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

• Market Cap: ¥135.37B
• Dividend Yield: 1.72%
• Average Volume (3M): 76.92K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.71
• 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: 74 Outperform
• Price Target: ¥6,451.00 ▲(22.18% Upside)

Matsuda Sangyo Co., Ltd. is on a stable growth path with strong technical indicators and reasonable valuation. Financial performance is solid, though cash flow management needs improvement. The stock's upward momentum and attractive valuation make it a compelling option, despite liquidity concerns.

Positive Factors

Revenue Growth

The company has shown a consistent revenue growth trajectory with a TTM revenue growth rate of 6.2%, indicating strong market demand and effective sales strategies.

Operational Efficiency

Stable EBIT and EBITDA margins reflect efficient operational management, which is crucial for sustaining profitability and competitive positioning in the long term.

Financial Stability

A strong equity base relative to total assets enhances financial stability, providing a buffer against economic downturns and supporting future growth initiatives.

Negative Factors

Profitability Margins

Below-average net profit margins indicate potential inefficiencies in cost management, which could hinder long-term profitability and competitiveness.

Cash Flow Management

Challenges in cash flow management, with negative free cash flow, could limit the company's ability to invest in growth opportunities and meet financial obligations.

Gross Profit Margin

A decrease in gross profit margin suggests rising costs or pricing pressures, which could affect the company's ability to maintain profitability in the long term.

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

Matsuda Sangyo Co., Ltd. demonstrates strong revenue growth and a solid balance sheet with low leverage. However, cash flow challenges are evident, with negative free cash flow growth and low cash conversion ratios. The company needs to address cash flow management to sustain its growth trajectory and improve profitability.

Income Statement

Matsuda Sangyo Co., Ltd. shows a strong revenue growth rate of 7.44% in the TTM, indicating robust sales expansion. The gross profit margin is stable at 7.51%, although it has slightly decreased from previous years. The net profit margin is modest at 2.02%, reflecting moderate profitability. EBIT and EBITDA margins have slightly declined, suggesting some pressure on operational efficiency.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.34, indicating a conservative leverage position. Return on equity is healthy at 9.73%, showing effective use of shareholders' funds. The equity ratio stands at 58.26%, highlighting a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -466.13% in the TTM, indicating cash flow pressures. The operating cash flow to net income ratio is low at 0.52, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting cash flow constraints.

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: Negative
• RSI: Negative
• 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 5345.00, above the 50-day MA of 4919.00, and above the 200-day MA of 3966.06, indicating a bullish trend. The MACD of 214.50 indicates Negative momentum. The RSI at 74.05 is Negative, neither overbought nor oversold. The STOCH value of 68.47 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	¥87.53B	15.37	―	3.38%	10.74%	-26.50%
7456	74 Outperform	¥135.37B	13.66	―	1.72%	32.43%	39.26%
8052	73 Outperform	¥56.60B	10.62	―	3.00%	16.06%	31.78%
3176	70 Neutral	¥44.07B	9.64	―	3.87%	2.66%	-11.41%
7128	68 Neutral	¥54.12B	27.40	―	3.24%	-2.85%	-56.68%
9902	64 Neutral	¥76.07B	15.14	―	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.