Nisshin Seifun Group Inc. (2002) AI Stock Analysis

• Market Cap: ¥601.30B
• Dividend Yield: 3.15%
• Average Volume (3M): 699.96K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.37
• Revenue Growth: -0.88%
• EPS Growth: -25.64%
• Country: JP
• Employees: 9,574
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 43.63
• Shares Outstanding: 290,657,900
• 10 Day Avg. Volume: 703,680
• 30 Day Avg. Volume: 699,960
• PEG Ratio: 1.49
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 37.23
• 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: ¥2,340.00 ▲(29.93% Upside)

Nisshin Seifun Group Inc. scores well due to its strong financial performance and attractive valuation, with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest bearish momentum, which slightly offsets the positive financial and valuation aspects. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Sustained Revenue Growth

Revenue growth near 35% indicates durable demand for the company's core milling and food products and successful market penetration. Sustained top-line expansion supports scale economics, reinvestment in production, and long-term competitiveness across B2B and retail channels.

Conservative Balance Sheet

A high equity ratio (~61%) and low debt-to-equity (~0.17) provide financial flexibility to absorb commodity cycles and fund capex or acquisitions without heavy refinancing. This conservative leverage profile supports resilience and preserves strategic optionality over months to years.

Strong Operating Cash Generation

Operating cash flow materially exceeds reported earnings (OCF/NI ~1.59), showing the business converts revenue into cash effectively. Persistent cash generation underpins working capital needs, dividend capacity and reinvestment, strengthening long-term operational stability.

Negative Factors

Sharp Free Cash Flow Decline

A near 69% drop in free cash flow is a durable red flag for capital allocation flexibility. If sustained, it can constrain dividends, reduce available funding for growth investments, and increase sensitivity to stress events; monitoring FCF recovery is critical over coming quarters.

Earnings Volatility

Negative EPS growth (~-15%) signals earnings volatility despite revenue gains. Persistent EPS declines can erode shareholder returns and limit reinvestment. This suggests profit per share is sensitive to margin swings or one-time impacts, posing medium-term execution risk.

Thin Net Profit Margin

A net margin near 4.1% leaves limited buffer against input-cost shocks and competitive pricing pressure common in milling/packaged foods. Low absolute profitability reduces ability to absorb commodity price swings and could compress returns if cost pass-through is constrained.

Nisshin Seifun Group Inc. Business Overview & Revenue Model

Company Description

Nisshin Seifun Group Inc. is a leading Japanese food company established in 2002, primarily engaged in the production and distribution of flour, food products, and processed foods. The company operates through various segments including flour milling, food processing, and the manufacture of related products, serving both domestic and international markets. Nisshin Seifun Group is known for its commitment to quality and innovation, offering a diverse range of products including bakery ingredients, instant noodles, and ready-to-eat meals.

How the Company Makes Money

Nisshin Seifun Group generates revenue primarily through the sale of flour and flour-based products, which constitutes a significant portion of its earnings. The company has established a strong presence in the milling industry, leveraging its extensive distribution network to reach both retail and commercial customers. Additionally, Nisshin Seifun Group earns revenue from its food processing segment, which includes the production of instant noodles, frozen foods, and other convenience food items. Key revenue streams also come from partnerships with food manufacturers and retailers, allowing for collaborative product development and expanded market reach. The company's focus on innovation, such as the development of health-conscious and sustainable food products, further enhances its competitive edge and contributes to its overall profitability.

Nisshin Seifun Group Inc. Financial Statement Overview

Summary

Nisshin Seifun Group Inc. demonstrates strong financial health with solid revenue growth, improved profitability, and efficient operations. The balance sheet is stable with low leverage, and while cash flow generation remains solid, recent declines in free cash flow could pose a potential risk. Overall, the company is on a positive trajectory but should monitor cash flow sustainability.

Income Statement

Nisshin Seifun Group Inc. has shown consistent revenue growth over the past years with a slight dip in the most recent year. The gross profit margin is strong at approximately 22.3% for 2025, indicating efficient production. Net profit margin improved significantly from a negative in 2023 to approximately 4.1% in 2025, showcasing recovery and profitability enhancement. EBIT and EBITDA margins also indicate a healthy operational efficiency.

