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Milbon Co Ltd (JP:4919)
:4919
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Milbon Co
(OTC:4919)
Rating:72Outperform
Price Target:―
Milbon Co (4919) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$80.63B
Dividend Yield2.07%
Average Volume (3M)132.40K
Price to Earnings (P/E)17.9
Beta (1Y)0.52
Revenue Growth7.44%
EPS Growth25.31%
CountryJP
Employees1,188
SectorConsumer Defensive
Sector Strength63
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)14.20
Shares Outstanding33,117,233
10 Day Avg. Volume125,430
30 Day Avg. Volume132,400
Financial Highlights & Ratios
PEG Ratio-1.76
Price to Book (P/B)1.72
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2,900.29Price Target Upside16.95% Upside
Rating ConsensusHold
Number of Analyst Covering1
Milbon Co Business Overview & Revenue Model
Company DescriptionMilbon Co., Ltd. is a leading Japanese company in the cosmetics industry, primarily focusing on the development, manufacture, and sale of professional haircare and skincare products. Established in 1960, the company has built a strong reputation for its innovative and high-quality products used in salons and by professional stylists. Milbon's extensive product line includes shampoos, conditioners, treatments, and styling products designed to meet diverse haircare needs.
How the Company Makes MoneyMilbon Co. makes money through the sale of its professional haircare and skincare products, which are distributed primarily to salons and beauty professionals. The company generates revenue by leveraging its strong brand identity and extensive product range, catering to both domestic and international markets. Milbon's revenue streams are bolstered by its partnerships with salons, where it provides exclusive products and training programs to stylists, enhancing brand loyalty and product adoption. Additionally, the company invests in research and development to continuously innovate and improve its offerings, ensuring a competitive edge in the beauty industry.
Milbon Co Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q2-2024)
| % Change Since: -9.72%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment overall, with notable achievements in revenue growth, product launches, and strategic initiatives. While challenges remain in China and some product categories, the company's strong performance in other regions and sectors offsets these issues.Q2-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
Milbon recorded JPY 24.526 billion in consolidated net sales, a year-on-year increase of 8.0%, surpassing the forecast by 2.3%.
Strong Performance in Japan and Overseas
Japan's net sales grew by 6.9% year-on-year, while overseas sales grew by 11.4%, driven by South Korea and the U.S.
Improvement in Gross Profit Margin
Gross profit margin showed a recovery trend from Q1 to Q2, driven by higher sales and cost containment efforts.
Successful High-End Product Launches
Aujua's Presedia and Elujuda's Frizz Fixer performed well, highlighting Milbon's R&D capabilities.
Milbon's Smart Salon and E-commerce Initiatives
Milbon:iD is on track to reach 1 million users, and Smart Salon locations increased from 23 to 44 within six months.
Significant Growth in North America
The U.S. market saw strong growth in hair care products, with Sophistone boosting brand awareness.
Negative Updates
Challenges in China
Faced headwinds in China with a decline in salon visit frequency and hair coloring product sales.
Fashion Color Products Underperformance
Fashion color products in Japan declined by 4% year-on-year, impacting overall sales.
Logistics and Cost Structure Challenges
Issues with personnel productivity and logistics inefficiencies highlighted as areas needing improvement.
High Raw Material Costs
Despite some relief, high raw material costs continue to impact the business.
Company Guidance
In the second quarter of fiscal year 2024, Milbon reported a robust financial performance, with consolidated net sales reaching JPY 24.526 billion, marking an 8.0% year-on-year increase and surpassing the forecast by 2.3%. Domestic operations contributed approximately 75% of net sales, or JPY 18.367 billion, with a growth of 6.9% year-on-year, driven primarily by a 9% increase in hair care product sales. Overseas sales, accounting for 25% of the total, grew by 11.4%, influenced by a weaker yen, while actual growth, excluding currency effects, was 2.8%. Notably, South Korea and the U.S. markets offset challenges in China, where net sales saw a contraction. Operating income also exceeded expectations, supported by improved gross profit margins and controlled SG&A expenses. The company's strategic focus on high-end hair care products and the expansion of their Smart Salon initiative contributed significantly to these positive results, while efforts to manage rising raw material costs and logistics are ongoing. Milbon remains on track to meet its full-year targets and maintains its dividend commitment for fiscal 2024.Milbon Co Financial Statement Overview
Summary
Milbon Co's financial health is strong across the board, with consistent revenue growth, high profitability, and a solid balance sheet devoid of debt. The company effectively converts its income into cash, supporting its operations and growth initiatives. Milbon Co is well-positioned in its industry with minimal financial risk and a promising growth trajectory.Income Statement
Milbon Co showcases strong financial performance with consistent revenue growth and robust profitability metrics. The gross profit margin has improved from previous years, and the net profit margin stands firm at around 10%. Revenue growth rate over the past year was approximately 7.4%, signaling a positive trajectory. EBIT and EBITDA margins are solid, reflecting efficient operations.85
