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

• Market Cap: ¥35.36B
• Dividend Yield: 4.16%
• Average Volume (3M): 12.47K
• Price to Earnings (P/E): 94.3
• Beta (1Y): 0.81
• Revenue Growth: -3.77%
• EPS Growth: -315.45%
• Country: JP
• Employees: 4,447
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals
• EPS (TTM): 36.66
• Shares Outstanding: 14,410,000
• 10 Day Avg. Volume: 9,950
• 30 Day Avg. Volume: 12,473
• 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: ¥2,406.00
• Price Target Upside: -4.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥2,406.00 ▼(-4.79% Downside)

Moriroku Holdings Co., Ltd. faces significant challenges, particularly with profitability and valuation. The negative net income and declining cash flows weigh heavily on the financial performance score. Technical analysis presents mixed signals, with some short-term resistance. The high dividend yield offers a slight positive in valuation but does not offset the broader financial concerns.

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

Company Description

Moriroku Holdings Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of chemical products and automotive parts. Operating through its two main segments, the company delivers a wide range of solutions including plastic materials, functional chemicals, and synthetic resins, as well as automotive interiors and exteriors. The company is recognized for its innovation and commitment to quality, serving diverse industrial sectors with its specialized offerings.

How the Company Makes Money

Moriroku Holdings Co., Ltd. generates revenue through its dual-segment operations. In the chemical products segment, the company makes money by producing and distributing various chemical materials, such as resins and functional chemicals, which are used in multiple industries including automotive, electronics, and consumer goods. The automotive parts segment contributes to the company's revenue by manufacturing and supplying interior and exterior components for vehicles, leveraging its expertise in materials and design. The company's earnings are bolstered by strategic partnerships with automotive manufacturers and suppliers, as well as its ability to innovate in material sciences, which supports its competitive edge in the market.

Moriroku Holdings Co., Ltd. Financial Statement Overview

Summary

The company faces significant challenges in profitability, with a negative net income impacting the income statement and cash flow. The balance sheet shows moderate stability, but declining equity and cash flows raise concerns about 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.17B	146.17B	145.64B	142.02B	128.84B	155.46B
Gross Profit	23.60B	23.60B	25.09B	19.00B	19.30B	19.37B
EBITDA	2.20B	2.20B	14.89B	12.67B	16.25B	10.11B
Net Income	-9.26B	-7.81B	3.02B	1.35B	4.26B	375.00M
Balance Sheet
Total Assets	124.63B	124.63B	140.56B	131.80B	137.13B	132.89B
Cash, Cash Equivalents and Short-Term Investments	19.97B	19.97B	19.66B	18.25B	18.37B	17.95B
Total Debt	21.02B	21.02B	24.83B	26.57B	26.79B	24.28B
Total Liabilities	59.72B	59.72B	64.13B	61.12B	65.06B	62.75B
Stockholders Equity	63.66B	63.66B	75.12B	69.33B	70.69B	68.81B
Cash Flow
Free Cash Flow	2.68B	2.68B	8.00B	1.32B	-3.97B	2.23B
Operating Cash Flow	9.35B	9.35B	14.76B	9.49B	3.43B	9.69B
Investing Cash Flow	-3.75B	-3.75B	-6.63B	-5.31B	-1.14B	-5.26B
Financing Cash Flow	-6.41B	-6.41B	-7.22B	-5.31B	-2.82B	1.63B

Moriroku Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2527.00
• 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:4249, the sentiment is Positive. The current price of 2527 is above the 20-day moving average (MA) of 2476.30, above the 50-day MA of 2401.84, and above the 200-day MA of 2175.49, indicating a bullish trend. The MACD of 22.73 indicates Negative momentum. The RSI at 62.29 is Neutral, neither overbought nor oversold. The STOCH value of 77.24 is Neutral, 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
4220	82 Outperform	¥61.06B	9.03		3.01%	2.72%	5.77%
4463	78 Outperform	¥22.11B	8.77		4.05%	6.41%	-3.59%
4025	77 Outperform	¥32.19B	11.75		0.13%	9.61%	53.78%
5013	76 Outperform	¥31.89B	6.41		4.12%	3.47%	33.32%
4970	68 Neutral	¥41.75B	16.62		0.76%	14.95%	-10.67%
Sector *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%
4249	52 Neutral	¥35.36B	94.32		4.16%	-3.77%	-315.45%

Moriroku Holdings Co., Ltd. Corporate Events

Moriroku Holdings Reports Decline in Q1 2025 Financial Results

Moriroku Holdings Co., Ltd. reported a decline in financial performance for the three months ended June 30, 2025, with net sales decreasing by 6.7% and a significant drop in profit attributable to owners of the parent by 65.8% compared to the previous year. The company has made changes to its scope of consolidation, including the addition of Moriroku Chemicals India Private Limited and the exclusion of Moriroku Technology De Mexico S.A. DE C.V., which may impact its future operations and market strategy.

Moriroku Holdings to Cancel 450,000 Treasury Shares to Boost Shareholder Returns

Moriroku Holdings Co., Ltd. has announced the cancellation of 450,000 treasury shares, which represents 3.03% of its total issued shares, as part of its strategy to enhance shareholder returns and improve capital efficiency. This move, scheduled for June 30, 2025, will reduce the total number of issued shares to 14,410,000 and leave the company with 4,819 treasury shares, reflecting its commitment to optimizing its capital structure.

Moriroku Announces Officer Remuneration Reduction

Moriroku Company, Ltd. announced a reduction in officer remuneration following its consolidated financial results for the fiscal year ended March 2025. The decision, which involves a 30% reduction in the monthly remuneration of the Representative Director, President, and CEO for two months starting May 2025, aims to clarify management responsibility for business performance.

Moriroku Holdings Announces Dividend Policy Revision

Moriroku Holdings Co., Ltd. announced a revision to its dividend policy, aiming to increase its dividend on equity (DOE) to 3.0% by the fiscal year ending March 31, 2028. The company plans to gradually increase dividends, with a forecasted annual dividend of 115.00 yen for the fiscal year ending March 31, 2026, reflecting its commitment to returning profits to shareholders.