Akikawa Foods & Farms Co., Ltd. (1380) AI Stock Analysis

• Market Cap: ¥4.10B
• Dividend Yield: 1.02%
• Average Volume (3M): 25.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: 5.53%
• EPS Growth: -128.84%
• Country: JP
• Employees: 320
• Sector: Consumer Defensive
• Sector Strength: 79
• Industry: Agricultural Farm Products
• EPS (TTM): -14.17
• Shares Outstanding: 4,179,000
• 10 Day Avg. Volume: 2,520
• 30 Day Avg. Volume: 25,016
• PEG Ratio: 1.17
• Price to Book (P/B): 1.95
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Akikawa Foods & Farms Co., Ltd. is currently facing significant financial and operational challenges, notably in profitability and cash flow management. The technical analysis presents a mixed view, offering some potential for short-term recovery, but the fundamental financial weaknesses and valuation concerns weigh heavily on the stock outlook.

Akikawa Foods & Farms Co., Ltd. Business Overview & Revenue Model

Company Description

Akikawa Foods & Farms Co., Ltd., together with its subsidiaries, produces and sells food products. It operates through Production and Wholesale Business and Direct Sales Business segments. The company offers chicken, pork, beef, milk, yogurt, eggs, vegetables, and frozen foods, as well as processed foods. It also engages in breeding livestock, such as chickens, hens, and dairy cows; and sells food products and household goods. The company was formerly known as Akikawa Food Co., Ltd. and changed its name to Akikawa Foods & Farms Co., Ltd. in 1993. Akikawa Foods & Farms Co., Ltd. was founded in 1932 and is headquartered in Yamaguchi, Japan.

How the Company Makes Money

Akikawa Foods & Farms Co., Ltd. generates revenue primarily through the sale of its poultry products. The company's key revenue streams include the production and distribution of chicken meat to supermarkets, restaurants, and food service providers. By leveraging its expertise in poultry farming and processing, Akikawa Foods & Farms ensures a steady supply of high-quality chicken products, which is a critical factor in its earnings. Additionally, the company may engage in strategic partnerships with distributors and retailers to enhance its market reach and boost sales. The combination of efficient farming practices and strong distribution networks contribute significantly to its financial success.

Akikawa Foods & Farms Co., Ltd. Financial Statement Overview

Summary

The company faces financial challenges, including declining profitability, negative net profit margins, and operational inefficiencies. The high debt level and absence of positive cash flows raise concerns about financial stability and flexibility.

Income Statement

The company displays a declining profitability trend with a negative EBIT and net income for the TTM period. Gross profit margin for TTM is approximately 22.81%, showing moderate efficiency in cost management. However, the net profit margin is negative at -0.75%, highlighting the challenge in converting revenue into actual profit. Revenue growth is slowing down, with a TTM revenue of ¥7.77 billion compared to the previous annual revenue of ¥7.39 billion, indicating a growth rate of around 5.06%. The negative EBIT margin of -1.54% and EBITDA margin of 3.00% for TTM also reflect operational challenges.

Balance Sheet

The company's balance sheet shows a stable equity position with an equity ratio of 29.30% for TTM, indicating moderate financial stability. The debt-to-equity ratio is 1.67, which suggests a relatively high reliance on debt financing but is typical for the industry. Return on equity is negative for TTM due to the net losses, indicating inefficiencies in generating shareholder returns.

Cash Flow

The cash flow statement indicates challenges in cash generation, with no operating or free cash flow reported for TTM. Historical data shows a negative free cash flow trend, with significant capital expenditures affecting cash availability. This raises concerns about the company's ability to fund operations and growth without external financing.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
7.77B	7.39B	7.07B	6.64B	6.42B	5.79B
	Gross Profit
1.77B	1.74B	1.65B	1.71B	1.74B	1.41B
	EBIT
-119.42M	11.75M	19.84M	115.68M	265.55M	95.00M
	EBITDA
233.35M	591.01M	643.64M	624.97M	667.92M	467.00M
	Net Income Common Stockholders
-58.18M	98.29M	156.04M	159.57M	169.97M	71.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
696.00M	696.36M	779.75M	866.18M	926.89M	618.61M
	Total Assets
7.24B	7.05B	6.07B	5.59B	5.38B	5.08B
	Total Debt
3.54B	3.37B	2.49B	2.27B	2.16B	2.27B
	Net Debt
2.84B	2.67B	1.71B	1.41B	1.23B	1.65B
	Total Liabilities
5.11B	4.86B	3.94B	3.56B	3.46B	3.35B
	Stockholders Equity
2.12B	2.18B	2.14B	2.03B	1.92B	1.73B
Cash Flow		Free Cash Flow
0.00	-657.72M	-238.47M	-140.34M	443.14M	22.00M
	Operating Cash Flow
0.00	393.24M	449.01M	364.32M	785.87M	480.00M
	Investing Cash Flow
0.00	-1.11B	-708.35M	-497.26M	-332.93M	-456.00M
	Financing Cash Flow
0.00	637.68M	172.91M	72.24M	-144.66M	22.00M

Akikawa Foods & Farms Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 984.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1380, the sentiment is Negative. The current price of 984 is below the 20-day moving average (MA) of 993.60, below the 50-day MA of 1000.24, and below the 200-day MA of 996.87, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 2.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1380.

Akikawa Foods & Farms Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$8.78B	14.76	5.05%	174.28%	3.62%	3.48%
1380	43 Neutral	¥4.10B	―		1.02%	5.53%	-128.84%