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

• Market Cap: ¥1.57B
• Dividend Yield: N/A
• Average Volume (3M): 24.10K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.14
• 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: -1.17
• 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: 61 Neutral
• Price Target: ¥860.00 ▲(35.43% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held back primarily by financial quality concerns—high leverage and negative operating/free cash flows—despite moderate revenue growth. Technicals are supportive with clear upward momentum, and valuation looks attractive based on the low P/E, providing partial offset to the cash flow and balance sheet risks.

Positive Factors

Return on Equity

A positive ROE indicates management is able to generate returns from shareholders' equity, which supports long-term value creation. Even with elevated leverage, sustained positive ROE implies the core business can produce profitable outcomes and justify reinvestment or gradual deleveraging over time.

Revenue Recovery

A return to revenue growth signals improving demand or market positioning after prior declines. Sustainable top-line growth over several quarters supports operating leverage, better fixed-cost absorption, and creates a platform for margin improvement and reinvestment in distribution capabilities and customer relationships.

Low Market Volatility

A very low beta suggests the company's earnings and cash flows are less correlated with market swings, aiding predictability. Lower revenue and earnings volatility helps in planning, reduces refinancing/operational risk sensitivity, and supports steadier execution of multi‑month initiatives.

Negative Factors

High Leverage

Significant leverage raises refinancing, interest coverage, and solvency risks over the medium term. High debt limits financial flexibility for capex or working capital, magnifies downturn impacts, and can force prioritization of debt service over strategic investments, constraining growth options.

Negative Cash Flow

Persistent negative operating and free cash flows undermine the firm’s ability to self-fund operations, service debt, and invest in growth. Over months this forces reliance on external financing or asset sales, worsening leverage and increasing execution risk for strategic initiatives and supplier relations.

Margin Pressure

Declining operating margins and generally low profitability reduce the cushion against cost volatility and limit internal funding capacity. Sustained margin pressure erodes competitiveness, restricts reinvestment, and makes it harder to improve free cash flow without structural changes to pricing or cost base.

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

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Taiyo Bussan Kaisha, Ltd. Financial Statement Overview

Summary

Moderate revenue growth and stable (but low) margins are outweighed by high leverage and weak cash generation. Negative operating and free cash flows are the largest financial risk despite positive ROE.

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	738.32M	607.73M	743.08M	630.91M
EBITDA	255.37M	274.31M	174.72M	243.30M	237.67M
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	49.32M	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: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 784.45, below the 50-day MA of 722.10, and below the 200-day MA of 817.09, indicating a bullish trend. The MACD of 36.90 indicates Negative momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 80.20 is Negative, 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	¥5.64B	2.88	―	1.67%	4.32%	24.60%
7687	71 Outperform	¥2.94B	7.90	―	1.79%	13.82%	23.24%
7114	67 Neutral	¥4.04B	10.45	―	―	10.69%	-59.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9941	61 Neutral	¥1.57B	5.80	―	―	4.82%	-8.64%
8039	61 Neutral	¥9.03B	12.72	―	0.95%	6.26%	67.81%
2683	47 Neutral	¥2.55B	-58.27	―	1.01%	-1.44%	-61.28%