Mutoh Holdings Co., Ltd. (7999) AI Stock Analysis

• Market Cap: ¥34.79B
• Dividend Yield: 4.37%
• Average Volume (3M): 6.21K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.05
• Revenue Growth: 0.33%
• EPS Growth: -65.09%
• Country: JP
• Employees: 587
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 37.24
• Shares Outstanding: 5,054,818
• 10 Day Avg. Volume: 8,130
• 30 Day Avg. Volume: 6,213
• PEG Ratio: 0.12
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 10.81
• 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: 66 Neutral
• Price Target: ¥8,219.00 ▲(176.45% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is primarily supported by improving profitability and a robust, low-leverage balance sheet. This is tempered by an extremely overbought technical setup and a high P/E with a modest dividend yield, which together raise downside risk and reduce valuation support.

Positive Factors

Low leverage and improving ROE

Mutoh's very low debt-to-equity and stronger equity ratio provide durable financial flexibility, reducing refinancing and solvency risk. An improving ROE (5.80% in 2025) indicates better capital efficiency, supporting investment in R&D and product cycles over the medium term.

Strong operational cash generation

A high FCF-to-net-income ratio (~91.8%) and rising operating cash flows signal that core operations reliably convert profits into cash, supporting capex, service network investment and shareholder returns. This underpins resilience across business cycles.

Recurring revenue from consumables and services

Mutoh's mix of hardware sales plus recurring consumables and service contracts creates a durable revenue base with repeat purchase dynamics and installed-base monetization. This business model supports steady aftermarket revenue and customer retention over time.

Negative Factors

Declining revenue growth

Sustained declines in top-line growth reduce operating leverage and constrain long-term profit expansion. If revenue contraction persists, it can pressure R&D and service investments and limit the ability to scale fixed-cost absorption despite margin improvements.

Historical cash-flow volatility

Past negative FCF and volatility mean cash generation is not yet fully stable; episodic weaker cash flows could force deferment of capex or increase reliance on internal reserves. This elevates execution risk for growth initiatives over the medium term.

Earnings volatility / sharp EPS decline

A steep historical EPS decline (~-72%) reveals earnings sensitivity to sales swings or one-off items. Persistent earnings volatility complicates planning, weakens investor confidence in profit sustainability, and makes funding long-term projects harder without stronger revenue stability.

Mutoh Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Mutoh Holdings Co., Ltd. develops, manufactures, sells, maintains, and services information imaging equipment worldwide. The company offers inkjet printers/plotters, pencil/pen plotters, 3D printers, cutting plotters, and image scanners. It also provides CAD/CAM information services, including 2D and 3D CAD systems, CAD/CAM peripheral software and system integration services, and IT and 3D solutions; drafting machines and optical measuring instruments; and merchandising products. In addition, the company imports and sells sports-related products comprising taping tapes, supporters, insoles, and fitness gears; manages stores; and leases real estate properties. Mutoh Holdings Co., Ltd. was founded in 1942 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Mutoh Holdings Co., Ltd. generates revenue primarily through the sale of its wide-format printers and related consumables, such as inks and media. The company also earns income from service contracts, maintenance, and support services for its equipment. Key revenue streams include direct sales to end-users, partnerships with distributors, and collaborations with other businesses in the printing industry. Additionally, the company benefits from its established brand reputation and customer loyalty, as well as its focus on research and development, which enables it to introduce new and innovative products that meet evolving market demands.

Mutoh Holdings Co., Ltd. Financial Statement Overview

Summary

Profitability improved meaningfully (net margin up from 4.36% to 7.57% and stronger gross margin) and the balance sheet is very strong with low leverage and improving ROE. Offsetting this, revenue growth declined (-5.21%) and cash flows, while improving with strong cash conversion, have shown past volatility.

Income Statement

Mutoh Holdings Co., Ltd. has shown a strong recovery in profitability with a significant increase in net profit margin from 4.36% in 2024 to 7.57% in 2025. The gross profit margin has also improved, indicating efficient cost management. However, the revenue growth rate has declined by 5.21% in 2025, which is a concern. Overall, the company has improved its profitability metrics, but the declining revenue growth needs attention.

