Muraki Corporation (7477) AI Stock Analysis

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Muraki Corporation

(TSE/TYO:7477)

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Rating:70Outperform

Price Target:JPY 2,421.00▲(10.00% Upside)

Action:upgraded

Date:10/29/26

The score is supported primarily by a very strong, low-debt balance sheet and solid cash generation, alongside bullish technical momentum. These positives are partially offset by materially weakening profitability and a demanding valuation (high P/E) that leaves less room for operational missteps.

Positive Factors

Repeat-purchase aftermarket modelMuraki serves professional automotive customers with maintenance consumables that are purchased repeatedly, giving its distribution model an ongoing revenue base. This recurring usage can support customer retention, steady order frequency, and durable relevance across dealerships, repair shops, and service stations.

Negative Factors

Sharp profitability deteriorationThe substantial decline in net and operating margins weakens earnings resilience and indicates that revenue is converting into less profit. If this compression persists, Muraki may have less capacity to absorb cost increases, invest in growth, or sustain returns even with continued sales.

Muraki Corporation (7477) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.92B
Dividend Yield: 1.36%
Average Volume (3M): 7,782
Price to Earnings (P/E): 119.7
Beta (1Y): 0.23
Revenue Growth: 2.61%
EPS Growth: -61.18%
Country: Japan
Employees: 137
Sector: General
Sector Strength: 55
Industry: Specialty Retail

Muraki Corporation Business Overview & Revenue Model

Company Description

Muraki Corporation, founded in 1946 and based in Tama, Japan, operates as a wholesaler specializing in vehicle maintenance and repair products across Japan. The company's extensive inventory includes various aftermarket components such as oil and air...

How the Company Makes Money

Muraki primarily makes money through B2B distribution margins earned by purchasing automotive maintenance-related products from manufacturers and selling them to professional customers such as automotive repair shops, car dealers, and service station...

Muraki Corporation Financial Statement Overview

Summary

Financial risk is low due to an exceptionally strong balance sheet (minimal debt reduced to effectively zero) and generally healthy free cash flow generation. However, profitability has deteriorated meaningfully since 2024, with net margin dropping to ~0.8% by 2026 and operating margin compressing, which reduces earnings resilience despite steady revenue growth.

Income Statement

58Neutral

Balance Sheet

86Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	7.89B	7.83B	7.54B	7.41B	7.33B	7.21B
Gross Profit	1.85B	1.78B	1.74B	1.74B	1.76B	1.72B
EBITDA	204.50M	215.56M	210.53M	233.45M	230.66M	171.10M
Net Income	62.71M	65.90M	90.95M	198.24M	125.12M	102.44M
Balance Sheet
Total Assets	4.25B	4.10B	3.95B	3.95B	3.86B	3.83B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.55B	1.44B	1.37B	1.48B	1.38B
Total Debt	100.00M	0	807.00K	1.61M	63.65M	191.86M
Total Liabilities	1.51B	1.35B	1.26B	1.31B	1.42B	1.49B
Stockholders Equity	2.74B	2.76B	2.69B	2.64B	2.44B	2.34B
Cash Flow
Free Cash Flow	0	155.08M	116.81M	104.62M	251.75M	109.78M
Operating Cash Flow	0	176.89M	127.07M	119.01M	252.09M	126.27M
Investing Cash Flow	0	-18.50M	-23.92M	-132.78M	1.29M	-9.83M
Financing Cash Flow	0	-48.27M	-45.37M	-90.32M	-156.49M	-268.92M

Muraki Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price2201.00

Price Trends

50DMA1659.16Positive

100DMA1692.10Positive

200DMA1766.98Positive

Market Momentum

MACD118.85Negative

RSI72.15Negative

STOCH38.24Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7477, the sentiment is Positive. The current price of 2201.00 is above the 20-day moving average (MA) of 1775.25, above the 50-day MA of 1659.16, and above the 200-day MA of 1766.98, indicating a bullish trend. The MACD of 118.85 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 38.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7477.

Muraki Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7477 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2674	82Outperform	JPY 34.92B	10.12	―	3.36%	28.72%	58.69%
JP:3093	72Outperform	JPY 44.88B	12.92	―	2.39%	15.52%	22.34%
JP:7685	72Outperform	JPY 160.76B	19.04	―	0.49%	57.65%	100.02%
JP:7477	70Outperform	JPY 2.83B	119.70	―	1.36%	2.61%	-61.18%
JP:9270	63Neutral	JPY 17.05B	6.06	―	3.19%	25.71%	349.09%
JP:9278	61Neutral	JPY 45.94B	14.74	―	1.38%	10.64%	96.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7477 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7477	Muraki Corporation	2201.00	952.35	76.27%
JP:2674	Hard Off Corporation Co., Ltd.	2527.00	717.46	39.65%
JP:3093	Treasure Factory Co., Ltd.	1885.00	218.54	13.11%
JP:7685	BuySell Technologies Co., Ltd.	2566.00	909.58	54.91%
JP:9270	Valuence Holdings, Inc.	1411.00	446.88	46.35%
JP:9278	BOOKOFF GROUP HOLDINGS LIMITED	2609.00	1254.38	92.60%

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: Oct 29, 2026

Muraki Corporation AI Stock Analysis