Matsuda Sangyo Co., Ltd. (7456) AI Stock Analysis

• Market Cap: ¥141.87B
• Dividend Yield: 1.72%
• Average Volume (3M): 76.92K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.74
• Revenue Growth: 32.43%
• EPS Growth: 39.26%
• Country: JP
• Employees: 1,624
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Distribution
• EPS (TTM): 118.81
• Shares Outstanding: 26,908,580
• 10 Day Avg. Volume: 126,350
• 30 Day Avg. Volume: 76,916
• PEG Ratio: 0.32
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -84.72
• 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: 70 Outperform
• Price Target: ¥6,952.00 ▲(31.67% Upside)

The score is driven primarily by stable financial performance and balance sheet strength, tempered by weak free cash flow. Technicals are supportive due to a strong uptrend but are becoming overextended, while valuation appears reasonable with a modest dividend yield.

Positive Factors

Balance sheet strength

A moderate debt-to-equity ratio and a 56% equity ratio provide financial stability and capacity to absorb shocks. Sustained ROE near 11% indicates management is generating acceptable returns on equity, supporting long-term resilience and optionality for reinvestment or selective acquisitions.

Diversified business model

Running both precious-metals recycling/refining and a food-ingredients wholesale business reduces single-market dependence. This structural diversification smooths revenue cyclicality across commodity-driven and demand-driven food channels, supporting steadier cash flows over business cycles.

Consistent revenue growth & stable margins

Sustained top-line growth with stable gross and operating margins signals competitive execution and pricing/processing discipline. Consistency in margins implies durable unit economics in core processing and distribution activities, which supports predictable profitability over the medium term.

Negative Factors

Weak cash generation

Persistent negative free cash flow and a low OCF-to-net-income ratio indicate earnings are not translating into robust cash, limiting internal funding for capex, dividends, or debt reduction. This structural cash conversion weakness raises refinancing and growth funding risks over months ahead.

Modest net profitability

A sub-2% net margin constrains retained earnings and reduces buffers against cost shocks. Even with stable gross margins, low bottom-line profitability limits reinvestment and makes the company more vulnerable to margin compression from input cost increases or competitive price pressure over time.

Commodity and volume sensitivity

Reliance on trading, recycling and price spreads ties earnings to volatile metal prices and industrial production cycles. Structural exposure to commodity price swings and transaction volumes can produce prolonged revenue and margin variability, requiring active risk management to stabilize results.

Matsuda Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

MATSUDA SANGYO Co., Ltd. engages in the precious metals, environmental, and food businesses in Japan. It offers wiring connection, film forming, precious metal, plating, and catalyst materials; jewelry materials and products; precious metal ingots; and instruments for clean rooms, measuring equipment, industrial water treatment systems, and chlorine producing equipment. The company is also involved in the cleaning of semiconductor manufacturing equipment. In addition, it engages in the neutralization and dehydration of waste acids and alkali; incineration of waste oils, acids, alkali, and sludge and waste plastics; crushing of waste plastics, metals, glass, and ceramics; and treatment of waste from the photographic industry. Further, the company sells vacuum thermal recycling equipment and dental materials; collects silver from photographic industry wastes and removed caps; recycles precious metals; and manufactures, imports, and sells medical treatment machinery and equipment, as well as medical articles. Additionally, it offers surimi; marine products, such as fresh and frozen fish, various shellfish, mollusks, and seaweed; agricultural products, including eggs, milk protein, rice, materials for bakeries, canned fruits, dried mashed potatoes, sugar, starch, food additives, dairy products, edible oils, and wheat and bread flour, as well as fresh, frozen, dried, and canned vegetables; and livestock products comprising meat, portion cut meat, beef trimmings, and beef tissues. The company was founded in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Matsuda Sangyo generates revenue primarily through its trading operations, which involve buying and selling goods in bulk to manufacturers and retailers. The company's revenue model is built on margin-based sales, where it purchases products at a lower price and sells them at a higher price to its clients. Key revenue streams include the sale of industrial materials and chemicals, which are essential for various manufacturing processes. Additionally, the company may earn income from service fees associated with logistics and supply chain management for its partners. Strategic partnerships with suppliers and manufacturers enhance its product offerings and market reach, contributing significantly to its earnings.

