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

• Market Cap: ¥38.80B
• Dividend Yield: 4.2%
• Average Volume (3M): 91.46K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.67
• Revenue Growth: 10.09%
• EPS Growth: 54.33%
• Country: JP
• Employees: 1,509
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 24.79
• Shares Outstanding: 26,800,000
• 10 Day Avg. Volume: 110,300
• 30 Day Avg. Volume: 91,456
• PEG Ratio: 0.88
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 9.59
• 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: 78 Outperform
• Price Target: ¥1,798.00 ▲(7.92% Upside)

Morito Co., Ltd. scores well due to its strong financial performance, characterized by robust profitability and a solid balance sheet. The technical analysis indicates a stable trend with potential for upward momentum. Valuation metrics are favorable, with a reasonable P/E ratio and attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Financial Health

The company's low debt-to-equity ratio and strong return on equity indicate financial stability and effective capital use, supporting long-term growth.

Cash Flow Management

Strong operating cash flow to net income ratio highlights healthy cash generation, ensuring adequate funds for reinvestment and operational needs.

Strategic Growth

Record financial performance driven by strategic product development and investments indicates robust growth potential and competitive positioning.

Negative Factors

Modest Revenue Growth

While stable, the modest revenue growth may limit the company's ability to capitalize on market opportunities and expand its market share.

Market Shifts

Changes in market dynamics, such as local production trends, could challenge Morito's traditional business model and impact future revenue streams.

Acquisition Impact

The acquisition's financial impact remains uncertain, potentially affecting Morito's financial results and requiring careful management to mitigate risks.

Morito Co., Ltd. Business Overview & Revenue Model

Company Description

Morito Co., Ltd. (9837) is a Japanese company primarily engaged in the manufacturing and distribution of various products, including food ingredients, packaging materials, and other related items. The company operates across several sectors, with a strong presence in the food and beverage industry, providing high-quality ingredients and solutions to food manufacturers and restaurants. Morito is known for its commitment to innovation and quality, offering a diverse range of products that cater to the evolving needs of its customers.

How the Company Makes Money

Morito Co., Ltd. generates revenue through multiple streams, primarily by selling food ingredients and packaging solutions to businesses in the food service and manufacturing sectors. The company's revenue model is based on direct sales to clients, including wholesalers, restaurants, and food manufacturers, which represent a significant portion of its earnings. Additionally, Morito may engage in partnerships with other food and beverage companies to develop specialized products, further enhancing its market presence. The company's focus on quality and innovation also allows it to command premium pricing for its products, contributing to its profitability.

Morito Co., Ltd. Financial Statement Overview

Summary

Morito Co., Ltd. exhibits strong financial health with a stable income statement, robust balance sheet, and efficient cash flow management. The company has demonstrated consistent profitability and stability, with low financial leverage. While revenue growth is modest, the company maintains strong profitability metrics. The financial position is solid, with significant equity and minimal debt, providing a strong foundation for future 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.51B	48.54B	48.53B	48.48B	43.64B	40.73B
Gross Profit	16.19B	14.14B	13.27B	12.49B	11.40B	10.57B
EBITDA	3.93B	5.16B	4.50B	3.88B	3.31B	2.02B
Net Income	3.67B	2.57B	2.22B	1.67B	1.41B	470.10M
Balance Sheet
Total Assets	55.88B	52.48B	51.43B	50.27B	45.94B	43.70B
Cash, Cash Equivalents and Short-Term Investments	10.13B	15.46B	13.01B	10.40B	11.10B	10.13B
Total Debt	3.03B	1.19B	1.47B	1.75B	2.15B	2.88B
Total Liabilities	15.54B	13.20B	12.97B	13.59B	12.02B	11.68B
Stockholders Equity	40.34B	39.28B	38.46B	36.68B	33.91B	32.02B
Cash Flow
Free Cash Flow	0.00	4.06B	3.86B	239.65M	1.79B	2.13B
Operating Cash Flow	0.00	4.62B	4.40B	850.63M	2.64B	2.46B
Investing Cash Flow	0.00	638.66M	77.81M	-135.11M	-401.71M	-16.76M
Financing Cash Flow	0.00	-2.68B	-1.98B	-1.92B	-1.38B	-1.88B

Morito Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1666.00
• 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 1666 is above the 20-day moving average (MA) of 1645.89, above the 50-day MA of 1609.30, and above the 200-day MA of 1471.66, indicating a bullish trend. The MACD of 14.08 indicates Negative momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 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	78 Outperform	¥38.80B	11.91	―	4.20%	10.09%	54.33%
7606	74 Outperform	¥69.81B	19.26	―	2.69%	10.48%	-34.38%
8018	70 Outperform	¥27.55B	59.62	―	5.87%	-2.38%	-77.89%
2792	69 Neutral	¥42.64B	12.38	―	3.59%	-0.98%	-29.86%
8008	67 Neutral	¥37.43B	25.18	―	4.76%	48.00%	16.54%
8185	66 Neutral	¥33.15B	16.71	―	4.13%	-9.86%	-14.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Morito Co., Ltd. Corporate Events

Morito Co., Ltd. Announces Treasury Share Repurchase

Morito Co., Ltd. has announced the repurchase of 95,500 shares of its common stock, amounting to a total acquisition cost of 157,142,300 yen, conducted through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1,200,000 shares, aiming to enhance shareholder value and optimize capital structure.

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

Morito Co., Ltd. has announced a revision to its year-end dividend forecast for the fiscal year ending November 30, 2025, increasing the dividend by 1 yen per share to 37 yen. This decision aligns with the company’s commitment to returning profits to shareholders and reflects a consolidated dividend on equity ratio of 4.6%, underscoring its focus on stable and continuous dividend payments.

Morito Co., Ltd. Announces Cancellation of Treasury Shares

Morito Co., Ltd. has announced a decision by its Board of Directors to cancel 3.2 million treasury shares, which constitutes 10.67% of the total shares issued before cancellation. This move is expected to streamline the company’s capital structure, potentially enhancing shareholder value and reflecting a strategic approach to managing its equity base.

Morito Co., Ltd. Announces Treasury Share Repurchase

Morito Co., Ltd. announced the repurchase of 161,900 shares of its common stock at a total cost of 258,474,300 yen during October 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 1,200,000 shares, reflecting a commitment to enhance shareholder value and optimize capital structure.

Morito Co., Ltd. Reports Record Profits Amid Industry Challenges

Morito Co., Ltd. has seen a steady performance in its kitchen-appliance-related services and B2C businesses as it recovers from previous inventory adjustments, particularly in the domestic apparel sector. The recent consolidation of MITSUBOSHI CORPORATION has led to record-high net sales, operating profit, and ordinary profit. However, the company anticipates potential challenges due to U.S. trade policy and reduced sales periods for winter apparel caused by heat waves.

Morito Co., Ltd. Reports Strong Financial Growth and Expansion

Morito Co., Ltd. reported a significant increase in its financial performance for the nine months ending August 31, 2025, with net sales rising by 14% and profit attributable to owners of the parent surging by 57% compared to the previous period. The company has also expanded its consolidation scope by including three new companies, which may enhance its market position and operational capabilities.

Morito Co., Ltd. Announces Treasury Share Repurchase

Morito Co., Ltd. has announced the repurchase of 147,000 treasury shares at a total cost of 230,238,600 yen, conducted through market purchases on the Tokyo Stock Exchange during September 2025. This move is part of a broader strategy authorized by the Board of Directors to acquire up to 1.2 million shares, reflecting the company’s ongoing efforts to manage its capital structure and potentially enhance shareholder value.