WELLNEO SUGAR Co.Ltd. (2117) AI Stock Analysis

• Market Cap: ¥92.09B
• Dividend Yield: 3.9%
• Average Volume (3M): 37.07K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.50
• Revenue Growth: 11.70%
• EPS Growth: -3.61%
• Country: JP
• Employees: 644
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 56.95
• Shares Outstanding: 32,800,095
• 10 Day Avg. Volume: 33,510
• 30 Day Avg. Volume: 37,066
• PEG Ratio: 15.93
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 8.58
• 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: 76 Outperform
• Price Target: ¥3,149.00 ▲(11.51% Upside)

WELLNEO SUGAR Co.Ltd. benefits from strong technical indicators and a solid valuation, which are the primary drivers of its score. Financial performance is robust, but cash flow concerns slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth of 11.7% indicates robust demand for products and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative leverage, providing financial stability and flexibility for future investments and growth.

Product Diversification

Product diversification across various sugar types and markets reduces risk and enhances resilience against market fluctuations, supporting sustainable growth.

Negative Factors

Cash Flow Concerns

Negative free cash flow growth indicates potential challenges in liquidity management, which could impact the company's ability to fund operations and investments.

Operational Efficiency

Declining EBIT and EBITDA margins suggest pressure on operational efficiency, which may affect profitability if not addressed through cost management or process improvements.

Equity Ratio Decline

A declining equity ratio may indicate a shift towards higher debt usage, potentially increasing financial risk if not managed carefully.

WELLNEO SUGAR Co.Ltd. Business Overview & Revenue Model

Company Description

Nissin Sugar Co., Ltd. manufactures and sells sugar and other food products primarily in Japan. The company offers white soft, frost, granulated, powdered, brown soft, light brown crystal, white crystal, rock, liquid, kibi zato, calcium fortified, and cup sugar products. It also provides individually packed gum syrup, low calorie sweetener, cup oligo/GOS, and large pack for commercial use. In addition, the company operates a chain of Do Sports Plaza fitness club. Further, it is involved in the warehousing business. The company was founded in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

WELLNEO SUGAR Co.Ltd. generates revenue primarily through the sale of its sugar products to various sectors, including food manufacturers, wholesalers, and retailers. The company has established long-term contracts with key clients, which provide a stable revenue stream. Additionally, WELLNEO SUGAR engages in export activities, supplying sugar to international markets, which further diversifies its income sources. The company also benefits from strategic partnerships with food and beverage companies, allowing for co-branded products and collaborative marketing efforts. Furthermore, WELLNEO SUGAR invests in sustainability initiatives, which can lead to cost savings and potential government incentives, contributing positively to its overall profitability.

WELLNEO SUGAR Co.Ltd. Financial Statement Overview

Summary

WELLNEO SUGAR Co.Ltd. shows strong revenue growth and profitability with a solid balance sheet. However, cash flow generation concerns need attention for sustainable financial health.

Income Statement

WELLNEO SUGAR Co.Ltd. has demonstrated strong revenue growth with a 3.7% increase in the TTM, supported by a solid gross profit margin of 19.68%. The net profit margin is stable at 5.50%, indicating effective cost management. However, the EBIT and EBITDA margins have slightly decreased compared to the previous annual report, suggesting some pressure on operational efficiency.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.29, indicating conservative leverage. The return on equity is healthy at 7.73%, reflecting efficient use of equity capital. However, the equity ratio has slightly decreased, which could imply increased reliance on debt financing.

Cash Flow

Cash flow performance shows some concerns with a negative free cash flow growth rate of -5.94% in the TTM. The operating cash flow to net income ratio is below 1, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong at 0.89, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.62B	97.07B	92.19B	58.35B	46.06B	43.77B
Gross Profit	20.75B	19.47B	16.24B	9.27B	8.21B	8.75B
EBITDA	11.03B	10.56B	9.81B	3.57B	3.88B	3.96B
Net Income	5.68B	5.57B	5.52B	1.06B	1.72B	1.13B
Balance Sheet
Total Assets	104.87B	110.35B	95.92B	93.57B	61.13B	61.32B
Cash, Cash Equivalents and Short-Term Investments	12.21B	15.45B	12.51B	11.26B	7.65B	8.52B
Total Debt	14.48B	17.76B	10.52B	12.61B	5.15B	5.15B
Total Liabilities	29.11B	35.98B	24.81B	25.31B	12.23B	12.77B
Stockholders Equity	75.76B	72.89B	71.11B	68.26B	48.90B	48.54B
Cash Flow
Free Cash Flow	8.16B	8.89B	4.87B	-2.21B	1.42B	2.70B
Operating Cash Flow	9.45B	8.93B	6.66B	-1.63B	2.18B	3.32B
Investing Cash Flow	-11.69B	-8.98B	-822.00M	4.61B	-651.00M	-482.00M
Financing Cash Flow	1.73B	2.99B	-4.59B	-3.68B	-2.40B	-2.40B

WELLNEO SUGAR Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2824.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2117, the sentiment is Neutral. The current price of 2824 is below the 20-day moving average (MA) of 2873.60, below the 50-day MA of 2832.36, and above the 200-day MA of 2495.60, indicating a neutral trend. The MACD of 13.33 indicates Positive momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 18.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2117.

WELLNEO SUGAR Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2112	80 Outperform	¥14.70B	5.71	―	1.91%	2.73%	59.02%
2117	76 Outperform	¥92.09B	16.47	―	3.90%	11.70%	-3.61%
2114	71 Outperform	¥32.47B	10.55	―	2.84%	6.64%	10.48%
2109	68 Neutral	¥104.89B	22.00	―	3.97%	3.69%	-27.70%
2108	63 Neutral	¥50.05B	-26.81	―	2.12%	3.82%	-131.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

WELLNEO SUGAR Co.Ltd. Corporate Events

WELLNEO SUGAR Completes Treasury Share Disposal

WELLNEO SUGAR Co., Ltd. has completed the payment procedures for the disposal of its treasury shares through a third-party allotment to its employee Stock Ownership Association. The number of shares and total value of disposal were adjusted due to changes in membership, but the impact on the company’s fiscal year results is expected to be negligible.

The most recent analyst rating on (JP:2117) stock is a Buy with a Yen3149.00 price target. To see the full list of analyst forecasts on WELLNEO SUGAR Co.Ltd. stock, see the JP:2117 Stock Forecast page.

WELLNEO SUGAR Co., Ltd. Reports Strong Interim Financial Results

WELLNEO SUGAR Co., Ltd. reported a 19.8% increase in revenue for the six months ending September 30, 2025, reaching 57,772 million yen. The company also saw a rise in operating profit by 7.5% to 5,190 million yen, indicating a positive financial performance. The interim dividend is set at 54 yen per share, with no revisions to the previously announced earnings forecast. The finalized provisional accounting treatment related to a business combination has been reflected in the financial results.

The most recent analyst rating on (JP:2117) stock is a Buy with a Yen2817.00 price target. To see the full list of analyst forecasts on WELLNEO SUGAR Co.Ltd. stock, see the JP:2117 Stock Forecast page.