Morozoff Limited (2217) AI Stock Analysis

• Market Cap: ¥30.50B
• Dividend Yield: 1.35%
• Average Volume (3M): 29.01K
• Price to Earnings (P/E): 48.8
• Beta (1Y): 0.43
• Revenue Growth: 0.87%
• EPS Growth: -50.41%
• Country: JP
• Employees: 566
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 41.86
• Shares Outstanding: 20,565,355
• 10 Day Avg. Volume: 23,930
• 30 Day Avg. Volume: 29,006
• PEG Ratio: -0.91
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -9.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 78.53
• Revenue Forecast (FY): ¥36.90B

• Rating: 52 Neutral
• Price Target: ¥1,522.00 ▼(-1.30% Downside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is held back primarily by weakened profitability and highly volatile/negative recent cash flows, despite a conservatively levered balance sheet. Technicals are modestly weak with the stock below major moving averages, and valuation is constrained by a negative P/E with only a small dividend yield.

Positive Factors

Conservative balance sheet / low leverage

A low debt-to-equity ratio and sizable equity base reduce solvency risk and sustain financial flexibility over time. This conservatism supports funding seasonal working-capital swings, occasional capex or marketing spends, and cushions the business against cyclical slowdowns without forcing dilutive financing.

Durable gross margin profile

A near-48% gross margin indicates structural product-level profitability and pricing power in confectionery. High gross margins create a buffer against input-cost inflation and allow management to absorb SG&A variability, supporting longer-term margin recovery if operating efficiencies or mix improvements are executed.

Multi-year revenue growth and diversified channels

Sustained top-line growth plus a mix of branded retail, wholesale distribution, and seasonal gift demand gives structural diversification. Multiple channels and recurring seasonal peaks (Valentine’s, White Day, Christmas) help stabilize revenue across periods and support product premiumization and brand-led pricing over time.

Negative Factors

Severe cash-flow deterioration

Recent collapse in operating cash flow and a swing to deeply negative free cash flow materially reduces internal funding for operations, dividends, or reinvestment. Even with low leverage, inconsistent earnings-to-cash conversion raises reliance on external funding and increases vulnerability to working-capital and investment shocks.

Operating and net margin compression

Sharp margin compression signals structural cost pressure or adverse mix shifts that erode profitability even with solid gross margins. Persistently lower operating margins reduce retained earnings and ROE, limiting the company’s ability to reinvest in growth, defend market position, or sustain shareholder payouts over the medium term.

Declining return on equity and shareholder returns

A drop in ROE to low-single digits reflects diminished capital efficiency and weaker profitability relative to the equity base. If persistent, declining ROE undermines long-term shareholder value creation, constrains dividend durability, and may signal the need for strategic shifts to restore returns above cost of capital.

Morozoff Limited Business Overview & Revenue Model

Company Description

Morozoff Limited manufactures and sells confectionery products in Japan and internationally. The company offers pudding jellies, gifts, frozen sweets, cakes, cookies, chocolates, and baked confectionery. It also involved in cafe and restaurant business. The company was formerly known as Morozoff Seika Co., Ltd. and changed its name to Morozoff Limited in August 1972. Morozoff Limited was incorporated in 1931 and is based in Kobe, Japan.

How the Company Makes Money

Morozoff primarily makes money by selling confectionery and dessert products to consumers through a mix of direct-to-consumer and wholesale/retail channels. Key revenue streams typically include: (1) retail sales through Morozoff-branded stores and counters (e.g., department store locations) where the company sells boxed chocolates, seasonal assortments, and gift products; (2) sales through third-party retailers and other distribution partners that stock Morozoff products; and (3) seasonal and event-driven demand (such as Valentine’s Day, White Day, Christmas, and other gift-giving periods) that drives higher sales volumes and premium-priced gift packaging. The company’s earnings are influenced by product mix (everyday items vs. premium/seasonal gift assortments), store/retail footprint, and consumer demand patterns in Japan’s confectionery market. Specific quantitative breakdowns (e.g., segment revenue percentages, named major partnerships, or customer concentration) are null.

Morozoff Limited Financial Statement Overview

Summary

Balance sheet strength and low leverage support stability, but the latest year shows meaningful margin compression, a material drop in net income, and a sharp deterioration in cash generation (including deeply negative free cash flow).

