Katakura & Co-op Agri Corporation (4031) AI Stock Analysis

• Market Cap: ¥10.07B
• Dividend Yield: 2.3%
• Average Volume (3M): 17.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 4.02%
• EPS Growth: -42.44%
• Country: JP
• Employees: 827
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.44
• Shares Outstanding: 10,161,686
• 10 Day Avg. Volume: 15,730
• 30 Day Avg. Volume: 17,546
• PEG Ratio: -0.16
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -4.87
• 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: 64 Neutral
• Price Target: ¥1,385.00 ▲(42.49% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is driven mainly by mixed financial performance (stable balance sheet but weak/volatile profitability and cash flow) and strong technical momentum with an overbought signal. Valuation is a key constraint due to the negative P/E and only modest dividend yield.

Positive Factors

Stable balance sheet and controlled leverage

A stable equity base and reasonable debt-to-equity ratio improve financial resilience over the medium term. Controlled leverage lowers refinancing and interest-rate risk, preserving capacity to invest in operations or absorb agricultural cyclicality, supporting durable capital structure stability.

Improved gross and EBIT margins in 2025

Margin improvement in 2025 indicates better cost management or pricing power, which can be sustainable if operational changes hold. Higher gross and EBIT margins bolster the company’s ability to generate operating profits, fund necessary capex, and improve competitiveness in the agricultural inputs market.

Consistent revenue growth trend

A multi-year positive revenue trend demonstrates persistent demand for products or services, helping to stabilize topline through seasonal or commodity cycles. Steady revenue growth supports fixed-cost absorption and provides a foundation for margin recovery and longer-term profitability improvements.

Negative Factors

Volatile profitability and 2024 loss

Significant profit volatility and a reported loss in 2024 undermine earnings predictability and planning. Persistent margin swings suggest exposure to input cost shocks or operational inefficiencies, weakening the company's ability to deliver consistent returns and complicating medium-term strategic investments.

Negative free cash flow and falling operating cash flow

Negative FCF and a drop in operating cash flow constrain internal funding for capex, working capital, or dividends. Continued weak cash generation raises reliance on external financing, reduces financial flexibility, and increases vulnerability to interest-rate or liquidity shocks over the medium term.

Severe negative EPS growth

Extremely negative EPS growth reflects a sharp deterioration in reported earnings versus prior periods, signaling either significant one-off losses or structural profitability pressure. Persistent EPS decline undermines reinvestment capacity and raises questions about sustainable earnings power.

Katakura & Co-op Agri Corporation Business Overview & Revenue Model

Company Description

Katakura & Co-op Agri Corporation (4031) is a prominent player in the agricultural sector, primarily based in Japan. The company focuses on the production and distribution of a wide range of agricultural products, including fertilizers, pesticides, and seeds. It also engages in food processing and offers agricultural machinery, catering to both local farmers and commercial agricultural enterprises. With a commitment to sustainable practices, Katakura & Co-op Agri Corporation aims to enhance agricultural productivity while promoting environmental stewardship.

How the Company Makes Money

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Katakura & Co-op Agri Corporation Financial Statement Overview

Summary

Mixed fundamentals: Income statement shows volatile profitability with a notable loss in 2024 and improvement in margins in 2025 (IS score 68). Balance sheet is relatively stable with controlled leverage and improved ROE in 2025 (BS score 74). Cash flow is weaker with negative free cash flow and a notable drop in operating cash flow in 2025 (CF score 62), limiting financial flexibility.

Income Statement

The company has shown some revenue growth over the years, although there was a significant drop in 2024. The gross profit margin improved in 2025, indicating better cost management. However, the net profit margin has been volatile, with a notable loss in 2024. The EBIT margin also improved in 2025, but the overall profitability has been inconsistent.

Balance Sheet

The company maintains a stable equity base, with a reasonable debt-to-equity ratio that ensures leverage is under control. The equity ratio is satisfactory, suggesting a solid balance between liabilities and equity. Return on equity shows improvement in 2025, but past fluctuations indicate potential risks.

Cash Flow

Cash flow from operations has seen significant changes, with a notable drop in 2025. Free cash flow remains negative, reflecting challenges in covering capital expenditures. The operating cash flow to net income ratio indicates pressure on cash generation despite some recovery in 2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	41.33B	41.37B	41.23B	51.03B	38.96B	35.44B
Gross Profit	6.52B	6.21B	4.73B	9.45B	6.73B	6.77B
EBITDA	2.21B	1.94B	435.00M	4.81B	2.44B	2.51B
Net Income	556.00M	350.00M	-630.00M	2.17B	1.02B	829.00M
Balance Sheet
Total Assets	47.33B	50.63B	49.19B	49.90B	43.58B	40.98B
Cash, Cash Equivalents and Short-Term Investments	2.32B	2.10B	2.33B	1.90B	2.00B	2.81B
Total Debt	12.92B	14.85B	12.40B	10.12B	7.21B	7.31B
Total Liabilities	23.54B	26.77B	25.64B	25.07B	20.56B	18.67B
Stockholders Equity	23.74B	23.82B	23.50B	24.78B	22.97B	22.25B
Cash Flow
Free Cash Flow	0.00	-1.74B	-690.00M	-2.10B	-862.00M	953.00M
Operating Cash Flow	0.00	152.00M	1.52B	-1.21B	341.00M	2.65B
Investing Cash Flow	0.00	-2.48B	-2.21B	-1.24B	-529.00M	-1.94B
Financing Cash Flow	0.00	2.11B	1.12B	2.35B	-624.00M	-1.29B

Katakura & Co-op Agri Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 972.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4031, the sentiment is Positive. The current price of 972 is below the 20-day moving average (MA) of 1089.70, below the 50-day MA of 1027.54, and below the 200-day MA of 972.92, indicating a bullish trend. The MACD of 56.22 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4031.

Katakura & Co-op Agri Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4992	82 Outperform	¥43.09B	9.57	―	2.86%	4.66%	19.39%
4979	78 Outperform	¥30.00B	9.37	―	3.82%	8.02%	42.17%
1376	69 Neutral	¥16.90B	66.09	―	2.41%	4.00%	32.05%
4997	69 Neutral	¥79.28B	32.13	―	2.35%	6.95%	8.85%
4996	65 Neutral	¥97.20B	5.37	―	3.41%	5.84%	-67.78%
4031	64 Neutral	¥10.07B	-510.60	―	2.30%	4.02%	-42.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%