MonotaRO Co (3064) AI Stock Analysis

• Market Cap: ¥1.20T
• Dividend Yield: 1.03%
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.56
• Revenue Growth: 14.16%
• EPS Growth: 26.13%
• Country: JP
• Employees: 1,432
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 16.23
• Shares Outstanding: 501,355,600
• 10 Day Avg. Volume: 2,635,070
• 30 Day Avg. Volume: 2,951,856
• PEG Ratio: 2.43
• Price to Book (P/B): 12.80
• Price to Sales (P/S): 4.61
• P/FCF Ratio: 48.56
• 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: ¥2,185.02
• Price Target Upside: -9.62% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,358.00 ▼(-2.46% Downside)

MonotaRO Co's overall stock score is driven primarily by its strong financial performance, characterized by revenue growth and efficient cash flow management. However, the technical analysis presents mixed signals, and the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

MonotaRO Co's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Strength

The increase in free cash flow reflects robust operational efficiency, providing financial flexibility for investments and growth.

Balance Sheet Health

A strong equity ratio and low leverage enhance financial stability, reducing risk and supporting sustainable long-term operations.

Negative Factors

Asset Utilization

Inefficient asset utilization could limit operational efficiency and profitability, potentially hindering growth and competitive positioning.

Gross Profit Margin

A slight decline in gross profit margin suggests potential cost pressures or pricing challenges, which may affect future profitability.

Valuation Concerns

A high P/E ratio compared to peers could suggest market expectations are high, posing risks if growth does not meet expectations.

MonotaRO Co Business Overview & Revenue Model

Company Description

MonotaRO Co., Ltd., together with its subsidiaries, operates an online MRO products store in Japan and internationally. It offers products in various categories, such as safety protection equipment, work clothes, and safety shoes; logistics, storage, and packing supplies; tapes; safety supplies/safety signs; office supplies; office furniture/lighting/cleaning supplies; cutting tools/abrasives; measurement/surveying supplies; work/electric/pneumatic tools; spray/oil/grease/paint/adhesion/repair/welding supplies; and agricultural materials/gardening supplies. The company also provides building hardware products, building materials, and painting interior supplies; air conditioning/electrical equipment materials/electrical materials; piping/water supply/pump/pneumatic/hydraulic equipment/hose products; mechanical parts; control equipment/solder/static electricity countermeasure supplies; screws/bolts/nails/materials; car/truck supplies; motorcycle/bicycle supplies; kitchen equipment/kitchen products/store supplies; scientific research and development/clean room supplies; and medical/long-term care products. It serves factories, construction, automobile maintenance, and other industries. The company was formerly known as Sumisho Grainger Co., Ltd. and changed its name to MonotaRO Co., Ltd. in 2006. MonotaRO Co., Ltd. was founded in 2000 and is headquartered in Amagasaki, Japan. MonotaRO Co., Ltd. is a subsidiary of Grainger Global Holdings, Inc.

How the Company Makes Money

MonotaRO generates revenue primarily through its online sales of industrial and maintenance products. The company employs a direct-to-consumer business model, allowing customers to purchase goods directly from its platform. Key revenue streams include sales from a vast selection of products, subscription services for premium users, and value-added services like same-day delivery. Additionally, the company benefits from partnerships with various manufacturers and suppliers, which enables it to offer competitive pricing and a diverse product range. The scalability of its e-commerce operations, coupled with a focus on customer service and satisfaction, contributes significantly to its earnings.

MonotaRO Co Financial Statement Overview

Summary

MonotaRO Co demonstrates strong financial performance with significant revenue growth, improved profit margins, and robust cash flow. The balance sheet is stable with low leverage, though asset utilization could be improved.

Income Statement

MonotaRO Co has shown a strong financial performance with significant revenue growth from 254.3 billion in 2023 to 288.1 billion in 2024. The gross profit margin improved to 29.3% from 29.9% in the previous year, and the net profit margin increased to 9.1% from 8.6%, indicating efficient cost management. The EBIT margin also increased, reflecting effective operational control. The company demonstrates robust growth and profitability trends.

