FEED ONE CO (2060) AI Stock Analysis

• Market Cap: ¥49.23B
• Dividend Yield: 3.97%
• Average Volume (3M): 74.33K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.66
• Revenue Growth: -5.05%
• EPS Growth: -16.39%
• Country: JP
• Employees: 902
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): 44.74
• Shares Outstanding: 38,477,127
• 10 Day Avg. Volume: 82,570
• 30 Day Avg. Volume: 74,333
• PEG Ratio: 1.05
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 6.80
• 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: 73 Outperform
• Price Target: ¥1,486.00 ▲(41.39% Upside)
• Action: Upgraded Date: 02/28/26
• Date: Action: Upgraded 02/28/26

The score is driven primarily by mixed financial performance (uneven revenue/profitability, higher leverage, and volatile free cash flow) balanced by attractive valuation (low P/E and solid dividend yield). Technicals are supportive of an uptrend but look overbought, tempering the overall rating.

Positive Factors

Operational efficiency & margin stability

Stable gross margins combined with improved EBIT and EBITDA margins indicate the company is extracting more operating leverage from its cost base. That durability supports cash generation potential, resilience to input-cost swings and the ability to reinvest in R&D or customer programs over the medium term.

B2B contract-based revenue and services

A B2B model anchored by long-term contracts, consulting and distributor partnerships fosters recurring revenue, higher customer retention and cross-sell opportunities. This structural demand from farms and cooperatives supports predictable volumes and strengthens competitive position over multiple quarters.

Moderate balance sheet stability with positive ROE

A positive return on equity signals the company can generate returns on shareholder capital, and a moderate equity ratio indicates a balanced asset base. While leverage exists, the structural ability to earn ROE supports reinvestment capacity and long-term stakeholder returns if maintained.

Negative Factors

High leverage / debt reliance

A relatively high debt-to-equity ratio increases fixed financing costs and reduces strategic flexibility. In a higher-rate environment or if cash flows soften, servicing and refinancing debt could crowd out capex, R&D and dividend capacity, elevating medium-term financial risk.

Volatile and declining free cash flow

Volatile and recently declining free cash flow constrains the firm's ability to fund growth, repay debt or sustain shareholder distributions. Persistent FCF volatility makes it harder to plan multi-quarter investments and increases reliance on external financing, raising long-term execution risk.

Inconsistent revenue growth and recent decline

Negative and inconsistent top-line growth suggests demand weakness or competitive pressure. Without steady revenue expansion, margin gains may not translate into sustainable profit growth, limiting scale economics and making long-term earnings and cash generation more uncertain.

FEED ONE CO Business Overview & Revenue Model

Company Description

FEED ONE CO (2060) is a forward-thinking agricultural technology company focused on revolutionizing the livestock feed industry. Operating primarily in the agricultural sector, FEED ONE CO specializes in developing and producing high-quality, sustainable feed solutions tailored for various livestock, including cattle, poultry, and aquaculture. The company emphasizes innovation through research and development, leveraging advanced nutritional science and technology to enhance feed efficiency and animal health.

How the Company Makes Money

FEED ONE CO generates revenue through multiple streams, primarily by selling its proprietary livestock feed products to farmers and agricultural businesses. The company operates on a business-to-business model, establishing long-term contracts with large-scale farms and distributors. Additionally, FEED ONE CO offers consulting services that provide tailored nutritional plans and feed management solutions, adding value to its client relationships. Strategic partnerships with agricultural cooperatives and industry associations also contribute to its revenue, as these collaborations expand market reach and enhance brand credibility. Furthermore, the company invests in research initiatives that may lead to innovative feed formulations, potentially resulting in licensing opportunities and intellectual property revenue.

FEED ONE CO Financial Statement Overview

Summary

Mixed fundamentals: operational efficiency improved (better EBIT/EBITDA margins) and gross margin stability is a positive, but profitability and revenue growth have been inconsistent. Higher leverage and volatile/free cash flow weakness add financial risk.

