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Moresco Corporation
(5018)
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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)
Market Cap
¥22.27B
Dividend Yield2.54%
Average Volume (3M)26.99K
Price to Earnings (P/E)10.8
Beta (1Y)0.86
Revenue Growth2.96%
EPS Growth101.75%
CountryJP
Employees797
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)220.01
Shares Outstanding9,696,500
10 Day Avg. Volume26,050
30 Day Avg. Volume26,993
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.85
Price to Sales (P/S)0.57
P/FCF Ratio8.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.66B | 34.87B | 34.37B | 31.89B | 30.33B | 27.30B |
| Gross Profit | 11.70B | 10.96B | 9.49B | 8.48B | 7.54B | 8.09B |
| EBITDA | 4.11B | 3.59B | 2.75B | 2.43B | 1.89B | 2.77B |
| Net Income | 2.02B | 1.52B | 1.01B | 1.28B | 614.00M | 1.81B |
Balance Sheet | ||||||
| Total Assets | 40.22B | 40.68B | 38.30B | 37.05B | 32.02B | 29.01B |
| Cash, Cash Equivalents and Short-Term Investments | 6.00B | 6.91B | 5.51B | 5.64B | 4.26B | 4.00B |
| Total Debt | 3.59B | 4.56B | 5.26B | 6.18B | 2.99B | 968.00M |
| Total Liabilities | 12.60B | 13.80B | 13.29B | 13.93B | 10.78B | 8.46B |
| Stockholders Equity | 24.12B | 23.48B | 21.68B | 20.13B | 18.53B | 17.96B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.29B | 1.78B | 482.00M | -768.00M | 1.40B |
| Operating Cash Flow | 0.00 | 2.98B | 2.75B | 2.93B | 515.00M | 2.33B |
| Investing Cash Flow | 0.00 | -729.00M | -1.21B | -4.25B | -1.17B | 603.00M |
| Financing Cash Flow | 0.00 | -1.03B | -1.68B | 2.82B | 1.23B | -2.94B |
Moresco Corporation Technical Analysis
Positive
2279.00
Price Trends
2138.25
Positive
1952.38
Positive
1826.29
Positive
Market Momentum
65.83
Negative
61.56
Neutral
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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥11.39B | 10.48 | ― | 4.53% | 4.74% | -33.15% | |
71 Outperform | ¥21.13B | 9.34 | ― | 3.62% | 3.55% | -34.14% | |
71 Outperform | ¥22.27B | 10.79 | ― | 2.54% | 2.96% | 101.75% | |
69 Neutral | ¥29.49B | 11.23 | ― | 2.85% | 7.12% | 73.54% | |
64 Neutral | ¥28.19B | 9.24 | ― | 3.77% | 3.71% | 272.03% | |
61 Neutral | ¥16.68B | 9.54 | ― | 2.81% | 3.51% | 25.31% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:5018
Moresco Corporation
2,365.00
1,071.16
82.79%
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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.