Caster Co. Ltd. (9331) AI Stock Analysis

• Market Cap: ¥1.37B
• Dividend Yield: N/A
• Average Volume (3M): 2.11K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 0.11
• Revenue Growth: 3.33%
• EPS Growth: -80.47%
• Country: JP
• Employees: 847
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 6.50
• Shares Outstanding: 1,960,460
• 10 Day Avg. Volume: 2,470
• 30 Day Avg. Volume: 2,113
• PEG Ratio: -0.06
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -4.56
• 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: 44 Neutral
• Price Target: ¥637.00 ▼(-20.28% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held down primarily by weak financial quality (loss-making operations and negative operating/free cash flow) and bearish technicals (below major moving averages with negative MACD). Strong revenue growth is a positive, but valuation remains relatively high (P/E ~30.7) without dividend support.

Positive Factors

Strong revenue growth

Sustained revenue growth of ~33% indicates expanding market traction and higher volume scale. Over 2-6 months this supports investments in capacity, improves bargaining with suppliers, and creates a foundation to restore margins once cost discipline or pricing recovery is implemented.

Improving leverage profile

A trend of lower debt-to-equity improves financial flexibility and reduces refinancing and interest risks. Structurally, better leverage allows management to prioritize growth or working capital needs without immediate balance-sheet strain, aiding medium-term stability.

Diversified B2B product and end-market mix

A broad product range and presence across logistics, healthcare and retail reduces single-market cyclicality. Custom solutions and B2B bulk channels create client stickiness and recurring orders, underpinning durable revenue streams and pricing leverage in industrial applications.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flows constrain the company's ability to self-fund capex, inventory and growth. Over months this raises refinancing needs, increases reliance on external capital, and limits strategic flexibility unless cash conversion improves materially.

Ongoing unprofitability and margin pressure

Negative EBIT/EBITDA and declining gross margin show the business is not converting higher sales into profits. Structural margin weakness suggests cost base, pricing pressure, or mix issues that must be fixed to achieve sustainable operating leverage and long-term viability.

Negative return on equity

A negative ROE means the company is destroying shareholder capital rather than generating returns. If persistent, this undermines investor confidence, limits access to equity finance, and may force strategic changes that affect long-term growth plans.

Caster Co. Ltd. Business Overview & Revenue Model

Company Description

Caster Co. Ltd. (9331) is a prominent company specializing in the manufacturing and distribution of various caster wheels and related products. Operating primarily in the industrial and commercial sectors, Caster Co. Ltd. offers a wide range of solutions designed to enhance the mobility of equipment and furniture. Their core products include heavy-duty casters, light-duty casters, and custom caster solutions tailored to the specific needs of various industries such as logistics, healthcare, and retail.

How the Company Makes Money

Caster Co. Ltd. generates revenue primarily through the sale of its caster products to businesses in diverse sectors. The company operates a B2B model, supplying casters to manufacturers, retailers, and service providers who require mobility solutions for their products. Key revenue streams include direct sales to large industrial clients, bulk orders from distributors, and custom orders that cater to specific client specifications. Additionally, Caster Co. Ltd. may engage in partnerships with equipment manufacturers to integrate their caster solutions into new products, creating additional sales opportunities. The company's focus on quality and innovation, alongside its established reputation in the market, contributes significantly to its earnings by attracting a loyal customer base and enabling premium pricing strategies.

Caster Co. Ltd. Financial Statement Overview

Summary

Strong revenue growth (+33.07%) is a clear positive, but overall fundamentals are pressured by negative EBIT/EBITDA margins, a net loss, and negative operating/free cash flows. Leverage has improved (better debt-to-equity), yet negative ROE and weak cash generation keep the financial profile below average.

Income Statement

Caster Co. Ltd. has shown a significant revenue growth rate of 33.07% in the latest year, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative EBIT and EBITDA margins, and a net loss. The gross profit margin has decreased compared to the previous year, suggesting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is relatively stable, suggesting a balanced capital structure, but the high debt levels in previous years pose a risk.

Cash Flow

Caster Co. Ltd. faces challenges with negative operating and free cash flows, indicating liquidity issues. The free cash flow to net income ratio is positive, suggesting that cash flow generation is somewhat aligned with reported earnings, but the overall cash flow position remains weak.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	4.59B	4.44B	4.18B	3.34B	2.24B
Gross Profit	1.62B	1.77B	1.62B	1.28B	919.59M
EBITDA	-321.29M	-149.43M	5.51M	-160.32M	-359.05M
Net Income	-393.26M	-217.91M	29.21M	-145.05M	-336.68M
Balance Sheet
Total Assets	1.87B	2.46B	1.88B	2.09B	1.35B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.64B	1.52B	1.79B	1.19B
Total Debt	462.74M	525.61M	130.00M	361.11M	430.00M
Total Liabilities	1.16B	1.35B	836.52M	1.08B	992.27M
Stockholders Equity	709.92M	1.10B	1.04B	1.01B	356.06M
Cash Flow
Free Cash Flow	-374.11M	-156.43M	-40.29M	-128.37M	-249.01M
Operating Cash Flow	-371.91M	-153.60M	-31.87M	-128.10M	-245.81M
Investing Cash Flow	18.44M	-296.73M	-11.03M	-275.00K	-23.79M
Financing Cash Flow	-69.48M	570.92M	-234.82M	730.51M	494.93M

Caster Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 799.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9331, the sentiment is Negative. The current price of 799 is above the 20-day moving average (MA) of 708.75, above the 50-day MA of 765.20, and below the 200-day MA of 828.99, indicating a bearish trend. The MACD of -21.22 indicates Negative momentum. The RSI at 39.81 is Neutral, neither overbought nor oversold. The STOCH value of 45.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9331.

Caster Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9346	79 Outperform	¥6.02B	10.93	―	2.76%	10.27%	-0.35%
3991	78 Outperform	¥10.72B	13.11	―	1.72%	3.95%	4.50%
4433	64 Neutral	¥16.68B	65.84	―	3.66%	8.62%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4848	56 Neutral	¥58.36B	12.19	―	3.66%	3.47%	-0.05%
3900	51 Neutral	¥11.16B	426.22	―	2.24%	32.39%	-127.51%
9331	44 Neutral	¥1.37B	30.71	―	―	3.33%	-80.47%