Revenue Growth MomentumConsistent top-line growth (12.22% last year) indicates expanding customer penetration in bakery/confectionery supply markets. Durable demand for ingredients and packaging plus repeat B2B orders suggests a sustained revenue base that supports scale, supplier leverage, and continued investment.

Solid Free Cash FlowA high free cash flow-to-net-income ratio (0.90) shows the business converts profits into discretionary cash well, enabling capex, working capital funding, dividends or debt reduction. Strong cash generation supports long-term strategic flexibility despite margin pressure.

Niche Distribution & E-commerce ReachA focused business model serving both B2B bakery/confectionery operators and smaller buyers via e-commerce creates diversified revenue streams. Niche product expertise and multi-channel distribution increase customer stickiness and reduce reliance on any single sales channel over time.

Bears Say

Thin Net MarginsNet margin of ~3.2% limits internal reinvestment and makes profitability sensitive to input cost or price swings. Low margin buffers reduce ability to absorb inflation or competitive pricing pressure, constraining long-term earnings resilience unless cost structure improves.

Rising LeverageDebt-to-equity near 0.9 reflects materially higher leverage versus past levels and reduces financial flexibility. Elevated debt raises interest and refinancing risk and can limit investment choices, making the business more vulnerable during slower demand or margin compression.

Weak Cash Conversion On OperationsLow operating cash flow-to-net-income (0.25) signals that reported earnings are not fully converting to cash from operations, potentially due to receivables or inventory dynamics. This structural conversion gap can strain liquidity and complicate debt servicing or growth funding.

3359 FAQ

What was cotta Co., Ltd.’s price range in the past 12 months?

cotta Co., Ltd. lowest stock price was ¥300.00 and its highest was ¥616.00 in the past 12 months.

What is cotta Co., Ltd.’s market cap?

cotta Co., Ltd.’s market cap is ¥6.12B.

When is cotta Co., Ltd.’s upcoming earnings report date?

cotta Co., Ltd.’s upcoming earnings report date is May 14, 2026 which is in 66 days.

How were cotta Co., Ltd.’s earnings last quarter?

cotta Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥17.22 earnings per share for the quarter, beating the consensus estimate of N/A by ¥17.22.

Is cotta Co., Ltd. overvalued?

According to Wall Street analysts cotta Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does cotta Co., Ltd. pay dividends?

cotta Co., Ltd. pays a Annually dividend of ¥10 which represents an annual dividend yield of 2.03%. See more information on cotta Co., Ltd. dividends here

What is cotta Co., Ltd.’s EPS estimate?

cotta Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does cotta Co., Ltd. have?

cotta Co., Ltd. has 11,223,513 shares outstanding.

What happened to cotta Co., Ltd.’s price movement after its last earnings report?

cotta Co., Ltd. reported an EPS of ¥17.22 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.594%.

Which hedge fund is a major shareholder of cotta Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3359

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

cotta Co., Ltd.

cotta CO.,LTD engages in manufacture and sale of confectionary food materials and food packaging materials in Japan and internationally. It offers packing materials, including cake boxes, carrier bags, wrapping papers, ribbons, and freshness preservatives, as well as confectionary materials, such as butter and flour. The company serves confectionary shops, bakeries, and individuals. It also sells its products through mail orders. The company was formerly known as Taisei Co.,Ltd (Fukuoka) and changed its name to cotta CO.,LTD in March 2020. cotta CO.,LTD was incorporated in 1998 and is headquartered in Tsukumi, Japan.