Mitsui DM Sugar Holdings Co.Ltd (2109) AI Stock Analysis

• Market Cap: ¥110.99B
• Dividend Yield: 3.97%
• Average Volume (3M): 31.36K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.42
• Revenue Growth: 3.69%
• EPS Growth: -27.70%
• Country: JP
• Employees: 1,462
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 81.39
• Shares Outstanding: 31,464,780
• 10 Day Avg. Volume: 29,980
• 30 Day Avg. Volume: 31,360
• PEG Ratio: -0.68
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 5.82
• 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: 68 Neutral
• Price Target: ¥3,870.00 ▲(22.08% Upside)
• Action: Downgraded Date: 10/29/25
• Date: Action: Downgraded 10/29/25

The overall stock score of 68 reflects strong financial performance, particularly in cash flow generation and operational efficiency. However, technical analysis indicates some bearish momentum, and valuation metrics suggest the stock is fairly valued with an attractive dividend yield. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong cash generation

Free cash flow surged 263.87% year-over-year while operating cash flow to net income is 3.59 and free cash flow to net income is 2.97. Durable cash conversion supports reinvestment, consistent dividends and balance sheet flexibility across commodity cycles.

Improving gross margins

Gross margin expansion to 22.41% reflects better cost control or mix shift in core sugar and ingredients. Combined with higher EBIT/EBITDA margins, this indicates structural operational improvements that can sustain profitability even with modest revenue growth.

Solid capital structure

A debt-to-equity of 0.42 and a 56.67% equity ratio point to moderate leverage and a majority-equity funded asset base. That balance provides financial resilience, room for targeted investments or acquisitions, and lowers refinancing risk in a cyclical commodity sector.

Negative Factors

Falling net margins

Despite gross margin gains, net margin compression to 3.52% signals rising operating expenses, non-operating costs or taxes that erode bottom-line conversion. Persisting this trend would limit retained earnings, dividend sustainability and ability to fund growth from profits.

Weaker ROE

ROE falling to 5.49% shows lower returns on shareholder capital and may reflect reduced profitability or inefficient capital use. If sustained, it could pressure investor returns and indicate a need for sharper allocation or operational fixes to boost long-term shareholder value.

Earnings per share decline

A large negative EPS growth rate (~-54%) indicates materially weaker attributable earnings versus the prior period. This decline undermines earnings momentum, may reflect one-offs or margin issues, and raises concern about the consistency of profit generation over the medium term.

Mitsui DM Sugar Holdings Co.Ltd Business Overview & Revenue Model

Company Description

Mitsui DM Sugar Holdings Co.,Ltd. manufactures and sells refined sugar, sugar products, and food ingredients in Japan. The company offers home and business use products, such as white soft sugar, brown soft sugar, granulated sugar, white crystal sugar, light brown crystal sugar, brown sugar, black sugar, rock sugar, and liquid sugar under the SPOON brand, as well as Okinawa brown sugar and Kansho Kuromitsu. It also provides table top products, including sugar cubes, coffee sugar, lemon sugar, syrup, and other products. In addition, the company offers alternative sweeteners comprising Sukoshi de Sumu Satou, One-half white sugar, Calorie Zero, and Palatinit Sweet, as well as functional sweeteners, such as PALATINOSE, a natural sweetener; and ISOMALT, a low-calorie sweetener. Further, it provides sugar cane extracts used in the food sector, as well as used as a deodorizing agent and as a fodder for livestock; and food ingredients, such as agar, gelatinizing agents, natural food colors, and powdered flavorings. Additionally, the company engages in leasing land and buildings; and the warehouse business. The company was formerly known as Mitsui Sugar Co., Ltd. and changed its name to Mitsui DM Sugar Holdings Co.,Ltd. in April 2021. Mitsui DM Sugar Holdings Co.,Ltd. was founded in 1947 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of refined and raw sugar products to wholesalers and food manufacturers. Mitsui DM Sugar Holdings benefits from economies of scale in production, allowing it to maintain competitive pricing. Additionally, the company engages in export activities, tapping into global markets where demand for sugar remains robust. Key partnerships with agricultural producers and distributors enhance its supply chain efficiency and market reach. Seasonal fluctuations in sugar prices and changes in consumer demand can significantly influence revenue, necessitating strategic management of operations and inventory. Overall, the company's diversified product offerings and strategic alliances contribute to its financial performance.

Mitsui DM Sugar Holdings Co.Ltd Financial Statement Overview

Summary

Mitsui DM Sugar Holdings Co. Ltd has shown strong revenue growth and improved operational efficiency, as evidenced by higher gross profit margins. The balance sheet remains solid with a strong equity base and manageable debt levels. Cash flow metrics are particularly strong, suggesting excellent cash generation and management. However, there are concerns regarding the declining net profit margin and ROE, which may warrant closer attention to cost controls and profitability strategies.

Income Statement

The company has shown a healthy revenue growth rate of approximately 4.68% from 2024 to 2025, indicating a positive growth trajectory. Gross profit margin has improved to 22.41% in 2025 from 17.39% in 2024, reflecting enhanced operational efficiency. However, the net profit margin decreased from 4.94% in 2024 to 3.52% in 2025, indicating some challenges in cost management or increased expenses. The EBIT and EBITDA margins have significantly improved, which is a strong indicator of improved core business operations.

