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Moresco Corporation (JP:5018)
:5018
Japanese Market
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Moresco Corporation (5018) AI Stock Analysis

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JP:5018

Moresco Corporation

(5018)

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Outperform 71 (OpenAI - Gpt-5.6Sol)
Rating:71Outperform
Price Target:
¥2,621.00
▲(15.01% Upside)
Action:Upgraded
Date:07/14/26
The score is driven primarily by improving (but still somewhat volatile) financial performance—steady revenue growth, a 2026 earnings rebound, and stronger recent free cash flow, balanced against prior-cycle profitability and cash flow swings. Technicals add support due to a clear uptrend and positive MACD, though elevated RSI tempers the near-term outlook. Valuation provides an additional boost given the low P/E and a moderate dividend yield.
Positive Factors
Steady Revenue Growth
Steady revenue growth across 2021–2026 indicates that Moresco is expanding demand and scale over multiple years. This provides a durable foundation for the business, supports operating leverage when margins recover, and suggests its industrial customer relationships remain commercially relevant.
Negative Factors
Volatile Profitability and Compressed Margins
Profitability has not followed the steady revenue trajectory: margins compressed materially after 2022 before recovering in 2026. This uneven pattern indicates that earnings remain sensitive to cyclical or price-cost pressures, making future profit growth less predictable even if sales continue to expand.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Steady revenue growth across 2021–2026 indicates that Moresco is expanding demand and scale over multiple years. This provides a durable foundation for the business, supports operating leverage when margins recover, and suggests its industrial customer relationships remain commercially relevant.
Read all positive factors

Moresco Corporation (5018) vs. iShares MSCI Japan ETF (EWJ)

Moresco Corporation Business Overview & Revenue Model

Company Description
MORESCO Corporation, together with its subsidiaries, manufactures and sells chemical products in Japan, China, Southeast/South Asia, and North America. The company offers die casting lubricants, including water-soluble minimum quantity spray type ...
How the Company Makes Money
Moresco makes money primarily by developing, manufacturing, and selling specialty lubricants and functional fluids to industrial customers. Revenue is generated from (1) product sales of metalworking fluids (e.g., cutting and grinding fluids) used...

Moresco Corporation Financial Statement Overview

Summary
Fundamentals are decent but uneven. Revenue has grown steadily over 2021–2026, and 2026 shows a rebound in operating profit and net income versus 2025. The balance sheet appears sound with moderate leverage, though absolute debt rose after 2022. Cash flow improved meaningfully after a weak 2023 (negative free cash flow), with solidly positive free cash flow by 2025–2026, but overall cash generation has been volatile.
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue35.66B34.87B34.37B31.89B30.33B27.30B
Gross Profit11.70B10.96B9.49B8.48B7.54B8.09B
EBITDA4.11B3.59B2.75B2.43B1.89B2.77B
Net Income2.02B1.52B1.01B1.28B614.00M1.81B
Balance Sheet
Total Assets40.22B40.68B38.30B37.05B32.02B29.01B
Cash, Cash Equivalents and Short-Term Investments6.00B6.91B5.51B5.64B4.26B4.00B
Total Debt3.59B4.56B5.26B6.18B2.99B968.00M
Total Liabilities12.60B13.80B13.29B13.93B10.78B8.46B
Stockholders Equity24.12B23.48B21.68B20.13B18.53B17.96B
Cash Flow
Free Cash Flow0.002.29B1.78B482.00M-768.00M1.40B
Operating Cash Flow0.002.98B2.75B2.93B515.00M2.33B
Investing Cash Flow0.00-729.00M-1.21B-4.25B-1.17B603.00M
Financing Cash Flow0.00-1.03B-1.68B2.82B1.23B-2.94B

Moresco Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2279.00
Price Trends
50DMA
2138.25
Positive
100DMA
1952.38
Positive
200DMA
1826.29
Positive
Market Momentum
MACD
65.83
Negative
RSI
61.56
Neutral
STOCH
58.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5018, the sentiment is Positive. The current price of 2279 is above the 20-day moving average (MA) of 2266.11, above the 50-day MA of 2138.25, and above the 200-day MA of 1826.29, indicating a bullish trend. The MACD of 65.83 indicates Negative momentum. The RSI at 61.56 is Neutral, neither overbought nor oversold. The STOCH value of 58.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5018.

Moresco Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥11.39B10.484.53%4.74%-33.15%
71
Outperform
¥21.13B9.343.62%3.55%-34.14%
71
Outperform
¥22.27B10.792.54%2.96%101.75%
69
Neutral
¥29.49B11.232.85%7.12%73.54%
64
Neutral
¥28.19B9.243.77%3.71%272.03%
61
Neutral
¥16.68B9.542.81%3.51%25.31%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5018
Moresco Corporation
2,365.00
1,071.16
82.79%
JP:4113
Taoka Chemical Co., Ltd.
795.00
-512.67
-39.20%
JP:4231
Tigers Polymer Corporation
1,051.00
98.03
10.29%
JP:4409
Toho Chemical Industry Company, Limited
784.00
-0.67
-0.09%
JP:4410
Harima Chemicals Group, Inc.
1,114.00
247.12
28.51%
JP:4635
Tokyo Printing Ink Manufacturing Co., Ltd.
2,210.00
876.61
65.74%
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: Jul 14, 2026