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

• Market Cap: ¥1.33B
• Dividend Yield: N/A
• Average Volume (3M): 24.10K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.20
• Revenue Growth: 4.82%
• EPS Growth: -8.64%
• Country: JP
• Employees: 31
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 16.99
• Shares Outstanding: 1,934,019
• 10 Day Avg. Volume: 13,690
• 30 Day Avg. Volume: 24,100
• PEG Ratio: -1.24
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -2.68
• 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: 54 Neutral
• Price Target: ¥713.00 ▲(12.28% Upside)

Taiyo Bussan Kaisha, Ltd. faces significant challenges with its financial performance, particularly in cash flow and leverage, which are major concerns. The technical analysis indicates bearish momentum, further weighing on the stock. However, the valuation suggests potential undervaluation, which could attract value investors. Improvement in financial health and operational efficiency is crucial for a positive outlook.

Positive Factors

Stable end-market (Food Distribution)

Operating in food distribution gives structurally steady demand and recurring logistics needs. Over 2–6 months this supports predictable revenue baselines, long-term customer relationships and resilience to cyclical shocks versus discretionary industries, aiding cash predictability.

Consistent revenue recovery

A ~5% revenue increase signals recovery and demand traction versus prior declines. Sustained top-line growth improves operating leverage potential and supports investment in efficiency initiatives, making medium-term margin stabilization and deleveraging more achievable if the trend persists.

Positive ROE

Positive ROE indicates the company is generating returns on shareholder capital despite constraints. That operational profitability can support reinvestment and attract stakeholders, helping sustain enterprise viability as management addresses cash and leverage issues over the medium term.

Negative Factors

High leverage

Material reliance on debt and a low equity ratio reduces financial flexibility and raises refinancing and interest-rate vulnerability. Over months this constrains capital allocation, increases solvency risk under stress, and limits the company's ability to fund growth or absorb shocks.

Negative cash flow

Negative operating and free cash flow undermines the firm’s ability to service debt, fund capex, or invest in efficiency. Without sustained cash generation, the company will likely require external financing, which exacerbates leverage and constrains strategic options over the medium term.

Margin and earnings pressure

Declining EBIT/EBITDA margins coupled with negative EPS growth point to weakening operational efficiency or pricing power. Persisting margin compression erodes cash flow and ROE, making it harder to deleverage and invest, posing a sustained headwind to financial health over months.

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. is experiencing moderate revenue growth, but profitability margins are under pressure. The high leverage poses a risk to financial stability, and the negative cash flow situation is a significant concern. The company needs to focus on improving operational efficiency and cash flow management to enhance its financial health.

Income Statement

Taiyo Bussan Kaisha, Ltd. has shown a positive revenue growth rate of 5.02% in the latest year, indicating a recovery from previous declines. The gross profit margin and net profit margin have remained relatively stable, but are on the lower side compared to industry standards. The EBIT and EBITDA margins have slightly decreased, suggesting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage, which poses a risk in terms of financial stability. However, the return on equity (ROE) has been positive, showing that the company is generating returns on its equity base. The equity ratio is low, reflecting a heavy reliance on debt financing.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in the latest year. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to reported earnings. The free cash flow to net income ratio is also negative, highlighting challenges in generating cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.72B	19.66B	18.76B	20.02B	21.05B	16.42B
Gross Profit	764.13M	755.97M	743.44M	612.46M	749.00M	642.45M
EBITDA	273.11M	259.51M	273.99M	190.24M	215.96M	218.13M
Net Income	165.68M	148.72M	162.80M	116.46M	133.02M	113.37M
Balance Sheet
Total Assets	8.03B	8.36B	7.99B	7.67B	8.24B	7.59B
Cash, Cash Equivalents and Short-Term Investments	480.68M	265.97M	346.86M	673.15M	320.13M	1.88B
Total Debt	5.56B	5.91B	5.41B	5.77B	5.95B	6.15B
Total Liabilities	7.08B	7.37B	7.19B	6.98B	7.67B	7.48B
Stockholders Equity	948.45M	993.08M	802.66M	688.05M	564.70M	103.91M
Cash Flow
Free Cash Flow	0.00	-563.28M	34.53M	602.10M	-1.68B	631.88M
Operating Cash Flow	0.00	-560.13M	51.46M	602.77M	-1.68B	648.19M
Investing Cash Flow	0.00	-5.62M	-20.23M	-71.42M	-5.77M	6.07M
Financing Cash Flow	0.00	484.75M	-356.90M	-180.37M	121.19M	-243.07M

Taiyo Bussan Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 635.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9941, the sentiment is Positive. The current price of 635 is below the 20-day moving average (MA) of 651.60, below the 50-day MA of 642.32, and below the 200-day MA of 849.40, indicating a neutral trend. The MACD of 15.08 indicates Negative momentum. The RSI at 66.64 is Neutral, neither overbought nor oversold. The STOCH value of 71.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	71 Outperform	¥3.24B	11.32	―	1.79%	13.82%	23.24%
7538	69 Neutral	¥5.30B	4.56	―	1.67%	4.32%	24.60%
7114	67 Neutral	¥3.98B	45.62	―	―	10.69%	-59.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥8.82B	20.39	―	0.95%	6.26%	67.81%
9941	54 Neutral	¥1.33B	8.97	―	―	4.82%	-8.64%
2683	47 Neutral	¥2.55B	65.44	―	1.01%	-1.44%	-61.28%