Income Statement

Revenue has grown over the multi-year period, but the growth rate decelerated sharply in the latest year (2026 annual). Profitability is the bigger issue: gross margin remains solid (~48%), yet operating and net margins compressed meaningfully versus the prior two years, with net income dropping materially (2026 annual net margin ~1.8% vs ~3.9% in 2025 annual and ~4.9% in 2024 annual). Overall, the business shows decent top-line resilience, but the latest-year profitability deterioration raises concerns about cost pressure and earnings durability.

Balance Sheet

The balance sheet appears conservatively positioned with low leverage (debt-to-equity roughly ~0.08–0.13 across the period, including ~0.13 in 2026 annual), providing financial flexibility. Equity has been relatively stable and sizable versus total debt, which helps limit solvency risk. The key weakness is the decline in shareholder returns in the latest year (return on equity fell to ~3.2% in 2026 annual from mid-to-high single digits previously), reflecting weaker profitability rather than balance sheet stress.

Cash Flow

Cash flow quality weakened substantially in the latest year. Operating cash flow turned very low in 2026 annual and was negative in 2025 annual, indicating earnings-to-cash conversion is inconsistent. Free cash flow swung deeply negative in 2026 annual after being positive in 2022–2024 annual, suggesting either a heavy investment cycle or working-capital pressure; regardless, it reduces near-term financial flexibility. While earlier years showed healthy cash generation, the recent volatility is a clear risk signal.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	35.74B	36.27B	36.02B	34.93B	32.51B	27.21B
Gross Profit	17.89B	17.52B	18.29B	17.98B	16.95B	13.26B
EBITDA	2.23B	1.93B	2.93B	3.37B	3.38B	2.51B
Net Income	1.20B	642.90M	1.41B	1.72B	1.70B	1.03B
Balance Sheet
Total Assets	26.07B	28.16B	25.92B	28.23B	26.89B	25.39B
Cash, Cash Equivalents and Short-Term Investments	6.68B	2.11B	5.09B	7.63B	6.64B	5.38B
Total Debt	2.22B	2.52B	1.56B	1.64B	1.72B	1.75B
Total Liabilities	6.60B	8.29B	6.43B	8.51B	8.31B	7.81B
Stockholders Equity	19.47B	19.87B	19.48B	19.72B	18.58B	17.58B
Cash Flow
Free Cash Flow	0.00	-3.25B	-1.23B	1.51B	1.59B	2.28B
Operating Cash Flow	0.00	399.38M	-561.22M	2.12B	2.20B	2.63B
Investing Cash Flow	0.00	-2.15B	-679.32M	-456.74M	-1.54B	-345.28M
Financing Cash Flow	0.00	276.83M	-1.82B	-1.01B	-440.68M	-314.26M

Morozoff Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1542.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 1542 is above the 20-day moving average (MA) of 1506.30, above the 50-day MA of 1523.53, and below the 200-day MA of 1542.02, indicating a bearish trend. The MACD of -7.79 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2217.

Morozoff Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2201	76 Outperform	¥219.44B	12.35	13.33%	3.47%	4.21%	23.86%
2209	75 Outperform	¥31.82B	10.02	―	1.23%	6.74%	29.20%
2208	72 Outperform	¥77.36B	6.88	―	1.55%	5.78%	14.23%
2216	69 Neutral	¥54.23B	20.67	―	4.63%	7.74%	0.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2217	52 Neutral	¥30.50B	48.79	―	1.35%	0.87%	-50.41%
2211	49 Neutral	¥63.25B	32.06	―	1.14%	8.17%	10.65%

Morozoff Limited Corporate Events

Morozoff Raises Year-End Dividend Forecast to Support Stable Shareholder Returns

Morozoff Limited has revised its dividend policy guidance for the fiscal year ending January 31, 2026, raising its planned year-end dividend from 8 yen to 10 yen per share. The move reflects the company’s stated policy of aligning shareholder returns with earnings while preserving investment capacity and financial stability.

The revision is intended to maintain a stable dividend level, as the original forecast would have marked a sharp reduction versus the prior year’s payout. Combining the interim and revised year-end distributions, the annual dividend for the current fiscal year will now total 16 yen per share, keeping the consolidated dividend payout ratio near 40% and total shareholder return around 50%, signaling continued commitment to shareholder returns despite lower dividends than the previous year.

The most recent analyst rating on (JP:2217) stock is a Hold with a Yen1597.00 price target. To see the full list of analyst forecasts on Morozoff Limited stock, see the JP:2217 Stock Forecast page.

