NIPPN Corporation (2001) AI Stock Analysis

• Market Cap: ¥232.30B
• Dividend Yield: 2.77%
• Average Volume (3M): 492.89K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.32
• Revenue Growth: 1.83%
• EPS Growth: -39.02%
• Country: JP
• Employees: 3,829
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 75.30
• Shares Outstanding: 84,727,165
• 10 Day Avg. Volume: 303,030
• 30 Day Avg. Volume: 492,893
• PEG Ratio: -1.11
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -122.17
• 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: 70 Outperform
• Price Target: ¥3,102.00 ▲(26.30% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

NIPPN Corporation's strong financial performance and attractive valuation are significant strengths, making it a compelling investment in the packaged foods industry. However, technical indicators suggest caution due to potential bearish momentum. Improving cash flow management could further enhance its financial position.

Positive Factors

Low leverage and strong equity base

NIPPN's low debt-to-equity (0.24) and high equity ratio (60.67%) provide durable financial flexibility. This capital structure reduces refinancing risk, supports investment in mill/processing capacity and logistics, and helps the company absorb commodity and demand cycles without stressing solvency.

Diversified milling and food businesses

The company's mix of milled wheat supply to industrial customers, branded and private-label consumer products, plus logistics gives multiple stable revenue streams. This reduces reliance on any single channel, smoothing volume swings and preserving margins through customer contracts and retail distribution reach.

Sustained margins and profitability

Healthy gross and EBITDA margins indicate effective cost control and some pricing power in flour and value-added products. Consistent profitability provides an earnings base to fund operations and reinvest in product development, brand support, and supply-chain improvements over the medium term.

Negative Factors

Negative free cash flow

Negative free cash flow signals that capital spending and/or working capital absorption exceed operating cash generation. Persisting FCF deficits constrain the firm's ability to self-fund growth, pay dividends or reduce leverage and may force external financing or cutbacks that affect long-term competitiveness.

Declining EPS and compressing net margin

A large negative EPS growth rate and a falling net margin indicate underlying pressure on profitability—whether from input costs, product mix shifts, or competitive pricing. Continued EPS contraction would weaken reinvestment capacity and shareholder returns over the medium term.

Modest revenue growth rate

Revenue growth is positive but modest (~2-2.6% yoy), which may limit scale benefits in a low-margin industry. Slow topline expansion can make it harder to offset margin pressure from commodity costs and to create material operating leverage over a multi-quarter horizon.

NIPPN Corporation Business Overview & Revenue Model

Company Description

Nippn Corporation engages in flour milling business in Japan and internationally. The company manufactures and sells food products, including premixes, such as donut, cake, and bread mixes, as well as tempura flours, karaage mixes, etc.; corn products comprising corn grits, cornmeal, etc.; health food products that include wheat germ oil, gingko leaf extract, chlorella, etc.; and wheat flour and premixes for home use. It also provides pasta, which comprises spaghetti, macaroni, etc.; and pasta sauces, whole peeled tomatoes, olive oil, dried noodles, and rice flours, as well as other frozen ingredients and foods, including donut dough, pie dough, non-dairy whip, etc. In addition, the company offers deli food products, such as boxed lunches, snacks, etc.; take-out foods; health food products for health and beauty; functional ingredients; and cosmetics. Further, it is involved in the biotechnology, pet care products, machinery sales, and other businesses. The company was founded in 1896 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NIPPN Corporation generates revenue primarily through the sale of flour and food products. Its key revenue streams include wholesale distribution to food manufacturers, retail sales through supermarkets and convenience stores, and direct sales to restaurants and food service operators. The company has established significant partnerships with various stakeholders in the food supply chain, enabling it to secure consistent demand for its products. Additionally, NIPPN invests in research and development to innovate and expand its product line, which helps attract new customers and enter new markets, further enhancing its earnings potential.

NIPPN Corporation Financial Statement Overview

Summary

NIPPN Corporation demonstrates strong financial health with robust revenue growth and stable profitability. The balance sheet is solid with low leverage, but challenges in generating positive free cash flow indicate potential liquidity constraints.

