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

• Market Cap: ¥1.71B
• Dividend Yield: N/A
• Average Volume (3M): 4.31K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.36
• Revenue Growth: 46.85%
• EPS Growth: 27.62%
• Country: JP
• Employees: 25
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 1,853,500
• 10 Day Avg. Volume: 2,260
• 30 Day Avg. Volume: 4,306
• PEG Ratio: 0.27
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -4.13
• 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: 46 Neutral
• Price Target: ¥907.00 ▼(-25.23% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is held back primarily by weakening financial quality (multi-year negative operating/free cash flow, higher leverage, and a sharp 2026 revenue decline). Technicals also remain bearish with price below key moving averages and negative MACD. Valuation is a modest offset with a moderate P/E, but lacks dividend support.

Positive Factors

Improving profitability

Net margin improvement to about 2.9% and strengthening operating profitability versus 2025 indicate the business retains core earnings capability. Sustained positive margins support reinvestment and cover fixed costs, making earnings less binary if revenue stabilizes, and underpin longer-term viability.

Positive return on equity

A ~9.5% ROE shows the company is generating returns on shareholder capital despite headwinds. This level suggests an ability to extract reasonable profit from assets and equity, which supports long-term shareholder value if capital allocation and operational discipline are maintained.

Low equity volatility

A low beta (~0.36) signals lower stock return volatility relative to the market, reflecting either stable cash flows or less sensitivity to macro swings. For investors, this durability can reduce downside risk and supports stronger long-term planning and predictable financing needs.

Negative Factors

Multi-year negative cash flow

Sustained negative operating and free cash flows across multiple years materially raise refinancing and solvency risks. Without a return to positive cash generation, the company will rely on external funding or asset sales, which can dilute shareholders or constrain reinvestment and long-term growth.

Rising leverage

Leverage rising sharply to ~2.34x reduces financial flexibility and increases interest and refinancing exposure. Higher debt amplifies profit volatility, limits capacity for downturns or opportunistic investments, and raises the probability of covenant stress if cash flows remain weak.

Sharp revenue decline

A near 20% revenue drop in 2026 represents a structural setback that pressures margins and makes earnings more sensitive to demand swings. Persistent top-line weakness can erode market position, reduce scale benefits, and complicate recovery even if unit profitability improves.

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

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STORAGE-OH Co.,Ltd. Financial Statement Overview

Summary

Profitability has improved versus 2025 and remains positive, but margins are thin and 2026 revenue fell sharply (~19.8%). Leverage has risen materially (debt-to-equity ~2.34x), and operating/free cash flow have been negative for multiple years, increasing funding risk.

Income Statement

Profitability is consistently positive after 2021, with 2026 annual net margin improving to ~2.9% (from ~1.8% in 2025) and operating profitability also strengthening versus 2025. However, growth has turned sharply negative: 2026 annual revenue fell ~19.8% after a strong 2025, and overall margins remain thin for the business, leaving earnings sensitive to revenue swings.

Balance Sheet

The balance sheet has become more leveraged over time: debt-to-equity rose to ~2.34x in 2026 annual (up from ~0.78x in 2023), reducing financial flexibility. Return on equity is positive (~9.5% in 2026 annual) but down from earlier peaks, suggesting returns have not kept pace with the higher leverage and expanding asset/debt base.

Cash Flow

Cash generation has deteriorated meaningfully: operating cash flow is negative in 2024–2026 annual (including about -387M in 2026), and free cash flow is also deeply negative over the same period. This contrasts with the positive cash flow profile in 2022–2023, and raises funding risk given the company may need external financing to support operations and investment if this persists.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	4.99B	4.00B	4.26B	3.33B	3.07B	3.07B
Gross Profit	640.85M	704.66M	631.00M	534.07M	461.61M	467.96M
EBITDA	209.66M	236.27M	112.94M	203.75M	181.77M	227.04M
Net Income	121.03M	117.12M	75.39M	109.85M	102.92M	123.86M
Balance Sheet
Total Assets	4.51B	4.71B	3.63B	2.84B	1.82B	1.51B
Cash, Cash Equivalents and Short-Term Investments	597.00M	915.49M	532.00M	947.43M	831.51M	389.45M
Total Debt	2.85B	2.90B	1.95B	1.54B	715.96M	622.19M
Total Liabilities	3.46B	3.47B	2.51B	1.81B	901.28M	862.87M
Stockholders Equity	1.05B	1.24B	1.12B	1.03B	918.46M	649.61M
Cash Flow
Free Cash Flow	0.00	-440.90M	-637.00M	-659.25M	249.96M	30.41M
Operating Cash Flow	0.00	-387.26M	-632.00M	-459.48M	268.78M	31.00M
Investing Cash Flow	0.00	-142.76M	-151.61M	-216.04M	-102.36M	-83.97M
Financing Cash Flow	0.00	906.66M	364.00M	790.44M	275.63M	79.28M

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 931.15, above the 50-day MA of 1002.32, and above the 200-day MA of 986.15, indicating a bearish trend. The MACD of -18.55 indicates Negative momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 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	¥182.45B	12.34	―	2.33%	6.06%	40.37%
9347	73 Outperform	¥105.76B	13.40	―	1.93%	11.54%	50.62%
3479	67 Neutral	¥79.14B	11.54	―	―	127.32%	-22.79%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥79.46B	23.41	1.46%	1.18%	6.40%	230.12%
4487	55 Neutral	¥3.61B	16.48	―	―	27.19%	―
2997	46 Neutral	¥1.71B	15.54	―	―	46.85%	27.62%