Very Positive
Balance Sheet
The balance sheet of Milbon Co is remarkably strong, with no debt and a high equity ratio of approximately 82.9%. Return on Equity (ROE) is impressive at approximately 10.3%, indicating effective use of shareholder equity to generate profits. The firm's assets are largely funded by equity, minimizing financial risk.92
Very Positive
Cash Flow
Cash flow analysis reveals a robust free cash flow growth rate of approximately 249% year-over-year, signaling strong cash generation. The operating cash flow to net income ratio exceeds 1, indicating healthy cash conversion. The free cash flow to net income ratio is also favorable, underscoring efficient capital expenditure management.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 51.32B | 47.76B | 45.24B | 41.58B | 35.73B | Gross Profit |
| 32.60B | 29.53B | 29.51B | 27.50B | 23.39B | EBIT |
| 6.84B | 5.53B | 7.55B | 7.82B | 6.39B | EBITDA |
| 9.11B | 7.80B | 9.63B | 9.60B | 7.50B | Net Income Common Stockholders |
| 5.02B | 4.00B | 5.58B | 5.11B | 4.20B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.83B | 11.34B | 12.30B | 13.55B | 12.35B | Total Assets |
| 58.90B | 53.39B | 52.76B | 48.24B | 43.08B | Total Debt |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Debt |
| -13.78B | -11.34B | -12.30B | -13.35B | -12.35B | Total Liabilities |
| 10.08B | 7.46B | 8.77B | 8.04B | 6.77B | Stockholders Equity |
| 48.82B | 45.93B | 43.99B | 40.20B | 36.31B |
| Cash Flow | Free Cash Flow | |||
| 5.43B | 1.56B | 1.19B | 2.15B | 4.58B | Operating Cash Flow |
| 7.63B | 4.77B | 5.01B | 6.64B | 6.55B | Investing Cash Flow |
| -2.53B | -3.11B | -3.87B | -4.00B | -161.78M | Financing Cash Flow |
| -2.86B | -2.80B | -2.58B | -1.92B | -3.42B |
Milbon Co Technical Analysis
Negative
2480.00
Price Trends
2681.16
Negative
2886.83
Negative
3032.39
Negative
Market Momentum
-50.06
Negative
38.27
Neutral
55.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4919, the sentiment is Negative. The current price of 2480 is below the 20-day moving average (MA) of 2503.45, below the 50-day MA of 2681.16, and below the 200-day MA of 3032.39, indicating a bearish trend. The MACD of -50.06 indicates Negative momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 55.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4919.
Milbon Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥136.85B | 10.19 | 3.44% | 16.98% | 393.40% | ||
72 Outperform | $80.63B | 17.92 | 9.60% | 2.07% | 7.44% | 25.31% | |
67 Neutral | $61.40B | 33.09 | 2.70% | 2.82% | 4.03% | -28.63% | |
65 Neutral | $8.89B | 15.01 | 4.75% | 203.76% | 3.54% | -2.49% | |
63 Neutral | ¥1.69B | ― | ― | 7.97% | -101.14% | ||
59 Neutral | ¥419.72B | 19.72 | 7.58% | 1.73% | 2.30% | 33.87% | |
54 Neutral | ¥950.18B | 496.62 | 1.68% | -1.33% | -139.30% |
* Consumer Defensive Sector Average
Performance Comparison
JP:4919
Milbon Co
2,480.00
-716.98
-22.43%
JP:4911
Shiseido Company,Limited
2,366.00
-2,619.06
-52.54%
JP:4914
Takasago International Corporation
6,970.00
3,442.73
97.60%
JP:4918
Ivy Cosmetics Corporation
322.00
-58.00
-15.26%
JP:4917
Mandom
1,384.00
204.06
17.29%
JP:4912
Lion
1,546.50
292.85
23.36%
Milbon Co Corporate Events
Milbon Co. Announces Treasury Shares Disposal for Executive Compensation
Apr 16, 2025
Milbon Co., Ltd. has announced the disposal of 30,314 treasury shares as restricted shares to its Board Directors and Executive Officers, as part of a compensation plan designed to align their interests with long-term corporate goals. This move is intended to provide incentives for sustained improvement in corporate value and to promote value sharing with shareholders, reflecting the company’s commitment to strategic growth and stakeholder engagement.
Milbon Co. Enhances Global Investor Communication with New Research Report
Mar 14, 2025
Milbon Co., Ltd. has commissioned a sponsored research report to enhance communication with overseas investors and provide a clearer understanding of its business model and financial trends. This initiative, executed by Nippon Investment Bespoke Research UK Ltd, marks the company’s first English-language analyst report, aiming to support investor relations activities and broaden its international investor base.
Milbon Co. Adopts New Management Policy to Boost Corporate Value
Feb 14, 2025
Milbon Co., Ltd. has announced a new management policy centered on enhancing corporate value by focusing on capital costs and stock prices. This decision, made at the recent Board of Directors meeting, aims to strategically align the company’s operations with market expectations and improve its financial standing.
Milbon Co. Announces Strong Fiscal Year 2024 Results
Feb 14, 2025
Milbon Co. reported strong financial results for the fiscal year ended December 31, 2024, with a notable increase in net sales, operating income, and profit attributable to owners compared to the previous year. These results reflect a solid operational performance, enhancing their market positioning and potentially benefiting stakeholders through improved returns. The company’s financial stability is further demonstrated by the growth in total assets and cash flows, indicating a robust fiscal health going into the next financial year.
Milbon Co., Ltd. Reports Strong Financial Growth in 2024
Feb 14, 2025
Milbon Co., Ltd. announced its consolidated financial results for the fiscal year ending December 31, 2024, reporting a significant increase in net sales and profits compared to the previous year. The impressive growth in operating income and profit attributable to owners reflects a robust financial performance, positioning the company well in its industry and indicating potential positive implications for its stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.