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

• Market Cap: ¥34.14B
• Dividend Yield: 1.81%
• Average Volume (3M): 63.93K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.38
• Revenue Growth: 0.22%
• EPS Growth: 4.15%
• Country: JP
• Employees: 373
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 6.03
• Shares Outstanding: 32,934,660
• 10 Day Avg. Volume: 38,720
• 30 Day Avg. Volume: 63,933
• PEG Ratio: -14.86
• Price to Book (P/B): 3.51
• Price to Sales (P/S): 4.20
• P/FCF Ratio: 57.82
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,237.00 ▲(8.03% Upside)

The score is supported by strong financial performance (high margins and a zero-debt balance sheet) but held back by weak technicals (price below key moving averages and negative MACD) and a valuation that is only moderate given a 23.9 P/E and ~1.76% dividend yield.

Positive Factors

Balance Sheet Health

A zero-debt balance sheet with growing equity indicates strong financial health, reducing financial risk and enhancing stability.

Profitability

High margins suggest effective cost management and pricing power, supporting sustainable profitability over time.

Operational Efficiency

Improved operational efficiency enhances profitability and competitiveness, contributing to long-term financial strength.

Negative Factors

Cash Flow Volatility

Volatile cash flow can impact financial planning and investment capacity, posing challenges to maintaining consistent operations.

Margin Pressure

Declining margins may indicate rising costs or increased competition, potentially affecting long-term profitability.

Revenue Decline

A decline in revenue could signal weakening demand or market share loss, impacting future growth prospects.

Cota Co., Ltd. Business Overview & Revenue Model

Company Description

Cota 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 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

Strong fundamentals overall: steady revenue growth and high profitability (gross margin ~70%, operating margin ~19.6% in 2025) alongside a very conservative balance sheet with zero debt and growing equity. The main offsets are softer margins versus 2022–2023 peaks and weaker/volatile cash conversion in 2025 (operating cash flow ~44% of net income).

Income Statement

Revenue has grown steadily over the period (from 7.46B in 2020 to 9.38B in 2025), including ~3% growth in 2025. Profitability remains strong with a high gross margin (~70%) and solid operating margin (~19.6%) in 2025. However, margins and earnings have drifted down from 2022–2023 peaks (net margin fell to ~13.9% in 2025 from ~17.7% in 2023), signaling some cost pressure or reinvestment that is moderating bottom-line performance.

Balance Sheet

The company shows a very conservative balance sheet with zero debt across all reported years and a consistently growing equity base (8.58B in 2021 to 11.21B in 2025). Returns on equity remain healthy (~11.6% in 2025), though down versus earlier highs (~15.3% in 2023), indicating profitability has softened while capital has grown. Overall financial risk appears low given the lack of leverage.

Cash Flow

Cash generation is positive but has been volatile. Operating cash flow fell materially in 2025 (0.999B vs. 2.168B in 2024), and operating cash flow covers less than half of net income in 2025 (~44%), suggesting weaker cash conversion this year. Free cash flow remains positive (0.681B in 2025) and equates to ~68% of net income, but free cash flow has fluctuated meaningfully over time (e.g., 1.215B in 2020 down to 0.359B in 2023), which reduces cash flow quality and predictability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.48B	9.38B	9.14B	8.80B	8.69B	7.76B
Gross Profit	6.59B	6.52B	6.37B	6.28B	6.21B	5.23B
EBITDA	2.24B	2.20B	2.27B	2.30B	2.23B	1.83B
Net Income	1.35B	1.30B	1.35B	1.56B	1.39B	1.17B
Balance Sheet
Total Assets	13.05B	14.88B	14.80B	13.69B	13.08B	11.59B
Cash, Cash Equivalents and Short-Term Investments	3.51B	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	2.43B	3.67B	3.76B	3.52B	3.54B	3.00B
Stockholders Equity	10.62B	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: Negative
• Last Price: 1145.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1145 is below the 20-day moving average (MA) of 1148.95, below the 50-day MA of 1167.60, and below the 200-day MA of 1338.94, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 44.85 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4918	68 Neutral	¥2.13B	6.21	―	―	12.96%	―
4920	68 Neutral	¥2.55B	10.78	―	1.72%	-6.06%	-97.12%
4923	66 Neutral	¥34.14B	24.48	―	1.81%	0.22%	4.15%
4925	63 Neutral	¥6.58B	8.43	―	2.38%	-0.79%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4929	60 Neutral	¥6.62B	48.43	―	1.59%	-9.99%	-35.06%
4926	58 Neutral	¥5.33B	17.04	―	1.68%	8.46%	―

Cota Co., Ltd. Corporate Events

Cota Co., Ltd. Reports Improved Profit Despite Decline in Sales

Cota Co., Ltd. reported its non-consolidated financial results for the six months ended September 30, 2025, showing a slight decrease in net sales by 1.5% compared to the previous year. However, the company experienced a notable increase in ordinary profit by 10.2% and profit by 9.4%, indicating improved operational efficiency. The equity-to-asset ratio also improved, suggesting a stronger financial position. The company maintained its dividend forecast, reflecting stability and confidence in its financial outlook.