Torigoe Co., Ltd. (2009) AI Stock Analysis

• Market Cap: ¥26.00B
• Dividend Yield: 3.62%
• Average Volume (3M): 51.02K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 0.16
• Revenue Growth: -0.23%
• EPS Growth: 13.13%
• Country: JP
• Employees: 354
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 13.82
• Shares Outstanding: 26,036,373
• 10 Day Avg. Volume: 39,830
• 30 Day Avg. Volume: 51,016
• PEG Ratio: 1.14
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 29.23
• 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: 71 Outperform
• Price Target: ¥1,199.00 ▲(10.41% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance supported by a very low-leverage balance sheet and improving 2025 revenue/margins, partially offset by uneven cash-flow consistency. Technicals are supportive with price above major moving averages and positive momentum, while valuation is mixed—strong dividend yield but a mid-range P/E.

Positive Factors

Conservative balance sheet / low leverage

Torigoe's very low debt-to-equity (≈0.07–0.11, improving to ~0.08 in 2025) and expanding equity base provide durable financial flexibility. That conservative capital structure reduces insolvency risk, supports capital spending or cyclical cushions, and preserves optionality for strategic investments or partnerships over the medium term.

Revenue re-acceleration and improving margins

Revenue re-acceleration (+11.2% in 2025) alongside rising net and gross margins signals improving demand, pricing or product mix. Sustained top-line momentum with margin expansion can drive higher operating cash generation and justify steady reinvestment in R&D or capacity, strengthening medium-term earnings power.

Equity growth provides resilience

A steadily expanding equity base increases balance-sheet resilience and reduces leverage sensitivity to shocks. Growing equity underpins creditworthiness, supports supplier and customer confidence, and allows the company to fund organic growth or weather cyclical downturns without immediate refinancing pressure.

Negative Factors

Volatile cash generation

Historic OCF volatility (including negative OCF in 2022) and uneven free cash flow raise questions about cash conversion consistency. Even with a rebound to ¥3.10B OCF in 2025, FCF covers only a modest portion of net income, limiting capacity for sustained buybacks, higher dividends, or rapid deleveraging during weaker demand periods.

Low returns on equity

ROE in the ~1.7%–2.8% range indicates the company generates limited profit relative to shareholder capital. Persistently low ROE suggests constrained efficiency in converting equity into earnings, which can dampen long-term shareholder value creation unless operational improvements or higher-margin products materially lift returns.

Modest and variable operating profitability

Operating profitability is modest and shows year-to-year variability, implying sensitivity to cost pressures, mix shifts, or pricing. Such margin instability can cap sustainable earnings growth, complicate long-range planning, and make reinvestment decisions harder if margins are not reliably defendable against input or demand swings.

Torigoe Co., Ltd. Business Overview & Revenue Model

Company Description

The Torigoe Co., Ltd. manufactures and sells flours and related products in Japan. It offers wheat and rye flours, wheat bran premixes, improvers, additives, frozen and functional foods, and health food products; and barley and feeds. The company was formerly known as Torigoe Shoten Co., Ltd. and changed its name to The Torigoe Co., Ltd. in December 1951. The Torigoe Co., Ltd. was founded in 1935 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

Torigoe Co., Ltd. generates revenue through multiple streams, including the sale of industrial components and materials to various sectors such as electronics and automotive. The company focuses on high-margin products that require specialized manufacturing processes, which allows for competitive pricing while maintaining profitability. Key revenue streams include direct sales to manufacturers, long-term contracts with major clients, and partnerships with technology firms that enhance product offerings. Additionally, Torigoe leverages its expertise in R&D to develop new products that align with market demands, thereby increasing its market share and revenue potential.

Torigoe Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are solid: revenue re-accelerated in 2025 (+11.2% YoY) with modest margin improvement, and the balance sheet is very conservative (low leverage). The main constraint is cash-flow quality—historical volatility (including negative operating cash flow in 2022) and uneven free cash flow temper the otherwise strong balance-sheet picture.

Income Statement

Revenue has grown over the cycle and re-accelerated in 2025 (+11.2% YoY) after a flat/down 2024, showing improving demand/mix. Profitability is steady-to-improving with net margin rising to ~4.3% in 2025 from ~3.6% in 2023–2024, and gross margin also improving versus 2024. Offsetting this, operating profitability remains modest for the sector and some margin variability is evident year to year.

Balance Sheet

The balance sheet is conservatively positioned with low leverage: debt-to-equity sits in a tight range (~0.07–0.11) and improves to ~0.08 in 2025, while equity steadily expands over time. This provides resilience and financial flexibility. The main weakness is that returns on equity (where provided) are relatively low (~1.7%–2.8% in 2020–2024), implying limited efficiency in converting the equity base into earnings.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in most years and rebounds strongly in 2025 (¥3.10B), but it was negative in 2022, highlighting volatility. Free cash flow is positive in most years yet uneven (negative in 2022; lower in 2025 than 2024), and 2025 free cash flow covers only a modest portion of net income, suggesting heavier reinvestment/working-capital drag in the latest year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.22B	26.25B	26.17B	26.39B	24.40B	22.70B
Gross Profit	5.10B	5.24B	4.87B	4.80B	4.91B	4.73B
EBITDA	2.59B	2.04B	2.31B	2.17B	2.08B	1.94B
Net Income	1.12B	1.13B	950.01M	966.26M	931.85M	831.71M
Balance Sheet
Total Assets	44.65B	46.47B	45.40B	42.31B	41.59B	40.01B
Cash, Cash Equivalents and Short-Term Investments	13.32B	12.02B	12.63B	10.60B	10.74B	12.14B
Total Debt	3.02B	2.79B	3.29B	2.35B	2.85B	3.37B
Total Liabilities	9.46B	9.68B	9.46B	7.82B	8.05B	8.10B
Stockholders Equity	35.16B	36.76B	35.91B	34.46B	33.52B	31.88B
Cash Flow
Free Cash Flow	0.00	844.45M	1.30B	715.59M	-499.01M	1.22B
Operating Cash Flow	0.00	3.10B	1.92B	1.68B	-47.59M	1.78B
Investing Cash Flow	0.00	-2.20B	-389.40M	-938.11M	-452.40M	-548.82M
Financing Cash Flow	0.00	-1.49B	504.66M	-891.19M	-896.39M	511.83M

Torigoe Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1086.00
• 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:2009, the sentiment is Positive. The current price of 1086 is above the 20-day moving average (MA) of 1080.35, above the 50-day MA of 1070.78, and above the 200-day MA of 988.73, indicating a bullish trend. The MACD of 12.58 indicates Negative momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2009.

Torigoe Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2884	75 Outperform	¥25.53B	15.48	―	―	3.07%	50.05%
2009	71 Outperform	¥26.00B	22.97	―	3.62%	-0.23%	13.13%
2819	68 Neutral	¥25.61B	15.65	―	1.87%	3.08%	-16.77%
2804	66 Neutral	¥24.61B	10.14	―	2.05%	0.99%	830.67%
2831	64 Neutral	¥32.75B	13.01	―	1.96%	0.16%	10.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2933	59 Neutral	¥24.88B	24.38	―	1.87%	3.06%	-53.49%