Balance Sheet

The company maintains a robust balance sheet with a very low debt-to-equity ratio, indicating minimal leverage risk. The return on equity has improved to 5.80% in 2025, reflecting better utilization of equity. The equity ratio remains strong, suggesting financial stability. Overall, the balance sheet is solid with low leverage and improving returns.

Cash Flow

Cash flow from operations has increased, supporting the company's profitability. The free cash flow to net income ratio is high at 91.83%, indicating strong cash generation relative to net income. However, the free cash flow growth rate is not calculable due to previous negative values, which suggests volatility in cash flows. Overall, cash flows are improving but have shown past fluctuations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.18B	18.13B	17.51B	16.79B	15.85B	14.15B
Gross Profit	7.59B	7.62B	7.13B	6.45B	5.50B	4.28B
EBITDA	1.48B	2.10B	1.62B	1.26B	1.43B	-752.00M
Net Income	706.00M	1.37B	764.00M	878.00M	773.00M	-1.20B
Balance Sheet
Total Assets	29.56B	29.96B	28.70B	27.32B	26.67B	25.22B
Cash, Cash Equivalents and Short-Term Investments	10.21B	10.65B	9.51B	10.35B	8.78B	8.30B
Total Debt	318.00M	222.00M	66.00M	95.00M	13.00M	34.00M
Total Liabilities	5.14B	5.35B	5.15B	4.91B	5.43B	4.96B
Stockholders Equity	23.55B	23.68B	22.67B	21.58B	20.45B	19.51B
Cash Flow
Free Cash Flow	0.00	1.21B	-2.09B	784.00M	343.00M	77.00M
Operating Cash Flow	0.00	1.32B	1.09B	1.16B	671.00M	312.00M
Investing Cash Flow	0.00	312.00M	-1.77B	540.00M	-191.00M	691.00M
Financing Cash Flow	0.00	-458.00M	-454.00M	-266.00M	-214.00M	-252.00M

Mutoh Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2973.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7999, the sentiment is Positive. The current price of 2973 is below the 20-day moving average (MA) of 6974.50, below the 50-day MA of 4568.62, and below the 200-day MA of 3149.69, indicating a bullish trend. The MACD of 980.51 indicates Positive momentum. The RSI at 97.94 is Negative, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7999.

Mutoh Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7991	76 Outperform	¥14.19B	55.03	―	5.73%	-27.22%	-62.64%
7976	71 Outperform	¥117.43B	19.05	―	2.09%	6.39%	-34.84%
7975	70 Neutral	¥4.09B	-199.56	―	2.03%	3.24%	―
7999	66 Neutral	¥34.79B	20.04	―	4.37%	0.33%	-65.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥23.09B	17.72	―	1.69%	-2.71%	―
7992	42 Neutral	¥3.26B	-15.38	―	―	4.11%	33.06%

Mutoh Holdings Co., Ltd. Corporate Events

Mutoh Holdings Q3 Profit Slumps but Balance Sheet and Dividend Payout Remain Robust

Mutoh Holdings reported a year-on-year decline in performance for the third quarter ended December 2025, with consolidated net sales slipping 3.3% to ¥13.17 billion and operating profit falling 32.6% to ¥725 million. Ordinary profit dropped 43.8% to ¥601 million and profit attributable to owners of parent plunged 71.1% to ¥381 million, resulting in basic earnings per share of ¥83.12, although the company’s financial position remained solid with total assets of about ¥30.16 billion, a high capital adequacy ratio of 79.7%, and net assets edging up to ¥24.93 billion. Despite weaker profitability, Mutoh maintained its shareholder returns, raising the second-quarter dividend to ¥38 per share from ¥36 in the previous fiscal year, signaling confidence in its balance sheet strength and ongoing capital policy.

The most recent analyst rating on (JP:7999) stock is a Buy with a Yen3352.00 price target. To see the full list of analyst forecasts on Mutoh Holdings Co., Ltd. stock, see the JP:7999 Stock Forecast page.