Marubeni Construction Material Lease Co., Ltd. (9763) AI Stock Analysis

• Market Cap: ¥16.05B
• Dividend Yield: 3.57%
• Average Volume (3M): 6.90K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.74
• Revenue Growth: 6.66%
• EPS Growth: 13.62%
• Country: JP
• Employees: 302
• Sector: Industrials
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 105.10
• Shares Outstanding: 3,429,440
• 10 Day Avg. Volume: 5,500
• 30 Day Avg. Volume: 6,903
• PEG Ratio: 1.59
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -82.58
• 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: 76 Outperform
• Price Target: ¥5,650.00 ▲(40.20% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid financial performance (good profitability and a healthy balance sheet) tempered by cash flow pressure. Technicals are supportive due to a strong uptrend, but overbought signals raise near-term risk. Valuation is favorable with a moderate P/E and a supportive dividend yield.

Positive Factors

Consistent revenue growth

Sustained revenue growth demonstrates durable demand for the company’s services and underpins longer-term earnings potential. Over a 2-6 month horizon this trend supports capacity to invest in operations, maintain service levels, and fund strategic initiatives without relying solely on short-term market moves.

Stable operating margins

Consistently positive gross, EBIT and EBITDA margins indicate structural operational efficiency and pricing power relative to costs. This margin stability supports resilient earnings through normal cycles, enabling predictable cash flows and stronger credit metrics over the medium term.

Healthy balance sheet structure

Moderate leverage and a sizeable equity ratio provide financial flexibility to absorb shocks and finance growth. This structural strength reduces refinancing risk, supports investment capacity, and preserves strategic optionality for the next several months to years.

Negative Factors

Negative free cash flow

A shift to negative free cash flow indicates the business is generating less cash than its reported earnings require, limiting internal funding for capex, dividends, or debt reduction. Persisting FCF deficits increase reliance on external financing and constrain strategic flexibility.

Weak cash conversion

Low cash conversion undermines the quality of reported profits and signals working-capital or collection pressures. Over months this can erode liquidity buffers, make earnings less fungible into cash, and require corrective management actions to restore sustainable cash generation.

Rising debt trend

An upward trend in total debt, when combined with weaker cash flow, raises refinancing and interest-coverage concerns. Continued debt growth could reduce strategic options, raise funding costs, and magnify downside in stress scenarios without prompt improvement in cash generation.

Marubeni Construction Material Lease Co., Ltd. Business Overview & Revenue Model

Company Description

Marubeni Construction Material Lease Co.,Ltd. leases, sells, repairs, and fabricates temporary steel construction materials in Japan. The company offers sheet piles, H-beams, steel supports, steel decks, steel plates, and earth-retaining walls for foundation construction work. It also installs and extracts piles; and undertakes earth retainment and underground continuous wall works. The company was formerly known as Marubeni Steel Construction Material Lease Co., Ltd. and changed its name to Marubeni Construction Material Lease Co.,Ltd. in October 1972. Marubeni Construction Material Lease Co.,Ltd. was founded in 1968 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company generates revenue primarily through the leasing of construction materials and equipment to contractors and construction firms. Its revenue model is based on long-term rental agreements and short-term leases, allowing clients to access necessary equipment without the burden of high purchase costs. Key revenue streams include monthly rental fees, maintenance services for leased equipment, and potential sales of used equipment as it is phased out of the rental fleet. Additionally, Marubeni may engage in partnerships with construction firms and suppliers, enhancing its service offerings and expanding its market reach, which contributes to its overall earnings.

Marubeni Construction Material Lease Co., Ltd. Financial Statement Overview

Summary

Strong income statement trends (revenue growth and stable margins) and a healthy balance sheet (moderate leverage, solid equity ratio) are partially offset by weaker cash flow quality, including a shift to negative free cash flow and low cash conversion versus net income.

Income Statement

The company has shown a consistent increase in revenue over the years, with a substantial revenue growth rate of 6.95% in the most recent year. The gross profit margin stands at 18.95%, and the net profit margin is 5.34%, indicating stable profitability. The EBIT margin and EBITDA margin are 6.64% and 8.50%, respectively, reflecting efficient operational management and a strong capacity to generate earnings before interest and taxes.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.50. The return on equity is 7.24%, showing a fair return on shareholder investment. The equity ratio is 44.30%, indicating a healthy proportion of equity financing relative to total assets. However, the increase in total debt over the years may warrant monitoring for potential leverage risks.

Cash Flow

The company experienced a decline in free cash flow, moving from positive to negative in the most recent year, indicating potential cash flow management challenges. The operating cash flow to net income ratio is low, suggesting less cash generation relative to reported net income. The free cash flow to net income ratio has turned negative, highlighting cash flow constraints.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.92B	22.81B	21.32B	20.10B	19.10B	20.03B
Gross Profit	4.52B	4.32B	3.89B	3.59B	3.35B	3.06B
EBITDA	1.91B	1.94B	1.77B	1.35B	1.61B	1.46B
Net Income	1.25B	1.22B	1.16B	1.11B	1.00B	911.00M
Balance Sheet
Total Assets	39.27B	37.96B	32.54B	31.82B	31.95B	32.59B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.00B	443.00M	736.00M	1.04B	2.40B
Total Debt	9.40B	8.40B	5.30B	5.41B	6.14B	8.13B
Total Liabilities	21.85B	20.49B	16.09B	16.57B	17.25B	17.60B
Stockholders Equity	16.82B	16.82B	15.84B	14.72B	14.19B	14.49B
Cash Flow
Free Cash Flow	0.00	-115.00M	167.00M	1.13B	894.00M	2.08B
Operating Cash Flow	0.00	24.00M	335.00M	1.25B	1.08B	2.35B
Investing Cash Flow	0.00	-829.00M	-171.00M	-115.00M	-191.00M	-1.01B
Financing Cash Flow	0.00	2.36B	-456.00M	-1.44B	-2.25B	-1.13B

Marubeni Construction Material Lease Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4030.00
• 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:9763, the sentiment is Positive. The current price of 4030 is below the 20-day moving average (MA) of 4772.00, below the 50-day MA of 4523.40, and above the 200-day MA of 3615.03, indicating a bullish trend. The MACD of 114.83 indicates Positive momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 57.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9763.

Marubeni Construction Material Lease Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	78 Outperform	¥60.79B	6.84	―	4.09%	-6.09%	31.18%
9763	76 Outperform	¥16.05B	9.57	―	3.57%	6.66%	13.62%
7081	76 Outperform	¥14.68B	7.11	―	3.03%	5.72%	60.38%
2445	70 Outperform	¥19.10B	8.97	―	3.33%	-1.56%	-3.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7065	59 Neutral	¥7.38B	5.83	―	3.17%	-0.70%	-43.72%
9223	48 Neutral	¥6.41B	25.76	―	0.38%	11.65%	-210.62%