Morita Holdings Corporation (6455) AI Stock Analysis

• Market Cap: ¥125.60B
• Dividend Yield: 2.25%
• Average Volume (3M): 52.80K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.58
• Revenue Growth: 12.64%
• EPS Growth: 34.19%
• Country: JP
• Employees: 1,723
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 58.19
• Shares Outstanding: 46,918,545
• 10 Day Avg. Volume: 58,550
• 30 Day Avg. Volume: 52,800
• PEG Ratio: 0.16
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 9.46
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥3,112.00 ▲(12.92% Upside)

Morita Holdings Corporation's strong financial performance and solid valuation metrics are the primary drivers of its stock score. The technical analysis indicates strong momentum, though caution is advised due to overbought signals. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates a strong market position and increasing demand for its waste management solutions, supporting long-term business expansion.

Cash Flow Generation

Strong free cash flow growth enhances the company's ability to fund operations and investments, ensuring financial flexibility and supporting strategic initiatives.

Operational Efficiency

Effective cost management and operational efficiency contribute to sustained profitability, reinforcing the company's competitive advantage in the industrial machinery sector.

Negative Factors

Debt Levels

Rising debt levels could strain financial resources and limit future investment opportunities, potentially impacting long-term growth and stability.

Net Profit Margin Decline

A decline in net profit margin may indicate increasing costs or pricing pressures, which could affect future profitability if not addressed.

Free Cash Flow Management

A decline in the free cash flow to net income ratio suggests potential inefficiencies in cash management, which could impact the company's ability to reinvest in growth opportunities.

Morita Holdings Corporation Business Overview & Revenue Model

Company Description

Morita Holdings Corporation (6455) is a Japanese company primarily engaged in the manufacture and sale of specialized industrial machinery, particularly in the areas of waste treatment and recycling. The company operates through several segments, including environmental technology and machinery solutions, focusing on providing innovative products that promote sustainable waste management and resource recovery. Morita Holdings is recognized for its advanced technology in waste processing and is dedicated to contributing to environmental conservation and the circular economy.

How the Company Makes Money

Morita Holdings generates revenue primarily through the sale of its industrial machinery and technology solutions for waste treatment and recycling. Key revenue streams include the direct sales of waste processing equipment, maintenance and service contracts, and consultancy services related to waste management. The company also benefits from significant partnerships with local governments and private enterprises, which often require advanced waste management solutions. Additionally, Morita Holdings capitalizes on its expertise by providing training and support services to clients, further enhancing its revenue potential. The growing global emphasis on sustainable practices and regulations surrounding waste disposal and recycling also contributes to the company's earnings, as demand for its products and services continues to rise.

Morita Holdings Corporation Financial Statement Overview

Summary

Morita Holdings Corporation demonstrates strong profitability and a solid balance sheet with low leverage. While the company faces challenges in revenue growth, its operational efficiency and cash flow generation remain robust.

Income Statement

Morita Holdings Corporation shows strong profitability with a consistent gross profit margin around 27% and a net profit margin of approximately 8.5% in the TTM. However, the revenue growth rate has declined by 32.4% in the TTM, indicating a potential challenge in maintaining growth momentum. EBIT and EBITDA margins remain healthy, reflecting efficient operations.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio, indicating minimal leverage risk. Return on equity is stable at around 10%, showcasing effective use of equity. The equity ratio is strong, suggesting a robust capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow is strong, with a positive free cash flow growth rate of 6.2% in the TTM. The free cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the operating cash flow to net income ratio suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.30B	111.74B	95.20B	81.34B	83.60B	84.67B
Gross Profit	32.23B	30.47B	25.12B	19.34B	22.07B	22.15B
EBITDA	17.60B	17.07B	12.29B	8.63B	10.80B	11.86B
Net Income	10.18B	9.47B	6.01B	4.00B	5.35B	6.22B
Balance Sheet
Total Assets	143.58B	143.35B	139.69B	123.99B	125.17B	122.52B
Cash, Cash Equivalents and Short-Term Investments	31.45B	29.89B	26.38B	19.96B	29.28B	23.32B
Total Debt	6.67B	495.00M	1.43B	505.00M	6.32B	6.18B
Total Liabilities	42.93B	45.65B	48.11B	39.77B	43.26B	43.15B
Stockholders Equity	99.45B	96.53B	90.51B	83.22B	80.95B	78.05B
Cash Flow
Free Cash Flow	11.46B	9.54B	7.85B	-511.00M	9.57B	10.78B
Operating Cash Flow	12.48B	11.39B	11.17B	2.14B	10.54B	11.67B
Investing Cash Flow	-586.00M	-1.49B	-3.48B	-2.67B	-685.00M	-611.00M
Financing Cash Flow	-5.11B	-6.00B	-1.49B	-8.96B	-3.63B	-3.65B

Morita Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2756.00
• 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:6455, the sentiment is Positive. The current price of 2756 is above the 20-day moving average (MA) of 2657.85, above the 50-day MA of 2508.52, and above the 200-day MA of 2227.83, indicating a bullish trend. The MACD of 69.62 indicates Negative momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 66.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6455.

Morita Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6455	78 Outperform	¥125.60B	11.72	―	2.25%	12.64%	34.19%
6459	76 Outperform	¥83.00B	15.41	7.46%	3.69%	2.13%	-1.16%
6340	71 Outperform	¥94.90B	10.73	―	2.62%	8.65%	-23.00%
6486	69 Neutral	¥137.50B	18.31	―	3.93%	1.70%	18.50%
6284	68 Neutral	¥89.85B	11.89	―	3.26%	18.70%	33.93%
6490	67 Neutral	¥105.57B	12.27	―	2.71%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morita Holdings Corporation Corporate Events

Morita Holdings Completes Treasury Share Acquisition

Morita Holdings Corporation has completed the acquisition of 1,861,000 treasury shares at a total price of ¥4,658,083,000 through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Transactions (ToSTNeT-3). This move is part of a flexible capital policy aimed at adapting to changes in the business environment and returning value to shareholders, as resolved by the Board of Directors.

Morita Holdings Announces Strategic Treasury Share Acquisition

Morita Holdings Corporation announced its decision to acquire up to 2,000,000 treasury shares, equivalent to 4.67% of its total issued shares, as part of a flexible capital policy aimed at adapting to business environment changes and enhancing shareholder value. This strategic move, executed through the Tokyo Stock Exchange, underscores the company’s commitment to optimizing its capital structure and potentially boosting its stock value, reflecting positively on its market positioning.

Morita Holdings Corporation Reports Strong Financial Growth for H1 2025

Morita Holdings Corporation reported a significant increase in its financial performance for the six months ended September 30, 2025, with net sales rising by 10.7% and operating profit increasing by 23.1% compared to the previous year. The company’s strong financial results indicate a positive impact on its operations and suggest an enhanced market position, which could benefit its stakeholders.