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

• Market Cap: ¥5.44B
• Dividend Yield: 2.03%
• Average Volume (3M): 55.65K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.48
• Revenue Growth: 52.77%
• EPS Growth: 28.19%
• 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: 25,110
• 30 Day Avg. Volume: 55,653
• PEG Ratio: 0.46
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 7.39
• 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: 69 Neutral
• Price Target: ¥540.00 ▲(6.09% Upside)

The stock's overall score is driven by a strong valuation, with a low P/E ratio and attractive dividend yield. However, financial performance is hindered by declining profit margins and increased leverage. Technical indicators show weak momentum, which could impact short-term performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates an expanding customer base and effective sales strategies, supporting long-term business expansion.

Cash Generation

High free cash flow relative to net income suggests efficient cash management, providing flexibility for reinvestment and debt reduction.

Operational Efficiency

Stable margins indicate effective cost control and operational management, which are crucial for sustaining profitability.

Negative Factors

Declining Profit Margins

Decreasing profit margins can erode profitability, necessitating improved cost management to maintain financial health.

Increased Leverage

Higher leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities.

Low Cash Conversion

Low cash conversion efficiency may indicate challenges in translating earnings into cash, affecting liquidity and investment capacity.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.19B	13.68B	8.95B	8.62B	8.84B	9.26B
Gross Profit	3.67B	4.06B	2.82B	2.93B	2.74B	3.88B
EBITDA	928.12M	1.09B	665.03M	964.94M	724.22M	623.25M
Net Income	425.16M	437.12M	341.30M	570.91M	399.98M	324.64M
Balance Sheet
Total Assets	10.35B	10.29B	6.39B	6.42B	6.00B	5.83B
Cash, Cash Equivalents and Short-Term Investments	2.95B	2.54B	1.83B	1.93B	1.80B	1.62B
Total Debt	4.07B	3.97B	1.20B	1.43B	1.48B	1.44B
Total Liabilities	5.82B	5.80B	2.23B	2.51B	2.64B	2.72B
Stockholders Equity	4.48B	4.44B	4.16B	3.91B	3.35B	3.11B
Cash Flow
Free Cash Flow	0.00	778.95M	211.91M	395.89M	320.81M	-317.16M
Operating Cash Flow	0.00	868.91M	280.47M	445.58M	447.04M	-106.97M
Investing Cash Flow	0.00	-2.60B	7.01M	-242.57M	-136.72M	-223.84M
Financing Cash Flow	0.00	2.44B	-387.21M	-78.04M	-130.74M	-27.12M

cotta Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 509.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3359, the sentiment is Positive. The current price of 509 is above the 20-day moving average (MA) of 495.55, above the 50-day MA of 501.20, and above the 200-day MA of 463.91, indicating a neutral trend. The MACD of -1.61 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7923	80 Outperform	¥5.96B	8.69	―	1.72%	5.37%	20.22%
3943	78 Outperform	¥12.05B	13.93	―	4.54%	4.38%	-12.68%
3954	76 Outperform	¥14.65B	12.15	―	1.20%	6.42%	-6.32%
3944	73 Outperform	¥2.58B	7.37	―	2.09%	2.37%	98.09%
3359	69 Neutral	¥5.44B	12.17	―	2.03%	52.77%	28.19%
3953	63 Neutral	¥2.85B	-30.54	―	6.31%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%