Kyokuyo Co., Ltd. (1301) AI Stock Analysis

• Market Cap: ¥64.78B
• Dividend Yield: 2.68%
• Average Volume (3M): 32.62K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.59
• Revenue Growth: 15.22%
• EPS Growth: 4.80%
• Country: JP
• Employees: 2,089
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 241.46
• Shares Outstanding: 12,078,283
• 10 Day Avg. Volume: 24,380
• 30 Day Avg. Volume: 32,616
• PEG Ratio: 2.13
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -156.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥6,011.00 ▲(23.30% Upside)
• Action: Upgraded Date: 10/17/25
• Date: Action: Upgraded 10/17/25

Kyokuyo Co., Ltd. shows strong financial performance with robust revenue growth and improved margins, though liquidity is impacted by negative free cash flow. The stock appears undervalued with a low P/E ratio and offers a decent dividend yield. Technical indicators suggest potential short-term weakness, but the overall outlook remains positive.

Positive Factors

Revenue Growth Trend

Consistent revenue growth (15.69% y/y) reflects expanding market penetration across retail and food‑service and stronger product demand. Sustained top‑line expansion supports scale economies, higher capacity utilization, and reinvestment for product development and distribution over the medium term.

Margin Improvement

Material margin expansion—gross margin at 12.83% and improved EBIT/EBITDA—indicates better cost management and/or pricing power. If driven by operational efficiencies and a higher‑value product mix, these improvements are durable drivers of cash earnings and buffer profitability against input cost swings.

Vertical Integration & Channels

Kyokuyo's integrated model (procurement, processing, manufacturing, cold‑chain distribution) provides control over quality, cost and speed to market. Diversified retail and food‑service channels reduce customer concentration and support long‑term margin capture and product innovation advantages.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow, even as operating cash flow turned positive, means capital expenditures or working capital needs still outstrip cash generation. Over months this constrains capacity to reduce debt, pay dividends, or fund strategic projects without external financing.

Elevated Leverage

A debt‑to‑equity ratio of 1.20 signals a leveraged balance sheet that raises interest‑cost sensitivity and reduces financial flexibility. In a sector exposed to commodity and supply volatility, elevated leverage increases refinancing and liquidity risk over the medium term.

Negative EPS Growth

Reported EPS declined (~-11.8%) despite revenue growth, implying per‑share profitability compression from higher costs, financing, or one‑off items. Sustained EPS weakness can impair internal capital formation, constrain shareholder returns, and signal volatility in core earnings.

Kyokuyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kyokuyo Co., Ltd. purchases, sells, imports, and exports marine products in Japan and internationally. The company operates through Marine Products Purchasing, Foods, Logistics, and Tuna segments. It provides fish fillets, crabs, and peeled shrimps. The company also offers sushi toppings to restaurant chains; Dandori Jozu product series that includes sushi toppings, simmered and grilled fish, fried marine products, imitation crab meat, and fish fillets to restaurants, deli departments of retailers, and medical and nursing care facilities; and frozen foods for home use. In addition, it produces canned meat, agricultural, and seafood products, such as mackerel and skipjack; and products under the Sea Marché brand, as well as sells squid jerky and health food products comprising glucosamine and DHA supplements. Further, the company is involved in the operation of cold storage business; and fishing, farming, purchasing, processing, and marketing skipjack, bluefin tuna, and other tuna activities. Kyokuyo Co., Ltd. was incorporated in 1937 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kyokuyo Co., Ltd. generates revenue through multiple streams primarily from the sale of seafood products, including fresh and frozen fish, processed seafood, and ready-to-eat meals. The company’s revenue model is based on direct sales to retailers, wholesalers, and food service providers, allowing it to reach a wide customer base. Significant partnerships with fishing companies, distributors, and retailers enhance its supply chain and market presence. Additionally, Kyokuyo capitalizes on international markets by exporting its products, which further diversifies its revenue streams. The company also invests in product innovation and quality assurance, which helps maintain customer loyalty and competitive pricing, contributing to its overall earnings.

Kyokuyo Co., Ltd. Financial Statement Overview

Summary

Kyokuyo Co., Ltd. demonstrates strong revenue and profit growth, with improved margins. However, the balance sheet shows a leveraged position, and free cash flow remains negative, impacting liquidity.

Income Statement

Kyokuyo Co., Ltd. has shown robust revenue growth with a 15.69% increase from 2024 to 2025. The gross profit margin improved to 12.83%, indicating efficient cost management. The net profit margin also increased to 2.23%, showcasing enhanced profitability. The EBIT and EBITDA margins improved to 3.66% and 4.76% respectively, reflecting stronger operational performance.

Balance Sheet

The company maintains a relatively high debt-to-equity ratio of 1.20, suggesting a leveraged position which could pose risks. However, the increase in stockholders' equity to ¥66.51 billion and a steady equity ratio of 36.53% indicate a solid equity base that supports financial stability.

