Kaneko Seeds Co., Ltd. (1376) AI Stock Analysis

• Market Cap: ¥16.50B
• Dividend Yield: 2.33%
• Average Volume (3M): 6.43K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.31
• Revenue Growth: 5.36%
• EPS Growth: 2.53%
• Country: JP
• Employees: 701
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Agricultural Inputs
• EPS (TTM): 106.25
• Shares Outstanding: 11,772,626
• 10 Day Avg. Volume: 4,440
• 30 Day Avg. Volume: 6,426
• PEG Ratio: 5.26
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Kaneko Seeds Co., Ltd. has a stable financial structure with strong equity and low leverage. However, declining margins and revenue growth, combined with cash flow volatility, pose challenges. The technical analysis suggests weak price momentum. The valuation appears fair, supported by a reasonable P/E ratio and dividend yield.

Kaneko Seeds Co., Ltd. Business Overview & Revenue Model

Company Description

Kaneko Seeds Co., Ltd. (1376) is a Japanese company engaged in the development, production, and sale of seeds and related agricultural products. The company operates primarily in the agriculture sector, offering a variety of seeds including vegetables, flowers, and forage crops. Additionally, Kaneko Seeds provides agricultural materials and equipment, supporting farmers and agricultural businesses with comprehensive solutions for crop cultivation.

How the Company Makes Money

Kaneko Seeds Co., Ltd. generates revenue primarily through the sale of seeds, which constitutes the core of its business operations. The company offers a diverse range of seeds tailored to different climatic and soil conditions, enabling it to serve a wide variety of agricultural producers. Revenue is also generated through the sale of agricultural materials and equipment, which support the effective cultivation and harvesting of crops. The company may engage in partnerships with agricultural research institutions to develop new seed varieties that meet evolving market demands. Additionally, Kaneko Seeds may leverage its distribution networks and sales channels to expand its market reach, both domestically and internationally.

Kaneko Seeds Co., Ltd. Financial Statement Overview

Summary

Kaneko Seeds Co., Ltd. demonstrates a stable financial position with a strong equity ratio and low debt. Despite a slight decline in net profit margin and revenue, the company is financially stable. However, cash flow volatility and declining margins indicate challenges in profitability.

Income Statement

Kaneko Seeds Co., Ltd. shows a stable gross profit margin over the years, with the most recent year at approximately 15.35%. However, the net profit margin has slightly declined to 1.91% from 2.29% due to a decrease in net income. Revenue has also decreased by 0.93% compared to the previous year. The EBIT and EBITDA margins have decreased slightly as well, indicating some pressure on operating efficiencies.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 50.23% in the latest fiscal year, indicating financial stability. The debt-to-equity ratio is low at 0.004, reflecting low leverage, which reduces financial risk. Return on equity is 4.82%, which, while not high, indicates profitability given the low leverage.

Cash Flow

Kaneko Seeds Co., Ltd. has shown improvement in free cash flow, turning positive in the latest fiscal year. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation relative to net income. However, the previous year had negative cash flows, indicating volatility in cash flow performance.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
61.60B	62.18B	60.69B	60.78B	58.18B
	Gross Profit
9.46B	9.51B	9.49B	9.43B	9.13B
	EBIT
1.48B	1.79B	1.84B	1.66B	1.49B
	EBITDA
2.03B	2.36B	2.22B	2.13B	1.88B
	Net Income Common Stockholders
1.18B	1.43B	1.30B	1.44B	1.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.60B	2.45B	5.11B	5.82B	4.74B
	Total Assets
48.68B	46.71B	48.93B	47.45B	46.79B
	Total Debt
99.35M	128.87M	111.84M	114.46M	153.19M
	Net Debt
-3.60B	-2.32B	-5.00B	-5.71B	-4.59B
	Total Liabilities
24.24B	23.19B	26.29B	25.76B	26.39B
	Stockholders Equity
24.44B	23.51B	22.65B	21.70B	20.40B
Cash Flow		Free Cash Flow
1.56B	-1.99B	-150.80M	1.27B	203.17M
	Operating Cash Flow
2.24B	-1.59B	570.53M	2.29B	589.49M
	Investing Cash Flow
-486.10M	-499.50M	-752.56M	-839.00M	-264.95M
	Financing Cash Flow
-614.31M	-579.19M	-531.39M	-384.76M	-488.69M

Kaneko Seeds Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1414.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1376, the sentiment is Positive. The current price of 1414 is above the 20-day moving average (MA) of 1409.50, above the 50-day MA of 1406.64, and above the 200-day MA of 1391.03, indicating a bullish trend. The MACD of 5.87 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1376.

Kaneko Seeds Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1377	71 Outperform	¥144.78B	7.85		2.10%	15.82%	128.09%
1381	69 Neutral	¥16.58B	11.28		3.33%	1.44%	4.93%
1379	68 Neutral	¥57.10B	11.36		2.73%	6.12%	344.71%
1376	67 Neutral	¥16.50B	13.31		2.33%	5.36%	2.53%
1383	55 Neutral	¥4.73B	129.99		0.34%	3.54%	-118.08%
1382	53 Neutral	¥1.33B	57.25		2.83%	-5.15%	-47.23%
Sector *	49 Neutral	$1.95B	-1.21	-21.28%	3.72%	1.18%	-30.47%

Kaneko Seeds Co., Ltd. Corporate Events

Kaneko Seeds Reports Strong Nine-Month Financial Performance

Kaneko Seeds Co., Ltd. reported a positive financial performance for the nine months ending February 28, 2025, with a 7.4% increase in net sales and a significant rise in operating and ordinary profits compared to the previous year. The company also maintained a strong equity ratio and announced a forecast for continued growth in net sales and profits for the full fiscal year, indicating a stable financial position and positive outlook for stakeholders.

Kaneko Seeds Reports Strong Q3 Financial Performance

Kaneko Seeds Co., Ltd. reported a 7.4% increase in net sales and a 12.1% rise in operating profit for the third quarter of fiscal year 2025, reflecting a positive trend in its financial performance. The company’s improved capital adequacy ratio to 55.1% indicates a stronger financial position, which could enhance its market competitiveness and stakeholder confidence.