Morito Co., Ltd. (9837) AI Stock Analysis

• Market Cap: ¥39.44B
• Dividend Yield: 4.52%
• Average Volume (3M): 75.66K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.71
• Revenue Growth: 5.12%
• EPS Growth: 55.73%
• Country: JP
• Employees: 1,509
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): 24.79
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 116,930
• 30 Day Avg. Volume: 75,663
• PEG Ratio: 8.54
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.00
• 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: ¥1,541.00
• Price Target Upside: 3.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,686.00 ▲(13.77%Upside)

Morito Co., Ltd. scores well due to its strong financial foundation and attractive valuation, although technical indicators suggest the stock might be overbought. The company's robust balance sheet and efficient capital management support a favorable outlook, but investors should be mindful of potential short-term volatility due to current market momentum.

Morito Co., Ltd. Business Overview & Revenue Model

Company Description

Morito Co., Ltd. is a Japanese company primarily engaged in the manufacture and sale of apparel and related products. The company operates in several sectors, including clothing accessories, automotive interior products, and lifestyle goods. Its core products include buttons, fasteners, eyelets, and other clothing accessories, which are distributed both domestically and internationally. Additionally, Morito provides automotive interior products such as seat components and interior trim, as well as lifestyle goods that cater to consumer needs.

How the Company Makes Money

Morito Co., Ltd. generates revenue through the production and sale of clothing accessories, automotive interior products, and lifestyle goods. The company's revenue model is primarily based on its product sales to both B2B and B2C markets. Key revenue streams include the sale of apparel fasteners and accessories to clothing manufacturers and retailers, as well as automotive interior components to car manufacturers. Strategic partnerships with manufacturers and distributors play a significant role in expanding its market reach. Additionally, the company benefits from its established brand reputation and long-standing relationships with clients, contributing to stable earnings. Export sales also form a substantial part of its revenue, as Morito distributes its products globally, leveraging its international supply chain.

Morito Co., Ltd. Financial Statement Overview

Summary

Morito Co., Ltd. exhibits strong financial health with a robust balance sheet, a consistent income statement, and efficient cash flow management. The company's low debt-to-equity ratio and strong return on equity demonstrate financial stability and effective capital use, despite modest revenue growth.

Income Statement

Morito Co., Ltd. has shown a strong performance in its income statement metrics. The gross profit margin is healthy, indicating effective cost management. The net profit margin has improved over the years, reflecting enhanced profitability. Revenue growth rate is modest, showing stability but limited expansion. The company has maintained a consistent EBIT and EBITDA margin, reinforcing its operational efficiency.

Balance Sheet

The company's balance sheet is robust, characterized by a low debt-to-equity ratio, suggesting minimal financial leverage and risk. The return on equity is strong, indicating efficient use of equity capital to generate profits. The equity ratio is high, denoting financial stability and a solid equity base. Overall, the balance sheet reflects a well-managed financial structure.

Cash Flow

Morito Co., Ltd. demonstrates good cash flow management. The operating cash flow to net income ratio is strong, indicating healthy cash generation relative to net income. Free cash flow growth is positive, though not significantly high, showing adequate cash availability for reinvestment. The free cash flow to net income ratio is favorable, highlighting efficient cash usage.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.54B	48.53B	48.48B	43.64B	40.73B
Gross Profit	14.14B	12.74B	12.49B	11.40B	10.57B
EBITDA	5.16B	4.50B	3.88B	3.31B	2.02B
Net Income	2.57B	2.22B	1.67B	1.41B	470.10M
Balance Sheet
Total Assets	52.48B	51.43B	50.27B	45.94B	43.70B
Cash, Cash Equivalents and Short-Term Investments	15.46B	13.01B	10.40B	11.10B	10.13B
Total Debt	1.19B	1.47B	1.75B	2.15B	2.88B
Total Liabilities	13.20B	12.97B	13.59B	12.02B	11.68B
Stockholders Equity	39.28B	38.46B	36.68B	33.91B	32.02B
Cash Flow
Free Cash Flow	4.06B	3.86B	239.65M	1.79B	2.13B
Operating Cash Flow	4.62B	4.40B	850.63M	2.64B	2.46B
Investing Cash Flow	638.66M	77.81M	-135.11M	-401.71M	-16.76M
Financing Cash Flow	-2.68B	-1.98B	-1.92B	-1.38B	-1.88B

Morito Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1482.00
• 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:9837, the sentiment is Positive. The current price of 1482 is above the 20-day moving average (MA) of 1420.65, above the 50-day MA of 1399.28, and above the 200-day MA of 1426.14, indicating a bullish trend. The MACD of 27.30 indicates Negative momentum. The RSI at 67.11 is Neutral, neither overbought nor oversold. The STOCH value of 73.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9837.

