Taiyo Bussan Kaisha, Ltd. (9941) AI Stock Analysis

• Market Cap: ¥1.43B
• Dividend Yield: N/A
• Average Volume (3M): 24.10K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.15
• Revenue Growth: -3.50%
• EPS Growth: -8.42%
• Country: JP
• Employees: 31
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 18.37
• Shares Outstanding: 1,934,019
• 10 Day Avg. Volume: 13,690
• 30 Day Avg. Volume: 24,100
• PEG Ratio: 0.28
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 50.90
• 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: ¥880.00
• Price Target Upside: 20.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥880.00 ▲(20.05% Upside)

The overall stock score reflects significant financial performance challenges, including declining revenues and cash flow issues, combined with weak technical indicators suggesting bearish momentum. However, the stock's relatively low P/E ratio indicates potential undervaluation, providing some upside potential if financial and market conditions improve.

Taiyo Bussan Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Taiyo Bussan Kaisha, Ltd. (9941) is a Japanese trading company primarily engaged in the import and export of various goods, including textiles, chemicals, and industrial materials. Established in the heart of Japan's commercial sector, the company operates in several sectors, leveraging its extensive network and expertise in international trade to provide high-quality products and services to its customers. Taiyo Bussan focuses on building long-term relationships with suppliers and clients, ensuring a steady flow of goods and fostering business growth across its diverse portfolio.

How the Company Makes Money

Taiyo Bussan Kaisha generates revenue through its trading activities, which involve purchasing goods from manufacturers and selling them to retailers and other businesses. The company earns profits by marking up the prices of the goods it trades. Key revenue streams include sales from textiles, chemicals, and industrial materials, which are often sourced from both domestic and international suppliers. Additionally, Taiyo Bussan may engage in value-added services such as logistics and supply chain management, which can further enhance its earnings. Strategic partnerships with suppliers and clients help the company maintain a competitive edge and ensure a consistent revenue flow.

Taiyo Bussan Kaisha, Ltd. Financial Statement Overview

Summary

Taiyo Bussan Kaisha, Ltd. faces moderate growth challenges with declining revenues and a slight decrease in profitability margins. While the return on equity is strong, high leverage poses financial risk, and a low equity ratio suggests potential vulnerability. The cash flow situation needs improvement, as operational cash flows have recently stagnated.

Income Statement

The company shows a consistent gross profit margin over the TTM (3.70%) and the previous year (3.96%). However, the net profit margin slightly declined from 0.87% last year to 0.78% TTM, indicating some pressure on profitability. Revenue has fluctuated, with a 6.81% decline in the most recent TTM period, suggesting challenges in sustaining sales growth. EBIT and EBITDA margins are modest but stable.

Balance Sheet

The debt-to-equity ratio is high at 6.04, indicating significant leverage, which poses financial risk. The return on equity (ROE) improved to 17.71% TTM from 20.28% the previous year, demonstrating effective use of equity. However, the equity ratio remains low at 11.23%, suggesting potential vulnerability in financial stability.

Cash Flow

The company experienced volatility in cash flows, with operating cash flow and free cash flow turning zero in the TTM period from positive values. The free cash flow to net income ratio is unavailable due to zero free cash flow, indicating potential operational challenges. The company needs to stabilize cash flows to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.72B	18.76B	20.02B	21.05B	16.42B	14.80B
Gross Profit	764.13M	743.44M	612.46M	749.00M	642.45M	222.97M
EBITDA	273.11M	273.99M	190.24M	215.96M	218.13M	-307.18M
Net Income	165.68M	162.80M	116.46M	133.02M	113.37M	-391.33M
Balance Sheet
Total Assets	8.03B	7.99B	7.67B	8.24B	7.59B	7.60B
Cash, Cash Equivalents and Short-Term Investments	480.68M	346.86M	673.15M	320.13M	1.88B	1.47B
Total Debt	5.56B	5.41B	5.77B	5.95B	6.15B	6.54B
Total Liabilities	7.08B	7.19B	6.98B	7.67B	7.48B	7.76B
Stockholders Equity	948.45M	802.66M	688.05M	564.70M	103.91M	-158.32M
Cash Flow
Free Cash Flow	0.00	34.53M	602.10M	-1.68B	631.88M	-561.47M
Operating Cash Flow	0.00	51.46M	602.77M	-1.68B	648.19M	-547.12M
Investing Cash Flow	0.00	-20.23M	-71.42M	-5.77M	6.07M	-21.64M
Financing Cash Flow	0.00	-356.90M	-180.37M	121.19M	-243.07M	-806.86M

Taiyo Bussan Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 733.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9941, the sentiment is Negative. The current price of 733 is below the 20-day moving average (MA) of 801.95, below the 50-day MA of 921.30, and below the 200-day MA of 929.25, indicating a bearish trend. The MACD of -60.22 indicates Negative momentum. The RSI at 10.41 is Positive, neither overbought nor oversold. The STOCH value of 14.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9941.

Taiyo Bussan Kaisha, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7687	75 Outperform	¥3.59B	13.02	―	1.47%	14.39%	22.21%
7538	69 Neutral	¥4.58B	4.22	―	1.74%	2.56%	16.26%
7114	67 Neutral	¥4.10B	43.45	―	―	8.54%	-59.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	60 Neutral	¥7.87B	22.22	―	1.00%	5.89%	82.20%
9941	55 Neutral	¥1.43B	8.59	―	―	-3.50%	-8.42%
2683	47 Neutral	¥2.55B	114.78	―	1.00%	-1.44%	-61.28%