Income Statement

FEED ONE CO has shown a mixed performance in its income statement. The gross profit margin has been relatively stable, indicating consistent cost management. However, the net profit margin has seen fluctuations, with a decline in recent years, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a notable decline in the latest year, which could be a concern for future growth prospects. The EBIT and EBITDA margins have improved, suggesting better operational efficiency, but the overall profitability remains a challenge.

Balance Sheet

The balance sheet of FEED ONE CO shows a moderate level of stability. The debt-to-equity ratio is relatively high, indicating a significant reliance on debt financing, which could pose risks in a rising interest rate environment. The return on equity has been positive, reflecting some level of efficiency in using shareholders' funds. However, the equity ratio is moderate, suggesting a balanced asset structure but with room for improvement in reducing leverage.

Cash Flow

FEED ONE CO's cash flow statement indicates some challenges in cash generation. The operating cash flow to net income ratio has been positive, showing that the company is generating cash from its operations. However, the free cash flow has been volatile, with a significant decline in recent periods, which could impact the company's ability to invest in growth opportunities. The free cash flow to net income ratio is also a concern, highlighting potential issues in converting profits into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	293.73B	296.05B	313.88B	307.91B	243.20B	214.12B
Gross Profit	31.93B	31.87B	30.72B	22.69B	22.71B	21.96B
EBITDA	10.69B	10.59B	11.00B	5.03B	8.38B	9.73B
Net Income	5.72B	5.39B	5.08B	1.03B	3.66B	4.44B
Balance Sheet
Total Assets	126.15B	124.17B	131.04B	127.91B	108.50B	99.25B
Cash, Cash Equivalents and Short-Term Investments	9.81B	10.34B	10.88B	7.38B	3.50B	2.89B
Total Debt	29.65B	27.95B	32.49B	36.80B	22.71B	21.80B
Total Liabilities	69.67B	68.82B	80.18B	82.60B	63.66B	56.46B
Stockholders Equity	55.75B	54.62B	50.28B	44.77B	44.30B	42.29B
Cash Flow
Free Cash Flow	0.00	4.91B	8.49B	-9.89B	116.00M	701.00M
Operating Cash Flow	0.00	8.57B	11.14B	-7.82B	2.74B	7.74B
Investing Cash Flow	0.00	-3.27B	-2.17B	-1.19B	-952.00M	-5.99B
Financing Cash Flow	0.00	-5.83B	-5.47B	12.88B	-1.17B	-1.55B

FEED ONE CO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1051.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2060, the sentiment is Positive. The current price of 1051 is below the 20-day moving average (MA) of 1232.75, below the 50-day MA of 1139.46, and below the 200-day MA of 1060.96, indicating a bullish trend. The MACD of 45.60 indicates Negative momentum. The RSI at 78.31 is Negative, neither overbought nor oversold. The STOCH value of 74.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2060.

FEED ONE CO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4526	82 Outperform	¥70.35B	9.73	―	3.63%	1.78%	19.50%
2060	73 Outperform	¥49.23B	8.14	9.17%	3.97%	-5.05%	-16.39%
2002	70 Outperform	¥616.19B	23.34	―	3.15%	-0.88%	-25.64%
4404	69 Neutral	¥23.93B	2.52	―	2.54%	2.80%	154.89%
2613	65 Neutral	¥69.28B	18.79	―	3.77%	-3.91%	-25.32%
2053	63 Neutral	¥59.20B	12.01	―	3.25%	-4.39%	-13.20%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%

FEED ONE CO Corporate Events

Feed One reshapes board and senior ranks to bolster governance and core feed operations

Feed One Co., Ltd. has announced a reshuffle of its board and senior management, elevating Kazuo Kubota and Yoshinao Tashiro to director and senior managing officer roles overseeing the administrative, aquatic feed and animal feed business units from April 1, 2026. The move consolidates operational leadership across its core feed divisions, signaling a bid to strengthen execution in key business lines.

