Misumi Group (9962) AI Stock Analysis

• Market Cap: ¥842.20B
• Dividend Yield: 1.63%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.97
• Revenue Growth: 6.28%
• EPS Growth: 2.62%
• Country: JP
• Employees: 11,039
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 33.42
• Shares Outstanding: 285,147,800
• 10 Day Avg. Volume: 1,291,570
• 30 Day Avg. Volume: 1,159,073
• PEG Ratio: 0.58
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 15.17
• 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: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 126.67
• Revenue Forecast (FY): ¥438.27B

• Rating: 75 Outperform
• Price Target: ¥3,446.00 ▲(9.47% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven primarily by strong financial resilience (very low leverage, solid margins, and reliable free cash flow), partially offset by a recent profitability step-down. Technically the stock is in a strong uptrend but appears overbought, and valuation (P/E ~24.7 with a ~1.46% yield) is a secondary headwind.

Positive Factors

Conservative Balance Sheet

Misumi's extremely low leverage (debt-to-equity ~0.04) and large equity base provide durable financial flexibility. This conservatism supports resilience through manufacturing cycles, funds inventory and logistics needs, and gives capacity for M&A, capex or shareholder returns without stressing cash flows.

High and Sustainable Margins

Sustained high gross margins and healthy operating margins reflect strong product economics in configurable precision components and efficient distribution. These margins create persistent operating cash generation that supports reinvestment in catalog, e-commerce and fulfillment capabilities that underpin competitive advantages.

Reliable Free Cash Flow

Consistent FCF at scale (¥36B TTM and double-digit growth) shows the business converts sales into cash reliably. That cash funds working capital, targeted capex, and strategic investments in logistics/IT, reducing dependence on external financing and enabling steady capital allocation.

Negative Factors

Modest Revenue Growth

Top-line growth is limited (TTM +2.8%), which constrains leverage of fixed-costs and long-term EPS expansion. For a components and MRO distributor, persistent low growth signals potential market saturation, pricing pressure, or competitive share challenges that require structural initiatives to restore stronger durable growth.

Earnings Step-down

The drop in net margin versus the prior annual period indicates a step-down in earnings power, likely from mix shifts, cost pressures or pricing dynamics. If this deterioration persists it will reduce free cash generation and limit the firm's ability to finance growth initiatives or expand returns to shareholders.

Cash Conversion Variability

Operating cash flow running slightly below net income and FCF at ~71% of net income shows conversion variability driven by working capital or investment timing. This makes cashflows less predictable and can intermittently constrain reinvestment in inventory, logistics or technology despite strong headline FCF.

Misumi Group Business Overview & Revenue Model

Company Description

MISUMI Group Inc. engages in the factory automation and die components businesses worldwide. The company operates through three segments: FA Business, Die Components Business, and VONA Business. It offers mechanical components, including shafts, timing pulleys, linear bushings, and flat belt conveyors; and locator devices and measurement equipment, such as automatic stage units, actuators, optical measurement devices, and optical waveguide alignment products. The company also provides s metal press/plastic mold components comprising punches, button dies, guide pins, gas springs, ejector pins, sprue bushings, parting lock sets, and taper pins. In addition, it distributes sensors and switches, couplings, screws, bolts, nuts, castors, connectors, switches, cables, transformers, end mills, hexagonal wrenches, milling chips, calipers, carts, work gloves, parts cleaners, and laboratory equipment and supplies. MISUMI Group Inc. was incorporated in 1963 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Misumi Group generates revenue through the sale of its extensive range of mechanical components and industrial equipment. The company's revenue model is primarily based on direct sales to manufacturers, where they offer both standard and custom parts. A significant portion of their earnings comes from their online platform, which allows customers to configure and order components efficiently. Additionally, Misumi benefits from partnerships with manufacturers and suppliers, enhancing its product offerings and distribution capabilities. The company also focuses on providing value-added services, such as design support and rapid prototyping, which further contribute to its revenue streams.

Misumi Group Financial Statement Overview

Summary

Financial quality is strong overall, led by a very conservative balance sheet (debt-to-equity ~0.04) and solid profitability (~46% gross margin, ~10% operating margin). Cash generation is also healthy (TTM FCF ~¥36B, +12.3% growth). The main drag is a recent step-down in earnings power (TTM net margin ~7.4% vs ~9.1% in the latest annual period) alongside only modest revenue growth (+2.8%).

Income Statement

TTM (Trailing-Twelve-Months) revenue is growing modestly (+2.8%) and profitability remains solid with ~46% gross margin and ~10% operating margin. However, earnings power has cooled versus the latest annual period (net margin down to ~7.4% in TTM from ~9.1% annually), suggesting some mix/cost or demand headwinds. Longer-term growth is positive, but revenue has shown periods of flat-to-down performance in prior years, which tempers the score.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (TTM debt-to-equity ~0.04) supported by a large equity base. Returns on equity are healthy (TTM ~9.2%) and overall capitalization looks conservative, giving flexibility through cycles. The main drawback is that returns are good but not exceptional for a lightly levered profile, and ROE has been higher in some prior years.