Balance Sheet

The company maintains a strong equity position, with an equity ratio of about 61.4% in 2025, reflecting financial stability. The debt-to-equity ratio is relatively low at 0.17, indicating conservative leverage use. Return on equity shows positive recovery to 7.2% in 2025 from a negative in 2023, highlighting improving profitability.

Cash Flow

Operating cash flow remains robust, with a good operating cash flow to net income ratio of 1.59 for 2025, suggesting strong cash generation relative to earnings. However, free cash flow has decreased by 68.8% compared to the previous year, indicating potential challenges in sustaining cash flows. The free cash flow to net income ratio is healthy at 0.40, supporting ongoing profitability.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	852.98B	851.49B	858.25B	798.68B	679.74B	679.50B
Gross Profit	189.04B	190.18B	184.13B	160.62B	148.08B	189.09B
EBITDA	76.10B	82.05B	76.91B	31.14B	62.60B	60.25B
Net Income	35.46B	34.68B	31.74B	-10.38B	17.51B	19.01B
Balance Sheet
Total Assets	790.35B	789.71B	826.70B	713.87B	723.07B	687.41B
Cash, Cash Equivalents and Short-Term Investments	87.12B	96.12B	109.47B	82.97B	70.71B	61.73B
Total Debt	80.94B	84.53B	87.04B	85.05B	79.51B	76.95B
Total Liabilities	283.99B	287.14B	310.32B	275.38B	262.43B	242.64B
Stockholders Equity	488.55B	485.00B	500.30B	423.88B	449.27B	433.20B
Cash Flow
Free Cash Flow	0.00	13.74B	44.00B	4.76B	23.15B	32.15B
Operating Cash Flow	0.00	55.21B	73.19B	23.42B	41.83B	49.51B
Investing Cash Flow	0.00	-34.96B	-30.94B	487.00M	-15.52B	-17.11B
Financing Cash Flow	0.00	-35.43B	-19.54B	-10.63B	-17.85B	-31.26B

Nisshin Seifun Group Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1801.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2002, the sentiment is Positive. The current price of 1801 is below the 20-day moving average (MA) of 2077.05, below the 50-day MA of 1988.96, and below the 200-day MA of 1819.39, indicating a bullish trend. The MACD of 47.43 indicates Positive momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 42.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2002.

Nisshin Seifun Group Inc. 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%
2002	70 Outperform	¥601.30B	22.65	―	3.15%	-0.88%	-25.64%
2001	70 Outperform	¥232.30B	11.02	7.71%	2.77%	1.83%	-39.02%
2602	69 Neutral	¥189.92B	8.05	12.56%	3.44%	3.80%	63.03%
2897	66 Neutral	¥958.55B	18.66	9.77%	2.41%	1.46%	-2.17%
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%	―

Nisshin Seifun Group Inc. Corporate Events

Nisshin Seifun Confirms Q3 Results Review as Profits Decline Despite Higher Sales

Nisshin Seifun Group has confirmed that its consolidated financial results for the third quarter of fiscal 2026, previously released on January 30, have been reviewed by an audit firm with no changes required to the disclosed figures. For the first nine months of fiscal 2026, the company posted a slight 1.0% rise in net sales to ¥653.9 billion but saw operating profit fall 5.0% and profit attributable to owners of parent drop 24.9%, while total assets and equity increased, and the equity ratio eased to 59.9%. The group maintained its dividend payout plan, having already paid a higher interim dividend versus the prior year and forecasting a full-year dividend of ¥60 per share, and it left its full-year guidance unchanged, projecting modest growth in sales and profit but a double-digit decline in full-year net income, signaling a more challenging earnings environment despite balance sheet expansion.

The most recent analyst rating on (JP:2002) stock is a Buy with a Yen2253.00 price target. To see the full list of analyst forecasts on Nisshin Seifun Group Inc. stock, see the JP:2002 Stock Forecast page.

