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

• Market Cap: ¥42.09B
• Dividend Yield: 4.22%
• Average Volume (3M): 71.39K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.71
• 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: 30,000,000
• 10 Day Avg. Volume: 70,570
• 30 Day Avg. Volume: 71,393
• 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: ¥1,798.00
• Price Target Upside: 13.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥1,798.00 ▲(13.15% 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.

Morito Co., Ltd. Business Overview & Revenue Model

Company Description

Morito Co., Ltd. plans, develops, and produces eyelets, hooks, flat fasteners, and other apparels worldwide. It also provides footwear accessories and articles, as well as materials for camera components and vehicle interiors. In addition, the company offers various categories of footwear materials; and value added materials for various types of apparel, including casualwear, sportswear, formalwear, and uniforms. Further, it is involved in the retail distribution of insoles and shoe/foot care articles; and provision of transportation equipment materials, such as nets, emblems, fasteners, straps, rubber textiles, and magic tape products for automobile, train, and aircraft parts, as well as ODM materials comprising sewn, molded, or other processed articles in the form of semi-finished and finished products for various industries. The company was formerly known as Morito & Co., Ltd. and changed its name to Morito Co., Ltd. in 1976. Morito Co., Ltd. was founded in 1908 and is headquartered in Osaka, Japan

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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.59B	48.54B	48.53B	48.48B	43.64B	40.73B
Gross Profit	15.07B	14.14B	13.27B	12.49B	11.40B	10.57B
EBITDA	3.89B	5.16B	4.50B	3.88B	3.31B	2.02B
Net Income	3.54B	2.57B	2.22B	1.67B	1.41B	470.10M
Balance Sheet
Total Assets	57.13B	52.48B	51.43B	50.27B	45.94B	43.70B
Cash, Cash Equivalents and Short-Term Investments	10.21B	15.46B	13.01B	10.40B	11.10B	10.13B
Total Debt	3.56B	1.19B	1.47B	1.75B	2.15B	2.88B
Total Liabilities	16.09B	13.20B	12.97B	13.59B	12.02B	11.68B
Stockholders Equity	41.03B	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: 1589.00
• 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:9837, the sentiment is Positive. The current price of 1589 is above the 20-day moving average (MA) of 1578.40, above the 50-day MA of 1561.38, and above the 200-day MA of 1470.74, indicating a bullish trend. The MACD of 4.79 indicates Positive momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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	¥42.09B	11.36	―	4.22%	10.09%	54.33%
8018	73 Outperform	¥26.11B	12.34	―	6.19%	3.81%	-4.07%
2792	69 Neutral	¥42.36B	12.30	―	3.63%	-0.98%	-29.86%
7606	67 Neutral	¥55.20B	13.43	―	3.25%	11.62%	-17.80%
8008	67 Neutral	¥37.37B	25.14	―	4.77%	48.00%	16.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8185	61 Neutral	¥32.19B	15.60	―	4.42%	-9.86%	-14.02%

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 at a total cost of 142,217,400 yen, conducted through market purchases on the Tokyo Stock Exchange during July 2025. This move is part of a broader strategy approved 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. 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.