Morita Holdings Corporation (6455) AI Stock Analysis

• Market Cap: ¥127.61B
• Dividend Yield: 2.25%
• Average Volume (3M): 52.80K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.61
• Revenue Growth: 12.64%
• EPS Growth: 34.19%
• Country: JP
• Employees: 1,723
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 49.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥3,206.00 ▲(13.69% Upside)

The score is primarily supported by strong financial performance (profitability, margin improvement, and very low leverage), complemented by reasonable valuation (moderate P/E and a ~2.2% dividend). Technicals are a secondary offset due to near-term weakness versus the 20-day average and subdued momentum signals, despite a constructive longer-term trend.

Positive Factors

Sustained Profitability and Margin Expansion

Robust trailing margins indicate structural pricing power and efficient operations in specialized waste machinery. Higher margins support reinvestment in R&D and service capabilities, enabling durable profit generation even if top-line growth moderates over the medium term.

Conservative Balance Sheet and Low Leverage

Very low leverage provides long-term financial resilience and strategic optionality: the company can fund capex, absorb demand shocks, or pursue partnerships without relying on costly external financing, reducing bankruptcy and liquidity risks.

Revenue Growth Trend

Sustained double-digit revenue growth reflects rising adoption of the firm's waste-treatment solutions and expanding service contracts. Given structural tailwinds toward sustainability and municipal/private partnerships, this trend supports durable market-share gains and recurring revenue.

Negative Factors

Cash-Flow Volatility and Conversion Risk

Irregular free cash flow and a prior negative FCF year point to working-capital swings and timing issues that can strain investment, dividends, or debt service. Persistent volatility reduces predictability of internally funded growth and increases reliance on balance-sheet flexibility.

Demand Cyclicality in Equipment Sales

Historical revenue swings highlight sensitivity to capex cycles for industrial and municipal customers. As a capital-equipment provider, earnings and utilization can fluctuate with municipal budgets and private investment, raising medium-term earnings variability.

Increasing Debt Trend (from low base)

An uptick in borrowings, even from a low base, warrants monitoring: if driven by investment or working-capital needs it could pressure margins or cash flow during downturns. A rising debt trajectory reduces the margin of safety provided by the historically conservative balance sheet.

Morita Holdings Corporation Business Overview & Revenue Model

Company Description

Morita Holdings Corporation, through its subsidiaries, develops, manufactures, and sells ladder trucks, fire trucks, and other fire trucks and specialty vehicles. The company offers fire trucks, including ladder trucks, chemical and water tenders, lighting tower vehicles/rescue trucks, aircraft rescue and fire fighting vehicles, multi-purpose fire fighting vehicles, and CAFS/water pumps; fire extinguishers and equipment; and lumbar support wear and lumbar support innerwear for women. It also provides recycling machines comprising shredder plants, scrap shears, and scrap baling presses, as well as recyclable, non-recyclable, combustible bulky, and incombustible bulky waste processing plants. In addition, the company offers environmental conservation vehicles consisting of cesspit emptiers, garbage collectors, container lifters, cleaning vehicles, vacuum tanks, and home-visit bathing service cars. Further, it provides waste recycling plants and hydraulic equipment; aerial platforms; electronic applied and information processing machinery; and maintenance services for fire trucks. The company was formerly known as Morita Corporation and changed its name to Morita Holdings Corporation in October 2008. Morita Holdings Corporation was founded in 1907 and is headquartered in Osaka, Japan.

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

Strong overall fundamentals driven by healthy profitability and margin expansion (TTM gross ~27.8%, operating ~13.1%, net ~8.9%) and a very conservative balance sheet (TTM debt-to-equity ~0.08, improving ROE ~10.6%). Main offset is cash-flow volatility, with TTM free cash flow down ~17% and a prior period of weak conversion (FY2023 negative FCF).

Income Statement

TTM (Trailing-Twelve-Months) shows strong operating performance with healthy profitability (gross margin ~27.8%, operating margin ~13.1%, net margin ~8.9%). Growth is a key positive: revenue is up strongly in TTM and has expanded meaningfully versus prior annual periods, alongside clear margin expansion since FY2023. Main watch-out is cyclicality/volatility—revenue was slightly down in FY2022–FY2023 before the sharp rebound, suggesting results can swing with demand conditions.

Balance Sheet

Balance sheet looks very conservative with low leverage (TTM debt-to-equity ~0.08) and a large equity base. Returns on equity are solid and improving (about ~10.6% in TTM vs mid-single digits in FY2023), indicating better profitability without taking on heavy balance-sheet risk. The key weakness is that debt rose versus the most recent annual snapshot (FY2025), though leverage remains low overall.

