Misawa & Co., Ltd. (3169) AI Stock Analysis

• Market Cap: ¥4.99B
• Dividend Yield: 1.13%
• Average Volume (3M): 3.90K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 0.25
• Revenue Growth: -2.72%
• EPS Growth: 109.18%
• Country: JP
• Employees: 181
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -8.44
• Shares Outstanding: 7,112,400
• 10 Day Avg. Volume: 4,420
• 30 Day Avg. Volume: 3,903
• PEG Ratio: 0.02
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 37.45
• 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: 64 Neutral
• Price Target: ¥762.00 ▲(7.93% Upside)

Misawa & Co., Ltd. has a strong financial foundation with robust revenue growth and a solid balance sheet, but faces challenges in cash flow management. The technical analysis indicates bullish momentum, though the stock appears overbought. Valuation metrics suggest the stock is overvalued, which could limit upside potential. Overall, the stock presents a mixed investment case with strengths in financial stability but concerns over valuation and cash flow.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates minimal leverage, providing financial stability and flexibility to invest in growth opportunities.

Revenue Growth

Positive revenue growth reflects strong market demand and effective sales strategies, supporting long-term business expansion.

Improving Profitability

Improved profitability indicates better cost management and operational efficiency, enhancing the company's financial health.

Negative Factors

Cash Flow Management Issues

Significant declines in free cash flow suggest challenges in converting profits into cash, which may affect liquidity and investment capacity.

Operational Efficiency

Low margins indicate room for improvement in operational efficiency, which is crucial for sustaining profitability and competitiveness.

Declining Operating Cash Flow

A decline in operating cash flow can strain the company's ability to fund operations and growth initiatives, impacting long-term sustainability.

Misawa & Co., Ltd. Business Overview & Revenue Model

Company Description

Misawa & Co., Ltd. (3169) is a prominent Japanese company engaged primarily in the wholesale distribution of various consumer goods, including textiles, clothing, and household products. The company operates within the broader sector of retail and distribution, serving a diverse clientele that includes both domestic and international markets. Misawa & Co. is known for its commitment to quality and innovation, supplying a wide range of products that cater to the evolving demands of consumers.

How the Company Makes Money

Misawa & Co., Ltd. generates revenue through several key streams, primarily from the wholesale distribution of its core products such as textiles and household goods. The company leverages strategic partnerships with manufacturers and suppliers to ensure a steady supply chain, allowing it to offer competitive pricing. Additionally, Misawa & Co. may engage in private-label branding, which enables it to enhance margins by selling products under its own brand names. The company also explores opportunities in e-commerce and online sales, expanding its reach and tapping into the growing digital marketplace. Seasonal promotions, bulk sales, and contracts with retailers further contribute to its revenue, while effective inventory management helps optimize profit margins.

Misawa & Co., Ltd. Financial Statement Overview

Summary

Misawa & Co., Ltd. demonstrates robust revenue growth and improving profitability, though operational efficiency remains an area for improvement. Its balance sheet is strong with minimal leverage and a high equity ratio, offering financial stability. However, cash flow management appears to be a concern, with declining free cash flow and operating cash flow, which needs attention to maintain financial health.

Income Statement

Misawa & Co., Ltd. shows a strong gross profit margin at approximately 49.8% for the latest year, indicating good cost management. Net profit margin improved significantly to about 1.5%, up from 0.1% the previous year, signaling recovery in profitability. Revenue growth was positive at 4.6%, suggesting healthy sales growth. The EBIT margin of 2.6% and EBITDA margin of 3.3% show improvement but remain relatively low, indicating room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is low at roughly 0.02, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is modest at 5.9%, reflecting moderate efficiency in using shareholders' equity to generate profits. An equity ratio of approximately 62.4% demonstrates a strong capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow decreased significantly, and free cash flow dropped by 77.9%, indicating potential cash management issues. The operating cash flow to net income ratio of 1.9 suggests good cash generation from operations relative to earnings, though not as strong as prior years. The free cash flow to net income ratio of 0.6 shows some challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.92B	12.64B	12.09B	12.20B	11.63B	10.92B
Gross Profit	5.88B	6.29B	5.81B	6.17B	7.12B	6.71B
EBITDA	197.42M	413.06M	160.12M	631.48M	1.16B	1.04B
Net Income	48.04M	187.36M	12.27M	341.04M	692.53M	614.92M
Balance Sheet
Total Assets	4.78B	5.08B	5.16B	4.52B	4.55B	4.34B
Cash, Cash Equivalents and Short-Term Investments	819.05M	1.10B	1.12B	641.26M	940.25M	1.09B
Total Debt	85.42M	54.17M	79.17M	86.00K	35.84M	240.69M
Total Liabilities	1.79B	1.91B	2.12B	1.40B	1.65B	2.07B
Stockholders Equity	2.99B	3.17B	3.04B	3.12B	2.90B	2.27B
Cash Flow
Free Cash Flow	259.16M	118.91M	538.95M	-159.41M	143.25M	1.35B
Operating Cash Flow	259.16M	357.93M	825.15M	74.79M	251.27M	1.43B
Investing Cash Flow	0.00	-254.03M	-304.88M	-257.29M	-134.32M	-62.36M
Financing Cash Flow	0.00	-117.52M	-44.25M	-116.50M	-262.36M	-782.27M

Misawa & Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 706.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3169, the sentiment is Positive. The current price of 706 is above the 20-day moving average (MA) of 699.75, above the 50-day MA of 693.82, and above the 200-day MA of 649.84, indicating a bullish trend. The MACD of 5.16 indicates Negative momentum. The RSI at 63.40 is Neutral, neither overbought nor oversold. The STOCH value of 79.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3169.

Misawa & Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3169	64 Neutral	¥4.99B	48.75	―	1.13%	-2.72%	109.18%
8260	64 Neutral	¥4.82B	5.03	―	1.38%	-3.57%	33.78%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8247	60 Neutral	¥2.15B	9.65	―	―	-3.35%	-63.96%
7506	57 Neutral	¥6.49B	-219.69	―	1.82%	-2.58%	-8.24%
8254	56 Neutral	¥1.89B	17.16	―	―	-6.41%	51.66%
7601	51 Neutral	¥2.09B	7.23	―	―	-3.64%	-23.60%