Income Statement

NIPPN Corporation has demonstrated solid growth with a consistent increase in revenue over the years. The Gross Profit Margin for the latest year stands at 23.83%, indicating effective cost management. The Net Profit Margin slightly decreased to 6.02% from 6.58% a year ago, primarily due to a slight reduction in net income. The Revenue Growth Rate was robust at 2.59% year-over-year, showing a positive trajectory. EBIT and EBITDA Margins were healthy at 5.23% and 11.69%, respectively. Overall, the company maintains strong profitability with stable margins.

Balance Sheet

The balance sheet of NIPPN Corporation is strong with a Debt-to-Equity Ratio of 0.24, indicating low leverage and a solid financial structure. The Return on Equity (ROE) is slightly reduced at 10.22%, reflecting strong returns to shareholders. The Equity Ratio stands at 60.67%, showing a robust capital structure with a majority funded by equity. Overall, the company demonstrates financial stability and low risk due to prudent financial management.

Cash Flow

The cash flow statement shows a decline in Free Cash Flow, which turned negative, indicating potential challenges in cash management. The Operating Cash Flow to Net Income Ratio is 0.76, suggesting a moderate conversion of income to cash. The Free Cash Flow to Net Income Ratio is negative, highlighting a concern in generating free cash flow from operations. While the cash flow from operations remains positive, the negative free cash flow points to cash expenditure in capital investments impacting liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	413.13B	410.88B	400.51B	365.52B	321.32B	288.32B
Gross Profit	101.21B	97.92B	94.00B	80.07B	74.93B	68.34B
EBITDA	41.18B	48.04B	46.85B	25.10B	24.25B	22.35B
Net Income	20.00B	24.76B	26.37B	10.26B	9.33B	8.64B
Balance Sheet
Total Assets	407.80B	399.23B	386.69B	344.61B	325.87B	308.02B
Cash, Cash Equivalents and Short-Term Investments	45.42B	44.95B	45.59B	36.81B	34.06B	37.49B
Total Debt	47.44B	57.03B	61.23B	64.13B	68.71B	70.18B
Total Liabilities	141.72B	152.74B	158.41B	152.00B	147.17B	138.89B
Stockholders Equity	259.16B	242.26B	224.34B	188.91B	174.31B	164.44B
Cash Flow
Free Cash Flow	0.00	-1.39B	2.87B	7.22B	1.32B	-1.02B
Operating Cash Flow	0.00	18.77B	24.02B	15.05B	11.97B	14.80B
Investing Cash Flow	0.00	-7.81B	-9.49B	-5.03B	-10.10B	-12.59B
Financing Cash Flow	0.00	-10.53B	-7.24B	-8.40B	-4.28B	2.55B

NIPPN Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2456.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2001, the sentiment is Positive. The current price of 2456 is below the 20-day moving average (MA) of 2731.40, below the 50-day MA of 2557.06, and above the 200-day MA of 2300.13, indicating a bullish trend. The MACD of 80.70 indicates Positive momentum. The RSI at 75.45 is Negative, neither overbought nor oversold. The STOCH value of 75.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2001.

NIPPN Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2212	73 Outperform	¥686.75B	16.39	9.18%	1.13%	3.53%	4.88%
2871	72 Outperform	€520.29B	19.78	9.86%	2.58%	1.08%	2.71%
2809	71 Outperform	¥630.11B	20.55	9.28%	1.30%	5.50%	27.32%
2001	70 Outperform	¥232.30B	11.02	7.71%	2.77%	1.83%	-39.02%
2002	70 Outperform	¥601.30B	22.65	―	3.15%	-0.88%	-25.64%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2607	57 Neutral	¥359.49B	16.47	―	1.45%	20.02%	―

NIPPN Corporation Corporate Events

NIPPN Posts Higher Sales but Lower Profit in Q3 FY2026, Keeps Dividend Outlook Unchanged

