MonotaRO Co (3064) AI Stock Analysis

• Market Cap: $1.13T
• Dividend Yield: 1.13%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 38.5
• Beta (1Y): 0.51
• Revenue Growth: 14.73%
• EPS Growth: 24.88%
• Country: JP
• Employees: 1,432
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 15.86
• Shares Outstanding: 501,351,000
• 10 Day Avg. Volume: 1,876,330
• 30 Day Avg. Volume: 1,413,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 4.66
• Enterprise Value/Gross Profit: 15.88
• Enterprise Value/Ebitda: 30.79
• 1Y Price Target: $2,393.65
• Price Target Upside: 7.56% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: ¥2,453.00 ▲(10.22% Upside)

MonotaRO Co's overall stock score is primarily driven by its strong financial performance, characterized by revenue growth and efficient cash flow management. However, the technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, which tempers the overall score.

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 e-commerce platform. The company operates a business-to-business (B2B) model, offering a vast catalog of supplies that businesses need for day-to-day operations. Revenue streams are largely driven by product sales, which are facilitated through a user-friendly online platform that attracts a broad customer base across different industries. MonotaRO also benefits from economies of scale, allowing it to offer competitive pricing. Additionally, strategic partnerships with manufacturers and suppliers help ensure a consistent product supply and enhance the company's ability to meet customer demands efficiently.

MonotaRO Co Financial Statement Overview

Summary

MonotaRO Co has demonstrated strong financial performance with significant revenue growth, improved profit margins, and robust cash flow. The balance sheet is stable with low leverage, although 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	298.09B	288.12B	254.29B	225.97B	189.73B	157.34B
Gross Profit	87.48B	78.68B	75.97B	65.44B	54.05B	44.69B
EBITDA	45.12B	43.01B	35.88B	29.14B	26.27B	21.17B
Net Income	27.62B	26.34B	21.81B	18.66B	17.55B	13.77B
Balance Sheet
Total Assets	146.84B	145.03B	128.35B	111.74B	95.79B	81.26B
Cash, Cash Equivalents and Short-Term Investments	29.47B	30.73B	18.64B	8.89B	12.38B	18.84B
Total Debt	1.34B	1.34B	5.81B	10.29B	9.62B	10.25B
Total Liabilities	40.31B	40.76B	41.37B	39.12B	35.51B	33.61B
Stockholders Equity	105.92B	103.70B	86.46B	72.14B	59.38B	46.83B
Cash Flow
Free Cash Flow	5.24B	27.34B	21.97B	3.98B	257.00M	6.16B
Operating Cash Flow	5.67B	28.66B	29.93B	15.48B	12.26B	15.27B
Investing Cash Flow	-783.00M	-3.58B	-8.40B	-12.54B	-14.29B	-9.02B
Financing Cash Flow	-3.19B	-13.34B	-11.71B	-5.51B	-5.77B	1.77B

MonotaRO Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2225.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3064, the sentiment is Negative. The current price of 2225.5 is below the 20-day moving average (MA) of 2417.92, below the 50-day MA of 2575.89, and below the 200-day MA of 2701.51, indicating a bearish trend. The MACD of -103.43 indicates Positive momentum. The RSI at 26.55 is Positive, neither overbought nor oversold. The STOCH value of 12.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3064.

MonotaRO Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9843	72 Outperform	1.61T	19.50	9.11%	1.07%	―	―
2678	71 Outperform	151.71B	19.28	11.66%	2.40%	1.69%	-57.32%
9831	68 Neutral	403.29B	12.74	4.21%	2.66%	1.26%	12.77%
4385	66 Neutral	363.08B	13.88	26.31%	―	2.79%	92.79%
3064	61 Neutral	$1.13T	38.52	28.41%	1.13%	14.73%	24.88%
4755	56 Neutral	2.10T	-9.91	-26.18%	―	11.07%	23.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

MonotaRO Co Corporate Events

MonotaRO Completes Treasury Stock Repurchase

MonotaRO Co., Ltd has completed the repurchase of 17,500 shares of its treasury stock, amounting to 44,483,100 JPY, through a market purchase on the Tokyo Stock Exchange. This strategic move, resolved at the Board of Directors meeting on August 28, 2025, is part of the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:3064) stock is a Hold with a Yen2884.00 price target. To see the full list of analyst forecasts on MonotaRO Co stock, see the JP:3064 Stock Forecast page.

MonotaRO Co. Announces Share Repurchase Plan

MonotaRO Co., Ltd. announced a resolution to repurchase its own shares as part of a financial strategy to enhance agility in response to changing business conditions. The company plans to acquire up to 17,500 shares through market purchases on the Tokyo Stock Exchange, with a maximum expenditure of 59,500,000 JPY. This move is expected to provide the company with greater flexibility in its financial operations.

The most recent analyst rating on (JP:3064) stock is a Hold with a Yen2884.00 price target. To see the full list of analyst forecasts on MonotaRO Co stock, see the JP:3064 Stock Forecast page.

MonotaRO Co. Announces Disposal of Treasury Stock for Employee Compensation

MonotaRO Co., Ltd has announced its decision to dispose of 17,415 shares of treasury stock as restricted stock compensation for 108 employees. This move is aimed at enhancing employee commitment to the company’s long-term value growth. The shares will be subject to transfer restrictions until 2027 or 2028, depending on the employee’s tenure, with conditions for lifting these restrictions based on continued employment or organizational restructuring.

The most recent analyst rating on (JP:3064) stock is a Hold with a Yen2884.00 price target. To see the full list of analyst forecasts on MonotaRO Co stock, see the JP:3064 Stock Forecast page.

MonotaRO Co. Reports Strong Financial Growth in H1 2025

MonotaRO Co., Ltd. reported a significant increase in its financial performance for the first half of fiscal year 2025, with net sales rising by 14.9% and net income attributable to owners of the parent increasing by 23.4% compared to the same period last year. The company also announced an increase in dividends per share, reflecting its strong financial position and commitment to returning value to shareholders.

The most recent analyst rating on (JP:3064) stock is a Hold with a Yen2820.00 price target. To see the full list of analyst forecasts on MonotaRO Co stock, see the JP:3064 Stock Forecast page.

MonotaRO Co. Enhances Market Strategy for Growth

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 strategy aims to strengthen its position against competitors like door-to-door tool dealers and internet shopping sites, impacting its operations and market positioning.

The most recent analyst rating on (JP:3064) stock is a Hold with a Yen2820.00 price target. To see the full list of analyst forecasts on MonotaRO Co stock, see the JP:3064 Stock Forecast page.