Moresco Corporation (5018) AI Stock Analysis

• Market Cap: ¥11.51B
• Dividend Yield: 4.07%
• Average Volume (3M): 5.29K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.47
• Revenue Growth: 6.43%
• EPS Growth: -23.18%
• Country: JP
• Employees: 821
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 25.84
• Shares Outstanding: 9,696,500
• 10 Day Avg. Volume: 6,290
• 30 Day Avg. Volume: 5,290
• PEG Ratio: -0.26
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.88
• 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: ¥1,344.00
• Price Target Upside: 9.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,399.00 ▲(14.02%Upside)

Moresco Corporation scores well due to its strong financial performance and attractive valuation, leading to a robust overall stock score. The technical analysis suggests stable to positive momentum, further supporting the stock's potential. The absence of earnings call and corporate events data does not detract from the positive outlook.

Moresco Corporation Business Overview & Revenue Model

Company Description

Moresco Corporation (5018) is a Japanese company that operates primarily in the chemical industry. It specializes in the development, production, and marketing of specialty chemicals, including lubricants, adhesives, and sealing materials. The company's products serve a wide array of industries, including automotive, electronics, and construction, providing solutions that enhance the performance and longevity of various applications.

How the Company Makes Money

Moresco Corporation generates revenue through the sale of its specialty chemical products. Its key revenue streams include the automotive sector, where it supplies lubricants and adhesives for vehicle manufacturing and maintenance, and the electronics industry, where its products are used in the production of electronic components and devices. The company also engages in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Additionally, Moresco invests in research and development to innovate and create high-performance materials that meet the evolving demands of its diverse customer base.

Moresco Corporation Financial Statement Overview

Summary

Moresco Corporation demonstrates solid financial health with consistent revenue growth, strong profitability margins, and a robust balance sheet. The company maintains low leverage and a strong equity position, although there is a slight decrease in net profit margins. Positive cash flow generation supports operational needs, with room for enhancing cash profitability.

Income Statement

Moresco Corporation shows strong revenue growth with a 7.80% increase from 2024 to 2025. The gross profit margin remains robust at 28.97% for 2025, indicating efficient cost management. However, the net profit margin decreased slightly to 2.95% from 4.02% in the previous year, suggesting challenges in converting sales into profit. EBIT and EBITDA margins are stable, reflecting healthy operational performance despite the minor dip in net income.

Balance Sheet

The company maintains a strong balance sheet with a consistent equity ratio of 56.63% in 2025. The debt-to-equity ratio is low at 0.24, reflecting prudent financial leverage. Return on equity slightly declined to 4.67% from 6.37% in the previous year, but remains satisfactory given the industry context. Overall, the balance sheet indicates financial stability and strong equity backing.

Cash Flow

Operating cash flow remains strong at ¥2.75 billion in 2025, with a high operating cash flow to net income ratio of 2.72. Free cash flow improved significantly to ¥1.78 billion, reflecting effective capital expenditure management. However, free cash flow to net income ratio is at 1.76, suggesting room for improvement in cash profitability. The company shows consistent cash flow generation, supporting ongoing operational needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.07B	34.37B	31.89B	30.33B	27.30B	24.48B
Gross Profit	9.86B	9.96B	8.98B	8.13B	8.72B	7.84B
EBITDA	2.62B	2.95B	3.34B	2.42B	4.19B	2.38B
Net Income	768.00M	1.01B	1.28B	615.00M	1.81B	518.00M
Balance Sheet
Total Assets	37.88B	38.30B	37.05B	32.02B	29.01B	27.71B
Cash, Cash Equivalents and Short-Term Investments	5.25B	5.51B	5.64B	4.26B	4.00B	4.11B
Total Debt	5.62B	5.12B	6.11B	2.85B	968.00M	3.36B
Total Liabilities	14.01B	13.29B	13.93B	10.78B	8.46B	9.54B
Stockholders Equity	20.70B	21.68B	20.13B	18.53B	17.96B	15.90B
Cash Flow
Free Cash Flow	0.00	1.78B	217.00M	-828.00M	1.37B	1.60B
Operating Cash Flow	0.00	2.75B	2.93B	515.00M	2.33B	2.09B
Investing Cash Flow	0.00	-1.21B	-4.25B	-1.17B	603.00M	-660.00M
Financing Cash Flow	0.00	-1.68B	2.82B	1.23B	-2.94B	-1.02B

Moresco Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1227.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5018, the sentiment is Positive. The current price of 1227 is above the 20-day moving average (MA) of 1225.50, above the 50-day MA of 1209.06, and above the 200-day MA of 1222.33, indicating a bullish trend. The MACD of 5.57 indicates Negative momentum. The RSI at 66.41 is Neutral, neither overbought nor oversold. The STOCH value of 47.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5018.

Moresco Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5018	79 Outperform	¥11.51B	11.41		4.07%	6.43%	-23.18%
4635	77 Outperform	¥10.91B	9.35		6.25%	6.57%	32.39%
4620	67 Neutral	¥16.39B	32.29		3.29%	5.54%	-52.06%
4957	66 Neutral	¥8.14B	5.26		1.51%	11.14%	148.17%
4406	60 Neutral	¥7.61B	15.07		1.47%	-0.49%	137.27%
Sector *	58 Neutral	HK$16.41B	4.43	-5.52%	5.25%	-3.57%	-61.41%
4228	55 Neutral	¥15.37B	10.88		5.88%	5.23%	-679.41%