Cota Co., Ltd. (4923) AI Stock Analysis

• Market Cap: ¥41.37B
• Dividend Yield: 1.43%
• Average Volume (3M): 34.60K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.40
• Revenue Growth: 6.10%
• EPS Growth: 13.84%
• Country: JP
• Employees: 373
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -1.21
• Shares Outstanding: 32,934,660
• 10 Day Avg. Volume: 27,180
• 30 Day Avg. Volume: 34,603
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Cota Co., Ltd. demonstrates strong financial performance with robust revenue growth and no debt, which are major strengths. However, the lack of cash flow transparency in the TTM period and technical indicators suggesting potential bearish trends are concerns. The high P/E ratio indicates possible overvaluation, counterbalanced by a modest dividend yield. Overall, the company's financial stability supports a favorable stock score, though market momentum and valuation metrics suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, reinforcing the company's competitive position in the hair care industry.

Balance Sheet Health

A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without financial strain.

Profit Margin

High gross profit margins reflect efficient cost management and pricing power, supporting sustainable profitability in the long term.

Negative Factors

Cash Flow Transparency

Inadequate cash flow transparency can obscure financial health, making it difficult to assess the company's ability to sustain operations and fund growth.

EBIT Margin Decline

A declining EBIT margin may indicate rising costs or pricing pressures, which could impact profitability if not addressed over time.

Cash Flow Consistency

While historical cash generation is strong, inconsistent reporting raises concerns about future cash flow stability, affecting investment and operational decisions.

Cota Co., Ltd. Business Overview & Revenue Model

Company Description

Cota Co., Ltd. (4923) is a Japan-based company specializing in the development, manufacturing, and sale of hair care products. The company operates in the beauty and personal care sector, offering a range of products that include shampoos, conditioners, treatments, and styling products. Cota Co., Ltd. is known for its commitment to quality and innovation, catering primarily to professional salons and beauty establishments.

How the Company Makes Money

Cota Co., Ltd. generates revenue through the sale of its hair care products to professional salons and distributors. The company's primary revenue streams include direct sales to salons and bulk sales to distributors who then supply salons and retail outlets. By focusing on high-quality ingredients and innovative formulations, Cota Co., Ltd. maintains a competitive edge in the professional hair care market. The company may also engage in strategic partnerships and collaborations with salons and industry experts to enhance its market presence and drive sales growth.

Cota Co., Ltd. Financial Statement Overview

Summary

Cota Co., Ltd. exhibits strong financial health with consistent revenue growth and profitability, supported by a robust balance sheet with no debt. However, cash flow transparency needs improvement in the TTM period to ensure continued financial stability. The company's overall financial trajectory is positive, with a strong position in the Household & Personal Products industry.

Income Statement

Cota Co., Ltd. has demonstrated strong financial performance with steady revenue growth, increasing from ¥7.46 billion in 2020 to ¥9.26 billion TTM. The gross profit margin remains robust at approximately 70%, indicating effective cost management. Net profit margins are healthy, although there has been a slight decline in EBIT margin from prior years, which warrants monitoring.

Balance Sheet

The company maintains a strong balance sheet with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio is high, reflecting financial stability. Return on equity is competitive, further showcasing the company's effective utilization of its equity base.

Cash Flow

While the company has strong free cash flow, the lack of reported operating and capital expenditure cash flows in the TTM period raises concerns about cash flow visibility. Past periods indicate robust cash generation, but future periods need monitoring for consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.38B	9.38B	9.14B	8.80B	8.69B	7.76B
Gross Profit	6.52B	6.52B	6.37B	6.28B	6.21B	5.87B
EBITDA	2.20B	2.20B	2.27B	2.30B	2.23B	1.83B
Net Income	1.30B	1.30B	1.35B	1.56B	1.39B	1.17B
Balance Sheet
Total Assets	14.88B	14.88B	14.80B	13.69B	13.08B	11.59B
Cash, Cash Equivalents and Short-Term Investments	5.17B	5.17B	5.69B	5.37B	5.82B	5.44B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	3.67B	3.67B	3.76B	3.52B	3.54B	3.00B
Stockholders Equity	11.21B	11.21B	11.04B	10.18B	9.54B	8.58B
Cash Flow
Free Cash Flow	0.00	680.57M	906.18M	359.46M	749.57M	818.60M
Operating Cash Flow	0.00	998.56M	2.17B	1.30B	1.66B	1.38B
Investing Cash Flow	0.00	-389.42M	-1.21B	-473.40M	-1.29B	-88.42M
Financing Cash Flow	0.00	-1.14B	-485.84M	-922.50M	-434.21M	-331.97M

Cota Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1399.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4923, the sentiment is Neutral. The current price of 1399 is above the 20-day moving average (MA) of 1394.20, below the 50-day MA of 1422.78, and below the 200-day MA of 1477.58, indicating a neutral trend. The MACD of -5.75 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 87.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4923.

Cota Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4923	73 Outperform	¥41.37B	28.93		1.43%	6.10%	13.84%
4918	68 Neutral	¥1.75B	5.21		―	8.96%	―
4920	68 Neutral	¥2.36B	19.12		1.82%	2.29%	-70.23%
4925	63 Neutral	¥6.60B	10.31		2.29%	-3.27%	―
Sector *	62 Neutral	$20.32B	14.51	-3.18%	3.18%	1.92%	-6.57%
4929	61 Neutral	¥6.16B	159.76		1.56%	-9.81%	―
4926	45 Neutral	¥5.17B	20.49		1.66%	7.21%	―

Cota Co., Ltd. Corporate Events

Cota Co., Ltd. Reports Decline in Profits Despite Increased Sales

Cota Co., Ltd. reported its non-consolidated financial results for the nine months ended December 31, 2024. The company experienced a slight increase in net sales by 1.7% from the previous year, reaching ¥7,436 million. However, it faced declines in operating profit, ordinary profit, and net income, which decreased by 6.2%, 7.6%, and 8.6%, respectively. The company’s total assets slightly decreased, but there was an improvement in its capital adequacy ratio from 74.6% to 76.7%. The company confirmed that there is no change in the forecast for dividends and noted a revision in the financial results forecast for the fiscal year ending March 31, 2025. These results could indicate operational challenges and a potential impact on shareholder returns, although the improved capital adequacy might reassure some stakeholders about the company’s financial stability.