Matsuda Sangyo Co., Ltd. Financial Statement Overview

Summary

Solid revenue growth and stable operating margins support the score, and the balance sheet looks healthy with moderate leverage and a strong equity base. Offsetting this, profitability is modest (net margin ~2%) and cash flow is a key risk with negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

Matsuda Sangyo Co., Ltd. has shown a consistent revenue growth trajectory with a TTM revenue growth rate of 6.2%. The gross profit margin is stable at around 7.3%, though it has decreased from previous years. The net profit margin is slightly below industry averages at 1.96%, indicating room for improvement in cost management. EBIT and EBITDA margins are stable, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.35, indicating a balanced approach to leveraging. Return on equity is healthy at 10.87%, showing effective use of equity to generate profits. The equity ratio stands at 56%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

The cash flow situation presents challenges, with negative free cash flow and a significant decline in free cash flow growth. The operating cash flow to net income ratio is low at 0.14, indicating potential liquidity issues. However, the company has managed to maintain a positive operating cash flow, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	534.92B	468.84B	360.53B	351.03B	272.29B	231.56B
Gross Profit	38.61B	35.20B	30.08B	33.30B	29.95B	24.47B
EBITDA	18.67B	16.79B	13.22B	16.48B	16.02B	10.92B
Net Income	10.92B	9.46B	7.29B	9.70B	9.56B	6.10B
Balance Sheet
Total Assets	182.70B	168.90B	148.94B	129.21B	115.80B	104.27B
Cash, Cash Equivalents and Short-Term Investments	14.51B	12.88B	14.57B	11.76B	11.38B	8.80B
Total Debt	36.52B	33.47B	29.40B	19.24B	16.39B	17.30B
Total Liabilities	79.93B	68.76B	57.56B	44.56B	41.38B	38.66B
Stockholders Equity	102.26B	99.74B	91.11B	84.48B	74.30B	65.49B
Cash Flow
Free Cash Flow	-697.00M	-1.06B	-5.94B	-1.13B	4.54B	-3.41B
Operating Cash Flow	3.78B	2.54B	1.83B	10.65B	7.03B	185.00M
Investing Cash Flow	-6.35B	-6.24B	-7.96B	-12.19B	-2.52B	-3.18B
Financing Cash Flow	2.74B	210.00M	8.08B	1.38B	-2.26B	261.00M

Matsuda Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5280.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7456, the sentiment is Positive. The current price of 5280 is below the 20-day moving average (MA) of 6027.00, below the 50-day MA of 5456.40, and above the 200-day MA of 4180.98, indicating a bullish trend. The MACD of 217.00 indicates Positive momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 41.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7456.

Matsuda Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8061	79 Outperform	¥81.81B	13.86	―	3.38%	10.74%	-26.50%
3176	78 Outperform	¥50.13B	10.90	―	3.87%	2.66%	-11.41%
8052	73 Outperform	¥54.59B	10.92	―	3.00%	16.06%	31.78%
7456	70 Outperform	¥141.87B	13.97	―	1.72%	32.43%	39.26%
7128	68 Neutral	¥52.75B	26.57	―	3.24%	-2.85%	-56.68%
9902	64 Neutral	¥73.21B	15.28	―	3.17%	5.95%	23.97%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Matsuda Sangyo Co., Ltd. Corporate Events

Matsuda Sangyo Reports Strong Financial Growth and Increased Dividend Forecast

Matsuda Sangyo Co., Ltd. reported a significant increase in its consolidated financial results for the first half of the fiscal year ending March 31, 2026, with revenue rising by 29.7% year-on-year to 288,248 million yen. The company’s operating and ordinary profits also saw substantial growth, reflecting a strong performance in its core business areas. This financial upturn positions Matsuda Sangyo favorably within the industry, indicating robust operational efficiency and strategic market positioning. The company also announced an increase in its annual dividend forecast, reflecting confidence in sustained profitability.

The most recent analyst rating on (JP:7456) stock is a Buy with a Yen4881.00 price target. To see the full list of analyst forecasts on Matsuda Sangyo Co., Ltd. stock, see the JP:7456 Stock Forecast page.

Matsuda Sangyo Co., Ltd. Revises Earnings and Dividends Forecasts Upwards

Matsuda Sangyo Co., Ltd. has revised its consolidated earnings and dividends forecasts upwards for the fiscal year ending March 31, 2026, due to stronger-than-expected performance in both its Precious Metals and Food Business Segments. The company attributes this to a recovery in the electronic devices sector, strong performance in the jewelry market, and effective sales strategies in the food segment. As a result, the company has increased its annual dividend forecast, reflecting its commitment to providing stable shareholder returns.

The most recent analyst rating on (JP:7456) stock is a Buy with a Yen4881.00 price target. To see the full list of analyst forecasts on Matsuda Sangyo Co., Ltd. stock, see the JP:7456 Stock Forecast page.