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

• Market Cap: ¥2.20B
• Dividend Yield: 3.28%
• Average Volume (3M): 440.00
• Price to Earnings (P/E): 12.6
• 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: ¥1,156.00 ▲(20.29% 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

Balance sheet strength

High equity ratio and low leverage provide durable financial flexibility. A strong balance sheet supports capital spending, dividend payments and working-capital needs during cyclical downturns, reducing refinancing risk and enabling opportunistic investments.

Sustained profitability and margins

Consistently healthy gross and operating margins indicate effective cost control and pricing power in its distribution business. Stable EBIT/EBITDA margins support cash generation and profitability resilience even if top-line growth slows, sustaining long-term earnings quality.

Business model: wholesale + logistics

A B2B wholesale model combined with logistics services creates recurring, contract-driven revenue streams and closer customer relationships with builders and contractors. Service-linked revenues can smooth sales cycles and raise switching costs versus pure commodity resellers.

Negative Factors

Recent revenue decline

A multi-year revenue downturn weakens growth momentum and limits reinvestment capacity. Sustained top-line declines can force margin trade-offs, reduce operating leverage benefits, and constrain long-term strategic initiatives like market expansion or service enhancement.

Weak free cash flow in 2025

Negative FCF signals that operating cash generation did not cover investments and working-capital needs in the latest period. This can pressure liquidity, restrict reinvestment or dividends, and raise reliance on the balance sheet or external financing during prolonged weakness.

Concentration in construction/housing demand

Heavy exposure to construction and housing markets creates cyclicality risk: downturns in residential or construction activity can materially depress sales. Limited diversification across end-markets amplifies sensitivity to sector-specific slowdowns over a multi-quarter horizon.

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

Revenue is generated mainly through (1) selling construction- and housing-related materials to professional customers such as builders, contractors, and other distributors, earning a gross margin on the difference between procurement costs and sales prices; and (2) providing associated distribution/logistics services tied to those product deliveries. Additional segment-level revenue breakdowns, recurring service/maintenance income, or specific major partnerships are not available (null).

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	898.79M	893.01M	1.01B	894.74M	840.40M	707.87M
EBITDA	52.42M	62.55M	105.51M	48.28M	32.52M	-37.10M
Net Income	79.11M	86.20M	112.01M	39.87M	52.92M	-21.28M
Balance Sheet
Total Assets	4.68B	5.02B	5.45B	4.52B	4.72B	4.48B
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	17.79M
Total Liabilities	1.72B	1.93B	2.42B	1.69B	1.86B	1.61B
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	27.58M	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: Neutral
• Last Price: 961.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9914, the sentiment is Neutral. The current price of 961 is below the 20-day moving average (MA) of 1109.95, below the 50-day MA of 1078.23, and below the 200-day MA of 974.35, indicating a neutral trend. The MACD of 8.56 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 5.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6381	75 Outperform	¥64.03B	13.24	―	3.95%	-1.67%	-4.39%
9914	67 Neutral	¥2.20B	12.56	―	3.28%	-6.09%	-19.74%
6440	65 Neutral	¥18.69B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6151	59 Neutral	¥30.47B	4.17	―	2.13%	1.13%	-66.14%
6757	49 Neutral	¥4.18B	40.07	―	4.06%	1.44%	-184.10%
6218	47 Neutral	¥3.55B	4.24	―	1.93%	-14.00%	-216.77%