STORAGE-OH Co.,Ltd. (2997) AI Stock Analysis

• Market Cap: ¥1.76B
• Dividend Yield: N/A
• Average Volume (3M): 4.31K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.37
• Revenue Growth: 46.85%
• EPS Growth: 27.62%
• Country: JP
• Employees: 25
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -32.01
• Shares Outstanding: 1,853,500
• 10 Day Avg. Volume: 2,260
• 30 Day Avg. Volume: 4,306
• PEG Ratio: -0.70
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -2.74
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ¥971.00 ▼(-19.95% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is held back mainly by negative operating/free cash flow and high leverage, despite strong revenue growth. Technicals also weigh heavily on the rating due to a pronounced downtrend and bearish momentum. Valuation is moderate (P/E 17.17) but does not offset the financial and technical risks.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth (28.1% YoY) indicates expanding demand or market share for STORAGE-OH's services. Over a multi-quarter horizon this supports scale benefits, improved unit economics potential, and greater capacity to fund reinvestment or strategic initiatives.

Gross Margin Stability

A stable gross margin around 14.8% reflects consistent operational efficiency in core storage services. This persistence in direct-margin performance helps ensure predictable contribution as revenue grows, supporting longer-term profitability once operating leverage and SG&A control follow.

Improving Operating Profitability

An improving EBIT margin to 4.01% signals better operating discipline or cost control at the business level. If this trend continues, it strengthens cash generation capability and operational resilience, enabling the company to better absorb cost shocks and invest in growth without relying solely on external capital.

Negative Factors

High Leverage

A debt-to-equity ratio of 1.74 denotes significant leverage that raises interest and refinancing vulnerability. Over the medium term, high leverage constrains strategic flexibility, increases default risk in cash-stressed periods, and limits the firm's ability to fund expansion without adding more debt.

Negative Cash Flow

Persistent negative operating and free cash flow indicates accounting profits are not converting to cash, creating liquidity strain. This undermines the company's ability to service debt, fund capex, or invest in growth organically, elevating the need for external financing and increasing financial risk over months.

Eroding Net Profitability

A drop in net margin from 3.3% to 1.76% despite revenue growth indicates margin pressure and reduced earnings quality. Over time this compresses retained earnings available for debt reduction or reinvestment, making the business more dependent on revenue growth rather than improved unit economics to drive shareholder returns.

STORAGE-OH Co.,Ltd. Business Overview & Revenue Model

Company Description

STORAGE-OH Co.,Ltd. engages in the planning, development, operation, and management of self-storage facilities in Japan. It also offers property management services. STORAGE-OH Co.,Ltd. was founded in 2008 and is based in Ichikawa, Japan.

How the Company Makes Money

STORAGE-OH generates revenue primarily through rental income from its self-storage facilities. Customers pay monthly fees to utilize storage units, which vary in size and features. The company also benefits from ancillary revenue streams, including sales of storage-related supplies such as boxes and packing materials. Additionally, STORAGE-OH may engage in partnerships with logistics companies to offer bundled services, enhancing its value proposition. The company's earnings are bolstered by its strategic location choices, high occupancy rates, and effective marketing strategies targeting urban populations and small businesses.

STORAGE-OH Co.,Ltd. Financial Statement Overview

Summary

Revenue growth is strong (+28.1% from 2024 to 2025), but profitability is thin and weakening (net margin 1.76% vs. 3.3%). Leverage is elevated (debt-to-equity 1.74) and cash generation is a key concern with negative operating cash flow (-632M) and negative free cash flow (-637M).

Income Statement

The company demonstrates solid revenue growth with a 28.1% increase from 2024 to 2025. However, the net profit margin has declined to 1.76% in 2025 from 3.3% in 2024, indicating pressure on profitability. The gross profit margin remains relatively stable at 14.8% in 2025, showing efficiency in core operations. Operating profitability, as reflected in the EBIT margin (4.01%), shows a slight improvement but is still modest.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.74 in 2025, indicating significant leverage. Despite this, the company maintains a stable equity ratio of 30.9%, suggesting reasonable equity support for its asset base. Return on equity is low at 6.7%, reflecting limited return generation on shareholders' investment.

Cash Flow

The cash flow analysis highlights challenges, with negative operating cash flow (-632 million) and a concerning free cash flow position (-637 million) in 2025. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to accounting profits. This suggests potential liquidity risks if these trends continue.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	4.99B	4.26B	3.33B	3.07B	3.07B	1.13B
Gross Profit	640.85M	631.00M	534.07M	461.61M	467.96M	189.59M
EBITDA	209.66M	112.94M	203.75M	181.77M	227.04M	-38.87M
Net Income	121.03M	75.39M	109.85M	102.92M	123.86M	-68.99M
Balance Sheet
Total Assets	4.51B	3.63B	2.84B	1.82B	1.51B	1.21B
Cash, Cash Equivalents and Short-Term Investments	597.00M	532.00M	947.43M	831.51M	389.45M	363.15M
Total Debt	2.85B	1.95B	1.54B	715.96M	622.19M	542.91M
Total Liabilities	3.46B	2.51B	1.81B	901.28M	862.87M	684.21M
Stockholders Equity	1.05B	1.12B	1.03B	918.46M	649.61M	525.60M
Cash Flow
Free Cash Flow	0.00	-637.00M	-659.25M	249.96M	30.41M	-407.93M
Operating Cash Flow	0.00	-632.00M	-459.48M	268.78M	31.00M	-397.24M
Investing Cash Flow	0.00	-151.61M	-216.04M	-102.36M	-83.97M	-16.56M
Financing Cash Flow	0.00	364.00M	790.44M	275.63M	79.28M	260.50M

STORAGE-OH Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1213.00
• 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:2997, the sentiment is Negative. The current price of 1213 is above the 20-day moving average (MA) of 938.15, above the 50-day MA of 1070.54, and above the 200-day MA of 981.35, indicating a neutral trend. The MACD of -36.81 indicates Negative momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 46.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2997.

STORAGE-OH Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1766	74 Outperform	¥202.08B	12.01	―	2.33%	6.06%	40.37%
9347	73 Outperform	¥108.93B	12.50	―	1.93%	11.54%	50.62%
3479	67 Neutral	¥86.17B	22.36	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥85.73B	44.84	1.46%	1.18%	6.40%	230.12%
4487	55 Neutral	¥3.67B	17.11	―	―	27.19%	―
2997	50 Neutral	¥1.76B	14.80	―	―	46.85%	27.62%