Morozoff Limited (2217) AI Stock Analysis

• Market Cap: ¥33.40B
• Dividend Yield: 1.81%
• Average Volume (3M): 44.45K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.49
• Revenue Growth: 0.62%
• EPS Growth: -32.02%
• Country: JP
• Employees: 566
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Food Confectioners
• EPS (TTM): 69.38
• Shares Outstanding: 21,265,356
• 10 Day Avg. Volume: 59,300
• 30 Day Avg. Volume: 44,453
• PEG Ratio: 0.07
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,763.00
• Price Target Upside: 12.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥1,763.00 ▲(12.08%Upside)

Morozoff Limited's strong financial performance is offset by technical indicators suggesting bearish market sentiment. While the valuation is reasonable, cash flow issues and negative market momentum present risks. Improvement in liquidity and reversal of bearish trends could enhance stock performance.

Morozoff Limited Business Overview & Revenue Model

Company Description

Morozoff Limited is a renowned Japanese confectionery company specializing in the production of high-quality chocolates, cookies, and other sweets. Established in 1931, the company has built a reputation for its premium and elegantly packaged confections, which are popular gifts during holidays and special occasions. Morozoff operates primarily in the food and beverage sector, with a strong presence in retail outlets across Japan and a growing international market.

How the Company Makes Money

Morozoff Limited generates revenue through the sale of its confectionery products, which include chocolates, cookies, and other baked goods. The company operates a network of retail stores in Japan, as well as an e-commerce platform that allows customers to purchase their products online. Additionally, Morozoff has expanded its market reach by forming strategic partnerships with international distributors and retailers, enhancing its brand presence outside of Japan. Key revenue streams include direct retail sales, online sales, and wholesale distribution. Seasonal sales, particularly during holidays such as Valentine's Day and White Day, significantly contribute to the company's earnings.

Morozoff Limited Financial Statement Overview

Summary

Morozoff Limited shows stable revenue growth and strong profit margins, indicative of effective cost management. The balance sheet is healthy with low leverage and a high equity ratio. However, negative free cash flow and liquidity concerns need addressing to ensure long-term stability.

Income Statement

Morozoff Limited shows a stable revenue growth with a 3.1% increase from 2024 to 2025, following consistent growth over previous years. The Gross Profit Margin is strong at 50.8% for 2025, reflecting effective cost management. However, the Net Profit Margin decreased to 3.9% due to reduced net income, indicating potential profit pressures. Overall, profitability remains robust with an EBITDA Margin of 8.1%.

Balance Sheet

The company maintains a solid financial position with an Equity Ratio of 75.2%, indicating a strong reliance on equity financing. The Debt-to-Equity Ratio is low at 0.08, reflecting conservative leverage usage. Return on Equity weakened slightly to 7.3%, suggesting room for improved efficiency in generating profits from equity.

Cash Flow

Cash flow performance is mixed, with negative Free Cash Flow of -1.23 billion yen in 2025, a notable decline from the previous year's positive cash flow. The Operating Cash Flow to Net Income ratio is negative, highlighting cash flow challenges despite operational profitability. This could signal potential liquidity concerns if not addressed.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.62B	36.02B	34.93B	32.51B	27.21B	25.67B
Gross Profit	18.32B	18.29B	17.98B	16.95B	13.26B	12.12B
EBITDA	2.93B	2.93B	3.37B	3.38B	2.51B	1.53B
Net Income	1.81B	1.41B	1.72B	1.70B	1.03B	352.18M
Balance Sheet
Total Assets	24.58B	25.92B	27.92B	26.60B	25.11B	24.04B
Cash, Cash Equivalents and Short-Term Investments	6.01B	5.09B	7.63B	6.64B	5.38B	3.42B
Total Debt	1.59B	1.56B	1.59B	1.67B	1.75B	1.85B
Total Liabilities	6.17B	6.43B	8.20B	8.02B	7.54B	7.26B
Stockholders Equity	18.41B	19.48B	19.72B	18.58B	17.58B	16.78B
Cash Flow
Free Cash Flow	0.00	-1.23B	1.51B	1.59B	2.28B	960.60M
Operating Cash Flow	0.00	-561.22M	2.12B	2.20B	2.63B	1.64B
Investing Cash Flow	0.00	-679.32M	-456.74M	-1.54B	-345.28M	143.42M
Financing Cash Flow	0.00	-1.82B	-1.01B	-440.68M	-314.26M	-178.03M

Morozoff Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1573.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2217, the sentiment is Neutral. The current price of 1573 is below the 20-day moving average (MA) of 1586.30, below the 50-day MA of 1648.72, and below the 200-day MA of 1612.11, indicating a neutral trend. The MACD of -18.05 indicates Negative momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 59.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2217.

Morozoff Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2209	76 Outperform	¥32.06B	14.50		1.26%	6.01%	14.02%
2207	74 Outperform	¥34.41B	7.29		1.57%	15.08%	―
2221	72 Outperform	¥34.68B	10.63		0.84%	13.43%	60.08%
Sector *	65 Neutral	€15.44B	13.39	-4.03%	3.80%	-1.58%	-101.37%
2211	65 Neutral	¥63.02B	38.68		1.23%	3.75%	44.95%
2208	64 Neutral	¥62.63B	11.19		0.38%	9.41%	80.74%
2217	59 Neutral	¥33.40B	26.96		1.81%	0.62%	-32.02%

Morozoff Limited Corporate Events

Morozoff Limited Introduces ESOP Trust to Enhance Corporate Value

Morozoff Limited has announced the introduction of a trust-type incentive plan using an Employee Stock Ownership Plan (ESOP Trust) aimed at enhancing the company’s medium- to long-term corporate value. This initiative is designed to boost employee benefits and incentivize stock price appreciation, thereby aligning employee interests with company performance. The ESOP Trust will acquire company shares for employees, providing them with potential financial gains from stock price increases, while the company ensures no additional financial burden on employees in case of stock price declines.

Morozoff Limited Reports Decline in Q1 2025 Financial Results

Morozoff Limited reported a decline in its financial performance for the three months ended April 30, 2025, with net sales decreasing by 3.3% and operating profit dropping by 42.1% compared to the same period in the previous year. The company also conducted a stock split at a ratio of three shares for one common share, affecting earnings per share calculations. Despite the challenging financial results, Morozoff maintains its dividend forecast for the fiscal year ending January 31, 2026, indicating a cautious yet stable outlook for stakeholders.

Morozoff Limited Completes Treasury Stock Disposal for Compensation

Morozoff Limited has completed the payment procedures for the disposal of treasury stock as restricted stock-based compensation, as resolved in their April 2025 Board of Directors meeting. This move involves the disposal of 7,379 shares of common stock to directors and executive officers, potentially impacting the company’s equity structure and aligning management interests with shareholder value.

Morozoff Limited Announces Treasury Stock Disposal for Executive Compensation

Morozoff Limited has announced a resolution by its Board of Directors to dispose of treasury stock as part of a restricted stock-based compensation plan. This initiative aims to incentivize directors and executive officers by aligning their interests with shareholders and enhancing corporate value. The disposal involves 7,379 shares of common stock, valued at 1,806 yen per share, and is intended to motivate the company’s leadership by granting them monetary claims to be used for acquiring restricted stock. This move reflects Morozoff’s strategic efforts to strengthen its governance and stakeholder engagement.