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USS Co (4732) AI Stock Analysis

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JP:4732

USS Co

(TSE/TYO:4732)

Select Model
Rating:79Outperform
Price Target:JPY 2,119.00â–²(15.60% Upside)
Action:reiterated
Date:11/11/26

The score is driven primarily by very strong financial performance—exceptional margins, an extremely low-debt balance sheet, and robust free cash flow. Valuation is reasonable with a solid dividend yield, while technical indicators are neutral with only modest momentum, limiting the overall score.

Positive Factors
Exceptional ProfitabilityUSS has unusually strong profitability for its industry, with very high gross, EBIT, and net margins. This indicates substantial earnings power from its auction-market model and provides a durable buffer to fund operations, maintain service quality, and support shareholder returns.
Negative Factors
Moderate, Cooling GrowthAlthough USS has expanded revenue steadily, the pack characterizes current growth as moderate and slower than earlier periods. A less rapid growth trajectory may limit operating leverage and reduce the pace at which the company can expand earnings over the next several quarters.

USS Co (4732) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:4732+10.35%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 3.71B
Dividend Yield
3.15%
Average Volume (3M)
1.44M
Price to Earnings (P/E)
19.5
Beta (1Y)
0.36
Revenue Growth
14.05%
EPS Growth
12.23%
Country
Japan
Employees
1,211
Sector
Consumer Cyclical
Sector Strength
61
Industry
Auto - Dealerships

USS Co Business Overview & Revenue Model

Company Description

USS Co., Ltd., alongside its affiliated companies, specializes in the operation and management of used vehicle auction venues across Japan. The company facilitates the sale and distribution of pre-owned automobiles through 19 physical auction locatio...

How the Company Makes Money

USS primarily makes money by operating used-car auction markets and charging fees tied to transactions conducted through its auction venues and systems. Key revenue streams typically include (1) auction-related fees from participants—such as fees for...

USS Co Financial Statement Overview

Summary

Financial statements indicate a high-quality business: exceptionally strong profitability (TTM gross margin ~61.9%, EBIT margin ~52.5%, net margin ~35.7%), a very conservative balance sheet with extremely low leverage (TTM debt-to-equity ~0.04) and solid ROE (~21.3%). Cash generation is strong (TTM OCF ~48.1B; FCF ~39.5B; FCF ~81% of net income), though cash conversion has shown periodic variability historically and growth is moderate rather than high.

Income Statement

92Very Positive

Balance Sheet

95Very Positive

Cash Flow

85Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue122.65B113.85B104.02B97.61B88.78B81.48B
Gross Profit75.18B71.45B63.79B58.00B52.72B49.86B
EBITDA67.98B66.32B60.25B53.91B49.80B49.52B
Net Income43.22B41.36B37.64B32.91B30.01B29.75B
Balance Sheet
Total Assets255.34B270.13B268.34B272.64B243.62B230.76B
Cash, Cash Equivalents and Short-Term Investments95.80B110.43B116.22B112.01B95.69B82.38B
Total Debt2.38B2.10B2.25B2.66B2.42B2.83B
Total Liabilities53.94B59.16B60.98B73.61B49.47B48.28B
Stockholders Equity197.91B207.52B204.20B196.00B191.46B180.34B
Cash Flow
Free Cash Flow39.53B34.56B35.39B45.05B32.81B35.50B
Operating Cash Flow48.05B43.91B38.16B47.15B36.91B36.63B
Investing Cash Flow4.76B-21.27B-6.00B-2.65B-9.07B-1.34B
Financing Cash Flow-41.83B-38.43B-29.95B-28.19B-17.12B-24.68B

USS Co Technical Analysis

Technical Analysis SentimentNeutral
Last Price1833.00

Price Trends

50DMA1848.49Negative
100DMA1890.43Negative
200DMA1805.04Positive

Market Momentum

MACD2.10Negative
RSI51.08Neutral
STOCH61.36Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4732, the sentiment is Neutral. The current price of 1833.00 is above the 20-day moving average (MA) of 1810.98, below the 50-day MA of 1848.49, and above the 200-day MA of 1805.04, indicating a neutral trend. The MACD of 2.10 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 61.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4732.

USS Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:4732 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4732JP:473279OutperformJPY 854.16B19.5021.92%3.15%14.05%12.23%
JP:7593JP:759369NeutralJPY 58.68B10.36―4.86%13.60%12.08%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:3186JP:318661NeutralJPY 211.21B11.53―1.64%23.54%111.44%
JP:8291JP:829157NeutralJPY 26.88B13.54―5.52%-7.42%-41.92%
JP:7599JP:759956NeutralJPY 95.89B8.20―3.68%16.85%-1.43%
JP:7602JP:760256NeutralJPY 3.14B56.47―0.69%4.30%―

* Consumer Cyclical Sector Average

Performance Comparison

0%50%100%150%JP:4732JP:3186JP:7593JP:7599JP:7602JP:8291Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4732 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4732USS Co 1833.00195.5611.94%
JP:3186Nextage Co., Ltd.2740.00214.188.48%
JP:7593VT Holdings Co., Ltd.494.0018.833.96%
JP:7599IDOM Inc.971.00-168.10-14.76%
JP:7602Carchs Holdings Co., Ltd.145.0011.918.95%
JP:8291Nissan Tokyo Sales Holdings Co., Ltd.507.0036.397.73%

USS Co Corporate Events

USS Revises Earnings and Dividend Forecasts Upward

Nov 10, 2026

USS Co., Ltd. is identified with vehicle auction platforms; the company says its platforms have a reputation for vehicles commanding premium prices.On November 10, 2026, USS said its board revised upward its forecasts for the fiscal year ending March...

USS Reports Higher First-Half Sales and Profits

Nov 10, 2026

USS Co., Ltd. reported net sales of ¥62,778 million for the six months ended September 30, 2026, up 16.3% year on year, while operating profit rose 12.1% to ¥32,176 million and profit attributable to owners of the parent increased 9.3% to ¥21,813 mil...

USS Co. Posts Higher Used Car Auction Volumes Amid Slightly Lower Completion Rates

Oct 5, 2026

USS Co. reported strong growth in used car auction activity for the second quarter of its fiscal year, with consigned vehicles rising 14.7% and contracted vehicles up 8.5% from a year earlier. Despite this expansion, the contract completion rate slip...

USS Co. Finalizes Adjustment of Japanese Accelerated Share Repurchase

Oct 2, 2026

USS Co., Ltd. has completed the adjustment transaction related to its facility share repurchase program, known as a Japanese accelerated share repurchase, initially announced in May 2026. SMBC Nikko Securities Inc. exercised the company’s 24th Series...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 11, 2026