The company will also appoint Yasushi Handa and Rika Sato as external directors serving as Audit and Supervisory Committee members after shareholder approval at the June 2026 annual meeting, reducing the board from 10 to 9 members following the planned retirement of two current committee members. Additional adjustments include formalizing Tetsuo Iwabuchi as an executive officer responsible for human resources and naming Takuji Nishio as audit and supervisory officer, steps that aim to reinforce governance and internal control structures.

The most recent analyst rating on (JP:2060) stock is a Hold with a Yen1375.00 price target. To see the full list of analyst forecasts on FEED ONE CO stock, see the JP:2060 Stock Forecast page.

Feed One Lifts Profit Outlook Despite Lower Sales on Cheaper Feed Inputs

Feed One revised its full-year consolidated forecast for the year ending March 31, 2026, cutting net sales to ¥288 billion from ¥311 billion but lifting operating profit to ¥7.6 billion and profit attributable to owners to ¥6 billion. The company cited weaker-than-expected volumes and prices for livestock and aquaculture feed, but said lower raw material costs and tighter profitability management are set to improve margins.

On a non-consolidated basis, net sales are projected to fall to ¥243 billion, yet net profit is seen jumping about 48% year on year to ¥6.3 billion, helped by the absorption of two subsidiaries and a gain on extinguishment of shares booked as an extraordinary item. While the year-end dividend forecast remains unchanged for now, management reiterated its progressive dividend policy and 3% DOE target, signaling continued emphasis on shareholder returns despite topline pressure.

The most recent analyst rating on (JP:2060) stock is a Hold with a Yen1375.00 price target. To see the full list of analyst forecasts on FEED ONE CO stock, see the JP:2060 Stock Forecast page.

FEED ONE Boosts Profits Despite Lower Revenue on Improved Pricing and Cost Control

FEED ONE reported a year-on-year decline in net sales to ¥219.1 billion for the first three quarters of the fiscal year ending March 2026, as lower sales volumes and reduced feed selling prices weighed on revenue. Despite this, profitability improved significantly, with operating profit up 31.8% to ¥5.63 billion, ordinary profit up 30.1% to ¥6.15 billion, and profit attributable to owners rising 23.5% to ¥4.59 billion, reflecting better raw material cost positions, tighter cost control and more disciplined pricing. The company noted that in the previous year’s third quarter it had prioritized volume and was hit by an unfavorable price revision gap, whereas in the latest quarter it focused on setting feed prices at levels that properly reflect profitability and on reviewing unprofitable sales, helping to stabilize margins and pushing progress toward full-year profit targets close to 90%.

The most recent analyst rating on (JP:2060) stock is a Hold with a Yen1116.00 price target. To see the full list of analyst forecasts on FEED ONE CO stock, see the JP:2060 Stock Forecast page.

FEED ONE Lifts Profits Amid Lower Sales and Raises Dividend Forecast

FEED ONE CO., LTD. reported consolidated results for the nine months ended December 31, 2025, with net sales down 2.9% year on year to ¥219.1 billion but profitability improving sharply: operating profit rose 31.8% to ¥5.63 billion, ordinary profit climbed 30.1% to ¥6.15 billion, and profit attributable to owners of parent increased 23.5% to ¥4.59 billion, driving basic earnings per share up to ¥119.89 and EBITDA up 22.3%. The company’s balance sheet expanded, with total assets rising to ¥139.2 billion and equity increasing to ¥59.3 billion despite a slight decline in the equity ratio, and management maintained its full-year forecast for FY2026, targeting modest growth in sales and profit, while signaling stronger shareholder returns via a higher annual dividend forecast of ¥42.00 per share, including a commemorative component, which underscores confidence in earnings resilience despite a year-on-year decline projected in full-year profit attributable to owners of parent.

The most recent analyst rating on (JP:2060) stock is a Hold with a Yen1116.00 price target. To see the full list of analyst forecasts on FEED ONE CO stock, see the JP:2060 Stock Forecast page.