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

• Market Cap: ¥13.57B
• Dividend Yield: 4.37%
• Average Volume (3M): 6.21K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.51
• Revenue Growth: 0.33%
• EPS Growth: -65.09%
• Country: JP
• Employees: 587
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.13
• 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: 75 Outperform
• Price Target: ¥3,339.00 ▲(12.31% Upside)

Mutoh Holdings Co., Ltd. has a strong financial performance with improved profitability and a solid balance sheet. The technical analysis indicates positive momentum, and the valuation is attractive with a reasonable P/E ratio and strong dividend yield. The overall score reflects these strengths, though attention to revenue growth and cash flow stability is advised.

Positive Factors

Balance Sheet Strength

Mutoh's very low leverage and strong equity ratio materially reduce financial distress risk and borrowing costs. Improved ROE (5.80%) indicates more efficient use of capital, supporting durable investment in R&D, product quality and strategic flexibility over coming quarters.

Margin Expansion

Sustained improvement in gross and net margins points to structural cost control or better product mix rather than one-off items. Higher margins enhance operating leverage, fund reinvestment in products and service, and provide a durable cushion against sales volatility over the medium term.

Cash Generation

A high free cash flow to net income ratio (~91.8%) and rising operating cash flow show strong cash convertibility of earnings. Reliable cash generation supports capex for product development, service networks, dividend maintenance and balance-sheet resilience across economic cycles.

Negative Factors

Revenue Deceleration

A reported decline in revenue growth (down 5.21% in 2025) signals weakening top-line momentum. Persistent revenue deceleration constrains scale benefits, pressures future margin expansion, and reduces the internal funding runway for R&D, distributor expansion and long-term strategic initiatives.

Earnings Volatility

A steep EPS contraction (~-65%) reflects significant earnings volatility that can stem from margin swings or one-off items. Large EPS declines reduce predictability for investors, limit retained earnings for reinvestment or dividends, and heighten risk around management's ability to execute long-term plans.

Cash Flow Volatility

Historical free cash flow volatility—growth rate not calculable because of prior negative values—indicates unpredictable cash generation. That unpredictability complicates capital allocation, may force conservative balance-sheet actions, and raises execution risk for multi-quarter strategic investments.

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

Mutoh Holdings Co., Ltd. demonstrates strong profitability and a solid balance sheet with low leverage. The company has improved its margins and returns, although revenue growth has declined. Cash flows are improving, but past volatility suggests a need for careful cash management. Overall, the financial health is strong, but attention to revenue growth and cash flow stability is advised.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• 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 2978.70, above the 50-day MA of 2860.08, and above the 200-day MA of 2724.74, indicating a neutral trend. The MACD of 28.46 indicates Positive momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 40.91 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	¥16.73B	7.47	―	5.73%	-27.22%	-62.64%
7999	75 Outperform	¥13.57B	25.21	―	4.37%	0.33%	-65.09%
7976	74 Outperform	¥118.63B	16.50	―	2.09%	6.39%	-34.84%
7975	70 Neutral	¥4.29B	20.52	―	2.03%	3.24%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥23.12B	43.29	―	1.69%	-2.71%	―
7992	51 Neutral	¥3.38B	-3.19	―	―	4.11%	33.06%