Moriroku Holdings Co., Ltd. (4249) AI Stock Analysis

• Market Cap: ¥36.65B
• Dividend Yield: 4.66%
• Average Volume (3M): 12.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -6.34%
• EPS Growth: -419.93%
• Country: JP
• Employees: 4,447
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -4.21
• Shares Outstanding: 14,410,000
• 10 Day Avg. Volume: 13,040
• 30 Day Avg. Volume: 12,923
• PEG Ratio: 0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 11.09
• 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: 51 Neutral
• Price Target: ¥2,619.00 ▲(4.97% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

The overall stock score of 51 reflects significant challenges in financial performance, particularly in profitability and cash flow generation. Technical analysis indicates bearish momentum, and valuation is negatively impacted by a negative P/E ratio, although a high dividend yield offers some compensation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Balance sheet stability

Moriroku's balance sheet is described as moderately stable with manageable leverage, giving the company financial flexibility. Over the next several months this reduces insolvency risk, supports supplier and OEM commitments, and allows measured capex to sustain manufacturing operations.

Core automotive components business

The firm's focus on automotive components positions it in a structurally essential part of the supply chain. Recurring OEM demand and long-term supplier contracts provide durable revenue backstop, supporting steady order flow and operational planning through auto-cycle fluctuations.

Dividend income support

A relatively high 4.31% dividend yield signals a shareholder-return policy that can attract income-oriented investors and steady the shareholder base. If cashflows stabilize, the yield supports long-term investor confidence and can reduce share-price volatility driven by short-term trading.

Negative Factors

Negative profitability

The company reports negative net income and compressed gross margins, indicating persistent profitability issues. Continued losses erode retained earnings and limit reinvestment capacity, reducing ability to finance product development, absorb cost shocks, or compete on price in the medium term.

Weak cash generation

Operating and free cash flows have declined, weakening internal funding for capex and working capital. In capital-intensive manufacturing, sustained weak cash conversion increases reliance on external financing, constrains investment in productivity improvements, and pressures liquidity over 2-6 months.

Revenue contraction and declining equity

Reported declines in stockholders' equity combined with negative revenue growth (FY metric ~ -8%) suggest weakening business scale and capital base. Falling equity limits strategic flexibility and raises leverage risks, making it harder to fund growth or absorb further demand shocks.

Moriroku Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Moriroku Holdings Company, Ltd. develops, manufactures, and distributes resin molded parts for 4-wheeled and 2-wheeled vehicles and functional parts in Japan. Its products include exterior and interior parts, as well as precision machinery and electric tool components. The company also manufactures, distributes, imports and exports, and sells chemical and synthetic resin products. In addition, it imports, exports, and sells electronic materials, composite materials, industrial materials, foods, etc. The company was formerly known as Moriroku Company Ltd. and changed its name to Moriroku Holdings Company, Ltd. in 2008. Moriroku Holdings Company, Ltd. was founded in 1663 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Moriroku Holdings generates revenue through the production and sale of a diverse range of resin-based products, with a significant portion of its earnings coming from automotive parts manufacturing. The company has established robust relationships with major automotive manufacturers, allowing it to secure long-term contracts and steady demand for its products. Key revenue streams include custom resin formulations, injection-molded parts, and assemblies for vehicles, as well as specialized products for the electronics and industrial sectors. Additionally, Moriroku benefits from strategic partnerships and collaborations with other industry players, enhancing its market reach and operational efficiencies, which further contribute to its financial performance.

Moriroku Holdings Co., Ltd. Financial Statement Overview

Summary

Moriroku Holdings Co., Ltd. faces significant challenges in profitability with a negative net income, impacting both the income statement and cash flow generation. The balance sheet shows moderate stability, but declining equity and cash flows suggest caution in financial health and growth prospects.

Income Statement

The income statement shows a concerning decline in net income, resulting in a negative net profit margin for the latest year. Gross profit margin has also contracted. Revenue growth is stagnant with only minor increases, indicating potential challenges in market expansion or pricing power.

Balance Sheet

The balance sheet reflects moderate stability with a manageable debt-to-equity ratio and a reasonable equity ratio. However, there has been a decline in stockholders' equity, which could impact financial leverage and future growth opportunities.

Cash Flow

The cash flow statement highlights a decrease in operating cash flow and free cash flow, impacting liquidity. The free cash flow to net income ratio suggests inefficiencies, while the operating cash flow to net income ratio remains reasonably stable.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	143.74B	146.17B	145.64B	142.02B	128.84B	155.46B
Gross Profit	23.37B	23.60B	25.09B	19.00B	19.30B	19.37B
EBITDA	196.00M	2.20B	14.89B	12.67B	16.25B	10.11B
Net Income	-8.83B	-7.81B	3.02B	1.35B	4.26B	375.00M
Balance Sheet
Total Assets	111.21B	124.63B	140.56B	131.80B	137.13B	132.89B
Cash, Cash Equivalents and Short-Term Investments	15.07B	19.97B	19.66B	18.25B	18.37B	17.95B
Total Debt	19.61B	21.02B	24.83B	26.57B	26.79B	24.28B
Total Liabilities	48.62B	59.72B	64.13B	61.11B	65.05B	62.75B
Stockholders Equity	61.45B	63.66B	75.12B	69.33B	70.69B	68.81B
Cash Flow
Free Cash Flow	1.86B	2.68B	8.00B	1.32B	-3.97B	2.23B
Operating Cash Flow	6.84B	9.35B	14.76B	9.49B	3.43B	9.69B
Investing Cash Flow	-2.00B	-3.75B	-6.63B	-5.31B	-1.14B	-5.26B
Financing Cash Flow	-4.36B	-6.41B	-7.22B	-5.31B	-2.82B	1.63B

