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Does MonotaRO (TSE:3064)'s November Sales Drop Hint At Deeper Questions About Demand Resilience?

Simply Wall St · 12/15/2025 13:13
  • MonotaRO Co., Ltd. reported that its non-consolidated sales for November 2025 fell to ¥23,952 million from ¥28,724 million in the same month a year earlier, signaling a clear year-on-year contraction in activity.
  • This sharp monthly sales drop may prompt investors to reassess how resilient MonotaRO’s demand base and growth ambitions are in a softer operating backdrop.
  • Next, we will examine how this abrupt November sales slowdown could reshape MonotaRO’s investment narrative and investors’ expectations around business momentum.

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What Is MonotaRO's Investment Narrative?

To own MonotaRO, you really have to believe in the durability of its online MRO distribution model, strong returns on equity and management’s ability to keep compounding earnings even as growth moderates. The recent November sales drop, from ¥28,724 million to ¥23,952 million, cuts against the previously smooth growth story and could challenge the short term narrative around momentum just ahead of the February full year results. With the shares already volatile and trading on a rich earnings multiple relative to peers, any sign that this is more than a one month blip could shift the key catalyst from “ongoing outperformance” to “evidence of stabilization.” On the other hand, if management shows this was temporary, the bigger risk remains that expectations and valuation have simply set the bar very high.

However, investors should not overlook how quickly sentiment can change if growth stumbles. MonotaRO's shares have been on the rise but are still potentially undervalued by 11%. Find out what it's worth.

Exploring Other Perspectives

TSE:3064 1-Year Stock Price Chart
TSE:3064 1-Year Stock Price Chart
Community members on Simply Wall St cluster around a single fair value near ¥2,671, yet your peers are reacting to weakening near term sales. Use those contrasting views and risks to pressure test your own expectations for MonotaRO’s resilience.

Explore another fair value estimate on MonotaRO - why the stock might be worth just ¥2672!

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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.