Muro Corporation (7264) AI Stock Analysis

• Market Cap: ¥7.29B
• Dividend Yield: 3.73%
• Average Volume (3M): 2.21K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.51
• Revenue Growth: -4.51%
• EPS Growth: -63.09%
• Country: JP
• Employees: 1,145
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Auto - Parts
• EPS (TTM): -24.08
• Shares Outstanding: 6,546,200
• 10 Day Avg. Volume: 3,050
• 30 Day Avg. Volume: 2,210
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,285.00
• Price Target Upside: 6.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥1,338.00 ▲(10.85%Upside)

The overall stock score of 70 reflects a balanced view of Muro Corporation's strengths and challenges. The strong balance sheet and reasonable valuation are positive factors, but concerns about profitability and liquidity, along with overbought technical indicators, temper the outlook. Investors should monitor these areas for future developments.

Muro Corporation Business Overview & Revenue Model

Company Description

Muro Corporation (7264) is a Japanese company primarily engaged in the manufacturing and distribution of construction materials and equipment. The company operates in various sectors, including the production of adhesives, sealants, and other related products for the construction and industrial markets. Muro Corporation is known for its innovative solutions that enhance construction processes and improve building performance, catering to a diverse clientele ranging from contractors to large-scale construction firms.

How the Company Makes Money

Muro Corporation generates revenue primarily through the sale of construction materials and specialized equipment. Its key revenue streams include the direct sale of adhesives and sealants, which are essential for various construction applications, as well as proprietary tools and machinery that support construction and manufacturing processes. The company also engages in strategic partnerships with other manufacturers and distributors, which helps expand its market reach and enhance product offerings. Additionally, Muro Corporation invests in research and development to innovate new products that meet evolving market demands, thereby driving sales growth and increasing its competitive advantage in the industry.

Muro Corporation Financial Statement Overview

Summary

Muro Corporation shows a mixed financial performance. The balance sheet is strong with low debt levels and a stable equity ratio, but profitability and cash flow are concerning. The declining net profit margin and negative free cash flow in 2025 indicate operational challenges.

Income Statement

Muro Corporation has shown a mixed performance in its income statement. The gross profit margin for 2025 is approximately 17.33%, indicating adequate cost management. However, the net profit margin fell to 2.15% in 2025 from 5.57% in 2024, suggesting a decline in profitability. Revenue growth is inconsistent, with a decrease in 2025 compared to the previous year's revenue. EBIT and EBITDA margins also show a downtrend, reflecting higher operating expenses relative to revenue.

Balance Sheet

The balance sheet of Muro Corporation is relatively strong. The debt-to-equity ratio is low, suggesting conservative leverage usage. Return on equity decreased to 2.20% in 2025 from 6.07% in 2024, which is a concern. However, the equity ratio remains stable at around 72.39%, indicating solid capital structure and financial stability.

Cash Flow

Cash flow analysis indicates challenges. Free cash flow turned negative in 2025, down from a positive free cash flow in 2024. The operating cash flow to net income ratio is 1.39, reflecting efficient cash generation, but declining free cash flow growth is a concern. The free cash flow to net income ratio is negative, highlighting cash flow pressures.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.59B	23.66B	21.84B	20.53B	18.97B
Gross Profit	3.91B	4.55B	3.36B	4.01B	3.41B
EBITDA	2.38B	3.46B	2.21B	3.37B	2.90B
Net Income	486.28M	1.32B	291.52M	1.35B	974.70M
Balance Sheet
Total Assets	30.49B	32.43B	28.05B	27.36B	26.75B
Cash, Cash Equivalents and Short-Term Investments	8.59B	9.68B	7.23B	6.95B	8.08B
Total Debt	2.39B	2.72B	1.92B	1.47B	2.64B
Total Liabilities	8.42B	10.75B	8.32B	8.05B	8.96B
Stockholders Equity	22.07B	21.68B	19.74B	19.31B	17.80B
Cash Flow
Free Cash Flow	-525.50M	1.39B	-598.14M	-91.94M	579.13M
Operating Cash Flow	677.70M	3.88B	1.06B	1.74B	2.78B
Investing Cash Flow	-1.39B	-2.17B	-1.48B	-1.34B	-1.74B
Financing Cash Flow	-705.31M	394.22M	159.06M	-1.55B	1.29B

Muro Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1207.00
• 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:7264, the sentiment is Positive. The current price of 1207 is above the 20-day moving average (MA) of 1185.15, above the 50-day MA of 1162.62, and above the 200-day MA of 1167.32, indicating a bullish trend. The MACD of 16.12 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 49.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7264.

Muro Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7254	78 Outperform	¥10.54B	3.58		2.57%	2.17%	66.19%
7264	70 Outperform	¥7.29B	15.00		3.73%	-4.51%	-63.09%
7235	70 Outperform	¥9.01B	6.32		4.76%	0.69%	7.21%
Sector *	61 Neutral	$16.45B	10.04	-8.59%	3.35%	1.53%	-21.72%
7291	61 Neutral	¥7.36B	130.16		3.90%	-2.95%	-97.72%
7277	56 Neutral	¥9.02B	―		2.56%	-3.96%	-462.50%
7297	52 Neutral	¥5.94B	36.06		3.56%	-5.00%	-272.36%