Moresco Corporation (5018) AI Stock Analysis

• Market Cap: ¥13.92B
• Dividend Yield: 3.03%
• Average Volume (3M): 8.04K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.50
• Revenue Growth: 1.59%
• EPS Growth: -26.64%
• Country: JP
• Employees: 821
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 29.29
• Shares Outstanding: 9,696,500
• 10 Day Avg. Volume: 6,310
• 30 Day Avg. Volume: 8,036
• PEG Ratio: -0.53
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 6.13
• 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: 79 Outperform
• Price Target: ¥1,574.00 ▲(18.35% Upside)

Moresco Corporation's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the primary driver of its stock score. The technical analysis supports a stable outlook with positive momentum, while the valuation metrics indicate the stock is attractively priced with a good dividend yield. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective product demand across key sectors, supporting long-term business expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial resilience, enabling the company to navigate economic fluctuations and invest in growth opportunities.

Cash Flow Generation

Robust cash flow generation supports ongoing operations and strategic investments, ensuring the company can sustain its growth and operational needs.

Negative Factors

Net Profit Margin Decline

The decline in net profit margin suggests challenges in converting sales into profit, which may impact overall profitability if not addressed.

Return on Equity Decline

A decline in return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence.

Cash Profitability Potential

While cash flow is strong, the potential for improved cash profitability could enhance financial flexibility and support further growth initiatives.

Moresco Corporation Business Overview & Revenue Model

Company Description

Moresco Corporation (5018) is a prominent Japanese company primarily engaged in the manufacturing and supply of high-performance lubricants and specialty chemicals. Operating within the chemical sector, Moresco focuses on providing innovative solutions for various industries, including automotive, electronics, and metalworking. The company's core products encompass cutting oils, processing fluids, and cleaning agents, which are designed to enhance operational efficiency and product quality for its clients.

How the Company Makes Money

Moresco Corporation generates revenue through the sale of its specialized lubricants and chemicals across multiple sectors. The company's revenue model is largely based on product sales, with key revenue streams coming from the automotive and industrial markets, where they supply essential lubricants and processing fluids. Additionally, Moresco benefits from long-term contracts and partnerships with manufacturers in the automotive and electronics industries, which provide a steady demand for their products. The company also invests in research and development to innovate new products, which helps to capture additional market share and increase sales. Furthermore, Moresco's global distribution network enhances its ability to reach customers effectively, contributing positively to its revenue generation.

Moresco Corporation Financial Statement Overview

Summary

Moresco Corporation demonstrates solid financial health with consistent revenue growth, strong profitability margins, and a robust balance sheet. While net profit margins have slightly decreased, the company's low leverage and strong equity position provide financial resilience. The cash flow situation is positive, though there is potential to enhance cash profitability. Overall, Moresco Corporation is well-positioned within the specialty chemicals industry, balancing growth and stability effectively.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.14B	34.37B	31.89B	30.33B	27.30B	24.48B
Gross Profit	10.18B	9.96B	8.98B	8.13B	8.72B	7.84B
EBITDA	3.07B	2.95B	3.34B	2.42B	4.19B	2.38B
Net Income	943.00M	1.01B	1.28B	615.00M	1.81B	518.00M
Balance Sheet
Total Assets	36.57B	38.30B	37.05B	32.02B	29.01B	27.71B
Cash, Cash Equivalents and Short-Term Investments	5.07B	5.51B	5.64B	4.26B	4.00B	4.11B
Total Debt	4.48B	5.12B	6.11B	2.85B	968.00M	3.36B
Total Liabilities	12.24B	13.29B	13.93B	10.78B	8.46B	9.54B
Stockholders Equity	21.14B	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: 1330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1330 is below the 20-day moving average (MA) of 1408.30, below the 50-day MA of 1381.00, and above the 200-day MA of 1271.19, indicating a bullish trend. The MACD of 22.34 indicates Negative momentum. The RSI at 79.64 is Negative, neither overbought nor oversold. The STOCH value of 93.02 is Negative, 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	¥13.92B	14.43	―	3.03%	1.59%	-26.64%
4957	74 Outperform	¥14.05B	8.11	―	0.88%	5.90%	135.08%
4635	69 Neutral	¥19.17B	11.44	―	3.61%	8.85%	110.05%
4620	64 Neutral	¥18.61B	28.09	―	2.86%	-3.46%	-52.24%
4406	62 Neutral	¥8.35B	17.84	―	1.35%	-2.76%	-25.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4228	55 Neutral	¥18.30B	-1.99	―	3.23%	-0.45%	-3792.87%