cotta Co., Ltd. (3359) AI Stock Analysis

• Market Cap: ¥5.39B
• Dividend Yield: 2.06%
• Average Volume (3M): 57.20K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.49
• Revenue Growth: 52.77%
• EPS Growth: 28.77%
• Country: JP
• Employees: 111
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): -2.14
• Shares Outstanding: 11,223,513
• 10 Day Avg. Volume: 38,300
• 30 Day Avg. Volume: 57,196
• PEG Ratio: -0.28
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 18.24
• 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): 53.1
• Revenue Forecast (FY): ¥15.20B

• Rating: 64 Neutral
• Price Target: ¥565.00 ▲(11.00% Upside)

The overall stock score is primarily influenced by stable financial performance with solid profit margins and a strong equity base. However, rising debt and cash flow challenges are significant concerns. Technical indicators suggest bearish momentum, while valuation metrics indicate a fair price level.

Positive Factors

Revenue Growth

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

Profit Margins

Strong profit margins reflect efficient cost management and pricing power, contributing to sustainable profitability.

Equity Base

A strong equity base provides financial stability and the capacity to invest in growth opportunities without excessive leverage.

Negative Factors

Rising Debt Levels

Increasing debt levels can strain financial resources, limiting flexibility and increasing risk in economic downturns.

Cash Flow Challenges

Lack of free cash flow generation poses risks to liquidity and limits the ability to fund operations and growth initiatives.

Net Income Decline

Declining net income suggests potential cost pressures, which could impact future profitability if not addressed.

cotta Co., Ltd. Business Overview & Revenue Model

Company Description

cotta Co., Ltd. (3359) is a leading Japanese company specializing in the e-commerce sector, focusing primarily on the sale of baking and cooking supplies. The company offers a wide range of products, including baking ingredients, kitchen tools, and accessories, catering to both professional chefs and home bakers. cotta also provides a platform for sharing recipes and baking ideas, enhancing its community engagement and customer loyalty.

How the Company Makes Money

cotta Co., Ltd. generates revenue primarily through its e-commerce sales of baking and cooking supplies. The company has established a robust online platform where customers can purchase various products, including ingredients and tools essential for baking and cooking. Key revenue streams include direct sales from their website, subscription services for regular customers, and partnerships with manufacturers to distribute exclusive products. Additionally, cotta may benefit from advertising revenues by featuring sponsored content or products on its platform, as well as collaborations with culinary influencers to reach a broader audience.

cotta Co., Ltd. Financial Statement Overview

Summary

Cotta Co., Ltd. shows stable revenue growth and solid profit margins, with a strong equity base. However, rising debt levels and zero free cash flow in the latest period pose risks to liquidity and financial flexibility.

Income Statement

The income statement reveals a stable financial position with a consistent revenue growth trend. The TTM (Trailing-Twelve-Months) report shows a modest increase in total revenue to 9.17 billion JPY, up from 8.95 billion JPY in the previous annual report. Gross profit margin is solid at approximately 31.1%, supported by a reasonable net profit margin of about 3.3%. EBIT and EBITDA margins demonstrate operational efficiency at 5% and 6.3% respectively. However, a slight decline in net income from the previous period indicates potential cost pressures.

Balance Sheet

The balance sheet reflects a robust equity base with stockholders' equity at 4.23 billion JPY against total assets of 10.41 billion JPY. The debt-to-equity ratio is manageable, indicating a balanced approach to leverage. Return on equity (ROE) stands at 7.1%, signifying effective utilization of shareholder funds. However, there is a notable increase in total debt in the TTM period, suggesting increased financial obligations.

Cash Flow

The cash flow statement reflects challenges with free cash flow generation, as the TTM period reports zero free cash flow. Operating cash flow and capital expenditures are also reported as zero, indicating potential reporting lags or cash management issues. This poses a risk to liquidity and short-term financial flexibility. Historical data showed better cash flow management, which needs to be regained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.19B	8.95B	8.62B	8.84B	9.26B	7.86B
Gross Profit	3.67B	2.82B	2.93B	2.74B	3.88B	3.28B
EBITDA	928.12M	665.03M	964.94M	724.22M	623.25M	451.41M
Net Income	425.16M	341.30M	570.91M	399.98M	324.64M	263.31M
Balance Sheet
Total Assets	10.35B	6.39B	6.42B	6.00B	5.83B	5.50B
Cash, Cash Equivalents and Short-Term Investments	2.95B	1.83B	1.93B	1.80B	1.62B	1.98B
Total Debt	4.07B	1.20B	1.43B	1.48B	1.44B	1.31B
Total Liabilities	5.82B	2.23B	2.51B	2.64B	2.72B	2.56B
Stockholders Equity	4.48B	4.16B	3.91B	3.35B	3.11B	2.94B
Cash Flow
Free Cash Flow	0.00	211.91M	395.89M	320.81M	-317.16M	355.21M
Operating Cash Flow	0.00	280.47M	445.58M	447.04M	-106.97M	534.09M
Investing Cash Flow	0.00	7.01M	-242.57M	-136.72M	-223.84M	-179.45M
Financing Cash Flow	0.00	-387.21M	-78.04M	-130.74M	-27.12M	275.02M

cotta Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 509.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3359, the sentiment is Negative. The current price of 509 is above the 20-day moving average (MA) of 502.75, below the 50-day MA of 517.14, and above the 200-day MA of 458.65, indicating a neutral trend. The MACD of -6.12 indicates Negative momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3359.

cotta Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3943	78 Outperform	¥11.30B	13.06	―	4.61%	4.38%	-12.68%
3954	76 Outperform	¥12.83B	10.40	―	1.60%	6.42%	-6.32%
7923	76 Outperform	¥4.27B	6.22	―	2.10%	5.37%	20.22%
3944	73 Outperform	¥2.59B	7.28	―	2.12%	2.37%	98.09%
3359	64 Neutral	¥5.39B	12.05	―	2.06%	52.77%	28.77%
3953	63 Neutral	¥2.77B	―	―	6.40%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%