USS Co (4732) AI Stock Analysis

• Market Cap: ¥787.04B
• Dividend Yield: 2.74%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.39
• Revenue Growth: 6.57%
• EPS Growth: 15.09%
• Country: JP
• Employees: 1,130
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Auto - Dealerships
• EPS (TTM): N/A
• Shares Outstanding: 514,000,000
• 10 Day Avg. Volume: 1,100,970
• 30 Day Avg. Volume: 1,259,550
• PEG Ratio: 7.73
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.36
• 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

• Rating: 73 Outperform
• Price Target: ¥1,713.00 ▲(9.14%Upside)

USS Co's stock is supported by strong financial performance and a solid valuation, making it a stable investment. Technical analysis indicates robust upward momentum, although caution is advised due to potential overbought conditions.

USS Co Business Overview & Revenue Model

Company Description

USS Co (4732) is a Japanese company specializing in the automobile auction sector. It provides a platform facilitating the auctioning and distribution of used vehicles primarily within Japan. The company offers comprehensive services that include vehicle inspections, auction operations, and related logistics, serving both domestic and international markets.

How the Company Makes Money

USS Co generates revenue primarily through fees associated with its automobile auction services. This includes commission fees from successful vehicle sales, membership fees from dealers and individuals participating in auctions, and additional service charges for vehicle inspections and logistics support. The company may also earn from providing ancillary services such as vehicle transportation and documentation processing. Key partnerships with automotive dealerships and international buyers enhance its revenue potential by increasing auction participation and expanding its market reach.

USS Co Financial Statement Overview

Summary

USS Co is performing well with strong revenue and profit growth. The balance sheet is solid with low leverage and high equity, providing stability. Cash flow generation remains robust, although there is a slight decline in free cash flow, which warrants monitoring. Overall, the company's financial health is strong, with effective management of resources and risks.

Income Statement

The company has demonstrated strong revenue growth, with a 6.5% increase from 2024 to 2025. Gross profit margin is robust at 62.3%, indicating effective cost management. The net profit margin has improved to 36.2%, showcasing enhanced profitability. EBIT and EBITDA margins are high, at 52.1% and 57.9% respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, indicating minimal leverage. Return on equity is solid at 18.4%, showing good returns for shareholders. The equity ratio is 76.4%, highlighting a stable financial structure. The company maintains a significant cash position, enhancing financial flexibility.

Cash Flow

Operating cash flow is healthy and supports a free cash flow to net income ratio of 0.94, indicating efficient cash conversion. However, free cash flow decreased by 20.5% from the previous year, suggesting potential challenges in cash generation. The operating cash flow to net income ratio stands at 1.01, showing strong cash earnings.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
104.02B	97.61B	88.78B	81.48B	74.87B
	Gross Profit
64.82B	59.03B	53.64B	50.77B	46.53B
	EBIT
54.21B	48.94B	43.78B	41.57B	36.23B
	EBITDA
60.25B	53.91B	49.07B	47.20B	43.34B
	Net Income Common Stockholders
37.64B	32.91B	30.01B	29.75B	4.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
116.22B	112.01B	95.69B	82.38B	70.77B
	Total Assets
267.35B	271.56B	242.35B	229.35B	210.70B
	Total Debt
2.25B	2.66B	2.42B	2.83B	3.17B
	Net Debt
-110.97B	-106.34B	-90.27B	-76.55B	-64.60B
	Total Liabilities
59.99B	72.54B	48.20B	46.88B	37.18B
	Stockholders Equity
204.20B	196.00B	191.45B	180.34B	171.83B
Cash Flow		Free Cash Flow
35.39B	44.48B	32.34B	34.59B	29.42B
	Operating Cash Flow
38.16B	47.15B	36.91B	36.63B	38.41B
	Investing Cash Flow
-6.00B	-2.65B	-9.07B	-1.34B	-9.33B
	Financing Cash Flow
-29.95B	-28.19B	-17.12B	-24.68B	-15.04B

USS Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1569.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4732, the sentiment is Positive. The current price of 1569.5 is above the 20-day moving average (MA) of 1563.43, above the 50-day MA of 1479.84, and above the 200-day MA of 1374.14, indicating a bullish trend. The MACD of 21.30 indicates Positive momentum. The RSI at 61.71 is Neutral, neither overbought nor oversold. The STOCH value of 27.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4732.

USS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7134	76 Outperform	¥9.34B	11.88		2.75%	11.34%	22.75%
8291	76 Outperform	¥28.12B	7.05		5.07%	-4.95%	-39.29%
4732	73 Outperform	¥787.04B	19.95	18.56%	2.74%	6.57%	15.09%
7599	71 Outperform	¥105.73B	7.86		4.04%	18.30%	17.52%
3186	70 Outperform	¥130.73B	17.63		1.96%	24.35%	-35.21%
7593	65 Neutral	¥55.72B	10.72		5.08%	12.85%	-22.91%
Sector *	62 Neutral	$6.80B	11.04	2.79%	4.42%	2.67%	-25.07%

USS Co Corporate Events

USS Co. Announces Increased Dividends Amid Strong Financial Performance

USS Co., Ltd. announced an increase in dividends of surplus, with a year-end dividend of 22.80 yen per share, resulting in an annual dividend of 43.40 yen per share. This decision reflects the company’s policy of maintaining a dividend payout ratio of at least 55% and follows better-than-expected financial results for the fiscal year ended March 2025.

USS Co. Enhances Shareholder Return Policy with Ambitious ROE Target

USS Co., Ltd. has announced a strategic enhancement to its shareholder return policy, aiming to increase its return on equity (ROE) target to 20% or higher from the fiscal year 2026 onward. This move reflects the company’s commitment to delivering greater value to its shareholders, with plans to increase the consolidated dividend payout ratio to at least 60% and the total payout ratio to at least 100% over the next three years, supported by share repurchases.

USS Co. Announces Retirement of Treasury Shares

USS Co., Ltd. has announced its decision to retire 40,000,000 of its treasury shares, which accounts for 7.78% of the total shares issued before retirement. This move, approved by the board of directors, is set to take place on June 30, 2025, and will reduce the total number of shares issued to 474,000,000, potentially impacting the company’s market positioning and shareholder value.

USS Co. Announces Board Restructuring

USS Co., Ltd. has announced a change in its board of directors and corporate auditors, with several re-elections and new appointments planned following the upcoming Ordinary General Meeting of Shareholders. This restructuring, which includes the introduction of new independent outside directors, is aimed at strengthening the company’s governance and aligning with the Tokyo and Nagoya Stock Exchange rules, potentially impacting its strategic direction and stakeholder relations.

USS Co. Reports Strong Fiscal Year 2025 Results Amid Strategic Growth

USS Co., Ltd. reported a strong financial performance for the fiscal year ended March 31, 2025, with notable increases in net sales, operating profit, and profit attributable to owners of the parent. The company’s strategic initiatives, including a stock split, have contributed to enhanced shareholder value, as evidenced by improved earnings per share and a robust equity-to-asset ratio. The positive financial results underscore USS Co.’s solid market positioning and its ability to deliver value to stakeholders in the competitive automotive auction industry.

USS Co. Expands Shareholder Benefit Program to Encourage Long-Term Investment

USS Co., Ltd. has announced an expansion of its shareholder benefit program to encourage long-term investment. The revised program, effective September 30, 2025, introduces enhanced rewards for shareholders who maintain their investment for three years or more, offering increased gift card values based on the duration and number of shares held.