Balance Sheet

The balance sheet of MonotaRO Co reflects solid financial health, with an equity ratio of 71.5%, indicating a strong capital structure. The debt-to-equity ratio decreased to 0.013, showcasing minimal leverage and reduced financial risk. Return on Equity improved to 25.4%, driven by increased net income. Overall, the balance sheet is stable, but there's room for improvement in asset utilization.

Cash Flow

MonotaRO Co's cash flow is strong, with a significant increase in free cash flow from 21.97 billion in 2023 to 27.34 billion in 2024, reflecting robust operational efficiency. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to profits. Free cash flow growth is positive, suggesting good financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	308.95B	288.12B	254.29B	225.97B	189.73B	157.34B
Gross Profit	91.11B	78.68B	75.97B	65.44B	54.05B	44.69B
EBITDA	47.69B	43.01B	35.88B	29.14B	26.27B	21.17B
Net Income	29.26B	26.34B	21.81B	18.66B	17.55B	13.77B
Balance Sheet
Total Assets	165.83B	145.03B	128.35B	111.74B	95.79B	81.26B
Cash, Cash Equivalents and Short-Term Investments	35.77B	30.73B	18.64B	8.89B	12.38B	18.84B
Total Debt	11.28B	1.34B	5.81B	10.29B	9.62B	10.25B
Total Liabilities	51.59B	40.76B	41.37B	39.12B	35.51B	33.61B
Stockholders Equity	113.63B	103.70B	86.46B	72.14B	59.38B	46.83B
Cash Flow
Free Cash Flow	0.00	27.34B	21.97B	3.98B	257.00M	6.16B
Operating Cash Flow	0.00	28.66B	29.93B	15.48B	12.26B	15.27B
Investing Cash Flow	0.00	-3.58B	-8.40B	-12.54B	-14.29B	-9.02B
Financing Cash Flow	0.00	-13.34B	-11.71B	-5.51B	-5.77B	1.77B

MonotaRO Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2417.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3064, the sentiment is Positive. The current price of 2417.5 is above the 20-day moving average (MA) of 2274.02, above the 50-day MA of 2171.53, and below the 200-day MA of 2567.17, indicating a neutral trend. The MACD of 50.16 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 91.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3064.

MonotaRO Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4385	73 Outperform	¥499.26B	17.69	31.11%	―	4.83%	106.29%
9843	72 Outperform	¥1.62T	19.39	―	1.08%	―	―
3064	69 Neutral	¥1.20T	38.83	28.71%	1.03%	14.16%	26.13%
2678	64 Neutral	¥126.84B	17.02	10.61%	2.69%	1.69%	-57.32%
9831	64 Neutral	¥414.00B	12.65	4.18%	2.63%	1.26%	14.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4755	46 Neutral	¥2.07T	-12.60	-21.14%	―	11.45%	42.34%

MonotaRO Co Corporate Events

MonotaRO Co. Reports Robust Financial Growth and Increased Dividends

MonotaRO Co., Ltd. reported a significant increase in its consolidated financial results for the first nine months of the fiscal year ending December 31, 2025, with net sales rising by 14.1% and net income attributable to owners of the parent increasing by 24.4% compared to the same period last year. The company also announced a forecasted increase in dividends per share, reflecting its strong financial performance and commitment to shareholder returns.

MonotaRO Co., Ltd Enhances Market Strategy with Focus on Customer Convenience

MonotaRO Co., Ltd is focused on gaining market share by enhancing customer convenience through competitive advantages in merchandising, marketing, supply chain, operations, software, and data algorithms. The company employs a significant workforce across its head office and distribution centers, indicating a robust operational capacity to support its strategic goals.

MonotaRO Completes Treasury Stock Disposal for Employee Compensation

MonotaRO Co., Ltd. has completed the payment procedures for the disposal of 17,415 shares of its treasury stock as restricted stock compensation to 108 employees. This move, resolved at the Board of Directors meeting on August 28, 2025, reflects the company’s strategy to incentivize its workforce and align employee interests with corporate performance.