Revenue & Margin ImprovementSustained top-line growth alongside consistent gross- and net-margin improvement shows the company is expanding while improving unit economics. This combination supports durable earnings power and funding for reinvestment, making future cash generation and competitive positioning more resilient.

Strong Cash GenerationReliable operating cash flow and rising free cash flow demonstrate the business converts profits into cash. That persistent cash generation underpins sustainable dividends, debt paydown, or selective investments without heavy external financing, improving long-term financial flexibility and resilience.

Improving Balance SheetA marked reduction in leverage combined with an improved equity ratio and double-digit ROE reflects prudent capital allocation and stronger solvency. Lower indebtedness reduces interest burden and risk, giving management capacity to act strategically through downturns and fund growth initiatives.

Bears Say

EBIT Margin PressureWhile revenues and gross margins improved, the modest EBIT margin suggests operating leverage or cost structure limits. Without targeted efficiency gains or better pricing, core operating profitability may lag, constraining reinvestment and the pace at which revenue growth converts to stronger recurring profits.

Negative EPS GrowthNegative EPS growth despite rising revenues points to dilution, higher costs, or non-operating headwinds that erode per-share earnings. Persistent EPS weakness would limit shareholder returns and could signal structural margin or capital-allocation issues requiring correction to restore long-term per-share growth.

Limited ScaleA relatively small workforce for a ¥16.2bn revenue business suggests constrained operational scale. Limited scale can hinder distribution breadth, purchasing leverage, R&D capacity and the ability to absorb cost shocks, making it harder to sustain share gains or achieve step-change margin expansion.

2813 FAQ

What was Wakou Shokuhin Co., Ltd.’s price range in the past 12 months?

Wakou Shokuhin Co., Ltd. lowest stock price was ¥2946.00 and its highest was ¥4920.00 in the past 12 months.

What is Wakou Shokuhin Co., Ltd.’s market cap?

Wakou Shokuhin Co., Ltd.’s market cap is ¥10.76B.

When is Wakou Shokuhin Co., Ltd.’s upcoming earnings report date?

Wakou Shokuhin Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 49 days.

How were Wakou Shokuhin Co., Ltd.’s earnings last quarter?

Wakou Shokuhin Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥185.47 earnings per share for the quarter, beating the consensus estimate of N/A by ¥185.47.

Is Wakou Shokuhin Co., Ltd. overvalued?

According to Wall Street analysts Wakou Shokuhin Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Wakou Shokuhin Co., Ltd. pay dividends?

Wakou Shokuhin Co., Ltd. pays a Annually dividend of ¥86 which represents an annual dividend yield of 3.11%. See more information on Wakou Shokuhin Co., Ltd. dividends here

What is Wakou Shokuhin Co., Ltd.’s EPS estimate?

Wakou Shokuhin Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Wakou Shokuhin Co., Ltd. have?

Wakou Shokuhin Co., Ltd. has 2,847,957 shares outstanding.

What happened to Wakou Shokuhin Co., Ltd.’s price movement after its last earnings report?

Wakou Shokuhin Co., Ltd. reported an EPS of ¥185.47 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 7.644%.

Which hedge fund is a major shareholder of Wakou Shokuhin Co., Ltd.?

Currently, no hedge funds are holding shares in JP:2813

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

Wakou Shokuhin Co., Ltd.

Wakou Shokuhin Co., Ltd. manufactures and sells soups and natural extracts in Japan and internationally. The company offers Ramen soups; and acts as an OEM manufacturer of various seasonings, primarily of Ramen soup. It sells its products through food manufacturers, hotels, restaurants, supermarkets, convenience stores, etc. The company was founded in 1964 and is headquartered in Otaru, Japan.