Cash Flow

While the operating cash flow improved significantly, turning from negative to positive, the free cash flow remains negative. The operating cash flow to net income ratio of 0.87 indicates some alignment between cash generation and reported earnings, though the negative free cash flow suggests that capital expenditures continue to outweigh operating cash inflows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	310.51B	302.68B	261.60B	272.17B	253.57B	249.20B
Gross Profit	39.17B	38.82B	33.39B	31.03B	28.02B	25.58B
EBITDA	12.00B	14.39B	11.57B	11.17B	8.95B	7.95B
Net Income	5.99B	6.74B	5.94B	5.78B	4.63B	3.84B
Balance Sheet
Total Assets	190.36B	182.13B	160.72B	146.29B	130.45B	116.32B
Cash, Cash Equivalents and Short-Term Investments	7.53B	7.51B	8.45B	7.05B	6.54B	7.10B
Total Debt	85.25B	79.92B	74.62B	68.97B	58.12B	51.17B
Total Liabilities	120.31B	113.77B	101.85B	99.33B	88.28B	76.35B
Stockholders Equity	68.30B	66.52B	58.98B	47.54B	42.70B	40.38B
Cash Flow
Free Cash Flow	0.00	-314.00M	-7.06B	-8.54B	-5.99B	3.60B
Operating Cash Flow	0.00	5.84B	-1.72B	-6.24B	-1.13B	6.00B
Investing Cash Flow	0.00	-9.00B	-5.71B	-2.34B	-5.22B	-527.00M
Financing Cash Flow	0.00	2.15B	8.52B	9.01B	5.74B	-4.63B

Kyokuyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4875.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1301, the sentiment is Positive. The current price of 4875 is below the 20-day moving average (MA) of 5220.50, below the 50-day MA of 5054.70, and above the 200-day MA of 4769.12, indicating a bullish trend. The MACD of 86.43 indicates Negative momentum. The RSI at 70.48 is Negative, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1301.

Kyokuyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1332	76 Outperform	¥482.11B	16.87	10.81%	2.56%	3.87%	29.64%
1301	71 Outperform	¥64.78B	10.26	10.55%	2.68%	15.22%	4.80%
2296	64 Neutral	¥341.93B	21.77	―	2.61%	6.54%	15.08%
2811	63 Neutral	¥249.65B	17.96	―	2.11%	3.69%	-50.13%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2264	59 Neutral	¥440.06B	31.87	―	2.42%	2.33%	-8.76%
2607	57 Neutral	¥342.82B	15.70	―	1.45%	20.02%	―

Kyokuyo Co., Ltd. Corporate Events

Kyokuyo Promotes Tuna Division Head to Executive Officer Role

Kyokuyo Co., Ltd. has announced a change in its executive leadership following a resolution by its Board of Directors. Effective June 24, 2026, Shigeru Moriya, currently General Manager of the Tuna Business Department within the Freshfoods Business Division, will be promoted to Executive Officer and Vice-Chief of the Freshfoods Business Division, strengthening management oversight in its core tuna operations.

The most recent analyst rating on (JP:1301) stock is a Hold with a Yen5243.00 price target. To see the full list of analyst forecasts on Kyokuyo Co., Ltd. stock, see the JP:1301 Stock Forecast page.

Kyokuyo Revamps Board With Key Director Promotions and Retirement

Kyokuyo Co., Ltd. has announced a series of senior management changes, effective June 24, 2026, subject to approval at its 103rd Ordinary General Meeting of Shareholders and a subsequent board meeting. Several directors, including Hitoshi Higaki, Keizo Yamaguchi, Masaki Miyama, and Masahiko Oda, will be promoted to managing or senior managing director roles while retaining responsibility for core divisions such as corporate administration, fresh foods, processed foods, marine products, and supply chain management.

The company will also appoint Makoto Ishihara as a new director overseeing the Office of the President, while senior managing director Shuichi Kiyama will retire on the same date. These leadership changes signal a generational and structural transition aimed at strengthening divisional oversight and continuity in key operational areas, which may help Kyokuyo reinforce its organizational governance and support its strategic execution across its main food-related businesses.

The most recent analyst rating on (JP:1301) stock is a Hold with a Yen5243.00 price target. To see the full list of analyst forecasts on Kyokuyo Co., Ltd. stock, see the JP:1301 Stock Forecast page.

Kyokuyo Cuts Full-Year Earnings Forecast on Raw Material Shortages and Higher Seafood Prices

Kyokuyo Co., Ltd. has revised downward its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026, cutting projected net sales from ¥350 billion to ¥330 billion and reducing expected profit attributable to owners of parent from ¥8.2 billion to ¥6.7 billion, which lowers forecast earnings per share from ¥690.38 to ¥564.10. The company cited raw material shortages that led to low plant utilization at its Dutch factory, as well as upfront costs tied to ramping up new plants in the U.S. and Vietnam, alongside weaker consumption driven by higher seafood prices amid global inflation, as reasons its sales and profits are now expected to fall short of initial plans, though it confirmed there will be no change to its dividend forecast.

The most recent analyst rating on (JP:1301) stock is a Hold with a Yen5243.00 price target. To see the full list of analyst forecasts on Kyokuyo Co., Ltd. stock, see the JP:1301 Stock Forecast page.

Kyokuyo Lifts Sales but Sees Profit Decline, Confirms Higher Dividend and Revised Outlook

Kyokuyo reported consolidated net sales of ¥256.9 billion for the third quarter of the fiscal year ending March 31, 2026, up 9.4% year on year, but operating profit, ordinary profit and profit attributable to owners of parent declined 8.1%, 12.3% and 7.2% respectively, reflecting margin pressure despite higher revenue. Total assets expanded to ¥222.4 billion and shareholders’ equity rose, although the equity ratio slipped to 33.3%, while the company maintained its plan to raise the annual dividend from ¥130 to ¥150 per share and updated its full-year forecast to ¥330 billion in net sales with essentially flat operating profit and slightly lower ordinary profit and net income, signaling a focus on growth and shareholder returns amid a challenging profit environment that includes the consolidation of two new subsidiaries in Denmark and elsewhere.

The most recent analyst rating on (JP:1301) stock is a Hold with a Yen5243.00 price target. To see the full list of analyst forecasts on Kyokuyo Co., Ltd. stock, see the JP:1301 Stock Forecast page.