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Morito Co., Ltd. (JP:9837)
:9837
Japanese Market
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Morito Co., Ltd. (9837) AI Stock Analysis

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JP:9837

Morito Co., Ltd.

(9837)

Rating:76Outperform
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. (9837) vs. iShares MSCI Japan ETF (EWJ)

Morito Co., Ltd. Business Overview & Revenue Model

Company DescriptionMorito 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 MoneyMorito 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
85
Very Positive
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
90
Very Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue48.54B48.53B48.48B43.64B40.73B
Gross Profit14.14B12.74B12.49B11.40B10.57B
EBITDA5.16B4.50B3.88B3.31B2.02B
Net Income2.57B2.22B1.67B1.41B470.10M
Balance Sheet
Total Assets52.48B51.43B50.27B45.94B43.70B
Cash, Cash Equivalents and Short-Term Investments15.46B13.01B10.40B11.10B10.13B
Total Debt1.19B1.47B1.75B2.15B2.88B
Total Liabilities13.20B12.97B13.59B12.02B11.68B
Stockholders Equity39.28B38.46B36.68B33.91B32.02B
Cash Flow
Free Cash Flow4.06B3.86B239.65M1.79B2.13B
Operating Cash Flow4.62B4.40B850.63M2.64B2.46B
Investing Cash Flow638.66M77.81M-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 Price1482.00
Price Trends
50DMA
1399.28
Positive
100DMA
1409.27
Positive
200DMA
1426.14
Positive
Market Momentum
MACD
27.30
Negative
RSI
67.11
Neutral
STOCH
73.37
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥39.44B11.05
4.52%5.12%55.73%
76
Outperform
¥62.38B14.11
2.54%12.39%-11.38%
74
Outperform
¥38.69B14.40
2.84%-5.75%49.48%
72
Outperform
¥24.55B11.27
4.36%6.22%-2.50%
69
Neutral
¥40.94B10.97
3.74%2.00%-28.32%
66
Neutral
¥37.13B29.10
4.80%31.10%-3.78%
63
Neutral
$17.10B10.62-8.48%2.94%1.62%-25.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9837
Morito Co., Ltd.
1,482.00
61.44
4.33%
JP:2792
HONEYS HOLDINGS CO. LTD.
1,470.00
-55.17
-3.62%
JP:7606
UNITED ARROWS LTD.
2,163.00
171.05
8.59%
JP:8008
Yondoshi Holdings, Inc.
1,722.00
-144.51
-7.74%
JP:8018
Sankyo Seiko Co., Ltd.
619.00
-12.46
-1.97%
JP:8185
Chiyoda Co., Ltd.
1,194.00
306.87
34.59%

Morito Co., Ltd. Corporate Events

Morito Co., Ltd. Increases Year-End Dividend Forecast for FY 2025
Jul 11, 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
Jul 11, 2025

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
Jul 11, 2025

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
Jul 11, 2025

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
Jul 3, 2025

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
Jun 18, 2025

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
Jun 4, 2025

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
May 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025