Nisshin Seifun Advances Share Buyback, Plans Cancellation

Nisshin Seifun reported repurchasing 1,927,100 shares for ¥3.79 billion via a trust-based market program in January 2026 as part of a broader buyback plan, bringing total purchases under the October 2025 mandate to 5,803,300 shares worth ¥10.95 billion, with all repurchased stock slated for cancellation to enhance capital efficiency and shareholder returns.

The most recent analyst rating on (JP:2002) stock is a Buy with a Yen2197.00 price target. To see the full list of analyst forecasts on Nisshin Seifun Group Inc. stock, see the JP:2002 Stock Forecast page.

Nisshin Seifun Posts Higher Sales but Profit Decline in Q3 FY2026, Keeps Forecast and Raises Dividend

For the first nine months of fiscal 2026, Nisshin Seifun Group reported a modest 1.0% rise in consolidated net sales to ¥653.9 billion, but operating profit fell 5.0% and ordinary profit slipped 1.5%, while profit attributable to owners of the parent dropped 24.9%, reflecting margin pressure despite higher revenues. Total assets increased to ¥850.0 billion and equity capital grew, but the equity ratio edged down to 59.9%, and earnings per share declined to ¥79.28 due in part to lower profits and a higher level of treasury stock. The company maintained its full-year forecast, targeting 2.2% net sales growth and slight profit increases at the operating and ordinary levels, though full-year profit attributable to owners of the parent is projected to fall 13.5%, signaling a cautious earnings outlook even as it plans a higher annual dividend of ¥60 per share, up from ¥55 in the previous year.

The most recent analyst rating on (JP:2002) stock is a Hold with a Yen2129.00 price target. To see the full list of analyst forecasts on Nisshin Seifun Group Inc. stock, see the JP:2002 Stock Forecast page.

Nisshin Seifun Group Names Yu Nagaki as New President in Governance-Focused Leadership Shift

Nisshin Seifun Group Inc. announced a leadership change, with the Board of Directors resolving to appoint Yu Nagaki as the new Representative Director and President, succeeding current President Kenji Takihara, who will become a Senior Corporate Adviser. The transition, to be finalized after shareholder approval at the ordinary general meeting slated for late June, is part of a broader governance overhaul that will shift the board to a majority of outside directors, aiming to renew the management framework, support a new growth strategy, and enhance sustainable value creation over the medium to long term. Nagaki, a long-serving company executive with experience spanning domestic sales, grain logistics, investor relations, corporate planning, and leadership of the overseas business division, is expected to play a key role in driving the group’s growth and reinforcing its governance and strategic direction.

The most recent analyst rating on (JP:2002) stock is a Hold with a Yen2090.00 price target. To see the full list of analyst forecasts on Nisshin Seifun Group Inc. stock, see the JP:2002 Stock Forecast page.

Nisshin Seifun Reports Progress on Share Buyback and Planned Share Cancellation

Nisshin Seifun Group Inc. has reported progress on its share buyback program authorized under its Articles of Incorporation, acquiring 1,890,200 shares of its common stock for approximately 3.51 billion yen via market purchases using the trust method between December 1 and December 31, 2025. This forms part of a larger Board-approved program, capped at 15 million shares and 20 billion yen through June 23, 2026, under which the company had cumulatively repurchased 3,876,200 shares for about 7.15 billion yen by the end of December 2025, with plans to cancel all shares acquired, signaling an ongoing effort to enhance capital efficiency and shareholder returns through a reduced share count.

The most recent analyst rating on (JP:2002) stock is a Buy with a Yen1931.00 price target. To see the full list of analyst forecasts on Nisshin Seifun Group Inc. stock, see the JP:2002 Stock Forecast page.

Nisshin Seifun Group Inc. Announces Share Buyback Initiative

Nisshin Seifun Group Inc. announced the acquisition of 1,986,000 shares of its own common stock, costing approximately 3.64 billion yen, as part of a broader share buyback program authorized by its Board of Directors. This move, executed through market purchases, reflects the company’s strategic initiative to enhance shareholder value and optimize its capital structure by potentially canceling the repurchased shares.

The most recent analyst rating on (JP:2002) stock is a Buy with a Yen1931.00 price target. To see the full list of analyst forecasts on Nisshin Seifun Group Inc. stock, see the JP:2002 Stock Forecast page.