--- title: "Assessing MonotaRO (TSE:3064) Valuation After Q1 2026 Earnings Growth And Share Buyback" type: "News" locale: "en" url: "https://longbridge.com/en/news/286647678.md" description: "MonotaRO (TSE:3064) reported Q1 2026 sales of ¥95,582 million and net income of ¥8,912 million, alongside a ¥9,999.95 million share buyback. Despite earnings growth, the stock price is down 22.68% year-to-date. The current P/E ratio of 27x is significantly higher than the industry average of 11.5x, indicating potential overvaluation. However, a DCF analysis suggests the stock may be undervalued with a fair value of ¥2,481.11. Investors should weigh growth prospects against risks of declining share prices." datetime: "2026-05-16T14:14:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286647678.md) - [en](https://longbridge.com/en/news/286647678.md) - [zh-HK](https://longbridge.com/zh-HK/news/286647678.md) generator: "portal-rs" --- # Assessing MonotaRO (TSE:3064) Valuation After Q1 2026 Earnings Growth And Share Buyback MonotaRO (TSE:3064) is back in focus after reporting first quarter 2026 sales of ¥95,582 million and net income of ¥8,912 million, alongside a recently completed ¥9,999.95 million share repurchase. See our latest analysis for MonotaRO. The recent earnings update and completed share buyback have come against a weak share price backdrop, with the stock at ¥1,858.5 and the year-to-date share price return down 22.68%. The 1-year total shareholder return has declined 38.47%, which points to fading momentum despite the positive news flow. If MonotaRO's recent swing in sentiment has you thinking about where else capital could work harder, this is a good moment to scan for other opportunities using our 12 top founder-led companies So with earnings growing, a completed ¥9,999.95 million buyback and the share price still down sharply over 1 and 5 years, is MonotaRO now a mispriced opportunity, or is the market already factoring in its future growth? ## Price-To-Earnings Of 27x: Is It Justified? On simple valuation checks, MonotaRO screens as expensive, with a P/E of 27x compared with the Trade Distributors industry at 11.5x and a peer average of 13.1x. That higher multiple sits alongside an SWS DCF fair value estimate of ¥2,481.11 per share, which is above the current ¥1,858.5 share price. The P/E multiple reflects how much investors are paying for each ¥1 of current earnings, so a higher figure usually means the market is willing to pay up for growth or quality. In MonotaRO's case, earnings have grown by 22.4% over the past year and 15.9% per year over the past 5 years, and Return on Equity is described as high at 28.9%. These factors can help explain why the stock trades at a premium multiple. Even so, the current 27x P/E sits well above both the 11.5x industry average and the estimated fair P/E of 23.2x that the SWS fair ratio model suggests the market could potentially converge towards. That gap signals that investors are paying a higher price relative to earnings than both the broader sector and the model implied level. Anyone assessing the stock needs to be comfortable that the growth and quality metrics justify that extra stretch. Explore the SWS fair ratio for MonotaRO **Result: Price-to-Earnings of 27x (OVERVALUED)** However, investors still face clear risks, including the share price decline over 1 and 5 years and any reassessment of earnings growth that could pressure the P/E. Find out about the key risks to this MonotaRO narrative. ## Another View: Cash Flows Point To Undervaluation While the 27x P/E suggests MonotaRO is expensive relative to the Trade Distributors industry and peers, the SWS DCF model presents a different perspective. With an estimated fair value of ¥2,481.11 versus the current ¥1,858.5 share price, the stock screens as undervalued on cash flows, not overvalued on earnings. Which lens should carry more weight for you? For a closer look at how that cash flow estimate is built, including the assumptions behind it, Look into how the SWS DCF model arrives at its fair value. 3064 Discounted Cash Flow as at May 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out MonotaRO for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 18 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Next Steps Given the mixed signals on valuation, sentiment and recent returns, this is a good time to review the numbers yourself and decide how they stack up. To weigh both the concerns and the potential upside in one place, start with our 3 key rewards and 1 important warning sign ## Looking For More Investment Ideas? If MonotaRO no longer looks like the only place for your capital, this is the moment to widen your watchlist and stress test your next moves. - Target potential bargains that combine quality with attractive pricing by scanning our 18 high quality undervalued stocks - Focus on resilience and capital preservation first by checking companies highlighted in our 55 resilient stocks with low risk scores - Hunt for stronger balance sheets that can better handle shocks by reviewing stocks in our solid balance sheet and fundamentals stocks screener (36 results) *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [3064.JP](https://longbridge.com/en/quote/3064.JP.md) ## Related News & Research - [Morgan Stanley Sticks to Its Buy Rating for MonotaRO Co (MONOF)](https://longbridge.com/en/news/290189533.md) - [Coincheck Group N.V. GAAP EPS of ¥6.92, revenue of ¥114.33B](https://longbridge.com/en/news/296104610.md) - [After Being Left for Dead, These High-Yield Stocks Look to Rally Again. 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