NIPPN Corporation reported a 1.6% year-on-year increase in consolidated net sales to ¥317.4 billion for the third quarter of FY2026, with operating income up 4.0% and ordinary income up 3.9%. Despite this top-line and operating improvement, profit attributable to owners of parent declined 20.1% to ¥15.6 billion, leading to a drop in earnings per share to ¥187.50, even as total assets and net assets rose and the equity ratio improved slightly to 61.0%. The company maintained its dividend stance, having already paid an interim dividend of ¥33 per share and forecasting a full-year payout of ¥66 per share, unchanged from the previous year. For the full FY2026, NIPPN forecasts modest growth in net sales and income but expects an 18.4% decline in profit attributable to owners of parent, signaling pressure on bottom-line profitability even as it expands its consolidation scope with the addition of HATANAKA FOODS Co., Ltd. and manages a larger equity base.

The most recent analyst rating on (JP:2001) stock is a Buy with a Yen2958.00 price target. To see the full list of analyst forecasts on NIPPN Corporation stock, see the JP:2001 Stock Forecast page.

NIPPN Lifts Sales and Operating Profit While Investing in New Mills and Frozen Foods Capacity

NIPPN Corporation reported consolidated net sales of ¥317.4 billion for the first nine months of fiscal 2026, up 1.6% year on year, driven by inbound tourism demand, marketing-led sales promotion and price revisions, while operating and ordinary income rose 4.0% and 3.9% respectively despite higher raw material, personnel and logistics costs; profit attributable to owners of parent fell 20.1% to ¥15.6 billion, reflecting the absence of last year’s one-off gain from the sale of idle land. The company is in the final phase of constructing its Chita Mill to lower procurement costs and boost automated, resilient production, is adding frozen food capacity with a new HATANAKA FOODS plant targeted for completion by the end of fiscal 2027, and is ramping up U.S. output via Utah Flour Milling, while maintaining its full-year earnings and dividend forecasts, signaling steady execution of its growth and efficiency strategy under cost pressure.

The most recent analyst rating on (JP:2001) stock is a Buy with a Yen2958.00 price target. To see the full list of analyst forecasts on NIPPN Corporation stock, see the JP:2001 Stock Forecast page.

NIPPN Reports Progress on Ongoing Share Buyback Program

NIPPN Corporation has disclosed the progress of its ongoing share buyback program authorized by its board in October 2025 under the company’s Articles of Incorporation. Between January 1 and January 31, 2026, the company repurchased 395,400 shares of its common stock for approximately ¥1.0 billion via market purchases on the Tokyo Stock Exchange, bringing total buybacks under the current authorization to 907,100 shares at a cumulative cost of about ¥2.21 billion. The current mandate allows for purchases of up to 2.2 million shares or ¥4.0 billion through March 31, 2026, indicating further potential buybacks that could support shareholder returns and capital efficiency, and may influence the company’s share price and ownership structure as the program progresses.

The most recent analyst rating on (JP:2001) stock is a Buy with a Yen2912.00 price target. To see the full list of analyst forecasts on NIPPN Corporation stock, see the JP:2001 Stock Forecast page.

NIPPN Reports Progress on Ongoing Share Buyback Program

NIPPN Corporation has reported progress on its share buyback program authorized by its board in October 2025 under the Companies Act, as part of its capital management strategy. Between December 1 and December 31, 2025, the company repurchased 410,500 shares of its common stock on the Tokyo Stock Exchange for approximately ¥967 million, bringing cumulative buybacks under the current authorization to 511,700 shares at a total cost of about ¥1.21 billion, with further capacity remaining under the maximum approved limit of 2.2 million shares and ¥4 billion through March 31, 2026.

The most recent analyst rating on (JP:2001) stock is a Buy with a Yen2455.00 price target. To see the full list of analyst forecasts on NIPPN Corporation stock, see the JP:2001 Stock Forecast page.

NIPPN Corporation Announces Share Buyback Plan

NIPPN Corporation announced the acquisition of 101,200 of its own shares at a total cost of 239,187,495 yen, as resolved in the Board of Directors meeting on October 14, 2025. This move is part of a larger plan to acquire up to 2,200,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:2001) stock is a Buy with a Yen2455.00 price target. To see the full list of analyst forecasts on NIPPN Corporation stock, see the JP:2001 Stock Forecast page.