Low Leverage And Strong Equity BaseExtremely low leverage and a high equity ratio provide durable financial flexibility, lowering refinancing and bankruptcy risk. This balance-sheet strength supports capital allocation for operations or selective investment during downturns and gives time for operational fixes without solvency pressure.

High Gross Profit MarginA near 37% gross margin signals lasting product-level pricing power or favorable input-to-price spread in packaged foods. This structural margin buffer can absorb input cost volatility and, if SG&A is controlled, convert into sustainable operating profitability as volumes stabilize or efficiencies improve.

Positive Operating Cash Flow And Good Cash ConversionPositive operating cash flow and a 2.14 cash-to-income conversion indicate earnings quality and the business's ability to generate cash from operations. Over months, this supports working capital, routine capex and dividend maintenance even while margins or revenues are being restored.

Bears Say

Declining Revenue TrendAn ongoing double-digit revenue decline reduces scale, weakens bargaining power with suppliers, and limits leverage of fixed costs. Persistent top-line contraction over multiple quarters forces margin compression, reduces future reinvestment capacity and increases reliance on restructuring to restore growth.

Negative Overall ProfitabilityNegative net margin and a negative EBITDA margin indicate core earnings shortfalls before non-cash items, implying structural operating inefficiencies. This impairs retained earnings, constrains reinvestment and heightens the need for sustained margin improvement to achieve long-term viability.

Weak Free Cash Flow GenerationNegative free cash flow growth after capex shows the firm struggles to convert operating cash into surplus capital. Over months this limits ability to fund dividends, invest in growth or absorb shocks without drawing down reserves or raising external financing, despite low leverage.

2876 FAQ

What was Delsole Corporation’s price range in the past 12 months?

Delsole Corporation lowest stock price was ¥370.00 and its highest was ¥520.00 in the past 12 months.

What is Delsole Corporation’s market cap?

Delsole Corporation’s market cap is ¥4.50B.

When is Delsole Corporation’s upcoming earnings report date?

Delsole Corporation’s upcoming earnings report date is May 14, 2026 which is in 61 days.

How were Delsole Corporation’s earnings last quarter?

Delsole Corporation released its earnings results on Feb 13, 2026. The company reported ¥28.57 earnings per share for the quarter, beating the consensus estimate of N/A by ¥28.57.

Is Delsole Corporation overvalued?

According to Wall Street analysts Delsole Corporation’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Delsole Corporation pay dividends?

Delsole Corporation pays a Annually dividend of ¥12 which represents an annual dividend yield of 3.37%. See more information on Delsole Corporation dividends here

What is Delsole Corporation’s EPS estimate?

Delsole Corporation’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Delsole Corporation have?

Delsole Corporation has 9,105,290 shares outstanding.

What happened to Delsole Corporation’s price movement after its last earnings report?

Delsole Corporation reported an EPS of ¥28.57 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.564%.

Which hedge fund is a major shareholder of Delsole Corporation?

Currently, no hedge funds are holding shares in JP:2876

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

Delsole Corporation

Delsole Corporation engages in the food service business in Japan and internationally. It operates through Food Manufacturing, Trading, Food Service, and International divisions. The company offers pizza crust and dough products; bread products, including naan, focaccia, tortilla, pita, and biscuits; shredded cheese; and cheese fry and naan dog snack products to supermarket chains and various food service companies. It also trades in pizza and basil sauces, and curries; olives and jalapenos; meat and chicken products comprising pepperoni, Italian sausages, taco meat, chicken sticks, chicken drops, and spicy chicken drops. In addition, the company operates restaurants and department store food counters, as well as provides take out and home delivery services. Delsole Corporation distributes its products under the Del Sole label. The company was formerly known as JC Comsa Corporation. Delsole Corporation was incorporated in 1964 and is headquartered in Tokyo, Japan.