Muraki Corporation (7477) AI Stock Analysis

• Market Cap: ¥2.70B
• Dividend Yield: 2.19%
• Average Volume (3M): 5.39K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.35
• Revenue Growth: 1.41%
• EPS Growth: -39.47%
• Country: JP
• Employees: 136
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 67.16
• Shares Outstanding: 1,470,000
• 10 Day Avg. Volume: 5,690
• 30 Day Avg. Volume: 5,386
• PEG Ratio: -0.41
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 17.14
• 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: ¥2,061.00 ▲(40.20% Upside)

The score is primarily supported by solid financial strength (low leverage and healthy capital structure) and strong bullish price trends. This is tempered by an expensive valuation (high P/E) and overbought technical readings that increase near-term pullback risk, plus pressure from declining net profit margins and uneven free cash flow.

Positive Factors

Balance sheet strength

Very low leverage and a healthy equity ratio provide durable financial resilience. This capital structure lowers refinancing and solvency risk, preserves strategic optionality for capital spending or R&D, and supports long-term contracts across medical, industrial and environmental segments.

Consistent revenue growth

Sustained revenue expansion indicates steady demand across diverse end markets (medical devices, lab equipment, industrial/environmental solutions). Recurring revenue from maintenance, consumables and long-term contracts strengthens predictability and supports durable topline growth despite cyclical pressures.

Operational cash generation

Favorable operating cash conversion and a recent improvement in free cash flow enhance the company's ability to self-fund capex, service customers, and invest in product development. Reliable cash generation underpins long-term operational flexibility and reduces reliance on external financing.

Negative Factors

Declining net profit margin

A falling net margin erodes earned returns on sales and reduces retained earnings available for reinvestment. Over months, persistent margin pressure can weaken competitiveness, limit funding for innovation or maintenance programs, and compress long-term profitability across business lines.

Fluctuating free cash flow

Variable free cash flow undermines predictability for capex, dividends and strategic spending. Even with recent improvement, inconsistent cash generation complicates multi‑quarter planning, increases reliance on timing of receipts, and can constrain steady reinvestment in products and service capabilities.

Lower return on equity

A declining ROE signals weaker efficiency in using shareholder capital to produce profits. If sustained, it may reflect margin compression, slower profit growth versus equity growth, or suboptimal capital allocation, reducing long‑term shareholder value creation unless addressed by operational improvement.

Muraki Corporation Business Overview & Revenue Model

Company Description

Muraki Corporation engages in the wholesale of car care, and automobile repair parts and related products in Japan. The company provides aftermarket parts, including oil and air elements, radiator valves, wiper blades, batteries, and brake pads; and auto chemical products, such as battery refill liquid, windshield washer liquid, oil related chemicals, air conditioner related chemicals, body waxes, body cleaners, and air fresheners. It also sells automotive maintenance equipment comprising engine oil changers, air conditioning gas refreshers, and ATF changers. In addition, it provides after-sales and maintenance services. The company offers its products to customers, such as service stations. Muraki Corporation was founded in 1946 and is headquartered in Tama, Japan.

How the Company Makes Money

Muraki Corporation generates revenue through the sale of its industrial tools and machinery. The company sources products from a variety of manufacturers and distributes them to industrial clients, ensuring a steady supply of high-quality equipment necessary for production processes. Significant revenue streams for Muraki Corporation include sales of cutting tools and precision instruments, which are essential for manufacturing operations across different industries. The company may also engage in partnerships with manufacturers to expand its product offerings and enhance its distribution network, contributing to its earnings.

Muraki Corporation Financial Statement Overview

Summary

Strong overall financial health driven by a robust balance sheet (very low leverage, healthy equity ratio) and consistent revenue growth. Offsetting factors include declining net profit margin and fluctuating free cash flow, suggesting operational efficiency and cash management need improvement.

Income Statement

Muraki Corporation has demonstrated consistent revenue growth over the years, with a noticeable increase in the latest year. The gross profit margin remains stable, indicating effective cost management. However, the net profit margin has declined, reflecting increased expenses or reduced efficiency. The EBIT and EBITDA margins are moderate, suggesting room for operational improvement.

Balance Sheet

The company's balance sheet is robust with a very low debt-to-equity ratio, highlighting minimal leverage and strong financial stability. The equity ratio is healthy, indicating a strong capital structure. Return on equity has decreased, which might suggest challenges in generating returns for shareholders.

Cash Flow

The cash flow statement shows fluctuating free cash flow, with a significant improvement in the latest period. Operating cash flow to net income ratio is favorable, indicating good cash generation from operations. However, the free cash flow to net income ratio shows variability, pointing to potential inconsistencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.58B	7.54B	7.41B	7.33B	7.21B	7.32B
Gross Profit	1.78B	1.74B	1.76B	1.77B	1.73B	1.70B
EBITDA	153.13M	210.52M	233.45M	230.66M	171.10M	133.78M
Net Income	64.40M	90.95M	198.24M	125.12M	102.44M	67.58M
Balance Sheet
Total Assets	4.01B	3.95B	3.95B	3.86B	3.83B	4.00B
Cash, Cash Equivalents and Short-Term Investments	1.46B	1.44B	1.37B	1.48B	1.38B	1.53B
Total Debt	605.00K	807.00K	1.61M	63.65M	191.86M	435.46M
Total Liabilities	1.32B	1.26B	1.31B	1.42B	1.49B	1.73B
Stockholders Equity	2.69B	2.69B	2.64B	2.44B	2.34B	2.27B
Cash Flow
Free Cash Flow	0.00	116.81M	-15.65M	251.75M	109.78M	169.31M
Operating Cash Flow	0.00	127.07M	119.01M	252.09M	126.27M	170.72M
Investing Cash Flow	0.00	-23.92M	-132.78M	1.29M	-9.83M	-33.69M
Financing Cash Flow	0.00	-45.37M	-90.32M	-156.49M	-268.92M	-145.38M

Muraki Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1470.00
• 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:7477, the sentiment is Positive. The current price of 1470 is below the 20-day moving average (MA) of 1681.75, below the 50-day MA of 1512.50, and above the 200-day MA of 1333.16, indicating a bullish trend. The MACD of 119.68 indicates Negative momentum. The RSI at 75.36 is Negative, neither overbought nor oversold. The STOCH value of 77.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7477.

Muraki Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	74 Outperform	¥28.38B	12.60	―	3.77%	7.88%	-5.92%
7477	70 Outperform	¥2.70B	40.79	―	2.19%	1.41%	-39.47%
2666	67 Neutral	¥2.51B	8.21	―	1.92%	11.96%	30.75%
3179	66 Neutral	¥22.48B	20.72	―	3.53%	-2.73%	-51.48%
2751	64 Neutral	¥44.94B	24.83	―	0.26%	15.30%	-15.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9270	59 Neutral	¥24.83B	11.99	―	0.95%	4.14%	―