Moriroku Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2495.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4249, the sentiment is Positive. The current price of 2495 is below the 20-day moving average (MA) of 2508.45, above the 50-day MA of 2471.52, and above the 200-day MA of 2410.57, indicating a bullish trend. The MACD of 29.96 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4249.

Moriroku Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4045	73 Outperform	¥197.65B	15.87	4.41%	3.80%	-1.50%	-32.46%
3407	68 Neutral	¥2.49T	15.84	7.48%	2.89%	3.55%	95.65%
4970	65 Neutral	¥95.09B	37.30	―	0.67%	10.18%	-14.36%
3553	64 Neutral	¥28.56B	93.87	―	4.09%	3.31%	-70.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3405	60 Neutral	¥558.53B	77.05	1.08%	3.37%	-1.94%	-84.08%
4249	51 Neutral	¥36.65B	-5.50	―	4.66%	-6.34%	-419.93%

Moriroku Holdings Co., Ltd. Corporate Events

Moriroku Secures ¥15 Billion Syndicated Loan to Fund Resonac Mobility Business Acquisition

Moriroku Co., Ltd. has approved a syndicated loan agreement totaling 15 billion yen with a group of six financial institutions, including city, regional and trust banks, to finance the acquisition of all shares in Resonac’s Molded Components Split, Inc. The funding supports Moriroku’s previously announced plan to acquire a portion of Resonac’s mobility business, signaling a strategic push to strengthen its position in the mobility components market.

The loan, scheduled for drawdown on April 1, 2026, carries a final repayment date of March 31, 2033 and is unsecured, but it is subject to strict financial covenants on net asset levels, profitability, and leverage relative to operating cash flow. These conditions are designed to preserve Moriroku’s financial soundness as it takes on additional debt, and the company says the impact of the agreement is already reflected in its current earnings forecast, with any future revisions to be disclosed as performance evolves.

The most recent analyst rating on (JP:4249) stock is a Hold with a Yen2400.00 price target. To see the full list of analyst forecasts on Moriroku Holdings Co., Ltd. stock, see the JP:4249 Stock Forecast page.

Moriroku Q3 Sales Slide on Auto Slowdown but Profit Improves on Cost Controls

Moriroku Company, Ltd. reported a year-on-year decline in net sales to ¥97.4 billion for the third quarter of the fiscal year ending March 2026, reflecting weaker auto parts production by major customers in China, other Asian countries and the U.S., as well as lower chemical sales. The resin-treated product business was hit particularly hard, while the chemicals segment also contracted but to a lesser extent.

Despite lower sales and higher procurement costs due to inflation, operating profit edged up to ¥2.0 billion, helped by price optimization, cost reductions, the deconsolidation of a Mexican subsidiary and lower depreciation in China after prior impairment losses. Ordinary profit rose sharply to ¥1.8 billion on reduced foreign exchange losses, and net profit climbed to ¥0.8 billion even after the absence of a prior-year gain on asset sales, indicating improved earnings quality and some resilience in profitability amid a weak demand environment.

The most recent analyst rating on (JP:4249) stock is a Hold with a Yen2400.00 price target. To see the full list of analyst forecasts on Moriroku Holdings Co., Ltd. stock, see the JP:4249 Stock Forecast page.

Moriroku Lifts Profit and Dividend Outlook Despite Lower Sales

Moriroku Company, Ltd. reported consolidated net sales of ¥97.48 billion for the nine months ended December 31, 2025, down 9.7% year on year, but operating profit rose 8.5% to ¥2.06 billion and ordinary profit more than doubled, driving profit attributable to owners of parent to ¥896 million. The equity ratio improved to 53.2% as total assets edged down, while the company maintained its full-year forecast calling for lower sales but higher ordinary profit and plans to lift the annual dividend to ¥115 per share, signaling confidence in earnings resilience amid portfolio adjustments including changes in its consolidated subsidiaries.

For the full year to March 31, 2026, Moriroku projects net sales of ¥131.2 billion, a 10.2% decline, but expects ordinary profit to climb 27% to ¥2.8 billion and profit attributable to owners of parent to reach ¥1.8 billion, translating into basic earnings per share of ¥125.73. The unchanged earnings guidance and higher interim and projected year-end dividends underscore management’s commitment to shareholder returns, even as the group reshapes its global footprint by adding Moriroku Chemicals India Private Limited and excluding Moriroku Technology De Mexico S.A. de C.V. from the scope of consolidation.

The most recent analyst rating on (JP:4249) stock is a Hold with a Yen2400.00 price target. To see the full list of analyst forecasts on Moriroku Holdings Co., Ltd. stock, see the JP:4249 Stock Forecast page.