Cash Flow

Cash generation is generally supportive: TTM free cash flow is positive (~¥9.5B) and closely tracks earnings (free cash flow to net income ~0.91), which is a quality signal. However, consistency is the concern—free cash flow fell about 17% in TTM and FY2023 saw notably weak cash conversion (negative free cash flow), highlighting potential working-capital or timing-driven swings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.91B	111.74B	95.20B	81.34B	83.60B	84.67B
Gross Profit	32.78B	30.47B	25.12B	19.34B	22.07B	22.15B
EBITDA	18.38B	17.07B	12.29B	8.63B	10.80B	11.86B
Net Income	10.48B	9.47B	6.01B	4.00B	5.35B	6.22B
Balance Sheet
Total Assets	142.46B	143.35B	139.69B	123.99B	125.17B	122.52B
Cash, Cash Equivalents and Short-Term Investments	27.68B	29.89B	26.38B	19.96B	29.28B	23.32B
Total Debt	7.79B	495.00M	1.43B	505.00M	6.32B	6.18B
Total Liabilities	45.23B	45.65B	48.11B	39.77B	43.26B	43.15B
Stockholders Equity	96.00B	96.53B	90.51B	83.22B	80.95B	78.05B
Cash Flow
Free Cash Flow	9.48B	9.54B	7.85B	-511.00M	9.57B	10.78B
Operating Cash Flow	10.43B	11.39B	11.17B	2.14B	10.54B	11.67B
Investing Cash Flow	-828.00M	-1.49B	-3.48B	-2.67B	-685.00M	-611.00M
Financing Cash Flow	-9.46B	-6.00B	-1.49B	-8.96B	-3.63B	-3.65B

Morita Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6455, the sentiment is Neutral. The current price of 2820 is below the 20-day moving average (MA) of 2864.25, above the 50-day MA of 2754.32, and above the 200-day MA of 2343.27, indicating a neutral trend. The MACD of 29.37 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	¥127.61B	11.47	―	2.25%	12.64%	34.19%
6490	79 Outperform	¥152.50B	17.73	―	2.50%	-2.46%	-10.72%
6459	72 Outperform	¥79.28B	14.72	7.46%	3.69%	2.13%	-1.16%
6340	71 Outperform	¥97.39B	11.01	―	2.64%	8.65%	-23.00%
6486	70 Outperform	¥152.04B	20.25	―	3.88%	1.70%	18.50%
6284	68 Neutral	¥91.90B	12.16	―	3.24%	18.70%	33.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Morita Holdings Corporation Corporate Events

Morita Holdings to Cancel 1.5 Million Treasury Shares to Tighten Share Base

Morita Holdings Corporation has resolved to cancel 1.5 million shares of its treasury stock, representing 3.20% of the total issued shares prior to cancellation, with the effective date set for February 10, 2026. Following the cancellation, the company will have 45,418,542 issued shares outstanding and 4,446,640 treasury shares, equivalent to 9.79% of the total, a move that is expected to tighten the share float and may enhance capital efficiency and shareholder value by reducing the overall share count.

The most recent analyst rating on (JP:6455) stock is a Buy with a Yen3368.00 price target. To see the full list of analyst forecasts on Morita Holdings Corporation stock, see the JP:6455 Stock Forecast page.

Morita Holdings to Allocate Treasury Shares as Restricted Stock to Employee Shareholding Association

Morita Holdings Corporation’s board has approved the disposal of up to 40,669 shares of its treasury stock as restricted shares to the Morita Employee Shareholding Association, at a disposal price of 2,850 yen per share, for a maximum total of about 115.9 million yen. The shares will ultimately be allocated to up to 1,393 eligible employees of the company and its subsidiaries, with the final number of shares and total amount determined by actual employee participation and grade-based allocation. Under the new restricted stock incentive plan, employees will receive special monetary incentives, contribute them to the shareholding association, and in turn acquire Morita shares subject to transfer restrictions and potential clawback, a structure designed to support employees’ asset formation, enhance welfare, and more closely tie their interests and motivation to the company’s performance, stock price, and long‑term corporate value alongside other shareholders.

The most recent analyst rating on (JP:6455) stock is a Buy with a Yen3368.00 price target. To see the full list of analyst forecasts on Morita Holdings Corporation stock, see the JP:6455 Stock Forecast page.

Morita Holdings Posts Higher Nine-Month Earnings and Confirms Full-Year Outlook

Morita Holdings reported solid growth for the nine months ended December 31, 2025, with net sales rising 9.4% year on year to ¥71.7 billion and profit attributable to owners of the parent increasing 23.2% to ¥5.3 billion, driving basic earnings per share up to ¥125.60. The company’s financial position remains robust with total assets of ¥142.5 billion and an equity-to-asset ratio of 67.4%, and it affirmed its full-year forecast for modest top-line and earnings growth along with maintaining its planned annual dividend of ¥58 per share, signaling operational stability and continued shareholder returns.

The most recent analyst rating on (JP:6455) stock is a Buy with a Yen3368.00 price target. To see the full list of analyst forecasts on Morita Holdings Corporation stock, see the JP:6455 Stock Forecast page.

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.

The most recent analyst rating on (JP:6455) stock is a Buy with a Yen2570.00 price target. To see the full list of analyst forecasts on Morita Holdings Corporation stock, see the JP:6455 Stock Forecast page.

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.

The most recent analyst rating on (JP:6455) stock is a Buy with a Yen2570.00 price target. To see the full list of analyst forecasts on Morita Holdings Corporation stock, see the JP:6455 Stock Forecast page.