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Cota Co., Ltd. (JP:4923)
:4923
Japanese Market

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

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JP

Cota Co., Ltd.

(4923)

Rating:73Outperform
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.

Cota Co., Ltd. (4923) vs. iShares MSCI Japan ETF (EWJ)

Cota Co., Ltd. Business Overview & Revenue Model

Company DescriptionCota Co., Ltd. manufactures and sells quasi drugs in Japan and internationally. The company offers hair and scalp care, styling, perm and curl, and coloring products. It serves beauty salons through sales offices and agents. Cota Co., Ltd. was incorporated in 1979 and is headquartered in Kyoto, Japan.
How the Company Makes MoneyCota 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
85
Very Positive
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
90
Very Positive
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
70
Positive
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
9.26B9.38B9.14B8.80B8.69B7.76B
Gross Profit
6.44B6.52B6.37B6.28B6.21B5.87B
EBIT
1.81B1.83B1.92B2.02B2.15B1.62B
EBITDA
2.08B2.20B2.27B2.43B2.23B1.83B
Net Income Common Stockholders
1.24B1.30B1.35B1.56B1.39B1.17B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.34B5.17B5.69B5.37B5.82B5.44B
Total Assets
14.43B14.88B14.80B13.69B13.08B11.59B
Total Debt
0.000.000.000.000.000.00
Net Debt
-4.34B-5.17B-3.69B-5.22B-5.82B-5.39B
Total Liabilities
3.36B3.67B3.76B3.52B3.54B3.00B
Stockholders Equity
11.07B11.21B11.04B10.18B9.54B8.58B
Cash FlowFree Cash Flow
0.00680.57M906.18M359.46M749.57M818.60M
Operating Cash Flow
0.00998.56M2.17B1.30B1.66B1.38B
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
Negative
Last Price1462.00
Price Trends
50DMA
1417.20
Positive
100DMA
1470.84
Negative
200DMA
1542.20
Negative
Market Momentum
MACD
5.81
Negative
RSI
49.19
Neutral
STOCH
67.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4923, the sentiment is Negative. The current price of 1462 is above the 20-day moving average (MA) of 1439.05, above the 50-day MA of 1417.20, and below the 200-day MA of 1542.20, indicating a neutral trend. The MACD of 5.81 indicates Negative momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 67.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4923.

Cota Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥42.99B31.23
1.37%2.52%-7.44%
65
Neutral
$8.89B15.014.75%203.76%3.54%-2.49%
63
Neutral
¥1.69B
7.97%-101.14%
61
Neutral
¥6.49B11.25
2.33%-2.13%
59
Neutral
¥2.12B9.79
1.98%17.16%-45.67%
55
Neutral
¥6.06B148.30
1.59%-7.66%
45
Neutral
¥4.85B35.56
1.77%0.10%-239.09%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4923
Cota Co., Ltd.
1,434.00
-18.40
-1.27%
JP:4918
Ivy Cosmetics Corporation
322.00
-58.00
-15.26%
JP:4920
Nippon Shikizai, Inc.
1,010.00
-508.73
-33.50%
JP:4925
HABA Laboratories, Inc.
1,719.00
-267.23
-13.45%
JP:4926
C'BON COSMETICS Co., Ltd.
1,121.00
-254.66
-18.51%
JP:4929
ADJUVANT HOLDINGS CO., LTD.
754.00
-102.45
-11.96%

Cota Co., Ltd. Corporate Events

Cota Co., Ltd. Reports Decline in Profits Despite Increased Sales
Jan 31, 2025

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.

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.