Morito Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9837	76 Outperform	¥39.44B	11.05		4.52%	5.12%	55.73%
7606	76 Outperform	¥62.38B	14.11		2.54%	12.39%	-11.38%
8185	74 Outperform	¥38.69B	14.40		2.84%	-5.75%	49.48%
8018	72 Outperform	¥24.55B	11.27		4.36%	6.22%	-2.50%
2792	69 Neutral	¥40.94B	10.97		3.74%	2.00%	-28.32%
8008	66 Neutral	¥37.13B	29.10		4.80%	31.10%	-3.78%
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%

Morito Co., Ltd. Corporate Events

Morito Co., Ltd. Increases Year-End Dividend Forecast for FY 2025

Morito Co., Ltd. announced a revision to its year-end dividend forecast for the fiscal year ending November 30, 2025, increasing the dividend from the previously forecasted 67 yen to 69 yen per share. This decision reflects the company’s commitment to its dividend policy, which aims to ensure stable returns to shareholders and enhance return on equity by controlling net assets.

Morito Co., Ltd. Reports Gain from Mitsuboshi Acquisition Amid Market Shifts

Morito Co., Ltd. announced a gain of 1,120 million yen from negative goodwill following its acquisition of Mitsuboshi Corporation, now a consolidated subsidiary. Despite uncertainties in the U.S. market and a shift towards local production in the apparel industry, the company’s financial forecast for the fiscal year remains unchanged.

Morito Co., Ltd. Reports Record Financial Performance Amid Strategic Growth

Morito Co., Ltd. has achieved record-breaking net sales, operating profit, and ordinary profit, marking all-time highs since the start of their semiannual reporting. The company is optimistic about recovering from inventory adjustments in the domestic apparel sector and aims for an 8.0% return on equity, driven by strategic product development and investments following the spin-off of Morito Japan.

Morito Co., Ltd. Reports Strong First-Half Financial Results and Revises Dividend Forecast

Morito Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending November 30, 2025, showing a significant increase in net sales and profits compared to the previous year. The company also announced a revision in its dividend forecast, indicating a positive outlook for stakeholders and reflecting its strong financial performance during the period.

Morito Co., Ltd. Halts Treasury Share Repurchase Amid Acquisition Developments

Morito Co., Ltd. announced that it did not repurchase any treasury shares during the specified period from June 1, 2025, to June 30, 2025, despite having a resolution in place to acquire up to 1,200,000 shares. The decision was influenced by the anticipated negative goodwill arising from the acquisition of Mitsuboshi Corporation’s shares, which is expected to impact the company’s consolidated financial results. The company plans to disclose the financial impact once it is determined.

Morito Co., Ltd. Updates Capital Management Strategies

Morito Co., Ltd. has updated its strategies to enhance management awareness of capital costs and stock prices, following a board meeting on June 18, 2025. Despite improvements in PBR and ROE, the company aims to further boost corporate value by prioritizing business performance and capital policy enhancements, with a forecasted increase in consolidated net sales and operating profit for FY2025.

Morito Co., Ltd. Holds Off on Treasury Share Repurchase Amid Acquisition Impacts

Morito Co., Ltd. announced that it did not repurchase any treasury shares during the specified period in May 2025. The decision was influenced by the anticipated negative goodwill from acquiring Mitsuboshi Corporation’s shares, which is expected to impact the company’s consolidated financial results. The exact effect on financial outcomes is still under discussion and will be disclosed once determined.

Morito Co., Ltd. Halts Treasury Share Repurchase Amid Subsidiary Acquisition

Morito Co., Ltd. announced that it did not repurchase any treasury shares during April 2025 due to the anticipated negative goodwill from acquiring Mitsuboshi Corporation, which will become a subsidiary. The financial impact of this acquisition is still under review, and the company plans to disclose its effects on the consolidated financial results once determined.