Taiyo Bussan Kaisha, Ltd. (9941) AI Stock Analysis

• Market Cap: ¥1.91B
• Dividend Yield: N/A
• Average Volume (3M): 2.90K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.23
• Revenue Growth: -2.94%
• EPS Growth: -15.16%
• Country: JP
• Employees: 31
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Food Distribution
• EPS (TTM): 22.84
• Shares Outstanding: 1,934,019
• 10 Day Avg. Volume: 2,070
• 30 Day Avg. Volume: 2,903
• PEG Ratio: -4.03
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ―

The overall score reflects the company's financial challenges, including declining revenues and cash flow issues. Although the stock is reasonably valued, the high leverage and bearish technical indicators suggest a cautious outlook. The company needs to improve financial stability and operational performance to enhance investor confidence.

Taiyo Bussan Kaisha, Ltd. Business Overview & Revenue Model

Company Description

Taiyo Bussan Kaisha, Ltd. (9941) is a Japanese company operating in the wholesale trade sector. The company specializes in the distribution of a diverse range of products, catering to various industries and consumer needs. It is involved in the trading of food products, household goods, and other consumer items, leveraging its extensive network and expertise in the wholesale market to serve a wide customer base.

How the Company Makes Money

Taiyo Bussan Kaisha, Ltd. generates revenue primarily through its wholesale distribution operations. The company sources products from manufacturers and suppliers and distributes them to retailers, businesses, and other end-users. This involves purchasing goods in bulk at lower prices and selling them at a markup to earn a profit. Key revenue streams include the sale of food products, household items, and consumer goods. Taiyo Bussan may also engage in strategic partnerships with suppliers and retailers to enhance its distribution capabilities and expand its market reach. Factors such as supply chain efficiency, product diversity, and customer relationships significantly contribute to the company's earnings.

Taiyo Bussan Kaisha, Ltd. Financial Statement Overview

Summary

Taiyo Bussan Kaisha, Ltd. faces moderate growth challenges with declining revenues and a slight decrease in profitability margins. While the return on equity is strong, high leverage poses financial risk, and a low equity ratio suggests potential vulnerability. The cash flow situation needs improvement, as operational cash flows have recently stagnated. Overall, the company should focus on stabilizing revenue growth and improving cash flow management to strengthen its financial health.

Income Statement

The company shows a consistent gross profit margin over the TTM (3.70%) and the previous year (3.96%). However, the net profit margin slightly declined from 0.87% last year to 0.78% TTM, indicating some pressure on profitability. Revenue has fluctuated, with a 6.81% decline in the most recent TTM period, suggesting challenges in sustaining sales growth. EBIT and EBITDA margins are modest but stable.

Balance Sheet

The debt-to-equity ratio is high at 6.04, indicating significant leverage, which poses financial risk. The return on equity (ROE) improved to 17.71% TTM from 20.28% the previous year, demonstrating effective use of equity. However, the equity ratio remains low at 11.23%, suggesting potential vulnerability in financial stability.

Cash Flow

The company experienced volatility in cash flows, with operating cash flow and free cash flow turning zero in the TTM period from positive values. The free cash flow to net income ratio is unavailable due to zero free cash flow, indicating potential operational challenges. The company needs to stabilize cash flows to enhance financial flexibility.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
20.23B	18.76B	20.02B	21.05B	16.42B	14.80B
	Gross Profit
749.35M	743.44M	612.46M	749.23M	642.45M	222.97M
	EBIT
254.20M	266.38M	167.17M	235.03M	224.01M	-267.95M
	EBITDA
266.73M	273.99M	190.24M	215.96M	218.13M	-307.18M
	Net Income Common Stockholders
158.60M	162.80M	116.46M	133.02M	113.37M	-391.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
400.00M	346.86M	673.15M	320.13M	1.88B	1.47B
	Total Assets
7.97B	7.99B	7.67B	8.24B	7.59B	7.60B
	Total Debt
5.41B	5.41B	5.77B	5.95B	6.15B	6.54B
	Net Debt
5.01B	5.07B	5.10B	5.63B	4.27B	5.07B
	Total Liabilities
7.08B	7.19B	6.98B	7.67B	7.48B	7.76B
	Stockholders Equity
896.00M	802.66M	688.05M	564.70M	103.91M	-158.32M
Cash Flow		Free Cash Flow
0.00	34.53M	602.10M	-1.68B	631.88M	-561.47M
	Operating Cash Flow
0.00	51.46M	602.77M	-1.68B	648.19M	-547.12M
	Investing Cash Flow
0.00	-20.23M	-71.42M	-5.77M	6.07M	-21.64M
	Financing Cash Flow
0.00	-356.90M	-180.37M	121.19M	-243.07M	-806.86M

Taiyo Bussan Kaisha, Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 963.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9941, the sentiment is Positive. The current price of 963 is above the 20-day moving average (MA) of 950.60, above the 50-day MA of 916.36, and above the 200-day MA of 916.74, indicating a bullish trend. The MACD of 12.36 indicates Negative momentum. The RSI at 61.02 is Neutral, neither overbought nor oversold. The STOCH value of 68.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9941.

Taiyo Bussan Kaisha, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7538	68 Neutral	¥4.26B	3.64		1.88%	0.86%	17.26%
7114	66 Neutral	¥4.16B	28.61		―	8.10%	-26.52%
Sector *	65 Neutral	$8.91B	14.97	4.70%	203.30%	3.50%	-2.45%
8039	61 Neutral	¥8.56B	29.66		0.91%	6.33%	40.87%
2683	58 Neutral	¥2.69B	86.11		0.95%	0.80%	-25.72%
9941	51 Neutral	¥1.91B	10.42		―	-2.94%	-15.16%
7687		¥3.05B	11.83		1.72%	―	―