Balance Sheet

The debt-to-equity ratio stands at 0.42, indicating a relatively stable financial position with moderate leverage. Return on equity (ROE) has slightly decreased from 7.53% in 2024 to 5.49% in 2025, suggesting a slight decline in profitability relative to equity. The equity ratio is strong at 56.67%, showcasing a solid capital structure with a majority of assets funded by equity.

Cash Flow

The free cash flow growth rate has significantly increased to 263.87% from 2024 to 2025, demonstrating strong cash generation capability. The operating cash flow to net income ratio is favorable at 3.59, indicating efficient conversion of net income into cash flow. The free cash flow to net income ratio also improved to 2.97, highlighting robust cash flow performance relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	180.79B	178.78B	170.77B	163.31B	147.88B	108.89B
Gross Profit	41.08B	40.08B	29.69B	26.14B	27.00B	24.33B
EBITDA	17.55B	16.90B	17.74B	20.64B	10.00B	11.53B
Net Income	6.08B	6.29B	8.45B	7.91B	3.66B	2.76B
Balance Sheet
Total Assets	192.18B	202.20B	191.43B	196.12B	189.50B	146.71B
Cash, Cash Equivalents and Short-Term Investments	36.72B	40.60B	25.07B	28.00B	31.48B	17.80B
Total Debt	45.73B	48.62B	44.73B	48.00B	30.03B	19.83B
Total Liabilities	76.94B	82.85B	74.09B	83.55B	79.57B	55.03B
Stockholders Equity	110.72B	114.61B	112.17B	107.17B	101.21B	85.21B
Cash Flow
Free Cash Flow	0.00	18.71B	5.14B	-11.73B	-4.04B	5.23B
Operating Cash Flow	0.00	22.59B	12.74B	6.23B	6.36B	11.12B
Investing Cash Flow	0.00	-5.63B	-6.67B	-21.56B	344.00M	-4.02B
Financing Cash Flow	0.00	-1.69B	-8.99B	11.65B	6.57B	-4.79B

Mitsui DM Sugar Holdings Co.Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3170.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2109, the sentiment is Positive. The current price of 3170 is below the 20-day moving average (MA) of 3468.50, below the 50-day MA of 3407.00, and below the 200-day MA of 3204.67, indicating a bullish trend. The MACD of 33.97 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 76.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2109.

Mitsui DM Sugar Holdings Co.Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2112	80 Outperform	¥16.04B	6.28	―	1.91%	2.73%	59.02%
2201	76 Outperform	¥237.57B	12.43	13.33%	3.47%	4.21%	23.86%
2208	72 Outperform	¥80.48B	15.26	―	1.55%	5.78%	14.23%
2114	71 Outperform	¥34.62B	11.25	―	2.84%	6.64%	10.48%
2109	68 Neutral	¥110.99B	23.27	―	3.97%	3.69%	-27.70%
2108	65 Neutral	¥54.64B	-32.55	―	2.12%	3.82%	-131.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Mitsui DM Sugar Holdings Co.Ltd Corporate Events

Mitsui DM Sugar Posts Higher Sales but Lower Profit, Keeps Dividend Outlook

Mitsui DM Sugar reported consolidated net sales of ¥138.9 billion for the nine months to December 31, 2025, up 1.4% year on year, while operating income fell 9.4% and profit attributable to owners of parent dropped 18.0% to ¥7.27 billion. Despite the earnings decline and lower comprehensive income, the company’s financial position remains solid with a 60.0% capital adequacy ratio, and it maintained its annual dividend forecast of ¥130 per share for the year ending March 31, 2026, signaling continued commitment to shareholder returns.

The most recent analyst rating on (JP:2109) stock is a Hold with a Yen3744.00 price target. To see the full list of analyst forecasts on Mitsui DM Sugar Holdings Co.Ltd stock, see the JP:2109 Stock Forecast page.

Mitsui DM Sugar Posts Higher Sales but Lower Profits, Keeps Full‑Year Outlook and Dividend Plan Intact

Mitsui DM Sugar reported consolidated net sales of ¥138.9 billion for the nine months ended December 31, 2025, up 1.4% year on year, but saw profitability weaken, with operating income down 9.4% to ¥10.5 billion and profit attributable to owners of parent falling 18.0% to ¥7.3 billion, while comprehensive income also declined and equity capital edged slightly lower despite an improved capital adequacy ratio. The company kept its full‑year forecast unchanged, targeting ¥200 billion in net sales (11.9% growth) and a 22.3% rise in full‑year profit attributable to owners of parent to ¥7.7 billion despite expected declines in operating and ordinary income, and confirmed an annual dividend forecast of ¥130 per share, signaling continued shareholder returns even as it adjusted its consolidation scope by excluding Mitsui DM Sugar Co., Ltd. (pre‑reorganization entity) and DIA MARKET CREATION Co., Ltd. from the group.

The most recent analyst rating on (JP:2109) stock is a Buy with a Yen3779.00 price target. To see the full list of analyst forecasts on Mitsui DM Sugar Holdings Co.Ltd stock, see the JP:2109 Stock Forecast page.