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cotta Co., Ltd. (JP:3359)
:3359
Japanese Market
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cotta Co., Ltd. (3359) AI Stock Analysis

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JP:3359

cotta Co., Ltd.

(3359)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥568.00
▲(11.59% Upside)
Action:Upgraded
Date:08/04/26
The score is primarily driven by solid financial performance (strong revenue growth and stable operating efficiency) tempered by declining/low profit margins, higher leverage, and weak operating cash conversion. Valuation is supportive with a moderate P/E and a positive dividend yield. Technical signals are largely neutral, with no strong trend confirmation.
Positive Factors
Revenue growth
Sustained revenue growth of 12.22% indicates expanding demand for Cotta's confectionery and bakery supplies, supporting scale benefits and longer-term distribution or product investments. Over 2-6 months this underpins durable top-line momentum and expands potential operating leverage.
Negative Factors
Low net margin
A 3.20% net margin limits retained earnings and buffers against cost shocks. For a supplier business, thin net profitability constrains reinvestment and makes returns sensitive to input cost inflation or pricing pressure, posing a durable earnings vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
Sustained revenue growth of 12.22% indicates expanding demand for Cotta's confectionery and bakery supplies, supporting scale benefits and longer-term distribution or product investments. Over 2-6 months this underpins durable top-line momentum and expands potential operating leverage.
Read all positive factors

cotta Co., Ltd. (3359) vs. iShares MSCI Japan ETF (EWJ)

cotta Co., Ltd. Business Overview & Revenue Model

Company Description
Operating both domestically in Japan and across international markets, cotta CO.,LTD specializes in the production and distribution of ingredients for confectionery and various food packaging solutions. Their product portfolio encompasses packagin...
How the Company Makes Money
Cotta generates revenue primarily by selling confectionery- and bakery-related supplies to customers involved in producing or selling sweets and baked goods. Key revenue streams include (1) sales of ingredients/materials used in confectionery and ...

cotta Co., Ltd. Financial Statement Overview

Summary
Income statement strength is supported by 12.22% revenue growth and stable EBIT/EBITDA margins, but profitability is constrained by a 29.71% gross margin and a low 3.20% net margin. Balance sheet leverage has risen (debt-to-equity 0.90) with ROE at 9.85%. Cash flow is mixed: free cash flow is strong relative to net income (0.90), but operating cash flow conversion is weak (operating cash flow to net income 0.25).
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue15.21B13.68B8.95B8.62B8.84B9.26B
Gross Profit4.42B4.06B2.82B2.93B2.74B3.88B
EBITDA1.21B1.09B665.03M964.94M724.22M623.25M
Net Income453.96M437.12M341.30M570.91M399.98M324.64M
Balance Sheet
Total Assets10.70B10.29B6.40B6.42B6.00B5.85B
Cash, Cash Equivalents and Short-Term Investments2.98B2.54B1.83B1.93B1.80B1.62B
Total Debt3.69B3.97B1.20B1.43B1.48B1.44B
Total Liabilities5.92B5.80B2.24B2.52B2.64B2.74B
Stockholders Equity4.72B4.44B4.16B3.91B3.35B3.11B
Cash Flow
Free Cash Flow778.95M778.95M211.91M395.89M320.81M-317.16M
Operating Cash Flow868.91M868.91M280.47M445.58M447.04M-106.97M
Investing Cash Flow-2.60B-2.60B7.01M-242.57M-136.72M-223.84M
Financing Cash Flow2.44B2.44B-387.21M-78.04M-130.74M-27.12M

cotta Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price509.00
Price Trends
50DMA
511.98
Positive
100DMA
515.33
Positive
200DMA
514.19
Positive
Market Momentum
MACD
0.75
Positive
RSI
52.48
Neutral
STOCH
55.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3359, the sentiment is Positive. The current price of 509 is below the 20-day moving average (MA) of 519.70, below the 50-day MA of 511.98, and below the 200-day MA of 514.19, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 55.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3359.

cotta Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥85.31B13.826.64%2.45%1.87%
76
Outperform
¥165.62B7.8113.57%2.68%2.55%72.27%
76
Outperform
¥547.98B11.278.24%3.18%4.41%176.13%
70
Outperform
¥5.62B12.032.03%42.61%40.66%
70
Outperform
¥12.43B9.581.20%1.06%-1.71%
63
Neutral
¥104.25B12.788.27%3.01%5.17%20.72%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3359
cotta Co., Ltd.
527.00
89.37
20.42%
JP:7917
Fujimori Kogyo Co
1,425.00
455.20
46.94%
JP:7864
Fuji Seal International
3,205.00
241.91
8.16%
JP:5901
Toyo Seikan Group Holdings
4,250.00
1,009.11
31.14%
JP:3950
Pack Corporation
1,449.00
330.18
29.51%
JP:3954
SHOWA PAXXS CORP.
3,100.00
759.21
32.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 04, 2026