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

• Market Cap: ¥18.29B
• Dividend Yield: 2.43%
• Average Volume (3M): 28.69K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.32
• Revenue Growth: 4.00%
• EPS Growth: 32.05%
• Country: JP
• Employees: 701
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 27.08
• Shares Outstanding: 11,772,626
• 10 Day Avg. Volume: 55,970
• 30 Day Avg. Volume: 28,690
• PEG Ratio: 3.31
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -13.61
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥1,498.00 ▼(-4.34% Downside)

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.

Positive Factors

Financial Stability

A strong equity position and low leverage reduce financial risk, providing a stable foundation for long-term operations and growth.

Revenue Growth

The increase in net sales indicates effective market strategies and product demand, supporting sustainable revenue growth over time.

Cash Flow Improvement

Positive cash flow enhances financial flexibility, enabling investment in growth opportunities and resilience against economic fluctuations.

Negative Factors

Declining Profit Margins

Declining profit margins can indicate increased cost pressures or inefficiencies, potentially impacting long-term profitability and competitiveness.

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to plan and invest in long-term projects, affecting strategic growth initiatives.

Operational Efficiency Challenges

Decreased operating margins suggest challenges in maintaining cost efficiency, which could affect the company's ability to sustain profitability.

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

Company Description

Kaneko Seeds Co., Ltd. engages in the agribusiness in Japan. The company offers agricultural seedlings, bulbs, seeds, flower gardening materials, and greenhouses and agricultural production materials; and agricultural chemicals, resin materials, and nutrient solution cultivation systems, as well as engages in sales and repair of facility gardening equipment. Kaneko Seeds Co., Ltd. was founded in 1895 and is headquartered in Maebashi, Japan.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.21B	64.51B	61.60B	62.18B	60.69B	60.78B
Gross Profit	9.79B	9.54B	9.46B	9.51B	9.49B	9.43B
EBITDA	2.31B	2.15B	2.03B	2.36B	2.22B	2.13B
Net Income	1.39B	1.20B	1.18B	1.43B	1.30B	1.44B
Balance Sheet
Total Assets	46.89B	49.32B	48.68B	46.71B	48.93B	47.45B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.93B	3.60B	2.45B	5.11B	5.82B
Total Debt	3.42B	0.00	99.35M	128.87M	111.84M	114.46M
Total Liabilities	21.59B	24.31B	24.24B	23.19B	26.29B	25.76B
Stockholders Equity	25.29B	25.01B	24.44B	23.51B	22.65B	21.70B
Cash Flow
Free Cash Flow	0.00	-1.14B	1.56B	-1.99B	-150.80M	1.27B
Operating Cash Flow	0.00	212.91M	2.24B	-1.59B	570.53M	2.29B
Investing Cash Flow	0.00	-1.23B	-486.10M	-499.50M	-752.56M	-839.00M
Financing Cash Flow	0.00	-629.07M	-614.31M	-579.19M	-531.39M	-384.76M

Kaneko Seeds Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1566.00
• 50DMA: Negative
• 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 Neutral. The current price of 1566 is below the 20-day moving average (MA) of 1576.62, below the 50-day MA of 1638.63, and above the 200-day MA of 1447.62, indicating a neutral trend. The MACD of -17.16 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4022	77 Outperform	¥46.97B	11.01	―	2.30%	5.17%	79.36%
4979	75 Outperform	¥23.67B	9.51	―	3.90%	8.02%	42.17%
4992	72 Outperform	¥38.08B	9.23	―	2.97%	4.66%	19.39%
1376	70 Outperform	¥18.29B	12.54	―	2.43%	4.00%	32.05%
4996	62 Neutral	¥85.32B	18.74	―	3.52%	5.84%	-67.78%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.