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

• Market Cap: ¥1.41B
• Dividend Yield: N/A
• Average Volume (3M): 24.10K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.21
• Revenue Growth: 4.82%
• EPS Growth: -8.64%
• Country: JP
• Employees: 31
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 26.31
• 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: ¥763.00 ▲(20.16% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

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

Revenue recovery

A return to positive top-line growth (5.02% in the latest year) indicates recovering demand or improved sales execution. Sustained revenue growth over several quarters can strengthen cash generation potential, support margin recovery, and provide capacity to reduce leverage or reinvest in the core distribution business.

Positive return on equity

A positive ROE shows the company is generating returns on its equity base despite operational pressures. Persistently positive ROE supports long-term shareholder value creation, can enable modest internal funding of investments, and signals underlying profitability that management can leverage to stabilize operations.

Stable gross and net margins

Relatively stable gross and net margins provide predictability to core profitability and suggest existing pricing or cost structures are holding. Margin stability across periods helps with multi-month planning, supports debt servicing if cash flow improves, and reduces the risk of abrupt margin deterioration.

Negative Factors

High leverage

Material reliance on debt and a low equity ratio constrain financial flexibility and increase vulnerability to interest-rate shifts or revenue shocks. Over a multi-month horizon, high leverage limits ability to fund investments, forces priority on debt service, and elevates bankruptcy risk if cash generation does not improve.

Negative operating and free cash flow

Negative operating and free cash flows indicate the business is not internally funding its operations or capital needs. This structural cash shortfall necessitates external financing, hampers debt reduction and reinvestment, and represents a persistent constraint until operating cash conversion is restored.

Declining operating margins

Eroding EBIT/EBITDA margins point to rising costs or weaker operating leverage, which over months reduces the buffer available to absorb shocks and to deleverage. Sustained margin compression would impair cash generation and competitiveness unless management improves cost structure or revenue mix.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	19.66B	18.76B	20.02B	21.05B	16.42B
Gross Profit	755.97M	743.44M	612.46M	749.00M	642.45M
EBITDA	259.51M	273.99M	190.24M	215.96M	218.13M
Net Income	148.72M	162.80M	116.46M	133.02M	113.37M
Balance Sheet
Total Assets	8.36B	7.99B	7.67B	8.24B	7.59B
Cash, Cash Equivalents and Short-Term Investments	265.97M	346.86M	673.15M	320.13M	1.88B
Total Debt	5.91B	5.41B	5.77B	5.95B	6.15B
Total Liabilities	7.37B	7.19B	6.98B	7.67B	7.48B
Stockholders Equity	993.08M	802.66M	688.05M	564.70M	103.91M
Cash Flow
Free Cash Flow	-563.28M	34.53M	602.10M	-1.68B	631.88M
Operating Cash Flow	-560.13M	51.46M	602.77M	-1.68B	648.19M
Investing Cash Flow	-5.62M	-20.23M	-71.42M	-5.77M	6.07M
Financing Cash Flow	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: Positive
• 200DMA: Negative
• MACD: Positive
• 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 722.80, below the 50-day MA of 673.38, and below the 200-day MA of 826.09, indicating a neutral trend. The MACD of 16.95 indicates Positive momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 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
7538	72 Outperform	¥6.02B	5.11	―	1.67%	4.32%	24.60%
7687	71 Outperform	¥3.10B	10.85	―	1.79%	13.82%	23.24%
7114	67 Neutral	¥4.13B	35.10	―	―	10.69%	-59.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥9.37B	24.88	―	0.95%	6.26%	67.81%
9941	54 Neutral	¥1.41B	8.60	―	―	4.82%	-8.64%
2683	47 Neutral	¥2.55B	65.57	―	1.01%	-1.44%	-61.28%