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

• Market Cap: ¥16.42B
• Dividend Yield: 2.74%
• Average Volume (3M): 7.46K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.30
• Revenue Growth: 4.72%
• EPS Growth: 3.46%
• Country: JP
• Employees: 701
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 81.58
• Shares Outstanding: 11,772,626
• 10 Day Avg. Volume: 5,750
• 30 Day Avg. Volume: 7,460
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: ¥1,498.00
• Price Target Upside: 6.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,498.00 ▲(6.47% Upside)

Kaneko Seeds Co., Ltd. maintains a solid financial foundation with low leverage and stable equity, which is the most significant factor in its score. However, challenges in profitability, revenue growth, and a negative technical trend weigh down the overall score. The valuation appears reasonable, but the dividend yield figure raises concerns about sustainability.

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 financial stability with a strong equity position and low leverage, reflected in a high balance sheet score. However, declining profitability and revenue growth, along with past cash flow volatility, suggest challenges in operational efficiency and growth.

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
EBITDA	2.03B	2.36B	2.22B	2.13B	1.88B
Net Income	1.18B	1.43B	1.30B	1.44B	1.12B
Balance Sheet
Total Assets	48.68B	46.71B	48.93B	47.45B	46.79B
Cash, Cash Equivalents and Short-Term Investments	3.60B	2.45B	5.11B	5.82B	4.74B
Total Debt	99.35M	128.87M	111.84M	114.46M	153.19M
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: 1407.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1407 is above the 20-day moving average (MA) of 1383.55, above the 50-day MA of 1375.80, and above the 200-day MA of 1372.79, indicating a bullish trend. The MACD of 6.50 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 94.87 is Negative, 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
4992	80 Outperform	¥39.40B	9.91		2.34%	4.52%	9.37%
4979	76 Outperform	¥26.55B	10.88		3.48%	10.02%	56.26%
1376	70 Outperform	¥16.42B	13.15		2.74%	4.72%	3.46%
4996	69 Neutral	¥105.84B	9.66		4.03%	10.07%	-38.38%
4022	64 Neutral	¥34.87B	10.01		2.73%	9.33%	45.97%
Sector *	44 Neutral	C$891.93M	-6.86	-14.87%	2.76%	16.72%	-26.07%

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.