Cash Flow

Cash generation is strong with TTM operating cash flow of ~¥51B and free cash flow of ~¥36B, and TTM free cash flow growth is robust (+12.3%). Cash conversion is decent but not perfect: operating cash flow is slightly below net income (about 0.92x), and free cash flow is ~71% of net income, indicating working-capital or investment needs can periodically absorb cash. Overall, the business appears to reliably produce free cash flow, with some variability in conversion over time.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	421.06B	401.99B	367.65B	373.15B	366.16B	310.72B
Gross Profit	195.07B	186.99B	167.38B	171.08B	166.86B	134.88B
EBITDA	61.40B	65.79B	56.93B	63.20B	66.57B	38.53B
Net Income	31.36B	36.55B	28.15B	34.28B	37.56B	17.14B
Balance Sheet
Total Assets	438.10B	419.57B	413.52B	378.46B	347.39B	288.92B
Cash, Cash Equivalents and Short-Term Investments	108.12B	159.30B	148.85B	119.56B	108.89B	72.43B
Total Debt	15.93B	7.54B	6.82B	7.68B	7.18B	4.08B
Total Liabilities	71.59B	67.51B	65.84B	64.24B	67.43B	55.35B
Stockholders Equity	365.21B	350.95B	346.60B	313.27B	279.16B	232.93B
Cash Flow
Free Cash Flow	36.35B	45.03B	36.59B	17.82B	38.88B	22.48B
Operating Cash Flow	51.13B	60.46B	54.57B	31.45B	55.39B	36.49B
Investing Cash Flow	-42.64B	-32.45B	-19.00B	-19.03B	-22.76B	-7.07B
Financing Cash Flow	-33.65B	-31.76B	-18.97B	-11.17B	-9.61B	-5.53B

Misumi Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3148.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9962, the sentiment is Positive. The current price of 3148 is above the 20-day moving average (MA) of 3065.75, above the 50-day MA of 2748.55, and above the 200-day MA of 2311.33, indicating a bullish trend. The MACD of 110.50 indicates Positive momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 60.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9962.

Misumi Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9962	75 Outperform	¥842.20B	27.41	9.10%	1.63%	6.28%	2.62%
6136	72 Outperform	¥270.99B	17.00	7.86%	2.55%	0.57%	4.54%
6278	70 Outperform	¥272.09B	44.51	―	1.17%	29.51%	48.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥127.72B	23.00	2.64%	2.30%	-4.11%	46.76%
6141	57 Neutral	¥438.99B	19.90	5.32%	3.77%	-9.34%	164.21%
6472	52 Neutral	¥251.48B	-18.85	-7.84%	3.08%	-3.18%	-531.48%

Misumi Group Corporate Events

Misumi Advances Large-Scale Share Buyback, Nears ¥20 Billion in Treasury Stock

Misumi Group Inc. has repurchased 1,146,300 of its own ordinary shares on the Tokyo Stock Exchange between January 1 and January 31, 2026, for a total consideration of approximately 2.93 billion yen, using a discretionary market transaction method under its board-approved buyback framework. This latest transaction forms part of a broader share repurchase program authorized in July 2025 for up to 17 million shares or 25 billion yen through March 31, 2026; cumulatively, Misumi has bought back 8,597,800 shares for about 20 billion yen, signaling continued capital return to shareholders and potentially enhancing earnings per share and capital efficiency as the company approaches the upper limit of its authorization.

The most recent analyst rating on (JP:9962) stock is a Hold with a Yen2743.00 price target. To see the full list of analyst forecasts on Misumi Group stock, see the JP:9962 Stock Forecast page.

Misumi Raises FY2026 Earnings Outlook and Lifts Year-End Dividend Forecast

Misumi Group has slightly raised its full-year consolidated forecast for the fiscal year ending March 2026, now expecting sales of ¥440 billion, operating income of ¥46.2 billion and ordinary income of ¥47.3 billion, reflecting steady performance in its proprietary initiatives, including newly consolidated Fictiv Inc., and the earnings benefit from sustained yen depreciation despite continued weakness in the automotive sector. In line with the earnings revision and its policy of maintaining a 35% payout ratio while balancing growth investment and shareholder returns, the company has also nudged up its projected year-end dividend to ¥26.04 per share, bringing the expected annual dividend to ¥44.06 per share, signaling continued commitment to capital efficiency and stable shareholder returns even in an uncertain operating environment.

The most recent analyst rating on (JP:9962) stock is a Hold with a Yen2560.00 price target. To see the full list of analyst forecasts on Misumi Group stock, see the JP:9962 Stock Forecast page.

Misumi Group Lifts Sales Outlook but Warns of Profit Decline for FY2025

Misumi Group reported consolidated net sales of ¥320.7 billion for the nine months ended December 31, 2025, a 6.3% increase year-on-year, while operating income fell 10.7% to ¥32.3 billion and net income attributable to owners of the parent dropped 18.4% to ¥23.0 billion, reflecting margin pressure despite top-line growth. The company maintained a strong financial position with an equity ratio of 83.0% and raised its full-year sales forecast to ¥440.0 billion, but now expects slight declines in operating and ordinary income and a 7.2% decrease in full-year net profit, as well as a modestly lower annual dividend per share versus the prior year; it also expanded its consolidation scope by adding nine companies, including Fictiv Inc., signaling ongoing strategic expansion even as profitability comes under pressure.

The most recent analyst rating on (JP:9962) stock is a Hold with a Yen2560.00 price target. To see the full list of analyst forecasts on Misumi Group stock, see the JP:9962 Stock Forecast page.

Misumi Continues Share Buyback, Repurchasing Over 1.1 Million Shares in December

Misumi Group Inc. has repurchased 1,133,600 of its ordinary shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, at a total cost of approximately 2.71 billion yen, under a board-approved share buyback program. This transaction is part of a larger authorization granted in July 2025 to buy back up to 17 million shares for as much as 25 billion yen by March 31, 2026, under which the company has cumulatively acquired 7,451,500 shares for about 17.07 billion yen as of the end of December, signaling continued execution of its capital policy and an active focus on shareholder returns and balance-sheet optimization.

The most recent analyst rating on (JP:9962) stock is a Buy with a Yen2690.00 price target. To see the full list of analyst forecasts on Misumi Group stock, see the JP:9962 Stock Forecast page.