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

• Market Cap: ¥5.89B
• Dividend Yield: 1.48%
• Average Volume (3M): 118.50K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.46
• Revenue Growth: 36.83%
• EPS Growth: 1.34%
• Country: JP
• Employees: 111
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 10.40
• Shares Outstanding: 11,223,513
• 10 Day Avg. Volume: 64,230
• 30 Day Avg. Volume: 118,503
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥469.00
• Price Target Upside: -13.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥469.00 ▼(-13.47% Downside)

The overall stock score of 69 reflects Cotta Co., Ltd.'s stable financial performance with strong revenue growth and profit margins, tempered by concerns about cash flow management and rising debt. Positive technical momentum supports the stock, while valuation metrics suggest fair pricing. The absence of earnings call data and corporate events limits additional insights.

cotta Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Cotta Co., Ltd. generates revenue through the sale of its baking and confectionery ingredients. Key revenue streams include supplying ingredients to bakeries and confectionery businesses, selling directly to consumers through retail and online channels, and offering specialized baking kits. The company may also engage in strategic partnerships with food service providers and retailers to expand its market reach. Additionally, Cotta Co., Ltd. could generate income by providing value-added services, such as baking workshops or recipe development consultations, which enhance customer engagement and loyalty. Significant factors contributing to its earnings include the quality and reliability of its products, as well as its ability to adapt to market trends and consumer preferences.

cotta Co., Ltd. Financial Statement Overview

Summary

Cotta Co., Ltd. shows positive revenue growth and solid profit margins. The equity base is strong, but rising debt levels and zero reported free cash flow in the latest period are concerns. Operational efficiency is evident, but cash flow management needs improvement.

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	10.67B	8.95B	8.62B	8.84B	9.26B	7.86B
Gross Profit	3.24B	2.82B	2.93B	2.74B	3.88B	3.28B
EBITDA	726.45M	665.03M	964.94M	724.22M	623.25M	451.41M
Net Income	325.96M	341.30M	570.91M	399.98M	324.64M	263.31M
Balance Sheet
Total Assets	10.42B	6.39B	6.42B	6.00B	5.83B	5.50B
Cash, Cash Equivalents and Short-Term Investments	3.02B	1.83B	1.93B	1.80B	1.62B	1.98B
Total Debt	4.11B	1.20B	1.43B	1.48B	1.44B	1.31B
Total Liabilities	5.95B	2.23B	2.51B	2.64B	2.72B	2.56B
Stockholders Equity	4.43B	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: Neutral
• Last Price: 542.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 542 is below the 20-day moving average (MA) of 558.51, above the 50-day MA of 505.34, and above the 200-day MA of 441.97, indicating a neutral trend. The MACD of 9.88 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 1.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3359.

cotta Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3954	83 Outperform	¥12.98B	10.52	5.63%	1.29%	8.41%	3.21%
3943	77 Outperform	¥11.82B	12.95	5.06%	4.42%	7.00%	-28.12%
7923	75 Outperform	¥4.58B	7.48	5.47%	1.91%	6.34%	-10.00%
3944	72 Outperform	¥2.56B	7.19	2.65%	2.15%	0.63%	31.77%
3359	69 Neutral	¥5.89B	13.57	―	1.48%	36.83%	1.34%
3953	63 Neutral	¥2.84B	-32.15	-2.25%	6.15%	2.82%	-140.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%