Morita Holdings Corporation (6455) AI Stock Analysis

• Market Cap: ¥112.20B
• Dividend Yield: 2.49%
• Average Volume (3M): 52.80K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.59
• 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: 80 Outperform
• Price Target: ¥2,993.00 ▲(13.67% Upside)

Morita Holdings Corporation scores well due to strong technical indicators and a solid valuation, supported by robust financial performance. The stock's bullish momentum and reasonable valuation make it attractive, although caution is advised due to potential overbought conditions.

Positive Factors

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility to invest in growth opportunities and withstand economic downturns.

Cash Generation Ability

Robust cash generation supports reinvestment in the business, dividend payments, and debt reduction, contributing to long-term financial health.

Profitability

Sustained profitability reflects efficient operations and pricing power, enabling the company to maintain competitive advantage and invest in future growth.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth can hinder the company's ability to expand market share and invest in new opportunities, impacting long-term performance.

Cash Flow Efficiency

Inefficient cash flow conversion can limit the company's ability to fund operations and growth initiatives, potentially affecting financial flexibility.

Revenue Growth Challenge

Slowing revenue growth may indicate market saturation or increased competition, posing a risk to sustaining long-term business expansion.

Morita Holdings Corporation Business Overview & Revenue Model

Company Description

Morita Holdings Corporation (6455) is a Japan-based company primarily engaged in the manufacturing and sale of environmental and industrial machinery. The company operates through various segments including waste management systems, recycling equipment, and industrial machines. Morita Holdings is known for its advanced technologies in waste treatment and resource recycling, providing solutions that cater to municipal and industrial needs for sustainable waste management.

How the Company Makes Money

Morita Holdings generates revenue through the sale of its machinery and systems, which include waste collection vehicles, shredders, and waste treatment plants. The company earns money by providing these products to municipalities, waste management companies, and industrial clients. Key revenue streams include the sale of new equipment, maintenance services, and parts supply for existing machinery. Additionally, Morita Holdings may engage in partnerships with governmental and private entities to develop large-scale waste management projects, contributing further to its earnings through contracts and service agreements.

Morita Holdings Corporation Financial Statement Overview

Summary

Morita Holdings Corporation demonstrates strong profitability with healthy margins and a solid balance sheet with low leverage. However, the decline in revenue growth presents a challenge, despite robust operational efficiency and cash flow generation.

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	111.38B	111.74B	95.20B	81.34B	83.60B	84.67B
Gross Profit	30.94B	30.47B	25.12B	19.34B	22.07B	22.15B
EBITDA	16.40B	17.07B	12.29B	8.63B	10.80B	11.86B
Net Income	9.25B	9.47B	6.01B	4.00B	5.35B	6.22B
Balance Sheet
Total Assets	137.85B	143.35B	139.69B	123.99B	125.17B	122.52B
Cash, Cash Equivalents and Short-Term Investments	30.80B	29.89B	26.38B	19.96B	29.28B	23.32B
Total Debt	5.87B	495.00M	1.43B	505.00M	6.32B	6.18B
Total Liabilities	40.79B	45.65B	48.11B	39.77B	43.26B	43.15B
Stockholders Equity	95.89B	96.53B	90.51B	83.22B	80.95B	78.05B
Cash Flow
Free Cash Flow	10.13B	9.54B	7.85B	-511.00M	9.57B	10.78B
Operating Cash Flow	11.84B	11.39B	11.17B	2.14B	10.54B	11.67B
Investing Cash Flow	-1.40B	-1.49B	-3.48B	-2.67B	-685.00M	-611.00M
Financing Cash Flow	-6.11B	-6.00B	-1.49B	-8.96B	-3.63B	-3.65B

Morita Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2633.00
• 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:6455, the sentiment is Positive. The current price of 2633 is above the 20-day moving average (MA) of 2491.05, above the 50-day MA of 2399.85, and above the 200-day MA of 2182.48, indicating a bullish trend. The MACD of 58.22 indicates Negative momentum. The RSI at 71.64 is Negative, neither overbought nor oversold. The STOCH value of 89.23 is Negative, 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	80 Outperform	¥112.20B	10.47	―	2.49%	12.64%	34.19%
6459	76 Outperform	$80.25B	14.90	7.46%	3.99%	2.13%	-1.16%
6284	73 Outperform	¥100.68B	13.39	―	3.08%	18.70%	33.93%
6340	71 Outperform	¥94.07B	9.36	―	2.63%	8.65%	-23.00%
6486	69 Neutral	¥136.61B	24.01	―	3.82%	1.70%	18.50%
6490	67 Neutral	¥121.53B	14.42	―	2.66%	-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 Disposal for Compensation

Morita Holdings Corporation has completed the payment procedures for the disposal of treasury shares as restricted stock compensation, a decision made at the Board of Directors meeting on July 3, 2025. This move involves the disposal of 103,493 shares of common stock at a price of 2,122 yen per share, totaling 219,612,146 yen, and is aimed at compensating directors and executive officers, potentially impacting the company’s financial structure and stakeholder interests.