Ensuiko Sugar Refining Co., Ltd. (2112) AI Stock Analysis

• Market Cap: ¥15.00B
• Dividend Yield: 1.91%
• Average Volume (3M): 174.31K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.62
• Revenue Growth: 2.73%
• EPS Growth: 59.02%
• Country: JP
• Employees: 76
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): 25.58
• Shares Outstanding: 35,000,000
• 10 Day Avg. Volume: 122,800
• 30 Day Avg. Volume: 174,313
• PEG Ratio: 0.09
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 2.84
• 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: 80 Outperform
• Price Target: ¥676.00 ▲(27.79% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

Ensuiko Sugar Refining Co., Ltd. scores well due to its strong financial performance and attractive valuation. The technical analysis supports a positive outlook with bullish momentum. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Cash Generation

A 71.6% jump in free cash flow and OCF well above net income indicate durable cash generation. Strong FCF provides flexibility to fund capex, pay dividends, reduce debt or invest in efficiency, supporting resilience through commodity cycles and multi-year strategic initiatives.

Profitability Margins

Healthy gross and operating margins along with positive net margin reflect efficient refining operations and cost control. These margins support sustainable cash profits, enabling reinvestment and a buffer against input cost swings over the medium term.

Balance Sheet Strength

Moderate leverage and a high equity ratio point to conservative capital structure and lower financial risk. Combined with mid-teens ROE, this supports capacity to absorb shocks, fund targeted growth, or modestly increase leverage for strategic investments without straining finances.

Negative Factors

Top-line Momentum

Single-digit revenue growth indicates limited top-line expansion, increasing reliance on margin improvements or cost efficiencies to drive earnings. Over 2-6 months, lackluster sales growth constrains scaling benefits and makes long-term profit improvement more dependent on operational execution.

Product Concentration

Concentration in sugar and sweeteners exposes the business to raw sugar price volatility, substitution risks, and regulatory or sugar-policy shifts. Limited product diversification reduces resilience to structural changes in demand or commodity-driven cost shocks over the medium term.

Limited Scale

A small workforce suggests limited operational scale and potential constraints in distribution, R&D, and commercial expansion. Smaller scale can limit bargaining power with suppliers/customers and make fixed-cost absorption harder if volumes slip, reducing strategic flexibility.

Ensuiko Sugar Refining Co., Ltd. Business Overview & Revenue Model

Company Description

Ensuiko Sugar Refining Co., Ltd. manufactures and sells refined sugar in Japan. The company offers granular, white, stick, and liquid sugar; lactose fructose oligosaccharide; and cyclodextrin, as well as salacia granules. It also provides sugar cubes and gum syrup for the household and commercial use. The company offers its products under the Pearl Ace Mark brand. Ensuiko Sugar Refining Co., Ltd. was founded in 1904 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ensuiko Sugar Refining Co., Ltd. generates revenue primarily through the sale of its refined sugar products to a broad customer base, including food manufacturers, beverage companies, and retailers. The company’s revenue model is built on both bulk sales and packaged sugar products, catering to different market segments. Key revenue streams include direct sales contracts with large clients, retail distribution partnerships, and export sales to international markets. Additionally, Ensuiko may benefit from strategic partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. Factors contributing to its earnings include market demand for sugar, pricing strategies, and cost management in production.

Ensuiko Sugar Refining Co., Ltd. Financial Statement Overview

Summary

Ensuiko Sugar Refining Co., Ltd. exhibits a strong financial position with consistent revenue growth, healthy profit margins, and effective cash flow management. The company prudently balances leverage with equity, reducing financial risks while maintaining profitability and cash generation capabilities.

Income Statement

Ensuiko Sugar Refining Co., Ltd. demonstrates strong revenue growth and profitability. The company achieved a 3.07% revenue growth from 2024 to 2025 with an impressive gross profit margin of 19.02% and a net profit margin of 6.57% for 2025. EBIT and EBITDA margins are healthy at 8.86% and 11.51% respectively, showing efficient operations.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.50, indicating moderate leverage. Return on equity stands at 12.85%, reflecting solid profitability. The equity ratio of 56.52% signifies strong capitalization and low financial risk.

Cash Flow

Ensuiko Sugar Refining Co., Ltd. displays robust cash flow management. The free cash flow growth rate is a remarkable 71.57% from 2024 to 2025. The operating cash flow to net income ratio is 1.73, and the free cash flow to net income ratio is 1.47, both indicating strong cash generation relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.00B	32.52B	31.55B	27.95B	25.13B	23.69B
Gross Profit	6.26B	6.19B	4.65B	3.59B	3.79B	4.82B
EBITDA	3.52B	3.74B	2.74B	1.45B	1.66B	1.86B
Net Income	2.13B	2.14B	1.48B	498.00M	609.00M	775.00M
Balance Sheet
Total Assets	28.13B	29.41B	27.51B	25.88B	26.11B	27.24B
Cash, Cash Equivalents and Short-Term Investments	1.67B	3.31B	2.31B	2.21B	3.53B	4.90B
Total Debt	7.83B	8.25B	10.17B	11.83B	13.08B	14.66B
Total Liabilities	11.26B	12.79B	13.80B	14.85B	15.74B	17.32B
Stockholders Equity	16.87B	16.62B	13.71B	11.03B	10.38B	9.92B
Cash Flow
Free Cash Flow	0.00	3.15B	1.83B	141.00M	587.00M	306.00M
Operating Cash Flow	0.00	3.70B	2.11B	447.00M	1.08B	792.00M
Investing Cash Flow	0.00	-520.00M	-227.00M	-374.00M	-711.00M	-481.00M
Financing Cash Flow	0.00	-2.17B	-1.79B	-1.40B	-1.74B	1.88B

Ensuiko Sugar Refining Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 529.00
• 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:2112, the sentiment is Positive. The current price of 529 is below the 20-day moving average (MA) of 571.25, below the 50-day MA of 556.54, and above the 200-day MA of 456.42, indicating a bullish trend. The MACD of 8.60 indicates Negative momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 71.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2112.

Ensuiko Sugar Refining Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2112	80 Outperform	¥15.00B	5.17	―	1.91%	2.73%	59.02%
2114	71 Outperform	¥34.21B	7.15	―	2.84%	6.64%	10.48%
2109	68 Neutral	¥108.49B	10.22	―	3.97%	3.69%	-27.70%
2108	65 Neutral	¥50.65B	-19.07	―	2.12%	3.82%	-131.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%