MonotaRO Co (3064) AI Stock Analysis

• Market Cap: $1.43T
• Dividend Yield: 1.05%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 51.9
• Beta (1Y): 0.58
• Revenue Growth: 14.03%
• EPS Growth: 23.40%
• Country: JP
• Employees: 1,432
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Specialty Retail
• EPS (TTM): 15.17
• Shares Outstanding: 501,351,000
• 10 Day Avg. Volume: 1,117,320
• 30 Day Avg. Volume: 1,180,630
• PEG Ratio: 7.87
• Price to Book (P/B): 12.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 232.13
• 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: $2,780.27
• Price Target Upside: -2.96% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: ¥3,286.00 ▲(14.69%Upside)

MonotaRO Co's stock demonstrates strong financial performance with robust revenue growth and profitability, supported by efficient cash flow management. The technical indicators suggest an upward trend, although the stock is nearing overbought levels. However, the high P/E ratio suggests the stock may be overvalued, which could limit future price appreciation. Overall, the stock is performing well but with valuation concerns that warrant caution.

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 Co., Ltd. generates revenue primarily through the sale of MRO products via its online platform, which caters to a diverse range of customers in Japan and other international markets. The company's revenue model is centered on direct product sales, leveraging its vast inventory and efficient distribution network to fulfill customer orders quickly and reliably. MonotaRO benefits from economies of scale and strategic relationships with manufacturers and suppliers to offer competitive pricing. Additionally, the company invests in digital advertising and data analytics to optimize customer acquisition and retention, thereby driving sales growth. Significant partnerships with logistics providers enhance its delivery capabilities, further contributing to customer satisfaction and repeat business.

MonotaRO Co Financial Statement Overview

Summary

MonotaRO Co is performing well across all financial metrics, with notable strengths in revenue growth, profitability, and efficient cash flow management. The balance sheet is stable with low leverage, though asset utilization could be enhanced. The company is well-positioned for future growth, supported by strong cash flows and a healthy capital structure.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	288.12B	254.29B	225.97B	189.73B	157.34B
Gross Profit	84.42B	75.97B	65.44B	54.05B	44.69B
EBITDA	42.83B	35.88B	29.78B	26.27B	21.17B
Net Income	26.34B	21.81B	18.66B	17.55B	13.77B
Balance Sheet
Total Assets	145.03B	128.35B	111.74B	95.79B	81.26B
Cash, Cash Equivalents and Short-Term Investments	30.73B	18.64B	8.89B	12.38B	18.84B
Total Debt	1.34B	5.81B	10.29B	9.62B	10.25B
Total Liabilities	40.76B	41.37B	39.12B	35.51B	33.61B
Stockholders Equity	103.70B	86.46B	72.14B	59.38B	46.83B
Cash Flow
Free Cash Flow	27.34B	21.97B	3.98B	257.00M	6.16B
Operating Cash Flow	28.66B	29.93B	15.48B	12.26B	15.27B
Investing Cash Flow	-3.58B	-8.40B	-12.54B	-14.29B	-9.02B
Financing Cash Flow	-13.34B	-11.71B	-5.51B	-5.77B	1.77B

MonotaRO Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2865.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3064, the sentiment is Neutral. The current price of 2865 is below the 20-day moving average (MA) of 2898.85, below the 50-day MA of 2895.74, and above the 200-day MA of 2654.72, indicating a neutral trend. The MACD of -1.35 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 49.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3064.

MonotaRO Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3064	73 Outperform	$1.43T	51.91	28.00%	1.05%	14.03%	23.40%
Sector *	62 Neutral	$16.34B	10.69	-6.34%	3.17%	1.66%	-24.46%
RKUNF		$11.78B	―	-22.97%	―	―	―
ASKLF		$979.29M	15.15	11.70%	370.37%	―	―
MRCIF		$3.00B	27.66	21.33%	―	―	―
NCLTF		$10.55B	19.32	8.13%	1.09%	―	―
YMDAF		$2.59B	12.05	4.20%	2.82%	―	―

MonotaRO Co Corporate Events

MonotaRO Co. Reports Strong Sales Growth and Customer Acquisition in May 2025

MonotaRO Co., Ltd. reported a consistent increase in monthly sales for May 2025, with a year-on-year growth of 111.9%. The company also saw a significant rise in customer acquisition, adding 97.8 thousand new accounts in May. These figures indicate strong market performance and expansion in customer base, reflecting positively on the company’s operational strategy and market positioning.

The most recent analyst rating on (JP:3064) stock is a Sell with a Yen2050.00 price target. To see the full list of analyst forecasts on MonotaRO Co stock, see the JP:3064 Stock Forecast page.

MonotaRO Adjusts Mito Distribution Center Plans Amid Rising Costs

MonotaRO Co., Ltd. has announced changes to its Mito Distribution Center project, including a revised completion date and increased investment due to rising construction costs and additional specifications. Despite these changes, the new distribution center’s operations will not affect the company’s consolidated performance for the fiscal year ending December 31, 2025.

MonotaRO Co., Ltd. Enhances Market Position with Customer-Centric Strategies

MonotaRO Co., Ltd. is focusing on gaining market share by enhancing customer convenience through competitive advantages in merchandising, marketing, supply chain, and technology. The company’s strategic emphasis on convenience is expected to strengthen its position against competitors like hardware stores and online shopping sites, potentially impacting its operations and market presence positively.

MonotaRO Finalizes Treasury Stock Disposal for Executive Compensation

MonotaRO Co., Ltd. has completed the payment procedures for the disposal of 32,693 treasury stocks as restricted stock compensation for its executive officers. This move, resolved at the Board of Directors meeting in March 2025, involves a total value of 88,271,100 JPY, reflecting the company’s strategic approach to executive compensation and potentially impacting its financial structure and stakeholder interests.

MonotaRO Co. Affirms Independence Amid Grainger’s Controlling Stake

MonotaRO Co., Ltd. announced its relationship with its controlling shareholder, W.W. Grainger, Inc., which holds a 50.34% stake in the company through its subsidiaries. Despite the significant ownership, MonotaRO maintains operational independence, with limited transactions with Grainger and a commitment to protecting minority shareholders. The company ensures that less than half of its board positions are held by Grainger employees, reinforcing its independent management structure.