Balance Sheet StrengthThe company reached zero debt in FY2025 with significantly expanded equity and ~9.2% ROE, materially improving financial flexibility. This durable balance-sheet repair reduces refinancing and solvency risk, enabling management to fund capex or strategic moves without immediate external borrowing.

Profitability TurnaroundA clear FY2025 inflection—double-digit net margin and rising revenue—demonstrates the business can generate positive operating economics. If maintained, stable gross margins in the low-to-high 30% range support durable profitability and provide room to reinvest in growth or improve cash conversion over time.

Lean Operational StructureA compact workforce suggests a low fixed-cost base and operational agility. As revenue scales, a lean structure can translate to outsized operating leverage, allowing incremental sales to flow through to margins more quickly and supporting sustainable margin expansion if management executes consistently.

Bears Say

Persistent Negative Cash FlowOperating and free cash flows are negative in every year shown, including FY2025. Persistent cash burn undermines liquidity, forces reliance on external financing or equity, and means reported profits are not yet translating into durable cash generation, presenting a clear funding and sustainability risk.

Recent And Uneven Profitability Track RecordFY2025's profit is a recent inflection following several loss-making years, creating execution and sustainability risk. Investors must see several consecutive profitable, cash-generative periods to be confident the turnaround is durable rather than cyclical or one-off.

No Dividend Policy / Limited Shareholder Cash ReturnThe company offers no dividend, so shareholders depend entirely on operational improvement for returns. Given persistent negative cash flow, absence of payout reduces immediate shareholder value options and increases pressure on management to convert profits into free cash flow.

2586 FAQ

What was FRUTA FRUTA, Inc.’s price range in the past 12 months?

FRUTA FRUTA, Inc. lowest stock price was ¥118.00 and its highest was ¥454.00 in the past 12 months.

What is FRUTA FRUTA, Inc.’s market cap?

FRUTA FRUTA, Inc.’s market cap is ¥14.37B.

When is FRUTA FRUTA, Inc.’s upcoming earnings report date?

FRUTA FRUTA, Inc.’s upcoming earnings report date is May 18, 2026 which is in 91 days.

How were FRUTA FRUTA, Inc.’s earnings last quarter?

FRUTA FRUTA, Inc. released its earnings results on Feb 13, 2026. The company reported -¥1.17 earnings per share for the quarter, missing the consensus estimate of N/A by -¥1.17.

Is FRUTA FRUTA, Inc. overvalued?

According to Wall Street analysts FRUTA FRUTA, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does FRUTA FRUTA, Inc. pay dividends?

FRUTA FRUTA, Inc. does not currently pay dividends.

What is FRUTA FRUTA, Inc.’s EPS estimate?

FRUTA FRUTA, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does FRUTA FRUTA, Inc. have?

FRUTA FRUTA, Inc. has 101,879,570 shares outstanding.

What happened to FRUTA FRUTA, Inc.’s price movement after its last earnings report?

FRUTA FRUTA, Inc. reported an EPS of -¥1.17 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -2.083%.

Which hedge fund is a major shareholder of FRUTA FRUTA, Inc.?

Currently, no hedge funds are holding shares in JP:2586

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

FRUTA FRUTA, Inc.

FRUTA FRUTA, Inc. (2586) is a Japanese company that specializes in the import, development, and sale of fruit-based products, primarily focusing on acai and other superfruits. The company operates within the food and beverage sector, offering a range of health-oriented products including juices, smoothies, frozen foods, and dietary supplements. FRUTA FRUTA emphasizes sustainability and health benefits in its product offerings, catering to health-conscious consumers.