Revenue Growth & Gross MarginSustained top-line growth with a near-29% gross margin signals durable demand for specialty formulations and pricing power. Over 2–6 months this supports reinvestment in product development and maintains a buffer versus raw-material swings, underpinning sustainable operating performance.

Conservative Capital StructureLow leverage and a strong equity ratio provide financial flexibility, reduce refinancing risk, and allow the company to absorb cyclical shocks. This balance-sheet strength supports steady capex, selective M&A or R&D funding without pressuring cash flows in the medium term.

Strong Cash GenerationRobust operating cash flow and improving free cash flow indicate efficient working-capital and capex management. Reliable cash conversion sustains dividends, funds product development and industrial support services, and reduces reliance on external financing for growth initiatives.

Bears Say

Thin Net MarginA low and declining net margin limits retained earnings and leaves the business exposed to input-cost inflation or pricing pressure. Over a multi-month horizon this compresses room for reinvestment and weakens capacity to improve ROE or expand high-value product segments.

ROE DeteriorationFalling ROE indicates reduced effectiveness in converting equity into profits. Persistently lower ROE can constrain shareholder returns and signal weaker operational leverage, making it harder to justify incremental equity-funded investments over the medium term.

Cyclicality Of End MarketsDependence on industrial production volumes and product mix ties revenue to manufacturing cycles. This structural exposure risks demand swings and margin variability across months, limiting revenue visibility and requiring conservative inventory and working-capital management.

5018 FAQ

What was Moresco Corporation’s price range in the past 12 months?

Moresco Corporation lowest stock price was ¥1045.00 and its highest was ¥2223.00 in the past 12 months.

What is Moresco Corporation’s market cap?

Moresco Corporation’s market cap is ¥20.62B.

When is Moresco Corporation’s upcoming earnings report date?

Moresco Corporation’s upcoming earnings report date is Apr 14, 2026 which is in 53 days.

How were Moresco Corporation’s earnings last quarter?

Moresco Corporation released its earnings results on Jan 13, 2026. The company reported ¥72.9 earnings per share for the quarter, beating the consensus estimate of N/A by ¥72.9.

Is Moresco Corporation overvalued?

According to Wall Street analysts Moresco Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Moresco Corporation pay dividends?

Moresco Corporation pays a Semiannually dividend of ¥25 which represents an annual dividend yield of 3.03%. See more information on Moresco Corporation dividends here

What is Moresco Corporation’s EPS estimate?

Moresco Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Moresco Corporation have?

Moresco Corporation has 9,696,500 shares outstanding.

What happened to Moresco Corporation’s price movement after its last earnings report?

Moresco Corporation reported an EPS of ¥72.9 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.779%.

Which hedge fund is a major shareholder of Moresco Corporation?

Currently, no hedge funds are holding shares in JP:5018

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Moresco Corporation

MORESCO Corporation, together with its subsidiaries, develops, manufactures, and sells chemicals in Japan and internationally. The company offers functional fluids, such as high vacuum pump oils, fire resistant hydraulic fluids, die-casting lubricants, cutting fluids, brake fluids, antifreeze products, heat-conducting media, and lubricants for hot forging; synthetic lubricants, including high temperature lubricating oils, hard disk surface lubricants, and radiation-resistant lubricants; and liquid paraffin and sulfonates. It also provides hot melt adhesives, organic device sealants, gas/water vapor transmission rate analyzers, organic photovoltaics, plunger lubricants, grease products, and wastewater-treatment equipment, as well as chemical analysis testing services. In addition, the company is involved in the building rental business. Its products are used in automobiles, iron and steel, construction materials, electronic equipment and home electric appliances, sanitary and daily goods, plastic, fiber, food, packaging materials, nuclear power related, cosmetics/pharmaceuticals, aircraft, factory and equipment related, industrial machinery, wastewater treatment, and other applications. The company was formerly known as Matsumura Oil Reserch Corp. and changed its name to MORESCO Corporation in 2009. MORESCO Corporation was founded in 1958 and is headquartered in Kobe, Japan.