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

• Market Cap: ¥208.59B
• Dividend Yield: 1.72%
• Average Volume (3M): 76.92K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.89
• Revenue Growth: 32.43%
• EPS Growth: 39.26%
• Country: JP
• Employees: 1,624
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Distribution
• EPS (TTM): 194.81
• 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): 438.5
• Revenue Forecast (FY): ¥565.00B

• Rating: 67 Neutral
• Price Target: ¥8,908.00 ▲(68.71% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back mainly by weak cash flow quality (negative operating and free cash flow despite earnings) and margin compression, partially offset by strong technical uptrend signals and a reasonable P/E with a modest dividend yield.

Positive Factors

Diversified, recurring business lines

Matsuda Sangyo runs two structurally recurring businesses: precious-metals recycling/refining and food-ingredient wholesale. This diversification spreads demand risk across industrial recycling cycles and steady food distribution, supporting more resilient revenue streams over months.

Sustained revenue growth

Consistent top-line growth (TTM +11.8%) signals rising transaction volumes or improved market share in core segments. Durable revenue expansion supports investment capacity and scale benefits, helping offset margin pressure if growth is maintained over the next several quarters.

Moderate leverage with acceptable returns

A debt-to-equity around 0.36 with ROE near 10.9% indicates balance-sheet capacity to support operations and growth without aggressive leverage. Equity growth over time reinforces stability and gives the company flexibility to fund capex or working-capital needs without excessive refinancing risk.

Negative Factors

Weak cash conversion

Negative operating and free cash flow despite positive net income point to persistent working-capital outflows or timing mismatches. Over months this undermines the firm's ability to self-finance capex, pay down debt, or sustain dividends, increasing reliance on external funding.

Material margin compression

Significant fall in gross and EBIT margins suggests deteriorating pricing power or rising input and processing costs. If sustained, lower margins reduce cushion against commodity swings and make earnings more sensitive to volume changes, limiting durable profitability.

Rising balance-sheet intensity

An upward trend in leverage and asset intensity raises fixed obligations and working-capital needs. Over the medium term this reduces financial flexibility to absorb shocks, increases interest and rollover risk, and amplifies the impact of weak cash conversion on solvency.

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

Strong TTM revenue growth (+11.8%) and positive profitability (EBIT margin ~2.9%, net margin ~2.0%) are positives, but margin compression versus prior years and especially negative operating/free cash flow (OCF -14.1B, FCF -17.9B) materially reduce the financial quality score.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly (+11.8%) and profitability remains positive (EBIT margin ~2.9%, net margin ~2.0%). However, margins have compressed materially versus earlier years (gross margin down from ~11.0% in FY2022 to ~7.2% in TTM, and EBIT margin down from ~5.1% to ~2.9%), indicating weaker pricing power and/or cost pressure despite solid top-line growth.

Balance Sheet

Leverage remains moderate with debt-to-equity at ~0.36 in TTM (up from ~0.22–0.26 in FY2022–FY2023), and equity has grown over time, supporting balance sheet stability. Returns are acceptable (ROE ~10.9% TTM), but the rising debt load alongside expanding assets suggests increasing balance-sheet intensity and a bit less financial flexibility than in prior years.

Cash Flow

Cash generation is the key weakness: TTM operating cash flow is negative (-14.1B) and free cash flow is also negative (-17.9B), despite positive net income. This continues a pattern of volatile/often weak conversion (free cash flow negative in most years shown), raising concerns around working-capital swings and the reliability of earnings translating into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	598.11B	468.84B	360.53B	351.03B	272.29B	231.56B
Gross Profit	41.37B	35.20B	30.08B	33.30B	29.95B	24.47B
EBITDA	21.18B	16.79B	13.22B	16.48B	16.02B	10.92B
Net Income	12.49B	9.46B	7.29B	9.70B	9.56B	6.10B
Balance Sheet
Total Assets	206.33B	168.90B	148.94B	129.21B	115.80B	104.27B
Cash, Cash Equivalents and Short-Term Investments	11.37B	12.88B	14.57B	11.76B	11.38B	8.80B
Total Debt	53.60B	33.47B	29.40B	19.24B	16.39B	17.30B
Total Liabilities	101.04B	68.76B	57.56B	44.56B	41.38B	38.66B
Stockholders Equity	104.72B	99.74B	91.11B	84.48B	74.30B	65.49B
Cash Flow
Free Cash Flow	-17.91B	-1.06B	-5.94B	-1.13B	4.54B	-3.41B
Operating Cash Flow	-14.09B	2.54B	1.83B	10.65B	7.03B	185.00M
Investing Cash Flow	-5.24B	-6.24B	-7.96B	-12.19B	-2.52B	-3.18B
Financing Cash Flow	16.14B	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: Negative

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 7234.50, below the 50-day MA of 6347.80, and above the 200-day MA of 4540.97, indicating a bullish trend. The MACD of 605.98 indicates Negative momentum. The RSI at 82.39 is Negative, neither overbought nor oversold. The STOCH value of 90.45 is Negative, 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	¥102.66B	16.20	―	3.38%	10.74%	-26.50%
3176	78 Outperform	¥52.13B	10.49	―	3.87%	2.66%	-11.41%
8052	73 Outperform	¥58.93B	12.05	―	3.00%	16.06%	31.78%
7456	67 Neutral	¥208.59B	18.12	―	1.72%	32.43%	39.26%
7128	66 Neutral	¥53.82B	29.50	―	3.24%	-2.85%	-56.68%
9902	64 Neutral	¥73.53B	15.78	―	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 Lifts Full-Year Forecast on Precious Metals Rally and Strong Food Margins

Matsuda Sangyo Co., Ltd. has sharply raised its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, driven by strong performance in both its precious metals and food business segments. The company now projects net sales of ¥650 billion and profit attributable to owners of parent of ¥14.7 billion, representing gains of 18.2% and 27.8% respectively versus its previous outlook.

Management cited a significant rise in precious metal prices, which has boosted net sales and operating profit beyond initial expectations, as well as improved profit margins in the food business due to stronger sales of products aligned with customer needs. The upward revision underscores Matsuda Sangyo’s improved earnings power compared with the prior fiscal year and signals strengthened financial momentum that may enhance its competitive position and stakeholder confidence.

The most recent analyst rating on (JP:7456) stock is a Hold with a Yen7402.00 price target. To see the full list of analyst forecasts on Matsuda Sangyo Co., Ltd. stock, see the JP:7456 Stock Forecast page.