radar for long. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for Free