Uematsu Shokai Co., Ltd. (9914) AI Stock Analysis

• Market Cap: ¥2.64B
• Dividend Yield: 3.28%
• Average Volume (3M): 440.00
• Price to Earnings (P/E): 27.1
• Beta (1Y): 0.14
• Revenue Growth: -6.09%
• EPS Growth: -19.74%
• Country: JP
• Employees: 75
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 20.24
• Shares Outstanding: 2,340,000
• 10 Day Avg. Volume: 690
• 30 Day Avg. Volume: 440
• PEG Ratio: -1.12
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -6.64
• 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: 67 Neutral
• Price Target: ¥1,250.00 ▲(30.07% Upside)
• Action: Downgraded Date: 10/29/25
• Date: Action: Downgraded 10/29/25

Uematsu Shokai Co., Ltd. has a solid financial foundation with strong profitability and low leverage, but recent revenue declines and cash flow challenges are concerning. The technical indicators suggest a neutral trend, and the valuation indicates potential overvaluation, balanced by a decent dividend yield.

Positive Factors

Strong balance sheet

Low leverage and a high equity ratio provide durable financial flexibility. This strength supports continued supplier credit, capital spending or targeted investments, and preserves the company's ability to sustain dividends and weather sector downturns without urgent refinancing.

Stable profit margins

Persistent gross and operating margins indicate effective cost control and pricing power in distribution. Stable margins allow predictable cash generation and reinvestment capacity, supporting long-term profitability even if top-line growth slows.

Durable distribution model

A B2B wholesale and logistics model serving builders and contractors creates recurring demand and sticky relationships. Integrated distribution services raise switching costs and support steady revenue streams, forming a structural advantage versus commoditized suppliers.

Negative Factors

Recent revenue decline

Falling revenue reduces operating leverage and constrains margin expansion. Sustained top-line weakness can erode supplier terms, limit reinvestment in logistics or product mix, and increase reliance on price or volume recoveries to restore growth momentum.

Negative free cash flow in 2025

A recent swing to negative free cash flow weakens internal funding for capex, working capital and dividends. If persistent, it forces external financing or asset sales, reducing strategic optionality and increasing vulnerability to interest rate or financing market shocks.

Cyclical end-market exposure

Concentration in construction and housing subjects revenue to cyclical activity and macro sensitivity. Downturns in building activity can quickly depress orders and margins; without diversification, the business faces recurring demand volatility that challenges steady growth.

Uematsu Shokai Co., Ltd. Business Overview & Revenue Model

Company Description

Uematsu Shokai Co.,Ltd., a trading company, provides machine tools and industrial machinery in Japan. The company offers metal machine tools, forging machines, automatic programming, and can and steel making frame machines. It also provides cutting tool, work tool, measuring tool, touring work equipment, power tool, and air tool; industrial machinery prime movers, hydraulic and pneumatic equipment, compressors, labor-saving and rationalization equipment, cargo handling and transport equipment, welding machines, and pipework equipment; plumbing equipment, environmental improvement equipment, ME equipment, chemical product, and construction machinery; and transmission equipment bearing, transmission machine, transmission supply, transmission/reduction gear, etc. It offers steel material, QA equipment, food related equipment, and home appliance, as well as seasonal product. The company was incorporated in 1955 and is headquartered in Sendai, Japan.

How the Company Makes Money

Uematsu Shokai generates revenue through several key streams, primarily from the wholesale distribution of seafood and food products. The company purchases seafood products from various suppliers and fisheries, then sells these products to restaurants, supermarkets, and other food service establishments at a markup. The business benefits from economies of scale, allowing it to negotiate favorable pricing with suppliers. Furthermore, the company may engage in import and export activities, leveraging global supply chains to access diverse markets and enhance its product offerings. Significant partnerships with local and overseas suppliers, as well as established customer relationships, contribute to a steady revenue flow. Additionally, Uematsu Shokai may explore value-added services, such as customized product offerings or logistics solutions, to enhance customer satisfaction and increase profitability.

Uematsu Shokai Co., Ltd. Financial Statement Overview

Summary

Uematsu Shokai Co., Ltd. presents a generally strong financial position with solid profitability and low leverage. However, recent revenue declines and cash flow challenges pose potential risks. Continued focus on revenue growth and cash flow stability will be crucial for future success.

Income Statement

Uematsu Shokai Co., Ltd. demonstrates a solid gross profit margin and decent net profit margin over the years, indicating effective cost management. However, the revenue has shown fluctuations, with a significant decline from 2024 to 2025, affecting overall growth trajectory. The EBIT and EBITDA margins are stable, contributing to profitability.

Balance Sheet

The company's balance sheet is robust with a strong equity position, as evidenced by a high equity ratio. The debt-to-equity ratio is low, reflecting low leverage and financial stability. Return on equity shows positive performance despite some fluctuations in net income.

Cash Flow

Cash flow analysis shows variability, with negative free cash flow in 2025, indicating potential liquidity challenges. Despite past years of positive operating cash flows, the recent downturn highlights a need for better cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.36B	6.31B	7.25B	6.46B	6.12B	5.09B
Gross Profit	903.74M	893.01M	1.02B	907.56M	855.56M	725.38M
EBITDA	115.17M	163.33M	199.79M	100.91M	111.88M	22.86M
Net Income	79.13M	86.20M	112.01M	39.87M	52.92M	-21.28M
Balance Sheet
Total Assets	4.68B	5.00B	5.43B	4.50B	4.70B	4.47B
Cash, Cash Equivalents and Short-Term Investments	375.95M	599.22M	1.01B	363.84M	494.30M	597.02M
Total Debt	42.85M	45.82M	58.25M	9.05M	7.32M	27.79M
Total Liabilities	1.72B	1.91B	2.40B	1.67B	1.84B	1.60B
Stockholders Equity	2.96B	3.09B	3.03B	2.83B	2.86B	2.87B
Cash Flow
Free Cash Flow	0.00	-320.44M	709.96M	-61.42M	25.78M	82.25M
Operating Cash Flow	0.00	-317.61M	716.05M	-61.22M	28.89M	82.25M
Investing Cash Flow	0.00	-11.69M	43.72M	-23.48M	-113.48M	280.77M
Financing Cash Flow	0.00	-79.69M	-108.21M	-52.95M	-18.14M	-80.51M

Uematsu Shokai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 961.00
• 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:9914, the sentiment is Positive. The current price of 961 is below the 20-day moving average (MA) of 1109.95, below the 50-day MA of 1075.26, and below the 200-day MA of 987.21, indicating a bullish trend. The MACD of 22.05 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 69.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9914.

Uematsu Shokai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9914	67 Neutral	¥2.64B	27.07	―	3.28%	-6.09%	-19.74%
6400	66 Neutral	¥2.43B	10.70	7.95%	2.50%	3.64%	17.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6233	62 Neutral	¥2.18B	13.09	―	2.46%	-2.17%	126.99%
6217	57 Neutral	¥4.15B	-15.85	―	―	-5.76%	-120.95%
7719	56 Neutral	¥4.54B	38.35	―	―	21.54%	―
6347	54 Neutral	¥3.89B	429.94	―	1.67%	-13.82%	81.18%