Recurring Consumable RevenueMoresco’s core products are consumables used in machining and industrial processes, creating repeat purchase streams tied to customer production. This business model yields durable, predictable revenue and strengthens customer stickiness via technical service relationships and ongoing replenishment contracts.

Healthy Gross Margins And Top-line GrowthSustained revenue growth alongside a near-29% gross margin indicates the company can command pricing for specialty formulations and manage production costs. This margin headroom supports reinvestment, withstands input cost fluctuations, and underpins medium-term operational resilience.

Strong Cash Generation And Conservative LeverageRobust operating and free cash flows combined with low leverage provide financial flexibility for capex, R&D, and dividends. A strong equity ratio and low D/E reduce refinancing and solvency risk, supporting durable funding of operations and strategic initiatives over the medium term.

Bears Say

Profitability CompressionDespite solid gross margins, net profit and ROE have fallen, indicating cost, SG&A, or other non-operating pressures limiting conversion of sales to earnings. Persistently thin net margins reduce the company’s buffer against downturns and limit reinvestment or dividend expansion.

Cyclicality Of End MarketsDemand for machining fluids and industrial lubricants tracks manufacturing output. This exposes Moresco to volume swings in economic slowdowns or sector-specific downturns, making revenue and margin visibility more sensitive to macro and industrial cycles over the next several months.

Product-mix And Commodity ExposureThe company’s profitability depends on maintaining a higher-value specialty mix; shifts toward commodity-like products or competitive price pressure would compress margins. Managing mix and innovation is therefore critical to sustain durable margin levels over time.

5018 FAQ

What was Moresco Corporation’s price range in the past 12 months?

Moresco Corporation lowest stock price was ¥1045.00 and its highest was ¥2083.00 in the past 12 months.

What is Moresco Corporation’s market cap?

Moresco Corporation’s market cap is ¥19.33B.

When is Moresco Corporation’s upcoming earnings report date?

Moresco Corporation’s upcoming earnings report date is Apr 14, 2026 which is in 57 days.

How were Moresco Corporation’s earnings last quarter?

Moresco Corporation released its earnings results on Jan 13, 2026. The company reported ¥72.9 earnings per share for the quarter, beating the consensus estimate of N/A by ¥72.9.

Is Moresco Corporation overvalued?

According to Wall Street analysts Moresco Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Moresco Corporation pay dividends?

Moresco Corporation pays a Semiannually dividend of ¥25 which represents an annual dividend yield of 3.03%. See more information on Moresco Corporation dividends here

What is Moresco Corporation’s EPS estimate?

Moresco Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Moresco Corporation have?

Moresco Corporation has 9,696,500 shares outstanding.

What happened to Moresco Corporation’s price movement after its last earnings report?

Moresco Corporation reported an EPS of ¥72.9 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.779%.

Which hedge fund is a major shareholder of Moresco Corporation?

Currently, no hedge funds are holding shares in JP:5018

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Moresco Corporation

MORESCO Corporation, together with its subsidiaries, develops, manufactures, and sells chemicals in Japan and internationally. The company offers functional fluids, such as high vacuum pump oils, fire resistant hydraulic fluids, die-casting lubricants, cutting fluids, brake fluids, antifreeze products, heat-conducting media, and lubricants for hot forging; synthetic lubricants, including high temperature lubricating oils, hard disk surface lubricants, and radiation-resistant lubricants; and liquid paraffin and sulfonates. It also provides hot melt adhesives, organic device sealants, gas/water vapor transmission rate analyzers, organic photovoltaics, plunger lubricants, grease products, and wastewater-treatment equipment, as well as chemical analysis testing services. In addition, the company is involved in the building rental business. Its products are used in automobiles, iron and steel, construction materials, electronic equipment and home electric appliances, sanitary and daily goods, plastic, fiber, food, packaging materials, nuclear power related, cosmetics/pharmaceuticals, aircraft, factory and equipment related, industrial machinery, wastewater treatment, and other applications. The company was formerly known as Matsumura Oil Reserch Corp. and changed its name to MORESCO Corporation in 2009. MORESCO Corporation was founded in 1958 and is headquartered in Kobe, Japan.