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

• Market Cap: ¥97.63B
• Dividend Yield: 3.9%
• Average Volume (3M): 37.07K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.51
• Revenue Growth: 11.70%
• EPS Growth: -3.61%
• Country: JP
• Employees: 644
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Inputs
• EPS (TTM): 72.89
• 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: 75 Outperform
• Price Target: ¥3,292.00 ▲(16.57% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by improved financial performance versus 2023 (stronger margins, positive free cash flow, and low leverage). Technicals add support with an upward trend and positive momentum indicators. Valuation is neutral-to-positive with a reasonable P/E and attractive dividend yield. The main offset is slower recent revenue growth and less consistent cash conversion.

Positive Factors

Improved margins

Margins have recovered materially from 2023 troughs, implying the company has regained pricing power or cost discipline. Sustained mid-single operating margins support durable cash generation and resilience versus commodity or input price swings, improving long-term earnings stability.

Strong free cash flow

Consistent positive operating and free cash flow at high conversion versus earnings provides durable funding for dividends, capex and debt reduction. High FCF support relative to net income signals real cash-backed profitability and financial flexibility over multiple quarters.

Conservative balance sheet

Low leverage increases financial resilience through agricultural cycles and provides capacity for opportunistic investment or buybacks. A conservative debt profile reduces refinancing risk and supports sustained capital allocation to growth or shareholder returns.

Negative Factors

Slowing revenue growth

Top-line momentum has normalized after prior acceleration, leaving revenue growth near low-single digits. Persistently slow growth constrains operating leverage and limits the firm's ability to expand margins or reinvest at scale, pressuring long-term earnings expansion.

Inconsistent cash conversion

Working-capital swings and uneven OCF coverage create volatility in reported free cash flow despite positive TTM totals. Structural inconsistency in cash conversion makes forecasting and reliable reinvestment or dividend policy harder, raising execution risk over months.

Rising absolute debt and modest returns

Although leverage remains low, an increase in total debt alongside only mid-single-digit ROE indicates moderate capital efficiency. If debt rises further without stronger returns, shareholder value creation could be constrained and flexibility to fund growth reduced.

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

Profitability and cash generation improved meaningfully versus 2023: TTM net margin ~5.6% and operating margin ~9%, with renewed positive free cash flow (~8.7B) and good FCF support vs earnings (~87% of net income). Balance sheet leverage is conservative (debt-to-equity ~0.19). Key risks are slowed recent growth (TTM revenue +2.9%) and uneven cash conversion/working-capital swings (OCF coverage ~0.42).

Income Statement

Results show a clear step-up in profitability versus earlier years. Revenue accelerated strongly from 2022 to 2023 and remained positive through 2025, with TTM (Trailing-Twelve-Months) revenue up 2.9%. Margins have improved materially from the 2023 trough (net margin ~1.8%) to healthier levels in 2024–TTM (net margin ~5.6%), and operating profitability is solid with TTM operating margin near 9%. The main weakness is that recent growth is much slower than the prior surge, suggesting momentum has normalized and could be more sensitive to industry pricing cycles.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity is ~0.19 in TTM (Trailing-Twelve-Months) and equity is substantial relative to assets. Returns on equity are stable around ~7.7% in 2024–TTM, a meaningful improvement from 2023 (~1.6%), indicating better earnings power on the capital base. A watch item is that total debt increased versus 2024 levels (though still modest), and return levels are decent rather than exceptional for the sector.

Cash Flow

Cash generation has improved significantly from 2023 (negative operating cash flow and free cash flow) to 2024 and TTM (Trailing-Twelve-Months), with TTM operating cash flow of ~10.0B and free cash flow of ~8.7B. Free cash flow is well supported by earnings (TTM free cash flow is ~87% of net income), and TTM free cash flow growth is strong (6.6%). The key weakness is cash conversion consistency: the provided operating cash flow coverage figure remains relatively low across periods (TTM ~0.42) and was negative in 2023, indicating working-capital or timing swings can still meaningfully impact cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	109.75B	97.07B	92.19B	58.35B	46.06B	43.77B
Gross Profit	22.31B	19.47B	16.24B	9.27B	8.21B	8.75B
EBITDA	12.38B	10.56B	9.81B	3.57B	3.88B	3.96B
Net Income	6.12B	5.57B	5.52B	1.06B	1.72B	1.13B
Balance Sheet
Total Assets	104.24B	110.35B	95.92B	93.57B	61.13B	61.32B
Cash, Cash Equivalents and Short-Term Investments	11.37B	15.45B	12.51B	11.26B	7.65B	8.52B
Total Debt	14.76B	17.76B	10.52B	12.61B	5.15B	5.15B
Total Liabilities	27.78B	35.98B	24.81B	25.31B	12.23B	12.77B
Stockholders Equity	76.46B	72.89B	71.11B	68.26B	48.90B	48.54B
Cash Flow
Free Cash Flow	8.70B	8.89B	4.87B	-2.21B	1.42B	2.70B
Operating Cash Flow	10.03B	8.93B	6.66B	-1.63B	2.18B	3.32B
Investing Cash Flow	-11.77B	-8.98B	-822.00M	4.61B	-651.00M	-482.00M
Financing Cash Flow	1.01B	2.99B	-4.59B	-3.68B	-2.40B	-2.40B

WELLNEO SUGAR Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2824.00
• 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:2117, the sentiment is Positive. The current price of 2824 is below the 20-day moving average (MA) of 2967.80, below the 50-day MA of 2900.40, and above the 200-day MA of 2561.51, indicating a bullish trend. The MACD of 38.63 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥16.04B	6.28	―	1.91%	2.73%	59.02%
2117	75 Outperform	¥97.63B	16.18	―	3.90%	11.70%	-3.61%
2114	71 Outperform	¥34.62B	11.25	―	2.84%	6.64%	10.48%
2692	69 Neutral	¥166.58B	19.46	―	1.39%	3.91%	-0.28%
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%

WELLNEO SUGAR Co.Ltd. Corporate Events

WELLNEO SUGAR Lifts Nine-Month Profit, Confirms Outlook and Higher Dividend

WELLNEO SUGAR Co., Ltd. reported strong consolidated results for the nine months ended December 31, 2025, with revenue up 16.9% to ¥87.51 billion and operating profit rising 21.1% to ¥9.22 billion, driving a 10.3% increase in profit attributable to owners of the parent and higher earnings per share. The company maintained its full-year forecast, plans to lift annual dividends to ¥108 per share, and completed the absorption-type merger of DAIICHI TOGYO CO., LTD., moves that together suggest continued earnings growth, a shareholder‑friendly capital policy, and ongoing portfolio streamlining to support long‑term competitiveness.

Title: WELLNEO SUGAR Lifts Nine-Month Profit, Confirms Outlook and Higher Dividend

MainPoint1: WELLNEO SUGAR posted double-digit revenue and profit growth for the first nine months of FY2025, with earnings per share also increasing.

MainPoint2: The company kept its full-year forecast, raised planned annual dividends, and streamlined its structure via an absorption-type merger.

The most recent analyst rating on (JP:2117) stock is a Buy with a Yen3404.00 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 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.