Morozoff Profit Slides Despite Flat Sales as Dividend Policy Turns Cautious

Morozoff Limited reported flat net sales of ¥36.3 billion for the fiscal year ended January 31, 2026, but operating profit fell 38.6% and profit attributable to owners of parent dropped 54.6%, reflecting margin pressure despite stable revenue. The company’s equity ratio remained solid at 70.6%, yet cash and cash equivalents declined, while the annual dividend was sharply reduced post-stock split, signaling a more conservative shareholder return policy amid weaker earnings.

For the year ending January 31, 2027, Morozoff forecasts modest growth with net sales up 1.5% and profit attributable to owners of parent expected to rise 19.8%, indicating hopes for a gradual earnings recovery. However, the company plans to maintain the reduced annual dividend level, suggesting management is prioritizing financial resilience and reinvestment over aggressive payouts as it navigates a challenging operating environment.

The most recent analyst rating on (JP:2217) stock is a Hold with a Yen1597.00 price target. To see the full list of analyst forecasts on Morozoff Limited stock, see the JP:2217 Stock Forecast page.

Morozoff Moves to Strengthen Board Oversight After Governance Review

Morozoff Limited has completed an annual evaluation of its Board of Directors’ effectiveness, using anonymous questionnaires submitted by all 11 directors, including outside members, covering board composition, operations, agenda setting, and governance structures. The company reported consistently high ratings, concluding that overall board effectiveness is being maintained and that its governance framework remains sound.

In response to feedback that the board’s supervisory role over business execution should be further strengthened, Morozoff has introduced meetings composed solely of outside directors to enhance independent oversight and deepen collaboration with management. The board plans to use the evaluation results to drive ongoing improvements in governance practices and to bolster corporate value over the medium to long term.

The most recent analyst rating on (JP:2217) stock is a Hold with a Yen1597.00 price target. To see the full list of analyst forecasts on Morozoff Limited stock, see the JP:2217 Stock Forecast page.

Morozoff Reshapes Executive Ranks to Bolster Market Development and Planning

Morozoff Limited has announced a series of executive and managerial personnel changes, effective April 1, 2026, as approved by its Board of Directors. The reshuffle includes appointments in key functions such as market development, international business, corporate planning, and sales management.

Manabu Sasabe will become Executive Officer in charge of the Market Development Department and Head of International Business within the Sales Division, while Kenji Sato will be promoted to Executive Officer and General Manager of the Corporate Planning Department. In addition, Shiro Akamatsu will move to head the Sales Management Department, signaling a tighter alignment between planning, logistics, and sales to support Morozoff’s domestic and overseas expansion initiatives.

The most recent analyst rating on (JP:2217) stock is a Hold with a Yen1597.00 price target. To see the full list of analyst forecasts on Morozoff Limited stock, see the JP:2217 Stock Forecast page.

Morozoff to Cancel 700,000 Treasury Shares, Tightening Share Capital

Morozoff Limited has resolved to cancel 700,000 of its common treasury shares, representing 3.29% of its issued shares prior to cancellation, with the effective date set for February 9, 2026. Following the cancellation, the total number of shares issued will be reduced to 20,565,356, and remaining treasury shares will fall to 243,558, signaling a move to streamline the company’s capital structure and potentially enhance shareholder value through a reduced share count.

The most recent analyst rating on (JP:2217) stock is a Hold with a Yen1558.00 price target. To see the full list of analyst forecasts on Morozoff Limited stock, see the JP:2217 Stock Forecast page.

Morozoff Raises Full-Year Earnings Forecast on Strong Seasonal Confectionery Sales

Morozoff Limited has revised upward its consolidated earnings forecast for the fiscal year ending January 31, 2026, citing stronger-than-expected sales despite ongoing consumer budget-consciousness. Net sales are now projected to slightly exceed the previous forecast, supported by the successful rollout of new brands, robust seasonal demand during Christmas and Oseibo, solid performance in baked sweets, and a strong start to the 2026 Valentine’s Day season. Profitability forecasts have also been raised, with operating profit, ordinary profit, and profit attributable to owners of parent all expected to surpass earlier estimates, as higher sales are reinforced by price revisions, production efficiency gains, and lower-cost store operations that help offset surging cacao prices and rising labor costs.

The most recent analyst rating on (JP:2217) stock is a Hold with a Yen1558.00 price target. To see the full list of analyst forecasts on Morozoff Limited stock, see the JP:2217 Stock Forecast page.