CAPITA, Inc. (7462) AI Stock Analysis

• Market Cap: ¥2.18B
• Dividend Yield: 2.1%
• Average Volume (3M): 17.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -29.28%
• EPS Growth: 86.70%
• Country: JP
• Employees: 83
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 31.28
• Shares Outstanding: 4,111,000
• 10 Day Avg. Volume: 18,980
• 30 Day Avg. Volume: 17,490
• PEG Ratio: 1.27
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 2.20
• 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: 72 Outperform
• Price Target: ¥670.00 ▲(51.58% Upside)
• Action: Reiterated Date: 12/10/25
• Date: Action: Reiterated 12/10/25

CAPITA, Inc. scores well due to its strong financial performance, particularly in cash flow management and revenue growth. The technical analysis supports a positive trend, although momentum is moderate. Valuation metrics suggest the stock is fairly valued, with a reasonable dividend yield adding to its appeal.

Positive Factors

Free cash flow turnaround

A sustained shift from negative to positive free cash flow, with strong operating cash generation (OCF to net income 19.12), indicates the business can internally fund maintenance capex, service obligations and selectively invest or return capital. This materially strengthens long-term financial flexibility in a cyclical refining sector.

Prudent leverage and strong equity base

A modest debt-to-equity ratio and a >50% equity ratio provide resilience against commodity and demand cycles typical in refining. Lower leverage reduces refinancing risk, preserves borrowing capacity for strategic investments, and supports durable solvency across 2-6 month stress scenarios.

Gross margin and revenue growth

Mid-teens gross margins combined with reported revenue growth reflect underlying operational competitiveness (pricing or cost control). Sustained top-line growth with solid gross margins provides a base to improve operating leverage and long-term margin recovery despite low net margins today.

Negative Factors

Very low net and EBITDA margins

Persistently thin operating and net margins constrain retained earnings and the company’s ability to build reserves or reinvest. In a capital intensive refining industry, low margins limit capacity to absorb cost shocks, reduce returns on incremental investments, and pressure long-term profitability.

Recent large negative revenue growth metric

A steep year-over-year revenue decline metric signals volatility in top-line performance or reporting period discontinuities. Such material swings increase forecasting uncertainty, weaken the durability of cash flows, and heighten operational risk for capital planning over the medium term.

Low return on equity

ROE under 2% implies limited effectiveness converting equity into profits. Even with a strong equity base, low ROE suggests capital is not being deployed to generate attractive shareholder returns, constraining the company's long-term capacity to grow equity value or raise investor confidence.

CAPITA, Inc. Business Overview & Revenue Model

Company Description

CAPITA Inc. engages in the wholesale and direct sale of petroleum products in Japan. The company engages in the management of service stations; management of cycles; real estate leasing; and sales and brokerage of real estate, as well as management of store and rental office building. Capita Inc. was formerly known as Daiya Tsusho Co.,Ltd. and changed its name to Capita Inc. in September 2021. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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CAPITA, Inc. Financial Statement Overview

Summary

CAPITA, Inc. exhibits a robust financial position with strong revenue growth and effective cash flow management. While profitability margins are modest, the company's low leverage and solid equity base provide a stable foundation for future growth.

Income Statement

CAPITA, Inc. has demonstrated solid revenue growth with a 10.67% increase from the previous year. The gross profit margin stands at 26.61%, indicating efficient cost management. However, the net profit margin is relatively low at 0.89%, suggesting room for improvement in profitability. The EBIT margin of 2.36% and EBITDA margin of 1.63% are modest, reflecting operational challenges in the industry.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.57, indicating prudent leverage management. The return on equity is 1.98%, which is low but stable. The equity ratio of 52.79% shows a strong equity base, providing financial stability.

Cash Flow

CAPITA, Inc. has shown a remarkable turnaround in cash flow, with a significant improvement in free cash flow from negative to positive. The operating cash flow to net income ratio is 19.12, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 18.70, highlighting effective cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.37B	3.04B	3.34B	3.34B	2.88B
Gross Profit	896.74M	901.66M	927.86M	911.08M	887.54M
EBITDA	102.44M	74.59M	101.20M	103.15M	97.55M
Net Income	30.11M	22.69M	55.84M	56.49M	15.16M
Balance Sheet
Total Assets	2.90B	3.01B	2.58B	2.41B	1.97B
Cash, Cash Equivalents and Short-Term Investments	605.38M	126.29M	364.32M	444.29M	309.45M
Total Debt	875.83M	997.21M	587.00M	405.23M	59.37M
Total Liabilities	1.38B	1.51B	1.09B	967.87M	575.06M
Stockholders Equity	1.52B	1.51B	1.49B	1.44B	1.39B
Cash Flow
Free Cash Flow	563.06M	-607.38M	-230.54M	-259.82M	88.92M
Operating Cash Flow	575.80M	-22.31M	-187.37M	-248.94M	90.88M
Investing Cash Flow	10.32M	-587.42M	-66.42M	-10.14M	-4.55M
Financing Cash Flow	-107.03M	371.70M	173.82M	393.92M	-13.04M

CAPITA, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 442.00
• 50DMA: Negative
• 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:7462, the sentiment is Neutral. The current price of 442 is below the 20-day moving average (MA) of 611.65, below the 50-day MA of 605.84, and below the 200-day MA of 499.05, indicating a neutral trend. The MACD of 1.76 indicates Positive momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 44.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7462.

CAPITA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8131	74 Outperform	¥126.85B	17.49	―	2.57%	7.46%	153.98%
7462	72 Outperform	¥2.18B	-20.49	―	2.10%	-29.28%	86.70%
5019	68 Neutral	¥1.91T	21.95	2.23%	3.07%	-7.68%	-73.03%
8132	67 Neutral	¥72.35B	32.15	―	1.37%	-5.02%	186.97%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8133	63 Neutral	¥221.70B	12.70	―	3.45%	-4.87%	26.27%
5020	56 Neutral	¥3.69T	11.54	-0.15%	2.74%	-14.13%	33.18%