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USS Co Ltd (JP:4732)
:4732

USS Co (4732) AI Stock Analysis

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JP:4732

USS Co

(4732)

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Outperform 83 (OpenAI - 5.2)
Rating:83Outperform
Price Target:
¥1,921.00
▲(12.64% Upside)
Action:ReiteratedDate:02/18/26
Score is driven primarily by excellent financial performance (very strong profitability, minimal leverage, and strong free cash flow). Technicals are supportive with an upward trend, though momentum is somewhat overbought. Valuation is acceptable but not particularly inexpensive, tempering the overall score.
Positive Factors
High profitability
Sustained, very high net and EBIT margins indicate structural pricing power and operating efficiency in USS’s auction and support services. Such margins allow ongoing reinvestment, capacity to fund dividends or buybacks, and provide a durable buffer through industry cycles, supporting long-term cash generation and shareholder returns.
Negative Factors
Earnings volatility history
Past sharp profit swings (notably FY2021) show USS’s results can be sensitive to market conditions or one-offs. This undermines predictability of recurring earnings and complicates multi-quarter planning for capacity, payouts, and investment, making forward cash-flow visibility less reliable.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability
Sustained, very high net and EBIT margins indicate structural pricing power and operating efficiency in USS’s auction and support services. Such margins allow ongoing reinvestment, capacity to fund dividends or buybacks, and provide a durable buffer through industry cycles, supporting long-term cash generation and shareholder returns.
Read all positive factors

USS Co (4732) vs. iShares MSCI Japan ETF (EWJ)

USS Co Business Overview & Revenue Model

Company Description
USS Co (4732) is a prominent company in the metal recycling and waste management sector, specializing in the collection, processing, and recycling of ferrous and non-ferrous metals. The company operates in various segments, including scrap metal t...
How the Company Makes Money
USS primarily makes money by operating business-to-business automobile auctions for used vehicles. Its core revenue stream is fees charged to auction participants (typically professional dealers) in connection with transactions conducted at USS au...

USS Co Financial Statement Overview

Summary
Overall fundamentals are very strong: exceptional profitability (TTM net margin ~36.7%, EBIT margin ~53%), conservatively financed balance sheet (debt-to-equity ~1%), and solid free cash flow generation (TTM FCF ~43.4bn; ~89% of net income). Main risks are historical earnings volatility (FY2021 weakness) and somewhat weaker recent cash conversion vs earnings (OCF ~0.75–0.88x in FY2024–TTM).
Income Statement
92
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
86
Very Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue110.34B104.02B97.61B88.78B81.48B74.87B
Gross Profit68.92B63.79B58.00B52.72B49.86B44.15B
EBITDA63.94B59.49B54.18B49.07B47.20B43.34B
Net Income40.46B37.64B32.91B30.01B29.75B4.02B
Balance Sheet
Total Assets245.94B268.34B272.64B243.62B230.76B210.98B
Cash, Cash Equivalents and Short-Term Investments91.48B116.22B112.01B95.69B82.38B70.77B
Total Debt2.36B2.25B2.66B2.42B2.83B3.17B
Total Liabilities46.19B60.98B73.61B49.47B48.28B37.45B
Stockholders Equity196.51B204.20B196.00B191.46B180.34B171.83B
Cash Flow
Free Cash Flow43.43B35.39B45.05B32.81B35.50B33.17B
Operating Cash Flow47.32B38.16B47.15B36.91B36.63B38.41B
Investing Cash Flow-14.91B-6.00B-2.65B-9.07B-1.34B-9.33B
Financing Cash Flow-41.21B-29.95B-28.19B-17.12B-24.68B-15.04B

USS Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1705.50
Price Trends
50DMA
1740.66
Positive
100DMA
1721.04
Positive
200DMA
1689.43
Positive
Market Momentum
MACD
3.45
Negative
RSI
60.42
Neutral
STOCH
92.15
Negative
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 1705.5 is above the 20-day moving average (MA) of 1687.86, below the 50-day MA of 1740.66, and above the 200-day MA of 1689.43, indicating a bullish trend. The MACD of 3.45 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 92.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4732.

USS Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥817.47B19.0119.13%2.64%7.58%15.12%
66
Neutral
¥146.59B8.082.82%11.66%-7.47%
63
Neutral
¥59.16B10.404.49%8.56%-13.47%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
¥27.24B9.944.79%-6.89%-50.31%
53
Neutral
¥271.09B19.041.24%21.79%9.89%
48
Neutral
¥4.10B-10.591.08%-2.36%-1738.42%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4732
USS Co
1,771.50
464.76
35.57%
JP:3186
Nextage Co., Ltd.
3,495.00
1,984.84
131.43%
JP:7593
VT Holdings Co., Ltd.
499.00
38.78
8.43%
JP:7599
IDOM Inc.
1,460.00
341.18
30.49%
JP:7602
Carchs Holdings Co., Ltd.
198.00
70.83
55.69%
JP:8291
Nissan Tokyo Sales Holdings Co., Ltd.
520.00
69.46
15.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026