Marubun Corporation (7537) AI Stock Analysis

• Market Cap: ¥30.97B
• Dividend Yield: 5.52%
• Average Volume (3M): 140.06K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.09
• Revenue Growth: 1.71%
• EPS Growth: -29.37%
• Country: JP
• Employees: 1,167
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 13.79
• Shares Outstanding: 28,051,200
• 10 Day Avg. Volume: 84,100
• 30 Day Avg. Volume: 140,059
• PEG Ratio: 0.24
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 1.51
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,306.00 ▲(9.29% Upside)

Marubun Corporation's stock is supported by a strong valuation with a low P/E ratio and high dividend yield, indicating potential undervaluation and income opportunities. The technical analysis shows a positive trend, although there is slight bearish momentum. Financial performance is stable but highlights the need for improved profitability and revenue growth.

Positive Factors

Strong Free Cash Flow

Growing free cash flow indicates robust cash generation, providing the company with flexibility to invest in growth opportunities and manage debt effectively.

Improved Leverage Management

Improved leverage management enhances financial stability, reducing risk and potentially lowering borrowing costs, which supports long-term financial health.

Operational Efficiency

Operational efficiency, as indicated by reasonable EBIT and EBITDA margins, suggests effective cost control and resource management, supporting sustainable profitability.

Negative Factors

Revenue Decline

A significant decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which may hinder the company's ability to reinvest in its business and compete effectively over the long term.

Issues in Cash Conversion

Low cash conversion efficiency indicates potential difficulties in turning profits into cash, which could affect liquidity and financial flexibility in the future.

Marubun Corporation Business Overview & Revenue Model

Company Description

Marubun Corporation distributes electronics products in Japan and internationally. The company offers semiconductors and electronic devices, including memory and special use ICs, ASICs, micro-processors, connectors, and displays, as well as standard logic, analog, software, discrete, and other devices. It also provides industrial manufacturing equipment comprising industrial robots, IC test handlers, embedded computers, plasma nano-processing equipment, and nanoimprint equipment; industrial inspection equipment comprising IC lead inspection systems, X-ray inspection systems, and reflow simulation equipment; and network and optical communication products, including network time servers, frequency standard products, and components for optical communication. In addition, the company offers lasers and optoelectronics, such as laser oscillators, laser diodes, laser processing systems, optical components, laser measurement equipment, lamps and optics, and laser sensors; measurement and sensor products, including acoustic and vibration measurement, and radio frequency measurement products, as well as partial discharge monitoring products for generators and motors; and aerospace and defense products comprising space equipment, geophysical equipment, microwave components, and simulator equipment. Further, the company offers consulting and technical support services. Marubun Corporation was founded in 1844 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Marubun Corporation generates revenue through multiple streams, primarily by acting as a distributor of electronic components and related products. The company earns income by purchasing these components from manufacturers and selling them to businesses in various industries, often at a markup. Key revenue streams include sales of semiconductors, electronic parts, and system solutions, which are critical for sectors such as telecommunications and automotive. Additionally, Marubun has established significant partnerships with global technology firms, which enhance its product offerings and market reach. The company also benefits from providing value-added services such as technical support, logistics, and inventory management, which help to secure long-term contracts with clients and promote customer loyalty.

Marubun Corporation Financial Statement Overview

Summary

Marubun Corporation shows stable financial management with operational efficiency but faces challenges in profitability and revenue growth. The balance sheet is moderately strong with improved leverage, and cash flow analysis indicates strong free cash flow generation but issues in cash conversion.

Income Statement

Marubun Corporation's income statement shows a mixed performance. The gross profit margin is stable at around 12%, indicating consistent cost management. However, the net profit margin is relatively low at 2%, suggesting limited profitability. The company has experienced a significant revenue decline in the TTM period, which is a concern. Despite this, the EBIT and EBITDA margins are reasonable, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved over the years, now below 1, indicating better leverage management. Return on equity is positive but modest, suggesting average returns for shareholders. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis indicates some strengths and weaknesses. The operating cash flow is positive, supporting operational needs. Free cash flow has grown recently, which is a positive sign. However, the operating cash flow to net income ratio is low, indicating potential issues in converting income into cash. The free cash flow to net income ratio is strong, showing effective cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.93B	210.84B	236.49B	226.17B	167.79B	289.28B
Gross Profit	24.15B	26.03B	29.61B	27.26B	20.25B	16.22B
EBITDA	10.25B	10.15B	9.98B	10.60B	4.91B	-1.39B
Net Income	4.47B	4.27B	3.40B	5.20B	2.44B	-2.13B
Balance Sheet
Total Assets	137.04B	144.76B	174.12B	176.00B	148.18B	127.01B
Cash, Cash Equivalents and Short-Term Investments	20.61B	24.25B	23.82B	21.25B	25.25B	26.87B
Total Debt	45.88B	50.53B	64.71B	74.64B	53.93B	47.47B
Total Liabilities	77.53B	84.26B	117.69B	122.92B	100.61B	81.97B
Stockholders Equity	53.81B	54.52B	50.70B	47.75B	42.71B	40.01B
Cash Flow
Free Cash Flow	18.06B	17.18B	21.52B	-19.25B	-3.69B	14.66B
Operating Cash Flow	19.85B	18.62B	22.69B	-18.98B	-2.95B	15.21B
Investing Cash Flow	-2.74B	-2.15B	-1.42B	-326.00M	145.00M	-790.00M
Financing Cash Flow	-16.84B	-16.41B	-20.05B	14.07B	391.00M	-8.19B

Marubun Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1195.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7537, the sentiment is Positive. The current price of 1195 is above the 20-day moving average (MA) of 1179.10, above the 50-day MA of 1171.60, and above the 200-day MA of 1048.23, indicating a bullish trend. The MACD of 10.80 indicates Negative momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7537.

Marubun Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8093	76 Outperform	¥21.34B	5.26	―	4.04%	41.87%	167.99%
8137	74 Outperform	¥45.33B	18.31	―	4.15%	-4.88%	-26.05%
9880	73 Outperform	¥26.07B	20.05	―	3.33%	0.17%	21.01%
8023	72 Outperform	¥15.05B	10.41	―	4.62%	-2.98%	4.56%
7537	71 Outperform	¥30.97B	9.96	―	5.52%	1.71%	-29.37%
8141	64 Neutral	$30.04B	39.11	1.55%	1.38%	-34.13%	-31.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Marubun Corporation Corporate Events

Marubun Corporation Surpasses Forecasts and Revises Financial Outlook Upwards

Marubun Corporation announced a significant increase in its first-half fiscal year results, surpassing previous forecasts due to strong demand in consumer equipment semiconductors and electronic components, along with stable performance in aerospace and defense. The company has revised its full-year financial forecast upwards, reflecting the positive trends and expected market demand, which could enhance its market position and stakeholder value.

Marubun Corporation Reports Decline in Profits Despite Sales Growth

Marubun Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a year-on-year increase in net sales by 4.2% to ¥102,697 million. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 37.4%, 43.5%, and 53.8% respectively. The company has revised its financial forecasts for the fiscal year ending March 31, 2026, expecting a slight decrease in net sales and significant reductions in profits, indicating potential challenges in maintaining profitability.